Document:

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                      REVLON CONSUMER PRODUCTS CORPORATION

                        12% Senior Secured Notes Due 2005

                                       and

                   12% Senior Secured Exchange Notes Due 2005

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

                                    INDENTURE

                          Dated as of November 26, 2001

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

                            WILMINGTON TRUST COMPANY

                                     Trustee

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                                TABLE OF CONTENTS

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ARTICLE I Definitions and Incorporation by Reference.....................................................1

     SECTION 1.01.    Definitions........................................................................1
     SECTION 1.02.    Other Definitions.................................................................18
     SECTION 1.03.    Incorporation by Reference of Trust Indenture Act.................................19
     SECTION 1.04.    Rules of Construction.............................................................19

ARTICLE II The Securities...............................................................................20

     SECTION 2.01.    Amount of Securities..............................................................20
     SECTION 2.02.    Form and Dating...................................................................21
     SECTION 2.03.    Execution and Authentication......................................................21
     SECTION 2.04.    Registrar and Paying Agent........................................................22
     SECTION 2.05.    Paying Agent To Hold Money in Trust...............................................22
     SECTION 2.06.    Securityholder Lists..............................................................23
     SECTION 2.07.    Replacement Securities............................................................23
     SECTION 2.08.    Outstanding Securities............................................................23
     SECTION 2.09.    Temporary Securities..............................................................24
     SECTION 2.10.    Cancellation......................................................................24
     SECTION 2.11.    CUSIP Numbers.....................................................................24
     SECTION 2.12.    Defaulted Interest................................................................24

ARTICLE III Redemption..................................................................................24

     SECTION 3.01.    Notices to Trustee................................................................24
     SECTION 3.02.    Selection of Securities To Be Redeemed............................................25
     SECTION 3.03.    Notice of Redemption..............................................................25
     SECTION 3.04.    Effect of Notice of Redemption....................................................26
     SECTION 3.05.    Deposit of Redemption Price.......................................................26
     SECTION 3.06.    Securities Redeemed in Part.......................................................26

ARTICLE IV Covenants....................................................................................27

     SECTION 4.01.    Payment of Securities.............................................................27
     SECTION 4.02.    SEC Reports.......................................................................27
     SECTION 4.03.    Limitation on Debt................................................................27
     SECTION 4.04.    Limitation on Liens...............................................................30
     SECTION 4.05.    Limitation on Restricted Payments.................................................32
     SECTION 4.06.    Limitation on Restrictions on Distributions from Subsidiaries.....................36
     SECTION 4.07.    Limitation on Sales of Assets and Subsidiary Stock................................37
     SECTION 4.08.    Limitation on Transactions with Affiliates........................................42
     SECTION 4.09.    Change of Control.................................................................43
     SECTION 4.10.    Additional Guarantees; Releases of Guarantors.....................................45
     SECTION 4.11.    Amendment to Security Documents...................................................45

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     SECTION 4.12.    Additional Security Documents.....................................................46
     SECTION 4.13.    Compliance Certificate............................................................46
     SECTION 4.14.    Further Instruments and Acts......................................................46

ARTICLE V Successor Company.............................................................................47

     SECTION 5.01.    When Company May Merge or Transfer Assets.........................................47

ARTICLE VI Defaults and Remedies........................................................................48

     SECTION 6.01.    Events of Default.................................................................48
     SECTION 6.02.    Acceleration......................................................................50
     SECTION 6.03.    Other Remedies....................................................................51
     SECTION 6.04.    Waiver of Past Defaults...........................................................51
     SECTION 6.05.    Control by Majority...............................................................51
     SECTION 6.06.    Limitation on Suits...............................................................51
     SECTION 6.07.    Rights of Holders To Receive Payment..............................................52
     SECTION 6.08.    Collection Suit by Trustee........................................................52
     SECTION 6.09.    Trustee May File Proofs of Claim..................................................52
     SECTION 6.10.    Priorities........................................................................52
     SECTION 6.11.    Undertaking for Costs.............................................................53
     SECTION 6.12.    Waiver of Stay or Extension Laws..................................................53

ARTICLE VII Trustee.....................................................................................53

     SECTION 7.01.    Duties of Trustee.................................................................53
     SECTION 7.02.    Rights of Trustee.................................................................54
     SECTION 7.03.    Individual Rights of Trustee......................................................55
     SECTION 7.04.    Trustee's Disclaimer..............................................................56
     SECTION 7.05.    Notice of Defaults................................................................56
     SECTION 7.06.    Reports by Trustee to Holders.....................................................56
     SECTION 7.07.    Compensation and Indemnity........................................................56
     SECTION 7.08.    Replacement of Trustee............................................................57
     SECTION 7.09.    Successor Trustee by Merger.......................................................58
     SECTION 7.10.    Eligibility; Disqualification.....................................................58
     SECTION 7.11.    Preferential Collection of Claims Against Company.................................58

ARTICLE VIII Discharge of Indenture; Defeasance.........................................................58

     SECTION 8.01.    Discharge of Liability on Securities; Defeasance..................................58
     SECTION 8.02.    Conditions to Defeasance..........................................................59
     SECTION 8.03.    Application of Trust Money........................................................61
     SECTION 8.04.    Repayment to Company..............................................................61
     SECTION 8.05.    Indemnity for Government Obligations..............................................61
     SECTION 8.06.    Reinstatement.....................................................................61

ARTICLE IX Amendments...................................................................................62

     SECTION 9.01.    Without Consent of Holders........................................................62
     SECTION 9.02.    With Consent of Holders...........................................................62

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     SECTION 9.03.    Compliance with Trust Indenture Act...............................................63
     SECTION 9.04.    Revocation and Effect of Consents and Waivers.....................................63
     SECTION 9.05.    Notation on or Exchange of Securities.............................................64
     SECTION 9.06.    Trustee To Sign Amendments........................................................64
     SECTION 9.07.    Payment for Consent...............................................................64

ARTICLE X Guarantees....................................................................................65

     SECTION 10.01.   Indenture Guarantees..............................................................65
     SECTION 10.02.   Guaranty Absolute.................................................................65
     SECTION 10.03.   Limitation on Liability...........................................................67
     SECTION 10.04.   Waivers...........................................................................67
     SECTION 10.05.   Waiver of Subrogation and Contribution............................................67
     SECTION 10.06.   No Waiver; Cumulative Remedies....................................................68
     SECTION 10.07.   Successors and Assigns............................................................68
     SECTION 10.08.   Severability......................................................................68

ARTICLE XI Security Arrangements........................................................................68

     SECTION 11.01.   Collateral and Security Documents.................................................68
     SECTION 11.02.   Release of Collateral.............................................................69
     SECTION 11.03.   Opinions as to Recording.  .......................................................70

ARTICLE XII Miscellaneous...............................................................................70

     SECTION 12.01.   Trust Indenture Act Controls......................................................70
     SECTION 12.02.   Notices...........................................................................70
     SECTION 12.03.   Communication by Holders with Other Holders.......................................71
     SECTION 12.04.   Certificate and Opinion as to Conditions Precedent................................71
     SECTION 12.05.   Statements Required in Certificate or Opinion.....................................72
     SECTION 12.06.   When Securities Disregarded.......................................................72
     SECTION 12.07.   Rules by Trustee, Paying Agent and Registrar......................................72
     SECTION 12.08.   Legal Holidays....................................................................72
     SECTION 12.09.   Governing Law.....................................................................72
     SECTION 12.10.   No Recourse Against Others........................................................73
     SECTION 12.11.   Successors........................................................................73
     SECTION 12.12.   Multiple Originals................................................................73
     SECTION 12.13.   Table of Contents; Headings.......................................................73
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Appendix A    -    Provisions Relating to Initial Securities and Exchange
                   Securities
Exhibit 1 to
  Appendix A  -    Form of Initial Security
Exhibit A     -    Form of Exchange Security
Exhibit B     -    Form of Transfer Letter of Representation
Exhibit C     -    Form of Subsidiary Supplemental Indenture
Schedule I    -    Permitted Transactions
Schedule II   -    Security Documents
Schedule III  -    Other Existing Debt

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                                    INDENTURE dated as of November 26, 2001,
                           among REVLON CONSUMER PRODUCTS CORPORATION, a
                           Delaware corporation (the "Company"), the Guarantors
                           identified on the signature pages hereto and
                           WILMINGTON TRUST COMPANY, as trustee (the "Trustee").

                  Each party agrees as follows for the benefit of the other
party and for the equal and ratable benefit of the Holders of the Securities:

                                    ARTICLE I

                   Definitions and Incorporation by Reference

                  SECTION 1.01. Definitions.

                  "Additional Securities" means, subject to the Company's
compliance with Section 4.03, 12% Senior Secured Notes Due 2005 issued from time
to time after the Issue Date under the terms of this Indenture (except for
Securities authenticated and delivered upon registration of transfer of, or in
exchange for, or in lieu of, Original Securities pursuant to Section 2.07, 2.08,
2.09 or 3.06 or Appendix A) in an aggregate principal amount of up to
$300,000,000.

                  "Affiliate" of any specified Person means (i) any other Person
which, directly or indirectly, is in control of, is controlled by or is under
common control with such specified Person or (ii) any other Person who is a
director or officer (A) of such specified Person, (B) of any Subsidiary of such
specified Person or (C) of any Person described in clause (i) above. For
purposes of this definition, control of a Person means the power, direct or
indirect, to direct or cause the direction of the management and policies of
such Person whether by contract or otherwise; and the terms "controlling" and
"controlled" have meanings correlative to the foregoing.

                  "Applicable Debt" means:

                  (1) in respect of any asset that is the subject of an Asset
Disposition at a time when such asset is included in the Collateral, Pari Passu
Debt or Debt of a Subsidiary or any other non-Debt obligation that, in each
case, is secured at such time by Collateral under a Lien that takes priority
over the Lien of the Security Documents; or

                  (2) in respect of any asset that is the subject of an Asset
Disposition at a time when such asset is not included in the Collateral but is
owned, directly or indirectly, by a Foreign Subsidiary the stock of which is
included in the Collateral, any Debt or other obligation referred to in clause
(1) above, any Debt of such Foreign Subsidiary or any Debt of any other Foreign
Subsidiary that is a Wholly Owned Recourse Subsidiary, provided that such
Foreign Subsidiary has not guaranteed unsecured Debt of the Company or a
Subsidiary Guarantor; or

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                  (3) in respect of any other asset, any Pari Passu Debt or Debt
of a Wholly Owned Recourse Subsidiary or additionally, in the case of an Asset
Disposition by a Subsidiary that is not a Wholly Owned Recourse Subsidiary, Debt
of such Subsidiary.

                  "Applicable Pari Passu Debt" means:

                  (1) in respect of any asset that is the subject of an Asset
Disposition at a time when such asset is included in the Collateral, Pari Passu
Debt that is secured at such time by Collateral; or

                  (2) in respect of any asset that is the subject of an Asset
Disposition at a time when such asset is not included in the Collateral but is
owned, directly or indirectly, by a Foreign Subsidiary the stock of which is
included in the Collateral, Pari Passu Debt that is secured at such time by
Collateral; or

                  (3) in respect of any other asset, Pari Passu Debt.

                  "Applicable Premium" means, with respect to a Security at any
time, the greater of (i) 1.0% of the then outstanding principal amount of such
Security at such time and (ii) the excess of (A) the present value of the
required interest and principal payments due on such Security, computed using a
discount rate equal to the Treasury Rate plus 75 basis points, over (B) the then
outstanding principal amount of such Security at such time.

                  "Asset Disposition" means any sale, lease, transfer or other
disposition (or series of related sales, leases, transfers or dispositions) of
shares of Capital Stock of a Subsidiary of the Company (other than directors'
qualifying shares and other than Capital Stock of a Non-Recourse Subsidiary),
property or other assets (each referred to for the purposes of this definition
as a "disposition") by the Company or any of its Subsidiaries (other than a
Non-Recourse Subsidiary) (including any disposition by means of a merger,
consolidation or similar transaction) other than (i) a disposition by a
Subsidiary of the Company to the Company or by the Company or a Subsidiary of
the Company to a Wholly Owned Recourse Subsidiary, (ii) a disposition of
property or assets by the Company or its Subsidiaries at fair market value in
the ordinary course of business, (iii) a disposition by the Company or its
Subsidiaries of obsolete assets in the ordinary course of business, (iv) a
disposition subject to or permitted by Section 4.05, (v) an issuance of employee
stock options and (vi) a disposition by the Company or its Subsidiaries in which
the Company or its Subsidiaries receive as consideration Capital Stock of (or
similar interests in) a Person engaged in, or assets that will be used in, the
businesses of the Company and its Wholly Owned Recourse Subsidiaries, or
additionally, in the case of a disposition by a Subsidiary of the Company that
is not a Wholly Owned Recourse Subsidiary, the business of such Subsidiary,
existing on the Issue Date or in businesses reasonably related thereto, as
determined by the Board of Directors of the Company, the determination of which
shall be conclusive and evidenced by a resolution of the Board of Directors of
the Company; provided, that if such disposition involves assets consisting of
Collateral, such Capital Stock is pledged to the Collateral Agent as Collateral,
subject to Permitted Liens and the Collateral Agency Agreement.

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                  "Bank Debt" means any and all amounts payable by the Company
or any of its Subsidiaries under or in respect of the Credit Agreement or any
Refinancing thereof, or any other agreements with lenders party to the
foregoing, including principal, premium (if any), interest (including interest
accruing on or after the filing of any petition in bankruptcy or for
reorganization relating to the Company), fees, charges, expenses, reimbursement
obligations, Guarantees and all other amounts payable thereunder or in respect
thereof; provided, however, that nothing in this definition shall permit the
Company or any of its Subsidiaries to Issue any Debt that is not permitted
pursuant to Section 4.03.

                  "Board of Directors" means, with respect to any Person, the
Board of Directors of such Person or any committee thereof duly authorized to
act on behalf of such Board of Directors.

                  "Business Day" means each day which is not a Legal Holiday.

                  "Capital Lease Obligations" of a Person means any obligation
which is required to be classified and accounted for as a capital lease on the
face of a balance sheet of such Person prepared in accordance with GAAP; the
amount of such obligation shall be the capitalized amount thereof, determined in
accordance with GAAP; and the Stated Maturity thereof shall be the date of the
last payment of rent or any other amount due under such lease prior to the first
date upon which such lease may be terminated by the lessee without payment of a
penalty.

                  "Capital Stock" of any Person means any and all shares,
interests, rights to purchase, warrants, options, participations or other
equivalents of or interests in (however designated) equity of such Person,
including any Preferred Stock, but excluding any debt securities convertible
into or exchangeable for such equity.

                  "Change of Control" means the occurrence of any of the
following events:

                  (i) any "Person" (as such term is used in Sections 13(d) and
14(d) of the Exchange Act), other than one or more Permitted Holders, is or
becomes the beneficial owner (as defined in Rules 13d-3 and 13d-5 under the
Exchange Act, except that a Person shall be deemed to have "beneficial
ownership" of all shares that any such Person has the right to acquire, whether
such right is exercisable immediately or only after the passage of time),
directly or indirectly, of more than 35% of the total voting power of the Voting
Stock of the Company; provided, however, that the Permitted Holders
"beneficially own" (as so defined), directly or indirectly, in the aggregate a
lesser percentage of the total voting power of the Voting Stock of the Company
than such other Person and do not have the right or ability by voting power,
contract or otherwise to elect or designate for election a majority of the Board
of Directors of the Company (for the purposes of this clause (i), such other
Person shall be deemed to beneficially own any Voting Stock of a specified
corporation held by a parent corporation, if such other Person beneficially
owns, directly or indirectly, more than 35% of the voting power of the Voting
Stock of such parent corporation and the Permitted Holders beneficially own,
directly or indirectly, in the aggregate a lesser percentage of the voting power
of the

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Voting Stock of such parent corporation and do not have the right or ability by
voting power, contract or otherwise to elect or designate for election a
majority of the Board of Directors of such parent corporation); or

                  (ii). during any period of two consecutive years, individuals
who at the beginning of such period constituted the Board of Directors of the
Company (together with any new directors whose election by such Board of
Directors or whose nomination for election by the shareholders of the Company
was approved by a vote of 66-2/3% of the directors of the Company then still in
office who were either directors at the beginning of such period or whose
election or nomination for election was previously so approved) cease for any
reason to constitute a majority of the Board of Directors of the Company then in
office.

                  "Code" means the Internal Revenue Code of 1986, as amended.

                  "Collateral" means all property and assets that from time to
time secure the Securities pursuant to the applicable Security Documents and the
Collateral Agency Agreement.

                  "Collateral Agency Agreement" means the Amended and Restated
Collateral Agency Agreement to be executed and delivered pursuant to the Escrow
Agreement by the Company, the Trustee, JPMorgan Chase Bank, as administrative
agent under the Credit Agreement and as administrative agent for the benefit of
the holders of the Bank Obligations referred to therein, and the Collateral
Agent, as the same may be amended, restated, supplemented or otherwise modified
from time to time.

                  "Collateral Agent" means Wilmington Trust Company, in its
capacity as the "Note Collateral Agent" under and as defined in the Collateral
Agency Agreement for the benefit of the holders of the Note Obligations (as
defined therein), until a successor replaces it in accordance with the
applicable provisions of the Collateral Agency Agreement, and thereafter means
such successor.

                  "Company" means Revlon Consumer Products Corporation, a
Delaware corporation, until a successor replaces it and, thereafter, means the
successor and, for purposes of any provision contained herein and required by
the TIA, each other obligor on the indenture securities.

                  "Consolidated EBITDA Coverage Ratio" means, for any period,
the ratio of (i) the aggregate amount of EBITDA for such period to (ii)
Consolidated Interest Expense for such period; provided, however, that (1) if
the Company or any Subsidiary of the Company has Issued any Debt since the
beginning of such period that remains outstanding or if the transaction giving
rise to the need to calculate the Consolidated EBITDA Coverage Ratio is an
Issuance of Debt, or both, EBITDA and Consolidated Interest Expense for such
period shall be calculated after giving effect on a pro forma basis to such Debt
as if such Debt had been Issued on the first day of such period and the
discharge of any other Debt Refinanced or otherwise discharged with the proceeds
of such new Debt as if such discharge had occurred on the first day of such
period, (2) if

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since the beginning of such period the Company or any Subsidiary of the Company
shall have made any Asset Disposition, EBITDA for such period shall be reduced
by an amount equal to the EBITDA (if positive) directly attributable to the
assets which are the subject of such Asset Disposition for such period, or
increased by an amount equal to the EBITDA (if negative), directly attributable
thereto for such period and Consolidated Interest Expense for such period shall
be reduced by an amount equal to the Consolidated Interest Expense directly
attributable to any Debt of the Company or any Subsidiary of the Company
Refinanced or otherwise discharged with respect to the Company and its
continuing Subsidiaries in connection with such Asset Dispositions for such
period (or if the Capital Stock of any Subsidiary of the Company is sold, the
Consolidated Interest Expense for such period directly attributable to the Debt
of such Subsidiary to the extent the Company and its continuing Subsidiaries are
no longer liable for such Debt after such sale) and (3) if since the beginning
of such period the Company or any Subsidiary of the Company (by merger or
otherwise) shall have made an Investment in any Subsidiary of the Company (or
any Person which becomes a Subsidiary of the Company) or an acquisition of
assets, including any acquisition of assets occurring in connection with a
transaction causing a calculation to be made hereunder, which constitutes all of
an operating unit of a business, EBITDA and Consolidated Interest Expense for
such period shall be calculated after giving pro forma effect thereto, as if
such Investment or acquisition occurred on the first day of such period. For
purposes of this definition, whenever pro forma effect is to be given to an
acquisition of assets, the amount of income or earnings relating thereto, and
the amount of Consolidated Interest Expense associated with any Debt Issued in
connection therewith, the pro forma calculations shall be determined in good
faith by a responsible financial or accounting Officer of the Company. If any
Debt bears a floating rate of interest and is being given pro forma effect, the
interest on such Debt shall be calculated as if the rate in effect on the date
of determination had been the applicable rate for the entire period.

                  "Consolidated Interest Expense" means, for any period, the sum
of (a) the interest expense, net of any interest income, of the Company and its
consolidated Subsidiaries (other than Non-Recourse Subsidiaries) for such period
as determined in accordance with GAAP consistently applied, plus (b) Preferred
Stock dividends in respect of Preferred Stock of the Company or any Subsidiary
of the Company (other than a Non-Recourse Subsidiary) held by Persons other than
the Company or a Wholly Owned Recourse Subsidiary, plus (c) the cash
contributions to an employee stock ownership plan of the Company and its
Subsidiaries (other than Non-Recourse Subsidiaries) to the extent such
contributions are used by an employee stock ownership plan to pay interest.

                  "Consolidated Net Income" means with respect to any Person,
for any period, the consolidated net income (or loss) of such Person and its
consolidated Subsidiaries for such period as determined in accordance with GAAP,
adjusted to the extent included in calculating such net income (or loss), by
excluding (i) all extraordinary gains or losses; (ii) the portion of net income
(or loss) of such Person and its consolidated Subsidiaries attributable to
minority interests in unconsolidated Persons except to the extent that, in the
case of net income, cash dividends or distributions have actually been received
by such Person or one of its consolidated Subsidiaries (subject,

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in the case of a dividend or distribution received by a Subsidiary of such
Person, to the limitations contained in clause (v) below) and, in the case of
net loss, such Person or any Subsidiary of such Person has actually contributed,
lent or transferred cash to such unconsolidated Person; (iii) net income (or
loss) of any other Person attributable to any period prior to the date of
combination of such other Person with such Person or any of its Subsidiaries on
a "pooling of interests" basis; (iv) net gains or losses in respect of
dispositions of assets by such Person or any of its Subsidiaries (including
pursuant to a sale-and-leaseback arrangement) other than in the ordinary course
of business; (v) the net income of any Subsidiary of such Person to the extent
that the declaration of dividends or distributions by that Subsidiary of that
income is not at the time permitted, directly or indirectly, by operation of the
terms of its charter or any agreement, instrument, judgment, decree, order,
statute, rule or governmental regulations applicable to that Subsidiary or its
shareholders; (vi) any net income or loss of any Non-Recourse Subsidiary, except
that such Person's equity in the net income of any such Non-Recourse Subsidiary
for such period shall be included in such Consolidated Net Income up to the
aggregate amount of cash actually distributed by such Non-Recourse Subsidiary
during such period to such Person as a dividend or other distribution; and (vii)
the cumulative effect of a change in accounting principles; provided, however,
that in using Consolidated Net Income for purposes of calculating the
Consolidated EBITDA Coverage Ratio at any time, net income of a Subsidiary of
the type described in clause (v) of this definition shall not be excluded.

                  "Consolidated Net Worth" of any Person means, at any date, all
amounts which would, in conformity with GAAP, be included under shareholders'
equity on a consolidated balance sheet of such Person as at such date, less (x)
any amounts attributable to Redeemable Stock and (y) any amounts attributable to
Exchangeable Stock.

                  "Credit Agreement" means the Second Amended and Restated
Credit Agreement to be executed and delivered as of the date of the Collateral
Agency Agreement by and among the Company, JPMorgan Chase Bank, Citibank, N.A.
and others, as agents, and the lenders named therein, as the same may be
amended, restated, supplemented or otherwise modified from time to time.

                  "Debt" of any Person means, without duplication,

                  (i) the principal of and premium (if any) in respect of (A)
indebtedness of such Person for money borrowed and (B) indebtedness evidenced by
notes, debentures, bonds or other similar instruments for the payment of which
such Person is responsible or liable;

                  (ii) all Capital Lease Obligations of such Person;

                  (iii) all obligations of such Person issued or assumed as the
deferred purchase price of property, all conditional sale obligations of such
Person and all obligations of such Person under any title retention agreement
(but excluding trade

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accounts payable and other accrued current liabilities arising in the ordinary
course of business);

                  (iv) all obligations of such Person for the reimbursement of
any obligor on any letter of credit, banker's acceptance or similar credit
transaction (other than obligations with respect to letters of credit securing
obligations (other than obligations described in (i) through (iii) above)
entered into in the ordinary course of business of such Person to the extent
such letters of credit are not drawn upon or, if and to the extent drawn upon,
such drawing is reimbursed no later than the third Business Day following
receipt by such Person of a demand for reimbursement following payment on the
letter of credit);

                  (v) the amount of all obligations of such Person with respect
to the redemption, repayment (including liquidation preference) or other
repurchase of, in the case of a Subsidiary of the Company, any Preferred Stock
and, in the case of any other Person, any Redeemable Stock (but excluding in
each case any accrued dividends);

                  (vi) all obligations of the type referred to in clauses (i)
through (v) of other Persons and all dividends of other Persons for the payment
of which, in either case, such Person is responsible or liable, directly or
indirectly, as obligor, guarantor or otherwise, including Guarantees of such
obligations and dividends; and

                  (vii) all obligations of the type referred to in clauses (i)
through (vi) of other Persons secured by any Lien on any property or asset of
such Person (whether or not such obligation is assumed by such Person), the
amount of such obligation being deemed to be the lesser of the value of such
property or assets or the amount of the obligation so secured.

                  "Default" means any event which is, or after notice or passage
of time or both would be, an Event of Default.

                  "Defaulting Subsidiary" means any Subsidiary of the Company
(other than a Non-Recourse Subsidiary) with respect to which an event described
under Section 6.01(6), 6.01(7), 6.01(8) or 6.01(9) has occurred and is
continuing.

                  "Depository" means, with respect to the Securities issuable or
issued in whole or in part in global form, The Depository Trust Company, until a
successor shall have been appointed and become such pursuant to the applicable
provisions of this Indenture and, thereafter, "Depository" shall mean or include
such successor.

                  "EBITDA" means, for any period, the Consolidated Net Income of
the Company for such period, plus the following to the extent included in
calculating such Consolidated Net Income: (i) income tax expense, (ii)
Consolidated Interest Expense, (iii) depreciation expense, (iv) amortization
expense, (v) all other noncash charges (excluding any noncash charge to the
extent that it requires an accrual of or a reserve for cash disbursements for
any future period) and (vi) foreign currency gains or losses.

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                  "Escrow Agent" means Wilmington Trust Company, in its capacity
as escrow agent under the Escrow Agreement until a successor replaces it in
accordance with the applicable provisions of the Escrow Agreement, and
thereafter means such successor.

                  "Escrow Agreement" means the Escrow Agreement dated as of
November 26, 2001, between the Company and the Escrow Agent, as the same may be
amended, restated, supplemented or otherwise modified from time to time.

                  "Exchange Act" means the Securities Exchange Act of 1934, as
amended.

                  "Exchangeable Stock" means any Capital Stock of a Person which
by its terms or otherwise is required to be exchanged or converted or is
exchangeable or convertible at the option of the holder into another security
(other than Capital Stock of such Person which is neither Exchangeable Stock nor
Redeemable Stock).

                  "Existing 8-1/8% Senior Securities" means the Company's 8-1/8%
Senior Notes Due 2006 and any securities exchanged therefor.

                  "Existing 9% Senior Securities" means the Company's 9% Senior
Notes Due 2006 and any securities exchanged therefor.

                  "Existing Senior Subordinated Securities" means the Company's
8-5/8% Senior Subordinated Notes Due 2008 and any securities exchanged therefor.

                  "Foreign Subsidiary" means any Subsidiary of the Company which
(i) is organized under the laws of any jurisdiction outside of the United
States, (ii) is organized under the laws of Puerto Rico or the U.S. Virgin
Islands, (iii) has substantially all its operations outside of the United
States, or (iv) has substantially all its operations in Puerto Rico or the U.S.
Virgin Islands.

                  "GAAP" means generally accepted accounting principles in the
United States, as in effect from time to time, except that for purposes of
calculating the Consolidated EBITDA Coverage Ratio, it shall mean generally
accepted accounting principles in the United States as in effect on the Issue
Date.

                  "Guarantee" means any obligation, contingent or otherwise, of
any Person directly or indirectly guaranteeing any Debt or other obligation of
any other Person and any obligation, direct or indirect, contingent or
otherwise, of such Person (i) to purchase or pay (or advance or supply funds for
the purchase or payment of) such Debt or other obligation of such other Person
(whether arising by virtue of partnership arrangements, or by agreement to
keep-well, to purchase assets, goods, securities or services, to take-or-pay, or
to maintain financial statement conditions or otherwise) or (ii) entered into
for purposes of assuring in any other manner the obligee of such Debt or other
obligation of the payment thereof or to protect such obligee against loss in
respect thereof (in whole or in part); provided, however, that the term
"Guarantee" shall not include endorsements for

                                       8
<PAGE>

collection or deposit in the ordinary course of business. The term "Guarantee"
used as a verb has a corresponding meaning.

                  "Guarantors" means, collectively, the Parent Guarantor and the
Subsidiary Guarantors.

                  "Hedging Obligations" of any Person means the obligations of
such Person pursuant to any interest rate swap agreement, foreign currency
exchange agreement, interest rate collar agreement, option or futures contract
or other similar agreement or arrangement designed to protect such Person
against changes in interest rates or foreign exchange rates.

                  "Holder" or "Securityholder" means the Person in whose name a
Security is registered on the Registrar's books.

                  "Indenture" means this Indenture as amended or supplemented
from time to time.

                  "Indenture Guarantees" means the Parent Guarantee and the
Subsidiary Guarantees.

                  "Investment" in any Person means any loan or advance to, any
net payment on a Guarantee of, any acquisition of Capital Stock, equity
interest, obligation or other security of, or capital contribution or other
investment in, such Person. Investments shall exclude advances to customers and
suppliers in the ordinary course of business. The term "Invest" used as verb has
a corresponding meaning. For purposes of the definitions of "Non-Recourse
Subsidiary" and "Restricted Payment" and for purposes of Section 4.05, (i)
"Investment" shall include a designation after the Issue Date of a Subsidiary of
the Company as a Non-Recourse Subsidiary, and such Investment shall be valued at
an amount equal to the portion (proportionate to the Company's equity interest
in such Subsidiary) of the fair market value of the net assets of such
Subsidiary at the time that such Subsidiary is designated a Non-Recourse
Subsidiary; and (ii) any property transferred to or from a Non-Recourse
Subsidiary shall be valued at its fair market value at the time of such
transfer, in each case as determined in good faith by the Board of Directors of
the Company, and if such property so transferred (including in a series of
related transactions) has a fair market value, as so determined by the Board of
Directors, in excess of $10,000,000, such determination shall be confirmed by an
independent appraiser.

                  "Issue" means issue, assume, Guarantee, incur or otherwise
become liable for; provided, however, that any Debt or Capital Stock of a Person
existing at the time such Person becomes a Subsidiary of another Person (whether
by merger, consolidation, acquisition or otherwise) shall be deemed to be issued
by such Subsidiary at the time it becomes a Subsidiary of such other Person.

The term "Issuance" or Issued" has a corresponding meaning.

                  "Issue Date" means November 26, 2001.

                                       9
<PAGE>

                  "Legal Holiday" means a Saturday, a Sunday or a day on which
banking institutions are not required to be open in the State of New York or in
the state where the principal office of the Trustee is located.

                  "Lien" means any mortgage, pledge, security interest,
conditional sale or other title retention agreement or other similar lien.

                  "Mafco Consolidated Group" means the "Affiliated Group"
(within the meaning of Section 1504(a)(1) of the Code) of which Mafco Holdings
is the common parent.

                  "Mafco Holdings" means Mafco Holdings Inc., a Delaware
corporation, and its successors.

                  "Net Available Cash" from an Asset Disposition means cash
payments received (including any cash payments received by way of deferred
payment of principal pursuant to a note or installment receivable or otherwise,
but only as and when received, but excluding any other consideration received in
the form of assumption by the acquiring Person of Debt or other obligations
relating to such properties or assets or received in any other noncash form)
therefrom, in each case net of (i) all legal, title and recording tax expenses,
commissions and other fees and expenses incurred, and all Federal, state,
provincial, foreign and local taxes required or estimated in good faith to be
required to be accrued as a liability under GAAP, as a consequence of such Asset
Disposition, (ii) all payments made on any Debt which is secured by any assets
subject to such Asset Disposition, in accordance with the terms of any Lien upon
or other security agreement of any kind with respect to such assets, or which
must by its terms, or in order to obtain a necessary consent to such Asset
Disposition, or by applicable law be repaid out of the proceeds from or in
connection with such Asset Disposition and (iii) all distributions and other
payments required to be made to minority interest holders in Subsidiaries or
joint ventures as a result of such Asset Disposition; provided, however, that in
connection with an Asset Disposition to a Subsidiary of the Company (other than
a Wholly Owned Recourse Subsidiary), Net Available Cash will be deemed to be a
percentage of Net Available Cash (as calculated above) equal to (A) 100% minus
(B) the Company's percentage ownership in such Subsidiary.

                  "Net Cash Proceeds," with respect to any issuance or sale of
Capital Stock, means the cash proceeds of such issuance or sale net of
attorneys' fees, accountants' fees, underwriters' or placement agents' fees,
discounts or commissions and brokerage, consultant and other fees actually
incurred in connection with such issuance or sale and net of taxes paid or
estimated in good faith to be payable as a result thereof.

                  "Non-Convertible Capital Stock" means, with respect to any
corporation, any non-convertible Capital Stock of such corporation and any
Capital Stock of such corporation convertible solely into non-convertible common
stock of such corporation; provided, however, that Non-Convertible Capital Stock
shall not include any Redeemable Stock or Exchangeable Stock.

                                       10
<PAGE>

                  "Non-Recourse Debt" means Debt or that portion of Debt (i) as
to which neither the Company nor its Subsidiaries (other than a Non-Recourse
Subsidiary) (A) provides credit support (including any undertaking, agreement or
instrument which would constitute Debt), (B) is directly or indirectly liable or
(C) constitutes the lender and (ii) no default with respect to which (including
any rights which the holders thereof may have to take enforcement action against
the assets of a Non-Recourse Subsidiary) would permit (upon notice, lapse of
time or both) any holder of any other Debt of the Company or its Subsidiaries
(other than Non-Recourse Subsidiaries) to declare a default on such other Debt
or cause the payment thereof to be accelerated or payable prior to its Stated
Maturity.

                  "Non-Recourse Subsidiary" means a Subsidiary of the Company
(i) which has been designated as such by the Company, (ii) which has no Debt
other than Non-Recourse Debt and (iii) which is in the same line of business as
the Company and its Wholly Owned Recourse Subsidiaries existing on the Issue
Date or in businesses reasonably related thereto.

                  "Obligations" means (a) the full and punctual payment of
Principal of and interest, if any, on the Securities when due, whether at
maturity, by acceleration, by redemption or otherwise, and all other monetary
obligations of the Company under this Indenture and the Securities, (b) the full
and punctual performance of all other obligations of the Company under this
Indenture and the Securities and (c) all other Note Obligations, as defined in
the Collateral Agency Agreement.

                  "Officer" means the Chairman of the Board, the President, any
Vice President, the Treasurer, an Assistant Treasurer or the Secretary or an
Assistant Secretary of the Company.

                  "Officers' Certificate" means a certificate signed by the
Chairman of the Board, Vice Chairman, the President or a Vice President
(regardless of Vice Presidential designation), and by the Treasurer, an
Assistant Treasurer, Secretary or an Assistant Secretary, of the Company and
delivered to the Trustee. One of the Officers signing an Officers' Certificate
given pursuant to Section 4.13 shall be the principal executive, financial or
accounting officer of the Company.

                  "Opinion of Counsel" means a written opinion from legal
counsel who is reasonably acceptable to the Trustee. The counsel may be an
employee of or counsel to the Company (or to its Parent or one of its
Subsidiaries or the Trustee.)

                  "Parent" means Revlon, Inc., a Delaware corporation, and any
other Person which acquires or owns directly or indirectly 80% or more of the
voting power of the Voting Stock of the Company.

                  "Parent Guarantee" means an Indenture Guarantee on the terms
set forth in Article X by the Parent Guarantor.

                                       11
<PAGE>

                  "Parent Guarantor" means Revlon, Inc., a Delaware corporation,
and its successors.

                  "Pari Passu Debt" means the following obligations, whether
outstanding on the Issue Date or thereafter created, incurred or assumed, and
whether at any time owing actually or contingent:

                  (i) all obligations consisting of the Bank Debt, the
         Securities, the Existing 9% Senior Securities and the Existing 8-1/8%
         Senior Securities;

                  (ii) all obligations consisting of the principal of and
         premium (if any) and accrued and unpaid interest (including interest
         accruing on or after the filing of any petition in bankruptcy or for
         reorganization relating to the Company), and all fees, expenses and
         other amounts in respect of (A) indebtedness of the Company for money
         borrowed and (B) indebtedness evidenced by notes, debentures, bonds or
         other similar instruments for the payment of which the Company is
         responsible or liable;

                  (iii) all Capital Lease Obligations of the Company;

                  (iv) all obligations of the Company (A) for the reimbursement
         of any obligor on any letter of credit, banker's acceptance or similar
         credit transaction, (B) under interest rate swaps, caps, collars,
         options and similar arrangements and foreign currency hedges entered
         into in respect of any obligations described in clauses (i), (ii) and
         (iii) or (C) Issued or assumed as the deferred purchase price of
         property and all conditional sale obligations of the Company and all
         obligations of the Company under any title retention agreement;

                  (v) all obligations of other Persons of the type referred to
         in clauses (ii), (iii) and (iv) and all dividends of other persons for
         the payment of which, in either case, the Company is responsible or
         liable as obligor, guarantor or otherwise, including by means of any
         agreement which has the economic effect of a Guarantee; and

                  (vi)all obligations consisting of Refinancings of any
         obligation described in clauses (i), (ii), (iii), (iv) or (v);

unless, in the case of any particular obligation, in the instrument creating or
evidencing the same or pursuant to which the same is outstanding, it is provided
that such obligations are subordinate in right of payment to the Securities.
However, Pari Passu Debt will not include (1) any obligation of the Company to
any Subsidiary of the Company or any Permitted Affiliate Debt, (2) any liability
for Federal, state, local or other taxes owed or owing by the Company, (3) any
accounts payable or other liability to trade creditors arising in the ordinary
course of business (including Guarantees thereof or instruments evidencing such
liabilities), (4) any indebtedness, Guarantee or obligation of the Company
(including the Existing Senior Subordinated Securities) that is subordinate or
junior in any respect to any other indebtedness, Guarantee or obligation of the
Company

                                       12
<PAGE>

or (5) that portion of any Debt which at the time of Issuance is issued in
violation of this Indenture; provided, however, that in the case of this clause
(5), (A) any Debt Issued to any person who had no actual knowledge that the
Issuance of such Debt was not permitted under this Indenture and who received on
the date of Issuance thereof a certificate from an officer of the Company to the
effect that the Issuance of such Debt would not violate this Indenture shall
constitute Pari Passu Debt and (B) any Debt arising from the honoring by a bank
or other financial institution of a check, draft or similar instrument
inadvertently (except in the case of daylight overdrafts) drawn against
insufficient funds in the ordinary course of business shall constitute Pari
Passu Debt provided that such Debt would normally be extinguished within three
Business Days of Issuance.

                  "Permitted Affiliate" means any individual that is a director
or officer of the Company, of Parent, of a Subsidiary of the Company or of an
Unrestricted Affiliate; provided, however, that such individual is not also a
director or officer of Mafco Holdings or any Person that controls Mafco
Holdings.

                  "Permitted Affiliate Debt" means (i) Debt Issued to an
Affiliate of the Company representing amounts owing by the Company pursuant to
the Tax Sharing Agreement and (ii) Debt Issued to an Affiliate of the Company to
the extent of cash actually received by the Company, which cash either is
required to be advanced or contributed to the Company pursuant to the terms of
the Credit Agreement or any Refinancing thereof or, if not advanced or
contributed to the Company, would lead to a default under the Credit Agreement
or any Refinancing thereof.

                  "Permitted Holders" means Ronald O. Perelman (or in the event
of his incompetence or death, his estate, heirs, executor, administrator,
committee or other personal representative (collectively, "heirs")) or any
Person controlled, directly or indirectly, by Ronald O. Perelman or his heirs.

                  "Permitted Transactions" means (i) any transaction or series
of similar transactions (including the purchase, sale, lease or exchange of any
property or the rendering of any service) between the Company or any Subsidiary
of the Company, on the one hand, and any Affiliate of the Company or any legal
or beneficial owner of 10% or more of the voting power of Voting Stock of the
Company or an Affiliate of any such owner, on the other hand, existing on, or
pursuant to an agreement in effect on, the Issue Date and disclosed in Schedule
I to this Indenture and any amendments thereto which do not adversely affect the
rights of the Holders and (ii) any Tax Sharing Agreement.

                  "Person" means any individual, corporation, partnership, joint
venture, association, joint-stock company, trust, unincorporated organization,
government or any agency or political subdivision thereof or any other entity.

                  "Preferred Stock," as applied to the Capital Stock of any
corporation, means Capital Stock of any class or classes (however designated)
which is preferred as to the payment of dividends, or as to the distribution of
assets upon any voluntary or

                                       13
<PAGE>

involuntary liquidation or dissolution of such corporation, over shares of
Capital Stock of any other class of such corporation.

                  "Primary First Lien Obligations" means at any time, the
obligations that are represented by the Person serving at that time as the
Controlling Party under (and as defined in) in the Collateral Agency Agreement,
as such obligations are identified in the definition of "Notice of an Actionable
Event" set forth in the Collateral Agency Agreement.

                  "Principal" of a Security as of any date means the principal
of the Security as of such date.

                  "Public Debt" means obligations of the Company or of a
Guarantor evidenced by bonds, debentures, notes and similar instruments issued
in a manner and pursuant to documentation customary in the intended market for
obligations publicly traded or traded in the high yield bond or other private
placement or similar market primarily among financial institutions (other than
any such obligations that are traded primarily among commercial banks).

                  "Public Equity Offering" means an underwritten public offering
of equity securities of the Company or Revlon, Inc. pursuant to an effective
registration statement under the Securities Act.

                  "Put Amount" as of any date means, with respect to each $1,000
principal amount of Securities, 101% of the outstanding principal amount thereof
as of the date of repurchase.

                  "QIB" means a "Qualified Institutional Buyer" under Rule 144A.

                  "Redeemable Stock" means any Capital Stock that by its terms
or otherwise is required to be redeemed on or prior to the first anniversary of
the Stated Maturity of the Securities or is redeemable at the option of the
holder thereof at any time on or prior to the first anniversary of the Stated
Maturity of the Securities.

                  "Refinance" means, in respect of any Debt, to refinance,
extend, renew, refund, repay, prepay, redeem, defease or retire, or to issue
Debt in exchange or replacement for, such Debt. "Refinanced" and "Refinancing"
shall have correlative meanings.

                  "Refinancing Costs" means, with respect to any Debt being
Refinanced, any premium actually paid thereon and reasonable costs and expenses,
including underwriting discounts, in connection with such Refinancing.

                  "SEC" means the Securities and Exchange Commission.

                  "Securities Act" means the Securities Act of 1933, as amended.

                                       14
<PAGE>

                  "Security Documents" means, collectively, when executed and
delivered as of the date of the Collateral Agency Agreement, the pledge
agreements, security agreements and mortgages listed on Schedule II and all
other security documents hereinafter delivered to the Collateral Agent granting
a security interest in any assets of any Person to secure the Obligations, in
each case as the same may be amended, restated, supplemented or otherwise
modified from time to time.

                  "Significant Subsidiary" means (i) any Subsidiary (other than
a Non-Recourse Subsidiary) of the Company which at the time of determination
either (A) had assets which, as of the date of the Company's most recent
quarterly consolidated balance sheet, constituted at least 5% of the Company's
total assets on a consolidated basis as of such date, in each case determined in
accordance with GAAP, or (B) had revenues for the 12-month period ending on the
date of the Company's most recent quarterly consolidated statement of income
which constituted at least 5% of the Company's total revenues on a consolidated
basis for such period, or (ii) any Subsidiary of the Company (other than a
Non-Recourse Subsidiary) which, if merged with all Defaulting Subsidiaries (as
defined below) of the Company, would at the time of determination either (A)
have had assets which, as of the date of the Company's most recent quarterly
consolidated balance sheet, would have constituted at least 10% of the Company's
total assets on a consolidated basis as of such date or (B) have had revenues
for the 12-month period ending on the date of the Company's most recent
quarterly consolidated statement of income which would have constituted at least
10% of the Company's total revenues on a consolidated basis for such period
(each such determination being made in accordance with GAAP).

                  "Stated Maturity" means, with respect to any security, the
date specified in such security as the fixed date on which the principal of such
security is due and payable, including pursuant to any mandatory redemption
provision (but excluding any provision providing for the repurchase of such
security at the option of the holder thereof upon the happening of any
contingency).

                  "Subordinated Obligation" means any Debt of the Company
(whether outstanding on the date hereof or hereafter Issued) which is
subordinate or junior in right of payment to the Securities.

                  "Subsidiary" means, with respect to any Person, any
corporation, association, partnership or other business entity of which more
than 50% of the total voting power of shares of Capital Stock or other interests
(including partnership interests) entitled (without regard to the occurrence of
any contingency) to vote in the election of directors, managers or trustees
thereof is at the time owned, directly or indirectly, by (i) such Person, (ii)
such Person and one or more Subsidiaries of such Person or (iii) one or more
Subsidiaries of such Person.

                  "Subsidiary Guarantee" means an Indenture Guarantee on the
terms set forth in Article X by a Subsidiary Guarantor.

                                       15
<PAGE>

                  "Subsidiary Guarantors" means, collectively, the Subsidiaries
of the Company party to this Indenture and any Subsidiary that executes a
Subsidiary Guarantee pursuant to Section 4.10.

                  "Tax Sharing Agreement" means (i) that certain agreement dated
June 24, 1992, as amended, among the Company, certain of its Subsidiaries,
Revlon Holdings Inc., Revlon, Inc. and Mafco Holdings, and (ii) any other tax
allocation agreement between the Company or any of its Subsidiaries with any
direct or indirect shareholder of the Company with respect to consolidated or
combined tax returns including the Company or any of its Subsidiaries but only
to the extent that amounts payable from time to time by the Company or any such
Subsidiary under any such agreement do not exceed the corresponding tax payments
that the Company or such Subsidiary would have been required to make to any
relevant taxing authority had the Company or such Subsidiary not joined in such
consolidated or combined returns, but instead had filed returns including only
the Company or its Subsidiaries (provided that any such agreement may provide
that, if the Company or any such Subsidiary ceases to be a member of the
affiliated group of corporations of which Mafco Holdings is the common parent
for purposes of filing a consolidated Federal income tax return (such cessation,
a "Deconsolidation Event"), then the Company or such Subsidiary shall indemnify
such direct or indirect shareholder with respect to any Federal, state or local
income, franchise or other tax liability (including any related interest,
additions or penalties) imposed on such shareholder as the result of an audit or
other adjustment with respect to any period prior to such Deconsolidation Event
that is attributable to the Company, such Subsidiary or any predecessor business
thereof (computed as if the Company, such Subsidiary or such predecessor
business, as the case may be, were a stand-alone entity that filed separate tax
returns as an independent corporation), but only to the extent that any such tax
liability exceeds any liability for taxes recorded on the books of the Company
or such Subsidiary with respect to any such period).

                  "Temporary Cash Investments" means any of the following: (i)
any investment in direct obligations of the United States of America or any
agency thereof or obligations Guaranteed by the United States of America or any
agency thereof, in each case, maturing within 360 days of the date of
acquisition thereof, (ii) investments in time deposit accounts, certificates of
deposit and money market deposits maturing within 180 days of the date of
acquisition thereof issued by a bank or trust company (including the Trustee)
which is organized under the laws of the United States of America, any state
thereof or any foreign country recognized by the United States of America having
capital, surplus and undivided profits aggregating in excess of $250 million and
whose debt is rated "A" (or such similar equivalent rating) or higher by at
least one nationally recognized statistical rating organization (as defined in
Rule 436 under the Securities Act) or any money-market fund sponsored by any
registered broker dealer or mutual fund distributor, (iii) repurchase
obligations with a term of not more than 30 days for underlying securities of
the types described in clause (i) above entered into with a nationally
recognized broker-dealer, (iv) investments in commercial paper, maturing not
more than 90 days after the date of acquisition, issued by a corporation (other
than an Affiliate or Subsidiary of the Company) organized and in existence under
the laws of the

                                       16
<PAGE>

United States of America or any foreign country recognized by the United States
of America with a rating at the time as of which any investment therein is made
of "P-2" (or higher) according to Moody's Investors Service, Inc. or "A-2" (or
higher) according to Standard and Poor's Corporation, (v) securities with
maturities of six months or less from the date of acquisition backed by standby
or direct pay letters of credit issued by any bank satisfying the requirements
of clause (ii) above and (vi) securities with maturities of six months or less
from the date of acquisition issued or fully Guaranteed by any state,
commonwealth or territory of the United States of America, or by any political
subdivision or taxing authority thereof, and rated at least "A" by Standard &
Poor's Corporation or "A" by Moody's Investors Service, Inc.

                  "TIA" means the Trust Indenture Act of 1939 (15 U.S.C. ss.ss.
77aaa-77bbbb) as in effect on the Issue Date.

                  "Treasury Rate" means the yield to maturity at the time of
computation of United States Treasury securities with a constant maturity (as
compiled and published in the most recent Federal Reserve Statistical Release
H.15(519) which has become publicly available at least two Business Days prior
to the date fixed for redemption or, in the case of defeasance, prior to the
date of deposit (or, if such Statistical Release is no longer published, any
publicly available source of similar market data)) most nearly equal to the then
remaining average life to Stated Maturity of the Securities; provided, however,
that if the average life to Stated Maturity of the Securities is not equal to
the constant maturity of a United States Treasury security for which a weekly
average yield is given, the Treasury Rate shall be obtained by linear
interpolation (calculated to the nearest one-twelfth of a year) from the weekly
yields of United States Treasury securities for which such yields are given,
except that if the average life to Stated Maturity of the Securities is less
than one year, the weekly average yield on actually traded United States
Treasury securities adjusted to a constant maturity of one year shall be used.

                  "Trustee" means the party named as such in this Indenture in
its capacity as Trustee as described herein until a successor replaces it and,
thereafter, means the successor.

                  "Trust Officer" means any officer or assistant officer of the
Trustee assigned by the Trustee to administer its corporate trust matters.

                  "Uniform Commercial Code" means the New York Uniform
Commercial Code as in effect from time to time.

                  "Unrestricted Affiliate" means a Person (other than a
Subsidiary of the Company) controlled (as defined in the definition of an
"Affiliate") by the Company, in which no Affiliate of the Company (other than
(x) a Wholly Owned Recourse Subsidiary of the Company, (y) a Permitted Affiliate
and (z) another Unrestricted Affiliate) has an Investment.

                  "U.S. Dollar Equivalent" means, with respect to any monetary
amount in a currency other than U.S. dollars, at any time for determination
thereof, the amount of

                                       17
<PAGE>

U.S. dollars obtained by converting such foreign currency involved in such
computation into U.S. dollars at the spot rate for the purchase of U.S. dollars
with the applicable foreign currency as published in The Wall Street Journal in
the "Exchange Rates" column under the heading "Currency Trading" on the date two
Business Days prior to such determination. Except as described in Section 4.03,
whenever it is necessary to determine whether the Company has complied with any
covenant in this Indenture or a Default has occurred and an amount is expressed
in a currency other than U.S. dollars, such amount will be treated as the U.S.
Dollar Equivalent determined as of the date such amount is initially determined
in such currency.

                  "U.S. Government Obligations" means direct obligations (or
certificates representing an ownership interest in such obligations) of the
United States of America (including any agency or instrumentality thereof) for
the payment of which the full faith and credit of the United States of America
is pledged and which are not callable at the issuer's option.

                  "Voting Stock" of a corporation means all classes of Capital
Stock of such corporation then outstanding and normally entitled to vote in the
election of directors.

                  "Wholly Owned Recourse Subsidiary" means a Subsidiary of the
Company (other than a Non-Recourse Subsidiary) all the Capital Stock of which
(other than directors' qualifying shares) is owned by (i) the Company, (ii) the
Company and one or more Wholly Owned Recourse Subsidiaries or (iii) one or more
Wholly Owned Recourse Subsidiaries.

                  SECTION 1.02. Other Definitions.

                                                       Defined in
                        Term                             Section
"Bankruptcy Law"....................................     6.01
"covenant defeasance option"........................     8.01(b)
"CUSIP".............................................     2.11
"Custodian".........................................     6.01
"DTC"...............................................     4.01
"Event of Default"..................................     6.01
"Guaranteed Obligations"............................     10.01
"Indenture Documents"...............................     9.01
"legal defeasance option"...........................     8.01(b)
"Notice of Default".................................     6.01
"Offer".............................................     4.07(b)
"Offer Amount"......................................     4.07(c)(2)
"Offer Period"......................................     4.07(c)(2)
"Outstanding".......................................     2.08
"Paying Agent"......................................     2.04
"Permitted Liens"...................................     4.04(b)
"Purchase Date".....................................     4.07(c)(1)
"Registrar".........................................     2.04

                                       18
<PAGE>
                                                       Defined in
                        Term                             Section
"Restricted Contribution"...........................     4.05(a)(3)(e)
"Restricted Payment"................................     4.05
"Subsidiary Supplemental Indenture".................     4.10

                  SECTION 1.03. Incorporation by Reference of Trust Indenture
Act. Whenever this Indenture refers to a provision of the TIA, the provision is
incorporated by reference in and made a part of this Indenture. The following
TIA terms used in this Indenture have the following meanings:

                  "Commission" means the SEC.

                  "indenture securities" means the Securities.

                  "indenture security holder" means a Securityholder.

                  "indenture to be qualified" means this Indenture.

                  "indenture trustee" or "institutional trustee" means the
Trustee.

                  "obligor" on the indenture securities means the Company and
any other obligor on the indenture securities.

                  All other TIA terms used in this Indenture that are defined by
the TIA, defined by TIA reference to another statute or defined by SEC rule have
the meanings assigned to them by such definitions.

                  SECTION 1.04. Rules of Construction. Unless the context
otherwise requires:

                  (1) a term has the meaning assigned to it;

                  (2) an accounting term not otherwise defined has the meaning
         assigned to it in accordance with GAAP and all accounting calculations
         will be determined in accordance with such principles;

                  (3) "or" is not exclusive;

                  (4) "including" means including without limitation;

                  (5) words in the singular include the plural and words in the
         plural include the singular;

                  (6) unsecured debt shall not be deemed to be subordinate or
         junior to secured debt merely by virtue of its nature as unsecured
         debt;

                                       19
<PAGE>

                  (7) the principal amount of any noninterest bearing or other
         discount security at any date of Issuance shall be the principal amount
         thereof that would be shown on a balance sheet of the issuer dated such
         date prepared in accordance with GAAP and accretion of principal on
         such security shall be deemed to be the Issuance of Debt; provided,
         however, that the accretion of principal on such security shall not be
         deemed to be the Issuance of Debt if the issuer elects, at the time of
         original Issuance of such security, to treat such accretion as if, on
         such date of original Issuance, there were an additional Issuance of
         Debt in an aggregate principal amount equal to the excess of the
         principal amount at maturity of such security over the principal amount
         thereof that would be shown on a balance sheet of the issuer dated on
         such date prepared in accordance with GAAP and, unless redeemed or
         repurchased, the amount of such additional Issuance of Debt shall be
         treated as being outstanding for all purposes under this Indenture
         until such security is paid in full;

                  (8) the principal amount of any Preferred Stock shall be (i)
         the maximum liquidation value of such Preferred Stock or (ii) the
         maximum mandatory redemption or mandatory repurchase price with respect
         to such Preferred Stock, whichever is greater; and

                  (9) whenever in this Indenture or the Securities it is
         provided that the Put Amount or the Principal with respect to a
         Security shall be paid, such provision shall be deemed to require
         (whether or not so expressly stated) the simultaneous payment of any
         accrued and unpaid interest to the date of payment on such Security
         payable pursuant to paragraph 1 of the Securities.

                                   ARTICLE II

                                 The Securities

                  SECTION 2.01. Amount of Securities. The aggregate principal
amount of Securities that may be authenticated and delivered under this
Indenture is $663,000,000. All Securities shall be identical in all respects
other than issue prices and issuance dates.

                  Subject to Section 2.03, the Trustee shall authenticate
Initial Securities for original issue on the Issue Date in the aggregate
principal amount of $363,000,000 (the "Original Securities"). With respect to
any Additional Securities, there shall be established in or pursuant to a
resolution of the Board of Directors, and subject to Section 2.03, set forth, or
determined in the manner provided in an Officers' Certificate, or established in
one or more indentures supplemental hereto, prior to the issuance of such
Additional Securities:

                  (1) the title of such Additional Securities;

                  (2) the aggregate principal amount of such Additional
         Securities that may be authenticated and delivered under this
         Indenture;

                                       20
<PAGE>

                  (3) the issue price and issuance date of such Additional
         Securities, including the date from which interest on such Additional
         Securities shall accrue; provided, however, that no Additional
         Securities may be issued unless such Additional Securities are fungible
         in all respects for federal income tax purposes with the Securities
         then outstanding;

                  (4) if applicable, that such Additional Securities shall be
         issuable in whole or in part in the form of one or more Global
         Securities and, in such case, the respective depositories for such
         Global Securities, the form of any legend or legends that shall be
         borne by any such Global Security in addition to or in lieu of those
         set forth in Exhibit 1 to Appendix A and any circumstances in addition
         to or in lieu of those set forth in Section 2.3 of Appendix A in which
         any such Global Security may be exchanged in whole or in part for
         Securities registered, and any transfer of such Global Security in
         whole or in part may be registered, in the name or names of Persons
         other than the depository for such Global Security or a nominee
         thereof; and

                  (5) if applicable, that such Additional Securities shall not
         be issued in the form of Initial Securities subject to Appendix A, but
         shall be issued in the form of Exchange Securities as set forth in
         Exhibit A.

                  If any of the terms are established by action taken pursuant
to a resolution of the Board of Directors, a copy of an appropriate record of
such action shall be certified by the Secretary or any Assistant Secretary of
the Company and delivered to the Trustee at or prior to the delivery of the
Officers' Certificate or the trust indenture supplemental hereto setting forth
the terms.

                  SECTION 2.02. Form and Dating. Provisions relating to the
Initial Securities and the Exchange Securities are set forth in Appendix A,
which is hereby incorporated in and expressly made part of this Indenture. The
Initial Securities and the Trustee's certificate of authentication shall be
substantially in the form of Exhibit 1 to Appendix A which is hereby
incorporated in and expressly made a part of this Indenture. The Exchange
Securities and the Trustee's certificate of authentication shall be
substantially in the form of Exhibit A, which is hereby incorporated in and
expressly made a part of this Indenture. The Securities may have notations,
legends or endorsements required by law, stock exchange rule, agreements to
which the Company is subject, if any, or usage, provided that any such notation,
legend or endorsement is in a form reasonably acceptable to the Company. Each
Security shall be dated the date of its authentication. The terms of the
Securities set forth in Exhibit 1 to Appendix A and Exhibit A are part of the
terms of this Indenture.

                  SECTION 2.03. Execution and Authentication. Two Officers shall
sign the Securities for the Company by manual or facsimile signature. The
Company's seal shall be impressed, affixed, imprinted or reproduced on the
Securities and may be in facsimile form.

                                       21
<PAGE>

                  If an Officer whose signature is on a Security no longer holds
that office at the time the Trustee authenticates the Security, the Security
shall be valid nevertheless.

                  A Security shall not be valid until an authorized signatory of
the Trustee manually signs the certificate of authentication on the Security.
The signature shall be conclusive evidence that the Security has been
authenticated under this Indenture.

                  At any time and from time to time after the execution and
delivery of this Indenture, the Company may deliver Securities executed by the
Company to the Trustee for authentication, together with a written order of the
Company in the form of an Officers' Certificate for the authentication and
delivery of such Securities, and the Trustee in accordance with such written
order of the Company shall authenticate and deliver such Securities.

                  The Trustee may appoint an authenticating agent reasonably
acceptable to the Company to authenticate the Securities. Unless limited by the
terms of such appointment, an authenticating agent may authenticate Securities
whenever the Trustee may do so. Each reference in this Indenture to
authentication by the Trustee includes authentication by such agent. An
authenticating agent has the same rights as any Registrar, Paying Agent or agent
for service of notices and demands. The Company agrees to pay any authenticating
agent compensation for its services hereunder.

                  SECTION 2.04. Registrar and Paying Agent. The Company shall
maintain an office or agency where Securities may be presented for registration
of transfer or for exchange (the "Registrar") and an office or agency where
Securities may be presented for payment (the "Paying Agent"). The Registrar
shall keep a register of the Securities and of their transfer and exchange. The
Company may have one or more co-registrars and one or more additional paying
agents. The term "Paying Agent" includes any additional paying agent.

                  The Company shall enter into an appropriate agency agreement
with any Registrar, Paying Agent or co-registrar not a party to this Indenture,
which shall incorporate the terms of the TIA. The agreement shall implement the
provisions of this Indenture that relate to such agent. The Company shall notify
the Trustee of the name and address of any such agent. If the Company fails to
maintain a Registrar or Paying Agent, the Trustee shall act as such and shall be
entitled to appropriate compensation therefor pursuant to Section 7.07. The
Company or any of its domestically incorporated Wholly Owned Recourse
Subsidiaries may act as Paying Agent, Registrar or co-registrar.

                  The Company initially appoints the Trustee as Registrar and
Paying Agent in connection with the Securities.

                  SECTION 2.05. Paying Agent To Hold Money in Trust. On or prior
to 12:00 p.m. New York City time on each due date of the Principal and interest
on any Security, the Company shall deposit with the Paying Agent a sum
sufficient to pay such Principal and interest when so becoming due. The Company
shall require each Paying Agent (other than the Trustee) to agree in writing
that the Paying Agent shall hold in

                                       22
<PAGE>

trust for the benefit of Securityholders or the Trustee all money held by the
Paying Agent for the payment of Principal of or interest on the Securities and
shall notify the Trustee of any default by the Company in making any such
payment. If the Company or a Subsidiary acts as Paying Agent, it shall segregate
the money held by it as Paying Agent and hold it as a separate trust fund. The
Company at any time may require a Paying Agent to pay all money held by it to
the Trustee and to account for any funds disbursed by the Paying Agent. Upon
complying with this Section, the Paying Agent shall have no further liability
for the money delivered to the Trustee.

                  SECTION 2.06. Securityholder Lists. The Registrar shall
preserve in as current a form as is reasonably practicable the most recent list
available to it of the names and addresses of Securityholders. If the Trustee is
not the Registrar, the Company shall furnish to the Trustee, in writing at least
five Business Days before each interest payment date and at such other times as
the Trustee may request in writing, a list in such form and as of such date as
the Trustee may reasonably require of the names and addresses of
Securityholders.

                  SECTION 2.07. Replacement Securities. If a mutilated Security
is surrendered to the Registrar or if the Holder of a Security claims that the
Security has been lost, destroyed or wrongfully taken, if the requirements of
Section 8-405 of the Uniform Commercial Code are met and the Holder satisfies
any other reasonable requirements of the Trustee, the Company shall Issue and
the Trustee shall authenticate a replacement Security. If required by the
Trustee or the Company, such Holder shall furnish an indemnity bond sufficient
in the judgment of the Company and the Trustee to protect the Company, the
Trustee, the Paying Agent, the Registrar and any co-registrar from any loss
which any of them may suffer if a Security is replaced. The Company and the
Trustee may charge the Holder for their expenses in replacing a Security.

                  In case any such mutilated, destroyed, lost or stolen Security
has become due and payable, the Company, in its discretion, may instead of
issuing a new Security, pay such Security.

                  Every replacement Security is an additional obligation of the
Company.

                  SECTION 2.08. Outstanding Securities. Securities outstanding
("Outstanding") at any time are all Securities authenticated and delivered by
the Trustee except for those canceled by it, those delivered to it for
cancellation and those described in this Section as not Outstanding. A Security
does not cease to be Outstanding because the Company or an Affiliate of the
Company holds the Security.

                  If a Security is paid or replaced pursuant to Section 2.07, it
ceases to be Outstanding unless the Trustee and the Company receive proof
satisfactory to them that the replaced Security is held by a bona fide
purchaser.

                  If the Paying Agent segregates and holds in trust, in
accordance with this Indenture, on a redemption date or maturity date money
sufficient to pay all Principal and interest payable on that date with respect
to the Securities (or portions thereof) to be

                                       23
<PAGE>

redeemed or maturing, as the case may be, then on and after that date such
Securities (or portions thereof) cease to be Outstanding and interest on them
ceases to accrue.

                  SECTION 2.09. Temporary Securities. Until definitive
Securities are ready for delivery, the Company may prepare and the Trustee shall
authenticate temporary Securities. Temporary Securities shall be substantially
in the form of definitive Securities but may have variations that the Company
considers appropriate for temporary Securities. Without unreasonable delay, the
Company shall prepare and the Trustee shall authenticate definitive Securities
and deliver them in exchange for temporary Securities upon surrender of such
temporary Securities at the office or agency of the Company, without charge to
the Holder.

                  SECTION 2.10. Cancellation. The Company at any time may
deliver Securities to the Trustee for cancellation. The Registrar and the Paying
Agent shall forward to the Trustee any Securities surrendered to them for
registration of transfer, exchange or payment. The Trustee and no one else shall
cancel and destroy (subject to the record retention requirements of the Exchange
Act) all Securities surrendered for registration of transfer, exchange, payment
or cancellation and deliver a certificate of such destruction to the Company
unless the Company directs the Trustee to deliver canceled Securities to the
Company. The Company may not Issue new Securities to replace Securities it has
redeemed, paid or delivered to the Trustee for cancellation.

                  SECTION 2.11. CUSIP Numbers. The Company in issuing the
Securities may use "CUSIP" numbers (if then generally in use) and, if so, the
Trustee shall use "CUSIP" numbers in notices of redemption as a convenience to
Holders; provided, however, that any such notice may state that no
representation is made as to the correctness of such numbers either as printed
on the Securities or as contained in any notice of a redemption and that
reliance may be placed only on the other identification numbers printed on the
Securities, and any such redemption shall not be affected by any defect in or
omission of such numbers.

                  SECTION 2.12. Defaulted Interest. If the Company defaults in a
payment of interest on the Securities, the Company shall pay defaulted interest
(plus interest on such defaulted interest to the extent lawful) in any lawful
manner. The Company may pay the defaulted interest to the Persons who are
Securityholders on a subsequent special record date. The Company shall fix or
cause to be fixed any such special record date and payment date to the
reasonable satisfaction of the Trustee and shall promptly mail to each
Securityholder a notice that states the special record date, the payment date
and the amount of defaulted interest to be paid.

                                  ARTICLE III

                                   Redemption

                  SECTION 3.01. Notices to Trustee. If the Company elects to
redeem Securities pursuant to paragraph 5 of the Securities or is required to
redeem the Securities pursuant to paragraph 6 of the Securities, it shall notify
the Trustee in writing of the

                                       24
<PAGE>

redemption date, the Principal amount of Securities to be redeemed and the
paragraph of the Securities pursuant to which the redemption will occur. If the
Company is required to redeem the Securities pursuant to paragraph 6 of the
Initial Securities, the Company shall also so notify the Escrow Agent
concurrently with the Trustee.

                  In the case of a redemption pursuant to paragraph 5 of the
Securities, the Company shall give each notice to the Trustee provided for in
this Section at least 60 days before the redemption date unless the Trustee
consents to a shorter period. In the case of redemption pursuant to paragraph 6
of the Securities, the Company shall give such notices to the Trustee and Escrow
Agent provided for in this Section promptly after the event triggering the
requirement to redeem the Securities. Any notice delivered pursuant to paragraph
5 of the Securities shall be accompanied by an Officers' Certificate to the
effect that such redemption will comply with the conditions herein. If fewer
than all the Securities are to be redeemed, the record date relating to such
redemption for determining the Holders to whom notice of redemption will be sent
pursuant to Section 3.03 shall be selected by the Company and given to the
Trustee, which record date shall be not less than 15 days after the date of
notice to the Trustee unless the Trustee consents to a shorter period.

                  SECTION 3.02. Selection of Securities To Be Redeemed. If fewer
than all the Securities are to be redeemed, the Trustee in its discretion shall
select the Securities to be redeemed either on a pro rata basis, by lot or by a
method that complies with applicable legal and securities exchange requirements,
if any, and that the Trustee considers fair and appropriate. The Trustee shall
make the selection from Outstanding Securities not previously called for
redemption. The Trustee may select for redemption portions of the Principal of
Securities that have denominations larger than $1,000. Securities and portions
of them the Trustee selects shall be in amounts of $1,000 or a whole multiple of
$1,000. Provisions of this Indenture that apply to Securities called for
redemption also apply to portions of Securities called for redemption. The
Trustee shall notify the Company promptly of the Securities or portions of
Securities to be redeemed.

                  SECTION 3.03. Notice of Redemption. In the case of a
redemption pursuant to paragraph 5 of the Securities, at least 30 days but not
more than 60 days before a date for redemption of Securities, the Company shall
mail a notice of redemption by first-class mail to each Holder of Securities to
be redeemed.

                  The notice shall identify the Securities to be redeemed and
shall state:

                  (1) the redemption date;

                  (2) the redemption price;

                  (3) the name and address of the Paying Agent;

                  (4) that Securities called for redemption must be surrendered
         to the Paying Agent to collect the redemption price;

                                       25
<PAGE>

                  (5) if fewer than all the Outstanding Securities are to be
         redeemed, the identification of the particular Securities to be
         redeemed as well as the aggregate Principal amount of Securities to be
         redeemed and if any Security is being redeemed in part, the portion of
         the Principal amount of such Security to be redeemed and that after the
         redemption date and upon surrender of such Security a new Security or
         Securities will be issued having a Principal amount equal to the
         Principal amount of the Security surrendered less the Principal amount
         of the portion of the Security redeemed;

                  (6) that, unless the Company defaults in making such
         redemption payment, interest on Securities (or portion thereof) called
         for redemption ceases to accrue on and after the redemption date;

                  (7) the paragraph of the Securities pursuant to which the
         Securities called for redemption are being redeemed;

                  (8) the CUSIP number (if any) printed on the Securities being
         redeemed; and

                  (9) that no representation is made as to the correctness or
         accuracy of the CUSIP number, if any, listed in such notice or printed
         on the Securities.

                  At the Company's request, the Trustee shall give the notice of
redemption in the Company's name and at the Company's expense. In such event,
the Company shall provide the Trustee with the information required by this
Section.

                  SECTION 3.04. Effect of Notice of Redemption. Once notice of
redemption is mailed, Securities called for redemption become due and payable on
the redemption date and at the redemption price stated in the notice. Upon
surrender to the Paying Agent, such Securities shall be paid at the redemption
price stated in the notice, plus accrued interest to the redemption date.
Failure to give notice or any defect in the notice to any Holder shall not
affect the validity of the notice to any other Holder.

                  SECTION 3.05. Deposit of Redemption Price. On or prior to
12:00 p.m. New York City time on the redemption date, the Company shall deposit
with the Paying Agent (or, if the Company or a Subsidiary is the Paying Agent,
shall segregate and hold in trust) money sufficient to pay the redemption price
of and accrued interest on all Securities to be redeemed on that date other than
Securities or portions of Securities called for redemption which have been
delivered by the Company to the Trustee for cancellation.

                  SECTION 3.06. Securities Redeemed in Part. Upon surrender of a
Security that is redeemed in part, the Company shall execute and the Trustee
shall authenticate for the Holder (at the Company's expense) a new Security
having a Principal amount equal to the Principal amount of the Security
surrendered less the Principal amount of the portion of the Security so
redeemed.

                                       26
<PAGE>

                                   ARTICLE IV

                                    Covenants

                  SECTION 4.01. Payment of Securities. The Company shall
promptly pay the Principal of and interest on the Securities on the dates and in
the manner provided in the Securities and in this Indenture. Principal and
interest shall be considered paid on the date due if on such date the Trustee or
the Paying Agent holds in accordance with this Indenture money sufficient to pay
all Principal and interest then due.

                  The Company shall pay interest on overdue Principal at the
rate specified therefor in the Securities, and it shall pay interest on overdue
installments of interest at the same rate to the extent lawful.

                  SECTION 4.02. SEC Reports. Notwithstanding that the Company
may not be required to be subject to the reporting requirements of Section 13 or
15(d) of the Exchange Act, the Company shall file or cause to be filed with the
SEC and provide the Trustee and Securityholders with the information, documents
and other reports (or copies of such portions of any of the foregoing as the SEC
may by rules and regulations prescribe) with respect to the Company which are
specified in Sections 13 and 15(d) of the Exchange Act. The Company also shall
comply with the other provisions of TIA ss. 314(a).

                  SECTION 4.03. Limitation on Debt.

                  (a) The Company shall not, and shall not permit any Subsidiary
of the Company to, Issue, directly or indirectly, any Debt; provided, however,
that the Company and its Subsidiaries shall be permitted to Issue Debt if, at
the time of such Issuance, the Consolidated EBITDA Coverage Ratio for the period
of the most recently completed four consecutive fiscal quarters ending at least
45 days prior to the date such Debt is Issued exceeds the ratio of 2.0 to 1.0.

                  (b) Notwithstanding the foregoing, the Company and its
Subsidiaries may Issue the following Debt:

                           (1) Debt Issued pursuant to the Credit Agreement and
the Securities, any Refinancing thereof, or any other credit agreement,
indenture or other agreement, in an aggregate principal amount outstanding at
any one time not to exceed an amount equal to $675 million less the sum of all
principal payments (whether by prepayment, repayment or purchase) made with
respect to such Debt pursuant to Section 4.07(a)(iii)(A), (a)(iii)(B)(1) or
(a)(iii)(C) to the extent that such payments (i) are as a result of an Asset
Disposition involving assets that are included in the Collateral, or are owned,
directly or indirectly, by a Foreign Subsidiary the stock of which is included
in the Collateral, and (ii) permanently retire such Debt in accordance with the
terms of the agreements governing such Debt;

                                       27
<PAGE>

                           (2) Debt Issued on an unsecured basis pursuant to any
other credit agreement, indenture or other agreement in an aggregate principal
amount not to exceed $225 million outstanding at any one time;

                           (3) Debt (other than Debt described in clauses (1)
and (2) above) in respect of the undrawn portion of the face amount of or unpaid
reimbursement obligations in respect of letters of credit for the account of the
Company or any of its Subsidiaries in an aggregate amount at any time
outstanding not to exceed the excess of (i) $150 million over (ii) the undrawn
portion of the face amount of or unpaid reimbursement obligations in respect of
letters of credit Issued under the Credit Agreement or any Refinancing thereof
or any other credit agreement, indenture or other agreement pursuant to clause
(1) above;

                           (4) Debt of the Company Issued to and held by a
Wholly Owned Recourse Subsidiary of the Company and Debt of a Subsidiary of the
Company Issued to and held by the Company or a Wholly Owned Recourse Subsidiary;
provided, however, that any subsequent Issuance or transfer of any Capital Stock
that results in any such Wholly Owned Recourse Subsidiary ceasing to be a Wholly
Owned Recourse Subsidiary or any subsequent transfer of such Debt (other than to
the Company or a Wholly Owned Recourse Subsidiary) shall be deemed, in each
case, to constitute the Issuance of such Debt by the Company or of such Debt by
such Subsidiary;

                           (5) Debt of the Company consisting of the Existing 9%
Senior Securities, the Existing 8-1/8% Senior Securities, the Existing Senior
Subordinated Securities and Debt of the Company Issued to Refinance any Debt
permitted by this clause (5); provided, however, that, in the case of a
Refinancing, the principal amount of the Debt so Issued shall not exceed the
principal amount of the Debt so Refinanced plus any Refinancing Costs thereof;
provided further, however, that any Debt Issued pursuant to this clause (5) to
Refinance the Existing Senior Subordinated Securities or any Refinancing thereof
shall be subordinated to the Securities to at least the same extent as the
Existing Senior Subordinated Securities are subordinated to the Securities;

                           (6) Debt (other than Debt described in clause (1),
(2), (3), (4) or (5) above or (11) or (12) below) of the Company or any of its
Subsidiaries outstanding on the Issue Date, as set forth on Schedule III hereto,
and Debt Issued to Refinance any Debt permitted by this clause (6) or by Section
4.03(a); provided, however, that, in the case of a Refinancing, the principal
amount of the Debt so Issued shall not exceed the principal amount of the Debt
so Refinanced plus any Refinancing Costs thereof;

                           (7) Debt Issued and arising out of purchase money
obligations for property acquired in an amount not to exceed, for the period
through December 31, 2002, $50 million, plus for each period of twelve
consecutive months ending on December 31 thereafter, $15 million; provided,
however, that any such amounts which are available to be utilized during any
such twelve month period and are not so utilized may be utilized during any
succeeding period;

                                       28
<PAGE>

                           (8) Debt of a Subsidiary of the Company Issued and
outstanding on or prior to the date on which such Subsidiary was acquired by the
Company (other than Debt Issued as consideration in, or to provide all or any
portion of the funds or credit support utilized to consummate, the transaction
or series of related transactions pursuant to which such Subsidiary became a
Subsidiary of the Company or was acquired by the Company);

                           (9) Debt Issued to Refinance Debt referred to in the
foregoing clause (8) or this clause (9); provided, however, that the principal
amount of the Debt so Issued shall not exceed the principal amount of the Debt
so Refinanced plus any Refinancing Costs thereof;

                           (10) Non-Recourse Debt of a Non-Recourse Subsidiary;
provided, however, that if any such Debt thereafter ceases to be Non-Recourse
Debt of a Non-Recourse Subsidiary, then such event shall be deemed for the
purpose of this Section 4.03 to constitute the Issuance of such Debt by the
issuer thereof;

                           (11) Permitted Affiliate Debt;

                           (12) Debt of Foreign Subsidiaries in an aggregate
principal amount at the time of Issuance which, when taken together with all
other Debt issued by Foreign Subsidiaries pursuant to this clause (12) and then
outstanding, does not exceed $60 million; provided, however, that such Foreign
Subsidiaries shall not be permitted to have more than $30 million of such Debt
outstanding at any one time that consists of Debt that is not offset or secured
by a compensating cash balance, a counterpart cash deposit or a cash deposit
pledge at the bank or banks to whom such Debt was Issued (or an affiliate of
such bank or banks); and

                           (13) Debt (other than Debt described in clauses (1)
through (12) above and in Section 4.03(a)) in an aggregate principal amount
outstanding at any time not to exceed $150 million.

                  (c) Notwithstanding the foregoing Section 4.03(b), the Company
shall not permit any Foreign Subsidiary that is not a Subsidiary Guarantor to
Issue, directly or indirectly, any Debt pursuant to Section 4.03(b) except (i)
Debt Issued pursuant to clause (1) of Section 4.03(b) if, at the time of such
Issuance, the principal amount of such Debt does not exceed in the aggregate,
when taken together with all other Debt Issued by all Foreign Subsidiaries
pursuant to clause (1) of Section 4.03(b) and then outstanding, $75 million and
(ii) Debt Issued pursuant to clauses (4) and (7) through (12) of Section
4.03(b).

                  (d) To the extent the Company or any Subsidiary of the Company
Guarantees any Debt of the Company or a Subsidiary of the Company, such
Guarantee and such Debt will be deemed to be the same indebtedness and only the
amount of the Debt will be deemed to be outstanding. If the Company or a
Subsidiary of the Company Guarantees any Debt of a Person that, subsequent to
the Issuance of such Guarantee, becomes a Subsidiary, such Guarantee and the
Debt so Guaranteed shall be deemed to be

                                       29
<PAGE>

the same indebtedness, which shall be deemed to have been Issued when the
Guarantee was Issued and shall be deemed to be permitted to the extent the
Guarantee was permitted when Issued.

                  (e) For purposes of determining compliance with any U.S.
dollar denominated restriction on the Issuance of Debt where the Debt Issued is
denominated in a different currency, the amount of such Debt will be the U.S.
Dollar Equivalent determined on the date of the Issuance of such Debt, provided,
however, that if any such Debt denominated in a different currency is subject to
a Hedging Obligation with respect to U.S. dollars covering all principal,
premium, if any, and interest payable on such Debt, the amount of such Debt
expressed in U.S. dollars will be as provided in such Hedging Obligation. The
principal amount of any Refinancing Debt Issued in the same currency as the Debt
being Refinanced will be the U.S. Dollar Equivalent of the Debt Refinanced,
except to the extent that (1) such U.S. Dollar Equivalent was determined based
on a Hedging Obligation, in which case the Refinancing Debt will be determined
in accordance with the preceding sentence, and (2) the principal amount of the
Refinancing Debt exceeds the principal amount of the Debt being Refinanced, in
which case the U.S. Dollar Equivalent of such excess will be determined on the
date such Refinancing Debt is Issued.

                  (f) Notwithstanding Section 4.03(b)(1), prior to the date of
the Collateral Agency Agreement, the Securities shall be treated as not having
been Issued for purposes of this Section 4.03.

                  SECTION 4.04. Limitation on Liens.

                  (a) The Company shall not, and shall not permit any Subsidiary
of the Company to, create or suffer to exist any Lien upon any of its property
or assets (including Capital Stock or Debt of any Subsidiary of the Company) now
owned or hereafter acquired by it, securing any Debt or other obligation other
than the following Liens:

                           (1) Liens existing as of the Issue Date;

                           (2) any Lien arising by reason of (i) any judgment,
decree or order of any court or arbitrator, so long as such judgment, decree or
order is being contested in good faith and any appropriate legal proceedings
which may have been duly initiated for the review of such judgment, decree or
order shall not have been finally terminated or the period within which such
proceedings may be initiated shall not have expired, (ii) taxes not delinquent
or which are being contested in good faith, for which adequate reserves (as
determined by the Company) have been established, (iii) security for payment of
workers' compensation or other insurance, (iv) security for the performance of
tenders, contracts (other than contracts for the payment of borrowed money) or
leases in the ordinary course of business, (v) deposits to secure public or
statutory obligations, or in lieu of surety or appeal bonds entered into in the
ordinary course of business, (vi) operation of law in favor of carriers,
warehousemen, landlords, mechanics, materialmen, laborers, employees, suppliers
or similar Persons, incurred

                                       30
<PAGE>

in the ordinary course of business for sums which are not delinquent for a
period of more than 30 days or are being contested in good faith by negotiations
or by appropriate proceedings which suspend the collection thereof, (vii)
security for surety, appeal, reclamation, performance or other similar bonds and
(viii) security for Hedging Obligations;

                           (3) Liens to secure the payment of all or a part of
the purchase price of, or Capital Lease Obligations with respect to, assets
(including Capital Stock) or property or business acquired or constructed after
the Issue Date; provided, however, that (i) the Debt secured by such Liens shall
have otherwise been permitted to be Issued under this Indenture and (ii) such
Liens shall not encumber any other assets or property of the Company or any of
its Subsidiaries and shall attach to such assets or property within 180 days of
the completion of construction or acquisition of such assets or property;

                           (4) Liens on the assets or property of a Subsidiary
of the Company existing at the time such Subsidiary became a Subsidiary of the
Company and not incurred as a result of (or in connection with or in
anticipation of) such Subsidiary becoming a Subsidiary of the Company; provided,
however, that such Liens do not extend to or cover any other property or assets
of the Company or any of its Subsidiaries;

                           (5) Liens on any assets, including Collateral, of the
Company or any Subsidiary of the Company securing (i) obligations in respect of
any Debt permitted by Section 4.03(b)(1) and (ii) obligations in respect of
Debt, in an aggregate principal amount not to exceed $30 million at any time
outstanding, permitted by Section 4.03(b)(12);

                           (6) leases and subleases of real property by the
Company and its Subsidiaries (in any such case, as lessor) which do not
interfere with the ordinary conduct of the business of the Company or any of its
Subsidiaries, and which are made on customary and usual terms applicable to
similar properties;

                           (7) Liens securing Debt which is Issued to Refinance
Debt which has been secured by a Lien permitted under this Indenture and is
permitted to be Refinanced under this Indenture; provided, however, that such
Liens do not extend to or cover any property or assets of the Company or any of
its Subsidiaries not securing the Debt so Refinanced, other than as otherwise
permitted by this Sections 4.04;

                           (8) easements, reservations, licenses, rights-of-way,
zoning restrictions and covenants, conditions and restrictions and other similar
encumbrances or title defects which, in the aggregate, do not materially detract
from the use of the property subject thereto or materially interfere with the
ordinary conduct of the business of the Company or any of its Subsidiaries;

                           (9) Liens on assets of a Non-Recourse Subsidiary;

                           (10) Liens on assets located outside the United
States and Canada to secure Debt Issued by Foreign Subsidiaries permitted by
Sections 4.03(b) and 4.03(c);

                                       31
<PAGE>

                           (11) Liens in favor of the United States of America
for amounts paid by the Company or any of its Subsidiaries as progress payments
under government contracts entered into by them;

                           (12) other Liens incidental to the conduct of the
business of the Company and its Subsidiaries or the ownership of any of their
assets not incurred in connection with Debt, which Liens do not in any case
materially detract from the value of the property subject thereto or interfere
with the ordinary conduct of the business of the Company or any of its
Subsidiaries; and

                           (13) Liens granted in the ordinary course of business
of the Company or any of its Subsidiaries in favor of issuers of documentary or
trade letters of credit for the account of the Company or such Subsidiary or
bankers' acceptances, which Liens secure the reimbursement obligations of the
Company or such Subsidiary on account of such letters of credit or bankers'
acceptances; provided that each such Lien is limited to (i) the assets acquired
or shipped with the support of such letter of credit or bankers' acceptances and
(ii) any assets of the Company or such Subsidiary which are in the care, custody
or control of such issuer in the ordinary course of business.

                  (b) Notwithstanding Section 4.04(a) above, the Company shall
not, and shall not permit any Subsidiary of the Company to, create or suffer to
exist any Lien upon any of the Collateral (including Collateral consisting of
Capital Stock or Debt of any Subsidiary of the Company) now owned or hereafter
acquired by it (i) securing any Public Debt unless the holders of such Public
Debt share in the distribution of proceeds from the foreclosure on Collateral
either (x) on an equal and ratable basis with the holders of the Primary First
Lien Obligations (and any other obligations that share on an equal and ratable
basis with the Primary First Lien Obligations) or (y) on an equal and ratable
basis with the Holders of the Securities (and any other obligations that share
on an equal and ratable basis with the Holders of the Securities) or (ii)
securing any Debt or other obligations (other than Public Debt) unless the
holders thereof share in the distribution of proceeds from the foreclosure on
Collateral on an equal or any greater basis with the Holders of the Securities
or on any basis with the holders of the Primary First Lien Obligations or any
other obligations that share in such proceeds. Liens permitted by Section
4.04(a) above and which comply with the requirements of this Section 4.04(b) are
referred to collectively as "Permitted Liens."

                  SECTION 4.05. Limitation on Restricted Payments. (a) The
Company shall not, and shall not permit any Subsidiary of the Company, directly
or indirectly, to (i) declare or pay any dividend or make any distribution on or
in respect of its Capital Stock (including any payment in connection with any
merger or consolidation involving the Company) or to the holders of its Capital
Stock (except dividends or distributions payable solely in its Non-Convertible
Capital Stock or in options, warrants or other rights to purchase its
Non-Convertible Capital Stock and except dividends or distributions payable to
the Company or a Subsidiary of the Company and, if a Subsidiary of the Company
is not wholly owned, to its other equity holders to the extent they are not
Affiliates of the Company), (ii) purchase, redeem or otherwise acquire or retire
for value any Capital Stock of the Company, (iii) purchase, repurchase, redeem,
defease or

                                       32
<PAGE>

otherwise acquire or retire for value, prior to scheduled maturity, scheduled
repayment or scheduled sinking fund payment any Subordinated Obligations (other
than the purchase, repurchase or other acquisition of Subordinated Obligations
purchased in anticipation of satisfying a sinking fund obligation, principal
installment or final maturity, in each case within one year of the date of
acquisition) or (iv) make any Investment in (A) an Affiliate of the Company
other than a Subsidiary of the Company and other than an Affiliate of the
Company which will become a Subsidiary of the Company as a result of any such
Investment, or (B) a Non-Recourse Subsidiary (any such dividend, distribution,
purchase, redemption, repurchase, defeasance, other acquisition, retirement or
Investment being herein referred to as a "Restricted Payment") if at the time
the Company or such Subsidiary makes such Restricted Payment (the amount of any
such Restricted Payment, if other than in cash, as determined in good faith by
the Board of Directors, the determination of which shall be evidenced by a
resolution of the Board of Directors):

                  (1) a Default shall have occurred and be continuing (or would
result therefrom); or

                  (2) the Company is not able to incur $1.00 of additional Debt
in accordance with the provisions of Section 4.03(a); or

                  (3) the aggregate amount of such Restricted Payment and all
other Restricted Payments after the Issue Date would exceed the sum of:

                           (a) 50% of the Consolidated Net Income of the Company
                  accrued during the period (treated as one accounting period)
                  from October 1, 2001, to the end of the most recent fiscal
                  quarter ending at least 45 days prior to the date of such
                  Restricted Payment (or, in case such Consolidated Net Income
                  shall be a deficit, minus 100% of such deficit);

                           (b) the aggregate Net Cash Proceeds received by the
                  Company from the Issue or sale of its Capital Stock (other
                  than Redeemable Stock or Exchangeable Stock) subsequent to the
                  Issue Date (other than an Issuance or sale to a Subsidiary of
                  the Company or an employee stock ownership plan or other trust
                  established by the Company or any Subsidiary for the benefit
                  of their employees);

                           (c) the aggregate Net Cash Proceeds received by the
                  Company from the Issue or sale of its Capital Stock (other
                  than Redeemable Stock or Exchangeable Stock) to an employee
                  stock ownership plan subsequent to the Issue Date; provided,
                  however, that if such employee stock ownership plan incurs any
                  Debt, such aggregate amount shall be limited to an amount
                  equal to any increase in the Consolidated Net Worth of the
                  Company resulting from principal repayments made by such
                  employee stock

                                       33
<PAGE>

                  ownership plan with respect to Debt incurred by it to finance
                  the purchase of such Capital Stock;

                           (d) the amount by which Debt of the Company is
                  reduced on the Company's balance sheet upon the conversion or
                  exchange (other than by a Subsidiary) subsequent to the Issue
                  Date of any Debt of the Company convertible or exchangeable
                  for Capital Stock (other than Redeemable Stock or Exchangeable
                  Stock) of the Company (less the amount of any cash, or other
                  property, distributed by the Company upon such conversion or
                  exchange);

                           (e) the aggregate net cash proceeds received by the
                  Company subsequent to the Issue Date as capital contributions
                  (which shall not be deemed to include any net cash proceeds
                  received in connection with (i) the issuance of any Permitted
                  Affiliate Debt and (ii) any contribution designated at the
                  time it is made as a restricted contribution (a "Restricted
                  Contribution"); and

                           (f) to the extent that an Investment made by the
                  Company or a Subsidiary subsequent to the Issue Date has
                  theretofore been included in the calculation of the amount of
                  Restricted Payments, the aggregate cash repayments to the
                  Company or a Subsidiary of such Investment to the extent not
                  included in Consolidated Net Income of the Company.

                  Notwithstanding the foregoing, the Company may take actions to
make a Restricted Payment in anticipation of the occurrence of any of the events
described in this Section 4.05(a) or Section 4.05(b); provided, however, that
the making of such Restricted Payment shall be conditional upon the occurrence
of such event.

                  (b) Section 4.05(a) shall not prohibit the following:

                           (i) any purchase, repurchase, redemption, defeasance
or other acquisition or retirement for value of Capital Stock or Subordinated
Obligations of the Company made by exchange for, or out of the proceeds of the
substantially concurrent Issue or sale of, Capital Stock of the Company (other
than Redeemable Stock or Exchangeable Stock and other than Capital Stock issued
or sold to a Subsidiary or an employee stock ownership plan) or of a cash
capital contribution to the Company; provided, however, that (A) such purchase,
repurchase, redemption, defeasance or other acquisition or retirement for value
shall be excluded in the calculation of the amount of Restricted Payments and
(B) the Net Cash Proceeds from such sale shall be excluded from Section
4.05(a)(3)(b) and Section 4.05(a)(3)(c);

                           (ii) any purchase, repurchase, redemption, defeasance
or other acquisition or retirement for value of Subordinated Obligations of the
Company made by exchange for, or out of the proceeds of the substantially
concurrent sale of, Subordinated

                                       34
<PAGE>

Obligations; provided, however, that such purchase, repurchase, redemption,
defeasance or other acquisition or retirement for value shall be excluded in the
calculation of the amount of Restricted Payments;

                           (iii) any purchase, repurchase, redemption,
defeasance or other acquisition or retirement for value of Subordinated
Obligations from Net Available Cash to the extent permitted by Section 4.07;
provided, however, that such purchase, repurchase, redemption, defeasance or
other acquisition or retirement for value shall be excluded in the calculation
of the amount of Restricted Payments;

                           (iv) dividends paid within 60 days after the date of
declaration thereof, or Restricted Payments made within 60 days after the making
of a binding commitment in respect thereof, if at such date of declaration or
commitment such dividend or other Restricted Payment would have complied with
Section 4.05(a); provided, however, that at the time of payment of such dividend
or the making of such other Restricted Payment, no other Default shall have
occurred and be continuing (or result therefrom); provided further, however,
that such dividend or other Restricted Payment shall be included in the
calculation of the amount of Restricted Payments;

                           (v) dividends in an aggregate amount per annum not to
exceed 6% of the aggregate Net Cash Proceeds received by the Company in
connection with all Public Equity Offerings occurring after the Issue Date;
provided, however, that such amount shall be included in the calculation of the
amount of Restricted Payments;

                           (vi) so long as no Default has occurred and is
continuing or would result from such transaction, (x) amounts paid or property
transferred pursuant to the Permitted Transactions and (y) dividends,
distributions, redemptions of Capital Stock and other Restricted Payments in an
aggregate amount not to exceed the sum of all Restricted Contributions;
provided, however, that in the case of clause (y), such dividends or
distributions, redemptions of Capital Stock and other Restricted Payments are
not prohibited by the Credit Agreement or any Refinancing thereof (whether
pursuant to its terms or as a result of waiver, amendment, termination or
otherwise); provided further, however, that such amounts paid, property
transferred, dividends, distributions, redemptions and Restricted Payments shall
be excluded in the calculation of the amount of Restricted Payments;

                           (vii) so long as no Default has occurred and is
continuing or would result from such transaction, Restricted Payments in an
aggregate amount not to exceed the sum of (x) $30 million and (y) $5 million per
annum from the Issue Date (net of any applicable cash exercise price actually
received by the Company) made from time to time to finance the purchase by the
Company or the Parent of its common stock (for not more than fair market value)
in connection with the delivery of such common stock to grantees under any stock
option plan of the Company or the Parent upon the exercise by such grantees of
stock options or stock appreciation rights settled with common stock or upon the
grant of shares of restricted common stock pursuant thereto; provided, however,
that (A) amounts available pursuant to this clause (vii) to be utilized for
Restricted Payments during any such year may be carried forward and utilized in
any succeeding

                                       35
<PAGE>

year, (B) no Restricted Payments shall be permitted pursuant to this clause
unless, at the time of such purchase, the issuance by the Company or the Parent
of new shares of common stock to such optionee would cause more than 19.9% of
the total voting power or more than 19.9% of the total value of the stock of the
Company or Parent to be held by Persons other than members of the Mafco
Consolidated Group (the term "stock" for purposes of this clause shall have the
same meaning as such term has for purposes of Section 1504 of the Code) and (C)
no Restricted Payments shall be permitted pursuant to this clause if, at the
time of and after giving effect to such Restricted Payment, the aggregate number
of shares of common stock of Parent purchased by the Company or the Parent
pursuant to this clause would exceed 2.5% of the total number of shares of
common stock of the Parent outstanding at the time of such Restricted Payment;
provided further, however, that such amounts shall be excluded in the
calculation of the amount of Restricted Payments;

                           (viii) any purchase, repurchase, redemption,
defeasance or other acquisition by any Non-Recourse Subsidiary of Non-Recourse
Debt of such Non-Recourse Subsidiary; provided, however, that the amount of such
purchase, repurchase, redemption, defeasance or other acquisition shall be
excluded in the calculation of the amount of Restricted Payments;

                           (ix) any purchase of Existing Senior Subordinated
Securities pursuant to the "Change of Control" provisions thereof and any
purchase of any other Subordinated Obligations pursuant to an option given to a
holder of such Subordinated Obligation pursuant to a "Change of Control"
covenant which is no more favorable to the holders of such Subordinated
Obligations than the provisions of this Indenture relating to a Change of
Control are to Holders as determined in good faith by the Board of Directors of
the Company, the determination of which shall be evidenced by a resolution
adopted by such Board of Directors; provided, however, that no such purchase
shall be permitted prior to the time when the Company shall have purchased all
Securities tendered for purchase by Holders electing to have their Securities
purchased pursuant to Section 4.09; provided further, however, that such
purchases shall be excluded from the calculation of Restricted Payments;

                           (x) so long as no Default shall have occurred and be
continuing, amounts paid to Parent, to the extent necessary to enable Parent to
pay actual expenses, other than those paid to Affiliates of the Company,
incidental to being a publicly reporting, but non-operating, company; provided,
however, that such amounts paid shall be excluded in the calculation of the
amount of Restricted Payments; or

                           (xi) any loan to a Permitted Affiliate entered into
in the ordinary course of business; provided, however, that such Permitted
Affiliate holds, directly or indirectly, no more than 10% of the outstanding
Capital Stock of the Company.

                  SECTION 4.06. Limitation on Restrictions on Distributions from
Subsidiaries. The Company shall not, and shall not permit any Subsidiary of the
Company to, create or otherwise cause or permit to exist or become effective any

                                       36
<PAGE>

consensual encumbrance or restriction on the ability of any Subsidiary of the
Company to (i) pay dividends or make any other distributions on its Capital
Stock or pay any Debt owed to the Company, (ii) make any loans or advances to
the Company or (iii) transfer any of its property or assets to the Company,
except:

                  (1) any encumbrance or restriction in effect at or entered
into on the Issue Date, including pursuant to the Credit Agreement, any
agreement entered into pursuant thereto or any other agreement;

                  (2) any encumbrance or restriction with respect to a
Subsidiary of the Company pursuant to an agreement relating to any Debt Issued
by such Subsidiary on or prior to the date on which such Subsidiary was acquired
by the Company (other than Debt Issued as consideration in, or to provide all or
any portion of the funds or credit support utilized to consummate, the
transaction or series of related transactions pursuant to which such Subsidiary
became a Subsidiary of the Company or was acquired by the Company) and
outstanding on such date;

                  (3) any encumbrance or restriction pursuant to an agreement
effecting an Issuance of Bank Debt or a Refinancing of any other Debt Issued
pursuant to an agreement referred to in clause (1) or (2) above or this clause
(3) or contained in any amendment to an agreement referred to in clause (1) or
(2) above or this clause (3); provided, however, that any such encumbrance or
restriction with respect to any Subsidiary is no less favorable to the
Securityholders than the least favorable of the encumbrances and restrictions
with respect to such Subsidiary contained in the agreements referred to in
clause (1) or (2) above, as determined in good faith by the Board of Directors
of the Company, the determination of which shall be evidenced by a resolution of
such Board of Directors;

                  (4) any such encumbrance or restriction consisting of
customary nonassignment provisions in leases governing leasehold interests to
the extent such provisions restrict the transfer of the lease;

                  (5) in the case of clause (iii) above, restrictions contained
in security agreements securing Debt of a Subsidiary (other than security
agreements securing Debt of a Subsidiary Issued in connection with any agreement
referred to in clause (1), (2) or (3) above) and restrictions contained in
agreements relating to a disposition of property of a Subsidiary, to the extent
such restrictions restrict the transfer of the property subject to such
agreements;

                  (6) any encumbrance or restriction binding on a Foreign
Subsidiary contained in an agreement pursuant to which such Foreign Subsidiary
has Issued Debt consisting of working capital borrowings; and

                  (7) any encumbrance or restriction relating to a Non-Recourse
Subsidiary.

                  SECTION 4.07. Limitation on Sales of Assets and Subsidiary
Stock.

                                       37
<PAGE>

                  (a) The Company shall not, and shall not permit any Subsidiary
of the Company (other than a Non-Recourse Subsidiary) to, make any Asset
Disposition unless

                           (i) the Company or such Subsidiary receives
consideration at the time of such Asset Disposition at least equal to the fair
market value, as determined in good faith by the Board of Directors of the
Company, the determination of which shall be conclusive and evidenced by a
resolution of the Board of Directors of the Company (including as to the value
of all noncash consideration), of the Capital Stock and assets subject to such
Asset Disposition;

                           (ii) at least 75% of the consideration consists of
cash, cash equivalents, readily marketable securities which the Company intends,
in good faith, to liquidate promptly after such Asset Disposition or the
assumption of liabilities (including, in the case of the sale of the Capital
Stock of a Subsidiary of the Company, liabilities of the Company or such
Subsidiary); and

                           (iii) an amount equal to 100% of the Net Available
Cash from such Asset Disposition is applied by the Company (or such Subsidiary,
as the case may be):

                                    (A) first, to the extent the Company is so
                           required by the terms of any Applicable Debt, to
                           prepay, repay or purchase such Applicable Debt (in
                           each case other than Debt owed to the Company or an
                           Affiliate of the Company) in accordance with the
                           terms of such Debt;

                                    (B) second, to the extent of the balance of
                           such Net Available Cash after application in
                           accordance with clause (A), at the Company's
                           election, to either (1) the optional prepayment,
                           repayment or repurchase of Applicable Debt (in each
                           case other than Debt owed to the Company or an
                           Affiliate of the Company) which the Company is not
                           required by the terms thereof to prepay, repay or
                           repurchase (whether or not the related loan
                           commitment is permanently reduced in connection
                           therewith), or (2) the investment by the Company or
                           any Wholly Owned Recourse Subsidiary (or,
                           additionally in the case of an Asset Disposition by a
                           Subsidiary that is not a Wholly Owned Recourse
                           Subsidiary, the investment by such Subsidiary) in
                           assets to replace the assets that were the subject of
                           such Asset Disposition or in assets that (as
                           determined by the Board of Directors of the Company,
                           the determination of which shall be conclusive and
                           evidenced by a resolution of such Board of Directors)
                           will be used in the businesses of the Company and its
                           Wholly Owned Recourse Subsidiaries (or, additionally
                           in the case of an Asset Disposition by a Subsidiary
                           that is not a Wholly Owned Recourse Subsidiary, the
                           businesses of such Subsidiary) existing on the Issue
                           Date or in businesses reasonably related thereto
                           (provided, that if the assets

                                       38
<PAGE>

                           that were the subject of such Asset Disposition
                           constituted Collateral, then such replacement or
                           other assets shall be pledged at the time of their
                           acquisition to the Collateral Agent as Collateral,
                           subject to Permitted Liens and the Collateral Agency
                           Agreement), in all cases, within the later of one
                           year from the date of such Asset Disposition or the
                           receipt of such Net Available Cash; and

                                    (C) third, to the extent of the balance of
                           such Net Available Cash after application in
                           accordance with clauses (A) and (B), to make an offer
                           to purchase Securities and other Applicable Pari
                           Passu Debt designated by the Company pursuant to and
                           subject to the conditions of Section 4.07(b);

provided, however, that in connection with an offer pursuant to clause (C)
above, if the principal amount and premium of such Securities and such
Applicable Pari Passu Debt, together with accrued and unpaid interest tendered
for acceptance pursuant to such offer exceeds the balance of Net Available Cash,
then the Company will accept for purchase the Securities and such Applicable
Pari Passu Debt of each such tendering holder on a pro rata basis in accordance
with the principal amount so tendered.

                  Notwithstanding the foregoing provisions of this Section
4.07(a), the Company and the Subsidiaries shall not be required to apply any Net
Available Cash in accordance with this Section 4.07(a) except to the extent that
the aggregate Net Available Cash from all Asset Dispositions which are not
applied in accordance with this Section 4.07(a) exceed $10 million. Pending
application of Net Available Cash pursuant to this Section 4.07(a), such Net
Available Cash shall be (i) invested in Temporary Cash Investments (which, if
the assets that were the subject of such Asset Disposition constituted
Collateral, then such Temporary Cash Investments shall be pledged to the
Collateral Agent as Collateral, subject to Permitted Liens and the Collateral
Agency Agreement, pending such application) or (ii) used to make an optional
prepayment under any revolving credit facility constituting Applicable Debt,
whether or not the related loan commitment is permanently reduced in connection
therewith.

                  (b) In the event of an Asset Disposition that requires the
purchase of Securities pursuant to Section 4.07(a)(iii)(C), the Company will be
required to purchase Securities and other Applicable Pari Passu Debt designated
by the Company tendered pursuant to an offer by the Company for the Securities
and such Applicable Pari Passu Debt (the "Offer") at a purchase price of 100% of
their principal amount, without premium, plus accrued interest to the Purchase
Date (or in respect of other Applicable Pari Passu Debt such lesser price, if
any, as may be provided for by the terms of such Applicable Pari Passu Debt) in
accordance with the procedures (including prorationing in the event of
oversubscription) set forth in Section 4.07(c), provided, that the procedures
for making an offer to holders of other Applicable Pari Passu Debt will be as
provided for by the terms of such Applicable Pari Passu Debt. If (x) the
aggregate purchase price of Securities and other Applicable Pari Passu Debt
tendered pursuant to the Offer is less than the Net Available Cash allotted to
the purchase of the Securities and Applicable Pari Passu Debt, (y) the Company
shall not be obligated to make an offer pursuant to the last

                                       39
<PAGE>

sentence of this paragraph, or (z) the Company shall be unable to purchase
Securities from Holders thereof in an Offer because of the provisions of
applicable law or of the Company's or its Subsidiaries' loan agreements,
indentures or other contracts governing Debt or Debt of Subsidiaries (in which
case the Company need not make an Offer) the Company shall apply the remaining
Net Available Cash to (i) invest in assets to replace the assets that were the
subject of the Asset Disposition or in assets that (as determined by the Board
of Directors of the Company, the determination of which shall be conclusive and
evidenced by a resolution of such Board of Directors) will be used in the
businesses of the Company and its Wholly Owned Recourse Subsidiaries (or,
additionally in the case of an Asset Disposition by a Subsidiary that is not a
Wholly Owned Recourse Subsidiary, the business of such Subsidiary) existing on
the Issue Date or in businesses reasonably related thereto or (ii) in the case
of clause (x) or (y) above, prepay, repay or repurchase any Debt of the Company
or Debt of a Wholly Owned Recourse Subsidiary or, additionally in the case of an
Asset Disposition by a Subsidiary that is not a Wholly Owned Recourse
Subsidiary, Debt of such Subsidiary (in each case other than Debt owed to the
Company or an Affiliate of the Company), whether or not the related loan
commitment is permanently reduced in connection therewith. The Company shall not
be required to make an Offer for Securities and other Applicable Pari Passu Debt
pursuant to this Section if the Net Available Cash available therefor (after
application of the proceeds as provided in clause (A) and clause (B) of Section
4.07(a)(iii)) are less than $10 million for any particular Asset Disposition
(which lesser amounts shall, except with respect to Asset Dispositions involving
Collateral, not be carried forward for purposes of determining whether an Offer
is required with respect to the Net Available Cash from any subsequent Asset
Disposition).

                  (c) (1) Promptly, and in any event within five days after the
last date by which the Company must have applied Net Available Cash pursuant to
Section 4.07(a)(iii)(B), the Company shall be obligated to deliver to the
Trustee and send, by first-class mail to each Holder, a written notice stating
that the Holder may elect to have his Securities purchased by the Company either
in whole or in part (subject to prorationing as hereinafter described in the
event the Offer is oversubscribed) in integral multiples of $1,000 of Principal
amount, at the applicable purchase price. The notice shall specify a purchase
date not less than 30 days nor more than 60 days after the date of such notice
(the "Purchase Date") and shall contain information concerning the business of
the Company which the Company in good faith believes will enable such Holders to
make an informed decision (which at a minimum will include (i) the most recently
filed Annual Report on Form 10-K (including audited consolidated financial
statements) of the Company, the most recent subsequently filed Quarterly Report
on Form 10-Q and any Current Report on Form 8-K of the Company filed subsequent
to such Quarterly Report, other than Current Reports describing Asset
Dispositions otherwise described in the offering materials (or corresponding
successor reports), and (ii) if material, appropriate pro forma financial
information) and all instructions and materials necessary to tender Securities
pursuant to the Offer, together with the information contained in clause (2)
below.

                  (2) Not later than the date upon which written notice of an
Offer is delivered to the Trustee as provided above, the Company shall deliver
to the

                                       40
<PAGE>

Trustee an Officers' Certificate as to (i) the amount of the Offer (the "Offer
Amount"), (ii) the allocation of the Net Available Cash from the Asset
Dispositions pursuant to which such Offer is being made and (iii) the compliance
of such allocation with the provisions of Section 4.07(a). On such date, the
Company shall also irrevocably deposit with the Trustee or with a paying agent
(or, if the Company is acting as its own paying agent, segregate and hold in
trust) in immediately available funds an amount equal to the Offer Amount to be
held for payment in accordance with the provisions of this Section. The amount
so deposited, at the option of, and pursuant to the specific written direction
of, the Company, may be invested in Temporary Cash Investments the maturity date
of which is not later than the Purchase Date. The Company shall be entitled to
any interest or dividends accrued, earned or paid on such Temporary Cash
Investments. Upon the expiration of the period for which the Offer remains open
(the "Offer Period"), the Company shall deliver to the Trustee for cancellation
the Securities or portions thereof which have been properly tendered to and are
to be accepted by the Company. The Trustee shall, on the Purchase Date, mail or
deliver payment to each tendering Holder in the amount of the purchase price. In
the event that the aggregate purchase price of the Securities and other
Applicable Pari Passu Debt delivered by the Company to the Trustee is less than
the Offer Amount, the Trustee shall deliver the excess to the Company promptly
after the expiration of the Offer Period.

                  (3) Holders electing to have a Security purchased will be
required to surrender the Security, with an appropriate form duly completed, to
the Company at the address specified in the notice at least ten Business Days
prior to the Purchase Date. Holders will be entitled to withdraw their election
if the Trustee or the Company receives not later than three Business Days prior
to the Purchase Date, a facsimile transmission or letter setting forth the name
of the Holder, the Principal amount of the Security which was delivered for
purchase by the Holder and a statement that such Holder is withdrawing his
election to have such Security purchased. If at the expiration of the Offer
Period the aggregate Principal amount of Securities surrendered by Holders
exceeds the Offer Amount, the Company shall select the Securities to be
purchased on a pro rata basis (with such adjustments as may be deemed
appropriate by the Company so that only Securities in denominations of $1,000,
or integral multiples thereof, shall be purchased). Holders whose Securities are
purchased only in part will be Issued new Securities equal in Principal amount
to the unpurchased portion of the Securities surrendered.

                  (4) At the time the Company delivers Securities to the Trustee
which are to be accepted for purchase, the Company will also deliver an
Officers' Certificate stating that such Securities are to be accepted by the
Company pursuant to and in accordance with the terms of this Section. A Security
shall be deemed to have been accepted for purchase at the time the Trustee,
directly or through an agent, mails or delivers payment therefor to the
surrendering Holder.

         (d) The Company shall comply, to the extent applicable, with the
requirements of Section 14(e) of the Exchange Act and any other securities laws
or regulations in connection with the repurchase of Securities pursuant to this
Section. To the extent that the provisions of any securities laws or
regulations conflict with provisions

                                       41
<PAGE>

of this Section, the Company shall comply with the applicable securities laws
and regulations and shall not be deemed to have breached its obligations under
this Section by virtue thereof.

                  SECTION 4.08. Limitation on Transactions with Affiliates. (a)
The Company shall not, and shall not permit any of its Subsidiaries (other than
a Non-Recourse Subsidiary) to, conduct any business or enter into any
transaction or series of similar transactions (including the purchase, sale,
lease or exchange of any property or the rendering of any service) with any
Affiliate of the Company or any legal or beneficial owner of 10% or more of the
voting power of the Voting Stock of the Company or with an Affiliate of any such
owner unless:

                           (i) the terms of such business, transaction or series
of transactions are (A) set forth in writing and (B) at least as favorable to
the Company or such Subsidiary as terms that would be obtainable at the time for
a comparable transaction or series of similar transactions in arm's-length
dealings with an unrelated third Person and

                           (ii) to the extent that such business, transaction or
series of transactions (other than Debt Issued by the Company which is permitted
by Section 4.03) is known by the Board of Directors of the Company to involve an
Affiliate of the Company or a legal or beneficial owner of 10% or more of the
voting power of the Voting Stock of the Company or an Affiliate of such owner,
then

                                    (A) with respect to a transaction or series
                           of related transactions, other than any purchase or
                           sale of inventory in the ordinary course of business
                           (an "Inventory Transaction"), involving aggregate
                           payments or other consideration in excess of $5.0
                           million, such transaction or series of related
                           transactions has been approved (and the value of any
                           noncash consideration has been determined) by a
                           majority of those members of the Board of Directors
                           of the Company having no personal stake in such
                           business, transaction or series of transactions and

                                    (B) with respect to a transaction or series
                           of related transactions, other than any Inventory
                           Transaction, involving aggregate payments or other
                           consideration in excess of $20.0 million (with the
                           value of any noncash consideration being determined
                           by a majority of those members of the Board of
                           Directors of the Company having no personal stake in
                           such business, transaction or series of
                           transactions), such transaction or series of related
                           transactions has been determined, in the written
                           opinion of a nationally recognized, investment
                           banking firm to be fair, from a financial point of
                           view, to the Company or such Subsidiary, as the case
                           may be.

                  (b) The provisions of Section 4.08(a) shall not prohibit:

                                       42
<PAGE>

                           (i) any Restricted Payment permitted to be paid
pursuant to Section 4.05;

                           (ii) any transaction between the Company and any of
its Subsidiaries; provided, however, that no portion of any minority interest in
any such Subsidiary is owned by (x) any Affiliate (other than the Company, a
Wholly Owned Recourse Subsidiary of the Company, a Permitted Affiliate or an
Unrestricted Affiliate) of the Company or (y) any legal or beneficial owner of
10% or more of the voting power of the Voting Stock of the Company or any
Affiliate of such owner (other than the Company, any Wholly Owned Recourse
Subsidiary of the Company or an Unrestricted Affiliate);

                           (iii) any transaction between Subsidiaries of the
Company; provided, however, that no portion of any minority interest in any such
Subsidiary is owned by (x) any Affiliate (other than the Company, a Wholly Owned
Recourse Subsidiary of the Company, a Permitted Affiliate or an Unrestricted
Affiliate) of the Company or (y) any legal or beneficial owner of 10% or more of
the voting power of the Voting Stock of the Company or any Affiliate of such
owner (other than the Company, any Wholly Owned Recourse Subsidiary of the
Company or an Unrestricted Affiliate);

                           (iv) any transaction between the Company or a
Subsidiary of the Company and its own employee stock ownership plan;

                           (v) any transaction with an officer or director of
the Company, of Parent or of any Subsidiary of the Company entered into in the
ordinary course of business (including compensation or employee benefit
arrangements with any such officer or director); provided, however, that such
officer holds, directly or indirectly, no more than 10% of the outstanding
Capital Stock of the Company;

                           (vi) any business or transaction with an Unrestricted
Affiliate;

                           (vii) any transaction which is a Permitted
Transaction; and

                           (viii) any transaction pursuant to which Mafco
Holdings will provide to the Company and its Subsidiaries at their request and
at the cost to Mafco Holdings with certain allocated services to be purchased
from third party providers, such as legal and accounting services, insurance
coverage and other services.

                  SECTION 4.09. Change of Control.

         (a) Upon a Change of Control, each Holder shall have the right to
require that the Company repurchase all or any part of such Holder's Securities
at a repurchase price in cash equal to their Put Amount as of the date of
repurchase plus accrued and unpaid interest to the date of repurchase, in
accordance with the terms contemplated in Section 4.09(b). Prior to the mailing
of the notice to Holders provided for in Section 4.09(b) but in any event within
30 days following any Change of Control, the Company covenants to (i) repay in
full all Bank Debt or to offer to repay in full all Bank Debt and to repay the
Bank Debt of each lender who has accepted such offer or

                                       43
<PAGE>

(ii) obtain the requisite consent under the Bank Debt to permit the repurchase
of the Securities as provided for in Section 4.09(b). The Company shall first
comply with the covenant in the preceding sentence before it shall be required
to purchase Securities pursuant to this Section 4.09.

                  (b) Within 45 days following any Change of Control, the
Company shall mail a notice to each Holder with a copy to the Trustee stating:

                           (1) that a Change of Control has occurred and that
such Holder has the right to require the Company to repurchase all or any part
of such Holder's Securities at a repurchase price in cash equal to their Put
Amount as of the date of repurchase plus accrued and unpaid interest to the date
of repurchase;

                           (2) the circumstances and relevant facts regarding
such Change of Control;

                           (3) the repurchase date (which shall be no earlier
than 30 days nor later than 60 days from the date such notice is mailed); and

                           (4) the instructions determined by the Company,
consistent with this Section, that a Holder must follow in order to have its
Securities purchased.

                  (c) Holders electing to have a Security repurchased will be
required to surrender the Security, with an appropriate form duly completed, to
the Company at the address specified in the notice at least 10 Business Days
prior to the purchase date. Holders will be entitled to withdraw their election
if the Trustee or the Company receives not later than three Business Days prior
to the purchase date, a facsimile transmission or letter setting forth the name
of the Holder, the Principal amount of the Security which was delivered for
purchase by the Holder and a statement that such Holder is withdrawing his
election to have such Security repurchased.

                  (d) On the repurchase date, all Securities repurchased by the
Company under this Section shall be delivered to the Trustee for cancellation,
and the Company shall pay the repurchase price plus accrued and unpaid interest
to the Holders entitled thereto. Upon surrender of a Security that is
repurchased under this Section in part, the Company shall execute and the
Trustee shall authenticate for the Holder thereof (at the Company's expense) a
new Security having a Principal amount equal to the Principal amount of the
Security surrendered less the portion of the Principal amount of the Security
repurchased.

                  (e) The Company shall comply, to the extent applicable, with
the requirements of Section 14(e) of the Exchange Act and any other securities
laws or regulations in connection with the repurchase of Securities pursuant to
this Section. To the extent that the provisions of any securities laws or
regulations conflict with provisions of this Section, the Company shall comply
with the applicable securities laws and regulations and shall not be deemed to
have breached its obligations under this Section by virtue thereof.

                                       44
<PAGE>

                  SECTION 4.10. Additional Guarantees; Releases of Guarantors.

                  (a) From and after the Issue Date, if any Subsidiary of the
Parent Guarantor, whether existing on the Issue Date or thereafter formed or
acquired, becomes an obligor in respect of Debt or other obligations that at the
time constitutes Primary First Lien Obligations (except a Foreign Subsidiary
that becomes an obligor solely in respect of Debt or other obligations of itself
or another Foreign Subsidiary), and such Subsidiary is not at the time a
Guarantor, then the Company shall cause such Subsidiary to execute and deliver
to the Trustee a supplemental indenture, substantially in the form of Exhibit C
(a "Subsidiary Supplemental Indenture"), pursuant to which such Subsidiary shall
provide an Indenture Guarantee as set forth in Article X.

                  (b) Notwithstanding the foregoing, any Subsidiary Guarantee
provided under this Indenture, including pursuant to Section 4.10(a) above,
shall be released,

                           (1) without any action required on the part of the
Trustee or any Holder, if all of the Capital Stock or all or substantially all
of the assets of such Subsidiary is sold or otherwise disposed of to a Person
other than the Company or a Subsidiary of the Company and the Company otherwise
complies, to the extent applicable, with the provisions under Section 4.07;

                           (2) upon request of the Company without consent
unless, within 20 Business Days after written notice of the proposed release of
such Subsidiary Guarantee is mailed to the Trustee and the Holders, Holders of
25% of the outstanding Principal amount of Securities deliver to the Company a
written objection to such release;

                           (3) with the written consent of Holders of 66 2/3% of
the Principal amount of the Securities then outstanding; or

                           (4) upon request of the Company without consent if
the fair market value of the assets of the related Subsidiary Guarantor (as
determined in good faith by the Board of Directors of the Company), together
with the fair market value of the assets of other Subsidiary Guarantors whose
Subsidiary Guarantee was released in the same calendar year, do not exceed
$5,000,000 (subject to a cumulative carryover for amounts not used in any prior
calendar year).

At the request of the Company, the Trustee shall execute and deliver an
instrument evidencing such release.

                  SECTION 4.11. Amendment to Security Documents. The Company
shall not amend, modify or supplement, or permit or consent to any amendment,
modification or supplement of, the Security Documents in any way that would be
adverse to the Holders in any material respect except in the following
circumstances:

                  (a) in accordance with the provisions of Section 10.3 of the
Collateral Agency Agreement or Article IX of this Indenture; or

                                       45
<PAGE>

                  (b) upon request of the Company without consent unless, within
20 Business Days after notice of a proposed amendment, modification, supplement
or waiver is mailed to the Trustee and the Holders, 25% in interest of the
Holders delivers to the Company a written objection thereto; or

                  (c) to effectuate a release of Collateral permitted by Article
XI or a release of a Subsidiary Guarantee permitted under Section 4.10; or

                  (d) with the written consent of Holders of a majority of the
Principal amount of the Securities then outstanding.

                  SECTION 4.12. Additional Security Documents. From and after
the date the Security Documents are executed and delivered, if the Parent
Guarantor or any Subsidiary of the Parent Guarantor executes and delivers in
respect of any property of such Person any mortgages, deeds of trust, security
agreements, pledge agreements or similar instruments to secure Debt or other
obligations that at the time constitute Primary First Lien Obligations (except a
Foreign Subsidiary that does so solely in respect of Debt or other obligations
of itself or another Foreign Subsidiary), then the Company will, or will cause
such Person to, execute and deliver substantially identical mortgages, deeds of
trust, security agreements, pledge agreements or similar instruments in order to
vest in the Collateral Agent a perfected security interest, subject only to
Permitted Liens and the Collateral Agency Agreement, in such property for the
benefit of the Collateral Agent on behalf of the Holders, among others, and
thereupon all provisions of this Indenture and the Collateral Agency Agreement
relating to Collateral shall be deemed to relate to such property to the same
extent and with the same force and effect.

                  SECTION 4.13. Compliance Certificate. The Company shall
deliver to the Trustee within 120 days after the end of each fiscal year of the
Company an Officers' Certificate stating that in the course of the performance
by the signers of their duties as Officers of the Company they would normally
have knowledge of any Default by the Company and whether or not the signers know
of any Default that occurred during such period. If they do, the certificate
shall describe the Default, its status and what action the Company is taking or
proposes to take with respect thereto. The Company also shall comply with TIA
ss. 314(a)(4). The Trustee shall have no responsibility or obligation to monitor
the Company's compliance with its obligations set forth in Sections 4.02, 4.03,
4.04, 4.05, 4.06, 4.07, 4.08, 4.09, 4.10, 4.11 or 4.12.

                  SECTION 4.14. Further Instruments and Acts. Upon request of
the Trustee, the Company will execute and deliver such further instruments and
do such further acts as may be reasonably necessary or proper to carry out more
effectively the purpose of this Indenture.

                                       46
<PAGE>

                                   ARTICLE V

                                Successor Company

                  SECTION 5.01. When Company May Merge or Transfer Assets. (a)
The Company shall not consolidate with or merge with or into, or convey,
transfer or lease all or substantially all its assets to, any Person, unless:

                           (i) the resulting, surviving or transferee Person (if
not the Company) shall be a Person organized and existing under the laws of the
United States of America, any State thereof or the District of Columbia and such
Person shall expressly assume, by an indenture supplemental hereto, executed and
delivered to the Trustee, in form satisfactory to the Trustee, all the
obligations of the Company under the Securities and this Indenture;

                           (ii) immediately after giving effect to such
transaction (and treating any Debt which becomes an obligation of the resulting,
surviving or transferee Person or any of its Subsidiaries as a result of such
transaction as having been Issued by such Person or such Subsidiary at the time
of such transaction), no Default shall have occurred and be continuing;

                           (iii) immediately after giving effect to such
transaction, the resulting, surviving or transferee Person would be able to
incur at least $1.00 of Debt pursuant to Section 4.03(a);

                           (iv) immediately after giving effect to such
transaction, the resulting, surviving or transferee Person shall have a
Consolidated Net Worth in an amount which is not less than the Consolidated Net
Worth of the Company immediately prior to such transaction; and

                           (v) the Company shall have delivered to the Trustee
an Officers' Certificate and an Opinion of Counsel, each stating that such
consolidation, merger or transfer and such supplemental indenture (if any)
comply with this Indenture;

provided, that this Section 5.01 shall not prohibit a Wholly Owned Recourse
Subsidiary from consolidating with or merging with or into, or conveying,
transferring or leasing all or substantially all its assets to, the Company.

                  (b) The resulting, surviving or transferee Person shall be the
successor Company and shall succeed to, and be substituted for, and may exercise
every right and power of, the predecessor Company under this Indenture, and
thereafter, except in the case of a lease, the predecessor Company shall be
discharged from all obligations and covenants under the Indenture and the
Securities.

                  (c) Unless the Indenture Guarantee of a Guarantor is being
released as permitted by Section 4.10(b) in connection with a merger,
conveyance, transfer or lease, the Company will not permit such Guarantor to
consolidate with or merge with or into, or

                                       47
<PAGE>

convey, transfer or lease all or substantially all of its assets to, any Person
(other than the Company or a Subsidiary Guarantor) unless:

                  (i) the resulting, surviving or transferee Person (if not such
Guarantor) is organized and existing under the laws of the jurisdiction under
which such Guarantor was organized or under the laws of the United States of
America, any State thereof or the District of Columbia and such Person expressly
assumes by a supplemental guarantee agreement, executed and delivered to the
Trustee, all the obligations of such Guarantor under its Indenture Guarantee;

                  (ii) immediately after giving effect to such transaction (and
treating any Debt which becomes an obligation of the resulting, surviving or
transferee Person or any of its Subsidiaries as a result of such transaction as
having been issued by such Person or such Subsidiary at the time of the
transaction), no Default has occurred and is continuing; and

                  (iii) the Company delivers to the Trustee an Officers'
Certificate and an Opinion of Counsel, each stating that such consolidation,
merger or transfer and such supplemental guarantee agreement (if any) comply
with this Indenture.

                                   ARTICLE VI

                              Defaults and Remedies

                  SECTION 6.01. Events of Default. An "Event of Default" occurs
if:

                           (1) the Company defaults in any payment of interest
on any Security when the same becomes due and payable and such default continues
for a period of 30 days;

                           (2) the Company (i) defaults in the payment of the
Principal of any Security when the same becomes due and payable at its Stated
Maturity, upon redemption, upon declaration or otherwise or (ii) fails to redeem
or purchase Securities when required pursuant to this Indenture or the
Securities;

                           (3) the Company fails to comply with Section 5.01;

                           (4) the Company fails to comply with Section 4.02,
4.03, 4.04, 4.05, 4.06, 4.07 (other than a failure to purchase Securities),
4.08, 4.09 (other than a failure to purchase Securities), 4.10, 4.11 or 4.12 and
such failure continues for 30 days after the notice specified below;

                           (5) the Company fails to comply with any of the other
agreements applicable to it in the Securities or this Indenture (other than
those referred to in (1), (2), (3) or (4) above) and such failure continues for
60 days after the notice specified below;

                                       48
<PAGE>

                           (6) Debt of the Parent Guarantor, the Company or any
Significant Subsidiary is not paid within any applicable grace period after
final maturity or is accelerated by the holders thereof because of a default,
the total principal amount of the portion of such Debt that is unpaid or
accelerated exceeds $25 million or its foreign currency equivalent and such
default continues for 10 days after the notice specified below;

                           (7) the Parent Guarantor, the Company or any
Significant Subsidiary pursuant to or within the meaning of any Bankruptcy Law:

                                    (A) commences a voluntary case;

                                    (B) consents to the entry of an order for
                           relief against it in an involuntary case;

                                    (C) consents to the appointment of a
                           Custodian of it or for any substantial part of its
                           property; or

                                    (D) makes a general assignment for the
                           benefit of its creditors; or takes any comparable
                           action under any foreign laws relating to insolvency;

                           (8) a court of competent jurisdiction enters an order
or decree under any Bankruptcy Law that:

                                    (A) is for relief against the Parent
                           Guarantor, the Company or any Significant Subsidiary
                           in an involuntary case;

                                    (B) appoints a Custodian of the Parent
                           Guarantor, the Company or any Significant Subsidiary
                           or for any substantial part of its property; or

                                    (C) orders the winding up or liquidation of
                           the Parent Guarantor, the Company or any Significant
                           Subsidiary;

                  or any similar relief is granted under any foreign laws and
the order or decree remains unstayed and in effect for 60 days;

                           (9) any judgment or decree for the payment of money
in excess of $25 million or its foreign currency equivalent is entered against
the Parent Guarantor, the Company or any Significant Subsidiary and is not
discharged and either (A) an enforcement proceeding has been commenced by any
creditor upon such judgment or decree or (B) there is a period of 60 days
following the entry of such judgment or decree during which such judgment or
decree is not discharged, waived or the execution thereof stayed and, in the
case of (B), such default continues for 10 days after the notice specified
below;

                                       49
<PAGE>

                           (10) the Liens created by the Security Documents
shall at any time not constitute a valid and perfected Lien on the Collateral
intended to be covered thereby (to the extent perfection by filing,
registration, recordation or possession is required herein or therein) in favor
of the Collateral Agent, free and clear of all other Liens (other than Permitted
Liens), or, except for expiration in accordance with its terms or amendment,
modification, waiver, termination or release in accordance with the terms of
this Indenture, any of the Security Documents shall for whatever reason be
terminated or cease to be in full force and effect, if in either case, such
default continues for 10 days after the notice specified below or the
enforceability thereof shall be contested by the Company or any Guarantor; or

                           (11) an Indenture Guarantee ceases to be in full
force and effect (other than in accordance with the terms of this Indenture) and
such default continues for 10 days after the notice specified below or a
Guarantor denies or disaffirms its obligations under its Indenture Guarantee.

                  The foregoing will constitute Events of Default whatever the
reason for any such Event of Default and whether it is voluntary or involuntary
or is effected by operation of law or pursuant to any judgment, decree or order
of any court or any order, rule or regulation of any administrative or
governmental body.

                  The term "Bankruptcy Law" means Title 11, United States Code,
or any similar Federal or state law for the relief of debtors. The term
"Custodian" means any receiver, trustee, assignee, liquidator, custodian or
similar official under any Bankruptcy Law.

                  A Default under clause (4), (5), (6), (9)(B), (10) and (11) is
not an Event of Default until the Trustee or the Holders of at least 25% in
Principal amount of the Securities notify the Company of the Default and the
Company does not cure such Default within the time specified after receipt of
such Notice. Such Notice must specify the Default, demand that it be remedied
and state that such notice is a "Notice of Default".

                  The Company shall deliver to the Trustee, within 30 days after
the occurrence thereof, written notice in the form of an Officers' Certificate
of any event which with the giving of notice and the lapse of time would become
an Event of Default under clause (4), (5), (6), (9)(B), (10) or (11), its status
and what action the Company is taking or proposes to take with respect thereto.

                  SECTION 6.02. Acceleration. If an Event of Default (other than
an Event of Default specified in Section 6.01(7) or (8) with respect to the
Company) occurs and is continuing, the Trustee by notice to the Company, or the
Holders of at least 25% in Principal amount of the Securities by notice to the
Company and the Trustee, may declare the Principal of and accrued interest on
all the Securities to be due and payable immediately. If an Event of Default
specified in Section 6.01(7) or (8) with respect to the Company occurs, the
Principal of and interest on all the Securities shall ipso facto become and be
immediately due and payable without any declaration or other act on the

                                       50
<PAGE>

part of the Trustee or any Securityholders. The Holders of a majority in
Principal amount of the Securities by notice to the Trustee may rescind an
acceleration and its consequences if the rescission would not conflict with any
judgment or decree and if all existing Events of Default have been cured or
waived except nonpayment of Principal or interest that has become due solely
because of acceleration. No such rescission shall affect any subsequent Default
or impair any right consequent thereto.

                  SECTION 6.03. Other Remedies. If an Event of Default occurs
and is continuing, the Trustee may pursue any available remedy to collect the
payment of Principal of or interest on the Securities or to enforce the
performance of any provision of the Securities or this Indenture.

                  The Trustee may maintain a proceeding even if it does not
possess any of the Securities or does not produce any of them in the proceeding.
A delay or omission by the Trustee or any Securityholder in exercising any right
or remedy accruing upon an Event of Default shall not impair the right or remedy
or constitute a waiver of or acquiescence in the Event of Default. No remedy is
exclusive of any other remedy. All available remedies are cumulative.

                  SECTION 6.04. Waiver of Past Defaults. The Holders of a
majority in Principal amount of the Securities by notice to the Trustee may
waive an existing Default and its consequences except (i) a Default in the
payment of the Principal of or interest on a Security or (ii) a Default in
respect of a provision that under Section 9.02 cannot be amended without the
consent of each Securityholder affected. When a Default is waived, it is deemed
cured, but no such waiver shall extend to any subsequent or other Default or
impair any consequent right.

                  SECTION 6.05. Control by Majority. The Holders of a majority
in Principal amount of the Securities may direct the time, method and place of
conducting any proceeding for any remedy available to the Trustee or of
exercising any trust or power conferred on the Trustee under this Indenture.
However, the Trustee may refuse to follow any direction that conflicts with law
or this Indenture or, subject to Section 7.01, that the Trustee determines is
unduly prejudicial to the rights of other Securityholders or would involve the
Trustee in personal liability; provided, however, that the Trustee may take any
other action deemed proper by the Trustee that is not inconsistent with such
direction. Prior to taking any action hereunder, the Trustee shall be entitled
to indemnification satisfactory to it in its sole discretion against all losses,
liabilities and expenses caused by taking or not taking such action.

                  SECTION 6.06. Limitation on Suits. A Securityholder may not
pursue any remedy with respect to this Indenture or the Securities unless:

                           (1) the Holder gives to the Trustee written notice
stating that an Event of Default is continuing;

                           (2) the Holders of at least 25% in Principal amount
of the Securities make a written request to the Trustee to pursue the remedy;

                                       51
<PAGE>

                           (3) such Holder or Holders offer to the Trustee
reasonable security or indemnity against any loss, liability or expense which
might be incurred in compliance with such request or direction;

                           (4) the Trustee does not comply with the request
within 60 days after receipt of the request and the offer of security or
indemnity; and

                           (5) the Holders of a majority in Principal amount of
the Securities do not give the Trustee a direction inconsistent with the request
during such 60-day period.

                  A Securityholder may not use this Indenture to prejudice the
rights of another Securityholder or to obtain a preference or priority over
another Securityholder.

                  SECTION 6.07. Rights of Holders To Receive Payment.
Notwithstanding any other provision of this Indenture, the right of any Holder
to receive payment of Principal of and interest on the Securities held by such
Holder, on or after the respective due dates expressed in the Securities, or to
bring suit for the enforcement of any such payment on or after such respective
dates, shall not be impaired or affected without the consent of such Holder.

                  SECTION 6.08. Collection Suit by Trustee. If an Event of
Default in payment of interest or Principal specified in Section 6.01(1) or (2)
occurs and is continuing, the Trustee may recover judgment in its own name and
as trustee of an express trust against the Company for the whole amount of
Principal and interest remaining unpaid (together with interest on such unpaid
interest to the extent lawful) and the amounts provided for in Section 7.07.

                  SECTION 6.09. Trustee May File Proofs of Claim. The Trustee
may file such proofs of claim and other papers or documents as may be necessary
or advisable in order to have the claims of the Trustee and the Securityholders
allowed in any judicial proceedings relative to the Company, its creditors or
its property and, unless prohibited by law or applicable regulations, may vote
on behalf of the Holders in any election of a trustee in bankruptcy or other
Person performing similar functions, and any Custodian in any such judicial
proceeding is hereby authorized by each Holder to make payments to the Trustee
and, in the event that the Trustee shall consent to the making of such payments
directly to the Holders, to pay to the Trustee any amount due it for the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and its counsel, and any other amounts due the Trustee under Section
7.07.

                  SECTION 6.10. Priorities. If the Trustee collects any money or
property pursuant to this Article VI, it shall pay out the money or property in
the following order:

                  FIRST: to the Trustee for amounts due under Section 7.07;

                  SECOND: to Securityholders for amounts due and unpaid on the
Securities for Principal and interest, ratably, without preference or priority
of any kind,

                                       52
<PAGE>

according to the amounts due and payable on the Securities for Principal and
interest, respectively; and

                  THIRD: to the Company.

                  The Trustee may fix a record date and payment date for any
payment to Securityholders pursuant to this Section. At least 15 days before
such record date, the Company shall mail to each Securityholder and the Trustee
a notice that states the record date, the payment date and amount to be paid.

                  SECTION 6.11. Undertaking for Costs. In any suit for the
enforcement of any right or remedy under this Indenture or in any suit against
the Trustee for any action taken or omitted by it as Trustee, a court in its
discretion may require the filing by any party litigant in the suit of an
undertaking to pay the costs of the suit, and the court in its discretion may
assess reasonable costs, including reasonable attorneys' fees, against any party
litigant in the suit, having due regard to the merits and good faith of the
claims or defenses made by the party litigant. This Section does not apply to a
suit by the Trustee, a suit by a Holder pursuant to Section 6.07 or a suit by
Holders of more than 10% in Principal amount of the Securities.

                  SECTION 6.12. Waiver of Stay or Extension Laws. The Company
(to the extent it may lawfully do so) shall not at any time insist upon, or
plead, or in any manner whatsoever claim or take the benefit or advantage of,
any stay or extension law wherever enacted, now or at any time hereafter in
force, which may affect the covenants or the performance of this Indenture; and
the Company (to the extent that it may lawfully do so) hereby expressly waives
all benefit or advantage of any such law, and shall not hinder, delay or impede
the execution of any power herein granted to the Trustee, but shall suffer and
permit the execution of every such power as though no such law had been enacted.

                                  ARTICLE VII

                                     Trustee

                  SECTION 7.01. Duties of Trustee.

                  (a) If an Event of Default has occurred and is continuing, the
Trustee shall exercise the rights and powers vested in it by this Indenture and
use the same degree of care and skill in its exercise as a prudent man would
exercise or use under the circumstances in the conduct of such man's own
affairs.

                  (b) Except during the continuance of an Event of Default:

                           (1) the Trustee undertakes to perform such duties and
only such duties as are specifically set forth in this Indenture and no implied
covenants or obligations shall be read into this Indenture against the Trustee;
and

                                       53
<PAGE>

                           (2) in the absence of bad faith on its part, the
Trustee may conclusively rely, as to the truth of the statements and the
correctness of the opinions expressed therein, upon certificates or opinions
furnished to the Trustee and conforming to the requirements of this Indenture.
However, in the case of any such opinions or certificates which by any provision
hereof are specifically required to be furnished to the Trustee, the Trustee
shall examine the certificates and opinions to determine whether or not they
conform to the requirements of this Indenture.

                  (c) No provision of this Indenture shall be construed to
relieve the Trustee from liability for its own negligent action, its own
negligent failure to act or its own willful misconduct, except that:

                           (1) this paragraph does not limit the effect of
paragraph (b) of this Section;

                           (2) the Trustee shall not be liable for any error of
judgment made in good faith by a Trust Officer unless it is proved that the
Trustee was negligent in ascertaining the pertinent facts; and

                           (3) the Trustee shall not be liable with respect to
any action it takes or omits to take in good faith in accordance with a
direction received by it pursuant to Section 6.05.

                  (d) Every provision of this Indenture that in any way relates
to the Trustee is subject to paragraphs (a), (b) and (c) of this Section.

                  (e) The Trustee shall not be liable for interest on any money
received by it except as the Trustee may agree in writing with the Company.

                  (f) Money held in trust by the Trustee need not be segregated
from other funds except to the extent required by law.

                  (g) No provision of this Indenture shall require the Trustee
to expend or risk its own funds or otherwise incur financial liability in the
performance of any of its duties hereunder or in the exercise of any of its
rights or powers, if it shall have reasonable grounds to believe that repayment
of such funds or adequate indemnity against such risk or liability is not
reasonably assured to it.

                  (h) Every provision of this Indenture relating in any way to
the Trustee or its conduct or affecting the liability of or affording protection
to the Trustee shall be subject to the provisions of each paragraph of this
Section and Section 7.02 (unless expressly not applicable) to the provisions of
the TIA.

                  SECTION 7.02. Rights of Trustee.

                  (a) The Trustee may rely on and shall be protected in acting
or refraining from acting on any document believed by it to be genuine and to
have been

                                       54
<PAGE>

signed or presented by the proper Person. The Trustee need not investigate any
fact or matter stated in the document.

                  (b) Before the Trustee acts or refrains from acting, it may
require an Officers' Certificate or an Opinion of Counsel. The Trustee shall not
be liable for any action it takes or omits to take in good faith in reliance on
the Officers' Certificate or Opinion of Counsel. Whenever the Trustee is (i)
unable to decide between alternative courses of action under this Indenture,
(ii) unsure about the application of any provision of this Indenture or (iii) if
this Indenture permits any determination by the Trustee or is silent or is
incomplete about the course of action that the Trustee is required to take
regarding a particular set of facts, the Trustee may give appropriate notice to
the Company requesting an Officers' Certificate or Opinion of Counsel with
respect to any such matter and, if the Trustee in good faith relies on such
Officers' Certificate or Opinion of Counsel, the Trustee shall not be liable to
the Holders or any other Person on account of its action or inaction. If the
Trustee has not received appropriate instruction within 10 days of the notice
(or within such shorter period as may be necessary under the circumstances), it
may, but shall be under no duty to, take or refrain from taking any action not
in violation of this Indenture that it deems to be in the best interests of the
Holders and shall have no liability to the Holders for its action or inaction.

                  (c) The Trustee may act through agents and shall not be
responsible for the misconduct or negligence of any agent appointed with due
care.

                  (d) The Trustee shall not be liable for any action it takes or
omits to take in good faith which it believes to be authorized or within its
rights or powers; provided, however, that the Trustee's conduct does not
constitute willful misconduct, negligence or bad faith.

                  (e) The Trustee may consult with counsel of its selection, and
the advice or opinion of counsel with respect to legal matters relating to this
Indenture and the Securities shall be full and complete authorization and
protection from liability in respect to any action taken, omitted or suffered by
it hereunder in good faith and in accordance with the advice or opinion of such
counsel.

                  (f) The Trustee shall be under no obligation to exercise any
of the rights or powers vested in it by this Indenture at the request or
direction of any of the Holders pursuant to this Indenture, unless such Holders
shall have offered to the Trustee reasonable security or indemnity against the
costs, expenses and liabilities which might be incurred by it in compliance with
such request or direction.

                  SECTION 7.03. Individual Rights of Trustee. The Trustee in its
individual or any other capacity may become the owner or pledgee of Securities
and may otherwise deal with the Company or its affiliates with the same rights
it would have if it were not Trustee. Any Paying Agent, Registrar, co-registrar
or co-paying agent may do the same with like rights. However, the Trustee must
comply with Sections 7.10 and 7.11.

                                       55
<PAGE>

                  SECTION 7.04. Trustee's Disclaimer. The Trustee shall not be
responsible for and makes no representation as to the validity or adequacy of
this Indenture or the Securities, it shall not be accountable for the Company's
use of the Securities or of the proceeds from the Securities, and it shall not
be responsible for any statement of the Company in the Indenture or in any
document Issued in connection with the sale of the Securities or in the
Securities other than the Trustee's certificate of authentication.

                  SECTION 7.05. Notice of Defaults. If a Default occurs and is
continuing and the Trustee has actual knowledge thereof, the Trustee shall mail
to each Securityholder notice of the Default within 90 days after it occurs.
Except in the case of a Default in payment of Principal of or interest on any
Security (including payments pursuant to the mandatory redemption provisions of
such Security), the Trustee may withhold the notice if and so long as it in good
faith determines that withholding the notice is in the interests of
Securityholders.

                  SECTION 7.06. Reports by Trustee to Holders. The Trustee shall
transmit to Holders such reports concerning the Trustee and its actions under
this Indenture as may be required pursuant to the TIA at the times and in the
manner provided pursuant thereto. To the extent that any such report shall cover
the 12-month period ending each December 31 it shall be transmitted by the next
succeeding each July 15. The Trustee also shall comply with TIA ss. 313(b).

                  A copy of each report at the time of its mailing to
Securityholders shall be mailed to the Company and filed by the Company with the
SEC and each stock exchange (if any) on which the Securities are listed. The
Company agrees to notify promptly the Trustee whenever the Securities become
listed on any stock exchange and of any delisting thereof.

                  SECTION 7.07. Compensation and Indemnity. The Company shall
pay to the Trustee from time to time such compensation as shall be agreed to in
writing from time to time by the Company and the Trustee for its services. The
Trustee's compensation shall not be limited by any law on compensation of a
trustee of an express trust. The Company shall reimburse the Trustee upon
request for all reasonable out-of-pocket expenses incurred or made by it,
including costs of collection, in addition to the compensation for its services.
Such expenses shall include the reasonable compensation and expenses,
disbursements and advances of the Trustee's agents, counsel, accountants and
experts. The Company shall indemnify the Trustee, its officers, directors,
employees and agents against any and all loss, liability, damage, cost, claim or
expense (including attorneys' fees and expenses) incurred by it in connection
with the acceptance or administration of this trust and the performance of its
duties hereunder. The Trustee shall notify the Company promptly of any claim for
which it may seek indemnity. Failure by the Trustee to so notify the Company
shall not relieve the Company of its obligations hereunder. The Company shall
defend the claim and the Trustee may have separate counsel and the Company shall
pay the fees and expenses of such counsel. The Company need not reimburse any
expense or indemnify against any loss, liability or expense

                                       56
<PAGE>

incurred by the Trustee through the Trustee's own willful misconduct, negligence
or bad faith.

                  To secure the Company's payment obligations in this Section,
the Trustee shall have a lien prior to the Securities on all money or property
held or collected by the Trustee other than money or property held in trust to
pay Principal of and interest on particular Securities.

                  The Company's payment obligations pursuant to this Section
shall survive the discharge of this Indenture. When the Trustee incurs expenses
after the occurrence of a Default specified in Section 6.01(7) or (8) with
respect to the Company, the expenses are intended to constitute expenses of
administration under the Bankruptcy Law.

                  SECTION 7.08. Replacement of Trustee. The Trustee may resign
at any time by so notifying the Company. The Holders of a majority in Principal
amount of the Securities may remove the Trustee by so notifying the Trustee and
may appoint a successor Trustee. The Company shall remove the Trustee if:

                           (1) the Trustee fails to comply with Section 7.10;

                           (2) the Trustee is adjudged bankrupt or insolvent;

                           (3) a receiver or other public officer takes charge
of the Trustee or its property; or

                           (4) the Trustee otherwise becomes incapable of
acting.

                  If the Trustee resigns, is removed by the Company, is removed
by Holders of a majority in Principal amount of the Securities and they do not
promptly appoint a successor Trustee, or if a vacancy exists in the office of
Trustee for any reason (the Trustee in such event being referred to herein as
the retiring Trustee), the Company shall promptly appoint a successor Trustee.

                  A successor Trustee shall deliver a written acceptance of its
appointment to the retiring Trustee and to the Company. Thereupon the
resignation or removal of the retiring Trustee shall become effective, and the
successor Trustee shall have all the rights, powers and duties of the Trustee
under this Indenture. The successor Trustee shall mail a notice of its
succession to Securityholders. The retiring Trustee shall promptly transfer all
property held by it as Trustee to the successor Trustee, subject to the lien
provided for in Section 7.07.

                  If a successor Trustee does not accept appointment or take
office within 60 days after the retiring Trustee resigns or is removed, the
retiring Trustee, the Company or the Holders of a majority in Principal amount
of the Securities may petition any court of competent jurisdiction for the
appointment of a successor Trustee.

                                       57
<PAGE>

                  If the Trustee fails to comply with Section 7.10, any
Securityholder may petition any court of competent jurisdiction for the removal
of the Trustee and the appointment of a successor Trustee.

                  Notwithstanding the replacement of the Trustee pursuant to
this Section, the Company's obligations under Section 7.07 shall continue for
the benefit of the retiring Trustee.

                  SECTION 7.09. Successor Trustee by Merger. If the Trustee
consolidates with, merges or converts into, or transfers all or substantially
all its corporate trust business or assets to, another corporation or banking
association, the resulting, surviving or transferee corporation without any
further act shall be the successor Trustee.

                  In case at the time such successor or successors by merger,
conversion or consolidation to the Trustee shall succeed to the trusts created
by this Indenture any of the Securities shall have been authenticated but not
delivered, any such successor to the Trustee may adopt the certificate of
authentication of any predecessor trustee, and deliver such Securities so
authenticated; and in case at that time any of the Securities shall not have
been authenticated, any successor to the Trustee may authenticate such
Securities either in the name of any predecessor hereunder or in the name of the
successor to the Trustee; and in all such cases such certificates shall have the
full force which it is anywhere in the Securities or in this Indenture provided
that the certificate of the Trustee shall have.

                  SECTION 7.10. Eligibility; Disqualification. The Trustee shall
at all times satisfy the requirements of TIA ss. 310(a). The Trustee shall have
a combined capital and surplus of at least $50 million as set forth in its most
recent published annual report of condition. The Trustee shall comply with TIA
ss. 310(b); provided, however, that there shall be excluded from the operation
of TIA ss. 310(b)(1) any indenture or indentures under which other securities or
certificates of interest or participation in other securities of the Company are
outstanding if the requirements for such exclusion set forth in TIA ss.
310(b)(1) are met.

                  SECTION 7.11. Preferential Collection of Claims Against
Company. The Trustee shall comply with TIA ss. 311(a), excluding any creditor
relationship listed in TIA ss. 311(b). A Trustee who has resigned or been
removed shall be subject to TIA ss. 311(a) to the extent indicated therein.

                                  ARTICLE VIII

                       Discharge of Indenture; Defeasance

                  SECTION 8.01. Discharge of Liability on Securities;
Defeasance.

                  (a) When (i) the Company delivers to the Trustee all
Outstanding Securities (other than Securities replaced pursuant to Section 2.07)
for cancellation or

                                       58
<PAGE>

(ii) all Outstanding Securities have become due and payable and the Company
irrevocably deposits with the Trustee funds sufficient to pay at maturity all
Outstanding Securities, including interest thereon, if any (other than
Securities replaced pursuant to Section 2.07), and if in either case the Company
pays all other sums payable hereunder by the Company, then this Indenture shall,
subject to Sections 8.01(c) and 8.06, cease to be of further effect. The Trustee
shall acknowledge satisfaction and discharge of this Indenture on demand of the
Company accompanied by an Officers' Certificate and an Opinion of Counsel as to
the satisfaction of all conditions to such satisfaction and discharge of this
Indenture and at the cost and expense of the Company.

                  (b) Subject to Sections 8.01(c), 8.02 and 8.06, the Company at
any time may terminate (i) all its obligations under the Securities and this
Indenture and all obligations of the Guarantors under Article X ("legal
defeasance option") or (ii) its obligations under Sections 4.02, 4.03, 4.04,
4.05, 4.06, 4.07, 4.08, 4.09, 4.10, 4.11, 4.12, 5.01(a)(ii), (iii) and (iv) and
(c)(ii), Article XI and the Guarantors' Obligations under Article X and the
operation of Section 6.01(4), 6.01(6), 6.01(7) (with respect to Significant
Subsidiaries only), 6.01(8) (with respect to Significant Subsidiaries only),
6.01(9), 6.01(10) and 6.01(11) ("covenant defeasance option"). The Company may
exercise its legal defeasance option notwithstanding its prior exercise of its
covenant defeasance option. If the Company exercises its legal defeasance option
or its covenant defeasance option, all Collateral shall be released, all
Security Documents shall terminate and each Guarantor shall be released from all
its obligations under its Indenture Guarantee without any action on the part of
any Person.

                  If the Company exercises its legal defeasance option, payment
of the Securities may not be accelerated because of an Event of Default. If the
Company exercises its covenant defeasance option, payment of the Securities may
not be accelerated because of an Event of Default specified in 6.01(4), 6.01(6),
6.01(7) (with respect to Significant Subsidiaries only), 6.01(8) (with respect
to Significant Subsidiaries only), 6.01(9), 6.01(10) and 6.01(11) or because of
the failure of the Company to comply with Section 5.01(a)(ii), (iii) and (iv) or
(c)(ii) or because of a Guarantor's failure to comply with Article X.

                  Upon satisfaction of the conditions set forth herein and upon
request of the Company, the Trustee shall acknowledge in writing the discharge
of those obligations that the Company terminates.

                  (c) Notwithstanding clauses (a) and (b) above, the Company's
obligations in Sections 2.04, 2.05, 2.06, 2.07, 7.07, 7.08, 8.04, 8.05 and 8.06
shall survive until the Securities have been paid in full. Thereafter, the
Company's obligations in Sections 7.07, 8.04 and 8.05 shall survive.

                  SECTION 8.02. Conditions to Defeasance. The Company may
exercise its legal defeasance option or its covenant defeasance option only if:

                                       59
<PAGE>

                  (1) the Company irrevocably deposits in trust with the Trustee
money or U.S. Government Obligations for the payment of Principal and interest
on the Securities to maturity or redemption, as the case may be;

                  (2) the Company delivers to the Trustee a certificate from a
nationally recognized firm of independent accountants expressing their opinion
that the payments of Principal and interest when due and without reinvestment on
the deposited U.S. Government Obligations plus any deposited money without
investment will provide cash at such times and in such amounts as will be
sufficient to pay Principal and interest when due on all the Securities to
maturity or redemption, as the case may be;

                  (3) 123 days pass after the deposit is made and during the
123-day period no Default specified in Section 6.01(7) or (8) with respect to
the Company occurs which is continuing at the end of the period;

                  (4) the deposit does not constitute a default under any other
agreement binding on the Company;

                  (5) the Company delivers to the Trustee an Opinion of Counsel
to the effect that the trust resulting from the deposit does not constitute, or
is qualified as, a regulated investment company under the Investment Company Act
of 1940;

                  (6) in the case of the legal defeasance option, the Company
shall have delivered to the Trustee an Opinion of Counsel stating that (i) the
Company has received from, or there has been published by, the Internal Revenue
Service a ruling, or (ii) since the date of this Indenture there has been a
change in the applicable Federal income tax law, in either case to the effect
that, and based thereon such Opinion of Counsel shall confirm that, the
Securityholders will not recognize income, gain or loss for Federal income tax
purposes as a result of such defeasance and will be subject to Federal income
tax on the same amounts, in the same manner and at the same times as would have
been the case if such defeasance had not occurred;

                  (7) in the case of the covenant defeasance option, the Company
shall have delivered to the Trustee an Opinion of Counsel to the effect that the
Securityholders will not recognize income, gain or loss for Federal income tax
purposes as a result of such covenant defeasance and will be subject to Federal
income tax on the same amounts, in the same manner and at the same times as
would have been the case if such covenant defeasance had not occurred; and

                  (8) the Company delivers to the Trustee an Officers'
Certificate and an Opinion of Counsel, each stating that all conditions
precedent to the defeasance and discharge of the Securities as contemplated by
this Article VIII have been complied with.

                Notwithstanding the foregoing provisions of this Section, the
conditions set forth in the foregoing paragraphs (2), (3), (4), (5), (6) and (7)
need not be satisfied so long as, at the time the Company makes the deposit
described in paragraph (1), (i) no

                                       60
<PAGE>

Default under Section 6.01(1), 6.01(2), 6.01(7) or 6.01(8) has occurred and is
continuing on the date of such deposit and after giving effect thereto and (ii)
either (x) a notice of redemption has been mailed pursuant to Section 3.03
providing for redemption of all the Securities not more than 60 days after such
mailing and the provisions of Section 3.01 with respect to such redemption shall
have been complied with or (y) the Stated Maturity of the Securities will occur
within 60 days. If the conditions in the preceding sentence are satisfied, the
Company shall be deemed to have exercised its covenant defeasance option.

                  Before or after a deposit, the Company may make arrangements
satisfactory to the Trustee for the redemption of Securities at a future date in
accordance with Article III.

                  SECTION 8.03. Application of Trust Money. The Trustee shall
hold in trust money or U.S. Government Obligations deposited with it pursuant to
this Article VIII. It shall apply the deposited money and the money from U.S.
Government Obligations through the Paying Agent and in accordance with this
Indenture to the payment of Principal of and interest on the Securities.

                  SECTION 8.04. Repayment to Company. The Trustee and the Paying
Agent shall promptly turn over to the Company upon request any excess money or
securities held by them at any time.

                  Subject to any applicable abandoned property law, the Trustee
and the Paying Agent shall pay to the Company upon request any money held by
them for the payment of Principal or interest that remains unclaimed for two
years, and, thereafter, Securityholders entitled to the money must look to the
Company for payment as general creditors.

                  SECTION 8.05. Indemnity for Government Obligations. The
Company shall pay and shall indemnify the Trustee against any tax, fee or other
charge imposed on or assessed against deposited U.S. Government Obligations or
the Principal and interest received on such U.S. Government Obligations.

                  SECTION 8.06. Reinstatement. If the Trustee or Paying Agent is
unable to apply any money or U.S. Government Obligations in accordance with this
Article VIII by reason of any legal proceeding or by reason of any order or
judgment of any court or governmental authority enjoining, restraining or
otherwise prohibiting such application, the Company's and the Guarantors'
obligations under this Indenture and the Securities shall be revived and
reinstated as though no deposit had occurred pursuant to this Article VIII until
such time as the Trustee or Paying Agent is permitted to apply all such money or
U.S. Government Obligations in accordance with this Article VIII; provided,
however, that, if the Company has made any payment of interest on or Principal
of any Securities because of the reinstatement of its obligations, the Company
shall be subrogated to the rights of the Holders of such Securities to receive
such payment from the money or U.S. Government Obligations held by the Trustee
or Paying Agent.

                                       61
<PAGE>

                                   ARTICLE IX

                                   Amendments

                  SECTION 9.01. Without Consent of Holders. The Company, the
Guarantors and the Trustee may amend this Indenture, the Securities, any
Indenture Guarantee, the Collateral Agency Agreement, the Escrow Agreement and
any Security Document (collectively, the "Indenture Documents") without notice
to or consent of any Securityholder:

                           (1) to cure any ambiguity, omission, defect or
inconsistency;

                           (2) to comply with Section 4.10, 4.11 or 4.12 or
Article V or XI;

                           (3) to provide for uncertificated Securities in
addition to or in place of certificated Securities; provided, however, that the
uncertificated Securities are Issued in registered form for purposes of Section
163(f) of the Code or in a manner such that the uncertificated Securities are
described in Section 163(f)(2)(B) of the Code;

                           (4) to add Indenture Guarantees with respect to the
Securities or to secure the Securities;

                           (5) to add to the covenants of the Company for the
benefit of the Holders or to surrender any right or power herein conferred upon
the Company;

                           (6) to provide for issuance of the Exchange
Securities and Private Exchange Securities, which will have terms substantially
identical in all material respects to the Initial Securities (except that the
interest rate and transfer restrictions contained in the Initial Securities will
be modified or eliminated as appropriate), and which will be treated, together
with any Outstanding Initial Securities, as a single issue of securities;

                           (7) to comply with any requirements of the SEC in
connection with qualifying this Indenture under the TIA or to otherwise comply
with the TIA;

                           (8) to make any change that does not adversely affect
the rights of any Securityholder.

                  After an amendment under this Section becomes effective, the
Company shall mail to Securityholders a notice briefly describing such
amendment. The failure to give such notice to all Securityholders, or any defect
therein, shall not impair or affect the validity of an amendment under this
Section.

                  SECTION 9.02. With Consent of Holders. The Company, the
Guarantors and the Trustee may amend this Indenture, the Securities or any other
Indenture Document (without limiting the Company's rights under Section 4.11)
without notice to any Securityholder but with the written consent of the Holders
of at least a

                                       62
<PAGE>

majority in Principal amount of the Outstanding Securities. However, (a) without
the consent of each Securityholder affected, an amendment may not:

                           (1) reduce the Principal amount of Securities whose
Holders must consent to an amendment;

                           (2) reduce the rate of or extend the time for payment
of interest on any Security;

                           (3) reduce the Principal of or extend the Stated
Maturity of any Security;

                           (4) reduce the premium payable upon the redemption of
any Security or change the time at which any Security may be redeemed in
accordance with Article III;

                           (5) make any Security payable in money other than
that stated in the Security;

                           (6) make any change in Section 6.04 or 6.07 or the
second sentence of this Section; and

                  (b) except pursuant to Section 4.10(b), Section 11.02 or
Article VIII, without the consent of Holders of at least 66 2/3% of the
outstanding Principal amount of the Securities, an amendment may not release any
Guarantor from its obligation under its Indenture Guarantee, change any
Indenture Guarantee in any manner that adversely effects the rights of any
Securityholder under such Indenture Guarantee in any material respect or release
any Collateral from the Liens of the Security Documents.

                  It shall not be necessary for the consent of the Holders under
this Section to approve the particular form of any proposed amendment, but it
shall be sufficient if such consent approves the substance thereof.

                  After an amendment under this Section becomes effective, the
Company shall mail to Securityholders a notice briefly describing such
amendment. The failure to give such notice to all Securityholders, or any defect
therein, shall not impair or affect the validity of an amendment under this
Section.

                  SECTION 9.03. Compliance with Trust Indenture Act. Every
amendment to this Indenture or the Securities shall comply with the TIA as then
in effect.

                  SECTION 9.04. Revocation and Effect of Consents and Waivers.
Any amendment to any Indenture Document shall become effective in accordance
with its terms when executed and delivered by the Company and the Trustee
provided that the Company has received the requisite consents prior thereto. The
Company shall not be obligated to execute any such amendment regardless of
whether such consents have been received. Any waiver shall become effective when
the requisite consents have been received or such later time as the Company may
elect by notice to the Trustee. A consent

                                       63
<PAGE>

to an amendment or a waiver by a Holder of a Security shall bind the Holder and
every subsequent Holder of that Security or portion of the Security that
evidences the same debt as the consenting Holder's Security, even if notation of
the consent or waiver is not made on the Security. However, any such Holder or
subsequent Holder may revoke the consent or waiver as to such Holder's Security
or portion of the Security if the Trustee receives the notice of revocation
prior to the time that the Company receives the requisite number of consents to
such proposed amendment or waiver. After an amendment or waiver becomes
effective, it shall bind every Securityholder. A consent to any amendment or
waiver hereunder by any Holder given in connection with a tender of such
Holder's Securities shall not be rendered invalid by such tender.

                  The Company may, but shall not be obligated to, fix a record
date for the purpose of determining the Securityholders entitled to give their
consent or take any other action described above or required or permitted to be
taken pursuant to this Indenture. If a record date is fixed, then
notwithstanding the immediately preceding paragraph, those Persons who were
Securityholders at such record date (or their duly designated proxies), and only
those Persons, shall be entitled to give such consent or to revoke any consent
previously given or to take any such action, whether or not such Persons
continue to be Holders after such record date. No such consent shall be valid or
effective for more than 120 days after such record date.

                  SECTION 9.05. Notation on or Exchange of Securities. If an
amendment changes the terms of a Security, the Trustee may require the Holder of
the Security to deliver it to the Trustee. The Trustee may place an appropriate
notation on the Security regarding the changed terms and return it to the
Holder. Alternatively, if the Company or the Trustee so determines, the Company
in exchange for the Security shall Issue and the Trustee shall authenticate a
new Security that reflects the changed terms. Failure to make the appropriate
notation or to Issue a new Security shall not affect the validity of such
amendment.

                  SECTION 9.06. Trustee To Sign Amendments. The Trustee shall
sign any amendment authorized pursuant to this Article IX if the amendment does
not adversely affect the rights, duties, liabilities or immunities of the
Trustee. If it does, the Trustee may but need not sign it. In signing such
amendment the Trustee shall be entitled to receive indemnity reasonably
satisfactory to it and to receive, and (subject to Section 7.01) shall be fully
protected in relying upon, an Officers' Certificate and an Opinion of Counsel
stating that such amendment is authorized or permitted by this Indenture.

                  SECTION 9.07. Payment for Consent. Neither the Company, any
Affiliate of the Company nor any Subsidiary shall, directly or indirectly, pay
or cause to be paid any consideration, whether by way of interest, fee or
otherwise, to any Holder for or as an inducement to any consent, waiver or
amendment of any of the terms or provisions of this Indenture or the Securities
unless such consideration is offered to be paid or agreed to be paid to all
Holders which so consent, waive or agree to amend in the time frame set forth in
solicitation documents relating to such consent, waiver or amendment.

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<PAGE>

                                   ARTICLE X

                                   Guarantees

                  SECTION 10.01. Indenture Guarantees. Subject to the provisions
of this Article X, each Guarantor, as primary obligor and not merely as surety,
jointly and severally, irrevocably and unconditionally guarantees the punctual
payment when due, whether at Stated Maturity, by acceleration or otherwise, of
all Obligations of the Company and the Guarantors under the Securities, this
Indenture and the other Indenture Documents whether for Principal of or interest
(if any) on the Securities, expenses, indemnification or otherwise (all such
Obligations guaranteed hereby by such Guarantor being the "Guaranteed
Obligations"). The guaranty of any Guarantor under this Article X (including
pursuant to any Subsidiary Supplemental Indenture) is herein referred to as this
"Indenture Guarantee".

                  Each Guarantor agrees to pay, in addition to the amount stated
above, any and all expenses (including reasonable counsel fees and expenses)
incurred by the Trustee or the Holders in enforcing any rights under this
Article X.

                  Without limiting the generality of the foregoing, this
Indenture Guarantee guarantees, jointly and severally, to the extent provided
herein, the payment of all amounts which constitute part of the Guaranteed
Obligations and would be owed by the Company under this Indenture or the
Securities but for the fact that they are unenforceable or not allowable due to
the existence of a bankruptcy, reorganization or similar proceeding involving
the Company.

                  SECTION 10.02. Guaranty Absolute. This Indenture Guarantee is
irrevocable, absolute, present and unconditional. Each Guarantor guarantees that
the Guaranteed Obligations will be paid strictly in accordance with the terms of
this Indenture, regardless of any law, regulation or order now or hereafter in
effect in any jurisdiction affecting any of such terms or the rights of the
Trustee or the Holders with respect thereto. Each Guarantor further agrees that
its Indenture Guarantee herein constitutes a guarantee of payment, performance
and compliance (and not a guarantee of collection). The obligations of each
Guarantor under its Indenture Guarantee herein are independent of the Guaranteed
Obligations, and a separate action or actions may be brought and prosecuted
against any Guarantor to enforce its Indenture Guarantee, irrespective of
whether any action is brought against the Company or any other guarantor or
whether the Company or any other guarantor is joined in any such action or
actions. The liability of each Guarantor under its Indenture Guarantee herein
shall be absolute and unconditional irrespective of:

                  (a) any lack of validity or enforceability of this Indenture
or the Securities with respect to the Company or any agreement or instrument
relating thereto;

                  (b) any change in the time, manner or place of payment of, or
in any other term of, all or any of the Guaranteed Obligations, or any other
amendment or waiver of or any consent to departure from this Indenture,
including any increase in the

                                       65
<PAGE>

Guaranteed Obligations resulting from the extension of additional credit to the
Company or otherwise;

                  (c) the failure to give notice to such Guarantor of the
occurrence of a Default under the provisions of this Indenture or the
Securities;

                  (d) any taking, exchange, release or nonperfection of any
collateral, or any taking, release or amendment or waiver of or consent to
departure from any other guaranty, for all or any of the Guaranteed Obligations;

                  (e) any manner of application of collateral, or proceeds
thereof, to all or any of the Guaranteed Obligations, or any manner of sale or
other disposition of any collateral or any other assets of the Company;

                  (f) any failure, omission, delay by or inability on the part
of the Trustee or the Holders to assert or exercise any right, power or remedy
conferred on the Trustee or the Holders in this Indenture or the Securities;

                  (g) any change in the corporate structure, or termination,
dissolution, consolidation or merger of the Company or any guarantor (including
any other Guarantor) with or into any other entity, the voluntary or involuntary
liquidation, dissolution, sale or other disposition of all or substantially all
the assets of the Company or any guarantor (including any other Guarantor), the
marshaling of the assets and liabilities of the Company or any guarantor, the
receivership, insolvency, bankruptcy, assignment for the benefit of creditors,
reorganization, arrangement, composition with creditors, or readjustment of, or
other similar proceedings affecting the Company or any guarantor (including any
other Guarantor), or any of the assets of any of them;

                  (h) the assignment of any right, title or interest of the
Trustee or any Holder in this Indenture or the Securities to any other Person;
or

                  (i) any other event or circumstance (including any statute of
limitations), whether foreseen or unforeseen and whether similar or dissimilar
to any of the foregoing, that might otherwise constitute a defense available to,
or a discharge of, the Company or a guarantor (including any other Guarantor),
other than payment in full of the Guaranteed Obligations; it being the intent of
such Guarantor that its obligations hereunder shall not be discharged except by
payment of all amounts owing pursuant to this Indenture or the Securities and
except as otherwise provided in Section 4.10(b).

                  This Indenture Guarantee shall continue to be effective or be
reinstated, as the case may be, if at any time any payment or performance with
respect to any of the Guaranteed Obligations is rescinded or must otherwise be
returned by the Trustee, any Holder or any other Person upon the insolvency,
bankruptcy or reorganization of the Company or otherwise, all as though such
payment or performance had not been made or occurred. Except as expressly set
forth in Sections 4.10(b), 8.01(b) and 10.03, the obligations of each Guarantor
under its Indenture Guarantee herein shall not be subject to

                                       66
<PAGE>

reduction, termination or other impairment by any set-off, recoupment,
counterclaim or defense or for any other reason.

                  SECTION 10.03. Limitation on Liability. Any term or provision
of this Indenture to the contrary notwithstanding, the maximum, aggregate amount
of the Guaranteed Obligations Guaranteed by any Guarantor shall not exceed the
maximum amount that can be hereby Guaranteed without rendering this Indenture,
as it relates to such Guarantor, voidable under applicable law relating to
fraudulent conveyance or fraudulent transfer or similar laws affecting the
rights of creditors generally.

                  SECTION 10.04. Waivers. Each Guarantor hereby irrevocably
waives, to the extent permitted by applicable law:

                  (a) promptness, diligence, notice of acceptance and any other
notice with respect to any of the Guaranteed Obligations and this Indenture
Guarantee;

                  (b) any requirement that the Trustee, any Holder or any other
Person protect, secure, perfect or insure any Lien or any property subject
thereto or exhaust any right or take any action against the Company or any other
Person or any collateral, or obtain any relief pursuant to this Indenture or
pursue any other available remedy;

                  (c) all right to trial by jury in any action, proceeding or
counterclaim arising out of or relating to this Indenture or the Securities;

                  (d) any defense arising by reason of any claim or defense
based upon an election of remedies by the Trustee or any Holder which in any
manner impairs, reduces, releases or otherwise adversely affects its
subrogation, contribution or reimbursement rights or other rights to proceed
against the Company or any other Person or any collateral; and

                  (e) any duty on the part of the Trustee or any Holder to
disclose to such Guarantor any matter, fact or thing relating to the business,
operation or condition of the Company and its assets now known or hereafter
known by the Trustee or such Holder.

                  SECTION 10.05. Waiver of Subrogation and Contribution. Until
this Indenture has been discharged, each Guarantor hereby irrevocably waives any
claim or other right which it may now or hereafter acquire against the Company
or any guarantor (including any other Guarantor) that arise from the existence,
payment, performance or enforcement of such Guarantor's obligations under its
Indenture Guarantee herein, including any right of subrogation, reimbursement,
exoneration, contribution, indemnification, any right to participate in any
claim or remedy of the Trustee or any Holder against the Company or any
guarantor or any collateral which the Trustee or any Holder now has or hereafter
acquires, whether or not such claim, remedy or right arises in equity, or under
contract, statute or common law, including the right to take or receive from the
Company, directly or indirectly, in cash or other property or by setoff or in
any other manner, payment or security on account of such claim or other rights.
If any

                                       67
<PAGE>

amount shall be paid to such Guarantor in violation of the preceding sentence
and the Guaranteed Obligations shall not have been paid in full, such amount
shall be deemed to have been paid to such Guarantor for the benefit of, and held
in trust for the benefit of, the Trustee, and the Holders, and shall forthwith
be paid to the Trustee for the benefit of the Holders to be credited and applied
to the Guaranteed Obligations, whether matured or unmatured, in accordance with
the terms of this Indenture. Each Guarantor acknowledges that it will receive
direct and indirect benefits from the financing arrangements contemplated by
this Indenture and that the waivers set forth in this Section 10.05 are
knowingly made in contemplation of such benefits.

                  SECTION 10.06. No Waiver; Cumulative Remedies. No failure on
the part of the Trustee or any Holder to exercise, and no delay in exercising,
any right hereunder shall operate as a waiver thereof; nor shall any single or
partial exercise of any right hereunder preclude any other or further exercise
thereof or the exercise of any other right. The remedies herein provided are
cumulative and not exclusive of any remedies provided by law. The Trustee and
the Holders shall have all the rights and remedies granted in this Indenture and
available at law or in equity, and these same rights and remedies may be pursued
separately, successively or concurrently against the Company or any Guarantor,
or any collateral.

                  SECTION 10.07. Successors and Assigns. Until its Indenture
Guarantee is released pursuant to Section 4.10(b) or 8.01(b), this Article X
shall be binding upon each Guarantor and its successors and assigns and shall
enure to the benefit of the successors and assigns of the Trustee and the
Holders and, in the event of any transfer or assignment of rights by any Holder
or the Trustee, the rights and privileges conferred upon that party in this
Indenture and in the Securities shall automatically extend to and be vested in
such transferee or assignee, all subject to the terms and conditions of this
Indenture.

                  SECTION 10.08. Severability. Any provision of this Article X
which is prohibited, unenforceable or not authorized in any jurisdiction shall,
as to such jurisdiction, be ineffective to the extent of such prohibition,
unenforceability or non-authorization, without invalidating the remaining
provisions hereof or affecting the validity, enforceability or legality of such
provision in any other jurisdiction.

                                   ARTICLE XI

                              Security Arrangements

                  SECTION 11.01. Collateral and Security Documents. (a) To
secure the due and punctual payment of the Obligations of the Company and the
Guarantors under this Indenture, the Securities and the other Indenture
Documents, the Company, the Collateral Agent and the Trustee will enter into the
Collateral Agency Agreement, and the Company, the Guarantors and the Collateral
Agent will enter into the Security Documents, to create the security interests
and related matters referred to therein. The Trustee and the Company hereby
acknowledge and agree that the Collateral Agent holds the Collateral in trust
for the benefit of the Holders and the Trustee, among others,

                                       68
<PAGE>

pursuant to the terms of the Security Documents and subject to the terms of the
Collateral Agency Agreement.

                  (b) Each Holder, by accepting a Security, agrees to all of the
terms and provisions of the Security Documents and the Collateral Agency
Agreement, and authorizes and directs the Trustee and the Collateral Agent to
perform their respective obligations and exercise their respective rights under
the Security Documents and the Collateral Agency Agreement in accordance
therewith; provided, however, that if any provisions of the Security Documents
or the Collateral Agency Agreement limit, qualify or conflict with the duties
imposed by the provisions of the TIA, the TIA will control.

                  (c) As more fully set forth in, and subject to the provisions
of, the Security Documents and the Collateral Agency Agreement, the Holders, and
the Trustee on behalf of such Holders will have rights in and to the Collateral
that are subject to the rights that have been or may be created in favor of the
holders of other Debt and obligations of the Company and the Guarantors.

                  (d) As among the Holders, the Collateral shall be held for the
equal and ratable benefit of the Holders without preference, priority or
distinction of any thereof over any other.

                  (e) With respect to Wilmington Trust Company acting as
Collateral Agent, Wilmington Trust Company (i) shall not be deemed to have
breached its fiduciary duty as Trustee to the Holders as a result of the
performance of its duties as Collateral Agent to the extent it acts in
compliance with the Collateral Agency Agreement and (ii) shall not be liable to
the Holders for any such action or inaction. The rights and interests created
under this Indenture shall be subject to the terms of the Collateral Agency
Agreement.

                  SECTION 11.02. Release of Collateral. Collateral may be
released from the security interest created by the Security Documents at any
time or from time to time, and the Security Documents may be terminated, in
accordance with the provisions of the Security Documents and the Collateral
Agency Agreement. The release of any Collateral from the terms hereof and of the
Security Documents or the release of, in whole or in part, the Liens created by
the Security Documents, or the termination of the Security Documents, will not
be deemed to impair the Lien on the Collateral in contravention of the
provisions hereof if and to the extent the Collateral or Liens are released, or
the Security Documents are terminated, pursuant to the applicable Security
Documents and the Collateral Agency Agreement. The Trustee and each of the
Holders acknowledge that a release of Collateral or a Lien strictly in
accordance with the terms of the Security Documents and the Collateral Agency
Agreement will not be deemed for any purpose to be an impairment of the Lien on
the Collateral in contravention of the terms of this Indenture. To the extent
applicable, the Company and each obligor on the Securities shall cause ss.
314(d) of the TIA relating to the release of property or securities from the
Lien hereof and of the Security Documents to be complied with. Any certificate
or opinion required by ss. 314(d) of the TIA may be made by an officer of the
Company,

                                       69
<PAGE>

except in cases which ss. 314(d) of the TIA requires that such certificate or
opinion be made by an independent person.

                  SECTION 11.03. Opinions as to Recording. The Company shall
deliver to the Trustee:

                           (i) promptly after the issuance of the Exchange
Securities, an Opinion of Counsel either stating that in the opinion of such
counsel the Indenture and the Security Documents (or including financing
statements or other instruments, as applicable) have been properly recorded and
filed so as to make effective the Lien intended to be created for the benefit of
the Securityholders, and reciting the details of such action, or stating that in
the opinion of such counsel no such action is necessary to make such Lien
effective; and

                           (ii) on or before December 1 of each year, an Opinion
of Counsel either stating that in the opinion of such counsel such action has
been taken with respect to the recording, filing, re-recording and re-filing of
the Indenture and the Security Documents (or financing statements or other
instruments, as applicable) as is necessary to maintain the Lien intended to be
created thereby for the benefit of the Securityholders, and reciting the details
of such action, or stating that in the opinion of such counsel no such action is
necessary to maintain such Lien.

                                  ARTICLE XII

                                  Miscellaneous

                  SECTION 12.01. Trust Indenture Act Controls. If any provision
of this Indenture limits, qualifies or conflicts with another provision which is
required to be included in this Indenture by the TIA, the required provision
shall control.

                  SECTION 12.02. Notices. Any notice or communication shall be
in writing and delivered in Person or mailed by first-class mail addressed as
follows:

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<PAGE>

                                if to the Company or any Guarantor:

                                     625 Madison Avenue
                                     New York, New York 10022
                                     Attention:  General Counsel
                                     Facsimile:  (212) 527-5693

                                if to the Trustee:

                                     Rodney Square North
                                     1100 N. Market Street
                                     Wilmington, DE  19890
                                     Attention:  Corporate Trust Administration
                                     Facsimile:  (302) 651-8882

                  The Company, any Guarantor or the Trustee by notice to the
other party hereto may designate additional or different addresses for
subsequent notices or communications.

                  Any notice or communication mailed to a Securityholder shall
be sent by first-class mail to the Securityholder at the Securityholder's
address as it appears on the registration books of the Registrar and shall be
sufficiently given if so mailed within the time prescribed.

                  Failure to mail a notice or communication to a Securityholder
or any defect in it shall not affect its sufficiency with respect to other
Securityholders. If a notice or communication is mailed to a Securityholder in
the manner provided above, it is duly given, whether or not the addressee
receives it.

                  SECTION 12.03. Communication by Holders with Other Holders.
Securityholders may communicate pursuant to TIA ss. 312(b) with other
Securityholders with respect to their rights under this Indenture or the
Securities. The Company, the Guarantors, the Trustee, the Registrar and anyone
else shall have the protection of TIA ss. 312(c).

                  SECTION 12.04. Certificate and Opinion as to Conditions
Precedent. Upon any request or application by the Company to the Trustee to take
or refrain from taking any action under this Indenture, the Company shall
furnish to the Trustee:

                           (1) an Officers' Certificate in form and substance
reasonably satisfactory to the Trustee stating that, in the opinion of the
signers, all conditions precedent, if any, provided for in this Indenture
relating to the proposed action have been complied with; and

                           (2) an Opinion of Counsel in form and substance
reasonably satisfactory to the Trustee stating that, in the opinion of such
counsel, all such conditions precedent have been complied with;

                                       71
<PAGE>

provided, however, that, in any case of such application or request as to which
the furnishing of such documents, certificates or opinions is specifically
required by any provision of this Indenture relating to such particular
application or request, no additional certificate or opinion need be furnished.

                  SECTION 12.05. Statements Required in Certificate or Opinion.
Each certificate or opinion with respect to compliance with a covenant or
condition provided for in this Indenture shall include:

                           (1) a statement that the Person making such
certificate or opinion has read such covenant or condition;

                           (2) a brief statement as to the nature and scope of
the examination or investigation upon which the statements or opinions contained
in such certificate or opinion are based;

                           (3) a statement that, in the opinion of such Person,
he has made such examination or investigation as is necessary to enable him to
express an informed opinion as to whether or not such covenant or condition has
been complied with; and

                           (4) a statement as to whether or not, in the opinion
of such Person, such covenant or condition has been complied with.

                  SECTION 12.06. When Securities Disregarded. In determining
whether the Holders of the required Principal amount of Securities have
concurred in any direction, waiver or consent, Securities owned by the Company
or by any Person directly or indirectly controlling or controlled by or under
direct or indirect common control with the Company shall be disregarded and
deemed not to be Outstanding, except that, for the purpose of determining
whether the Trustee shall be protected in relying on any such direction, waiver
or consent, only Securities which the Trustee knows are so owned shall be so
disregarded. Also, subject to the foregoing, only Securities Outstanding at the
time shall be considered in any such determination.

                  SECTION 12.07. Rules by Trustee, Paying Agent and Registrar.
The Trustee may make reasonable rules for action by or a meeting of
Securityholders. The Registrar and the Paying Agent may make reasonable rules
for their functions.

                  SECTION 12.08. Legal Holidays. If a payment date is a Legal
Holiday, payment shall be made on the next succeeding day that is not a Legal
Holiday, and no interest shall accrue for the intervening period. If a regular
record date is a Legal Holiday, the record date shall not be affected.

                  SECTION 12.09. Governing Law. This Indenture and the
Securities shall be governed by, and construed in accordance with, the laws of
the State of New York but without giving effect to applicable principles of
conflicts of law to the extent that the application of the laws of another
jurisdiction would be required thereby.

                                       72
<PAGE>

                  SECTION 12.10. No Recourse Against Others. A director,
officer, employee or stockholder, as such, of the Company, any Guarantor or the
Trustee shall not have any liability for any obligations of the Company, any
Guarantor or the Trustee under the Securities or this Indenture or any other
Indenture Document or for any claim based on, in respect of or by reason of such
obligations or their creation. By accepting a Security, each Securityholder
shall waive and release all such liability. The waiver and release shall be part
of the consideration for the Issue of the Securities.

                  SECTION 12.11. Successors. All agreements of the Company in
this Indenture and the Securities shall bind its successors. All agreements of
the Trustee in this Indenture shall bind its successors.

                  SECTION 12.12. Multiple Originals. The parties may sign any
number of copies of this Indenture. Each signed copy shall be an original, but
all of them together represent the same agreement. One signed copy is enough to
prove this Indenture.

                  SECTION 12.13. Table of Contents; Headings. The table of
contents, cross-reference sheet and headings of the Articles and Sections of
this Indenture have been inserted for convenience of reference only, are not
intended to be considered a part hereof and shall not modify or restrict any of
the terms or provisions hereof.

                                       73
<PAGE>

                  IN WITNESS WHEREOF, the parties have caused this Indenture to
be duly executed as of the date first written above.

                                       REVLON CONSUMER PRODUCTS CORPORATION

                                       By:
                                          ----------------------------------
                                            Name:
                                            Title:

                                       REVLON, INC., as Parent Guarantor

                                       By:
                                          ----------------------------------
                                            Name:
                                            Title:

                                       ALMAY, INC.
                                       CARRINGTON PARFUMS LTD.
                                       CHARLES OF THE RITZ GROUP LTD.
                                       CHARLES REVSON, INC.
                                       COSMETICS & MORE INC.
                                       NORTH AMERICA REVSALE INC.
                                       PACIFIC FINANCE & DEVELOPMENT CORP.
                                       PPI TWO CORPORATION
                                       PRESTIGE FRAGRANCES, LTD.
                                       REVLON CONSUMER CORP.
                                       REVLON GOVERNMENT SALES, INC.
                                       REVLON INTERNATIONAL CORPORATION
                                       REVLON PRODUCTS CORP.
                                       REVLON REAL ESTATE CORPORATION
                                       RIROS CORPORATION
                                       RIROS GROUP INC.
                                       RIT INC.
                                       as Subsidiary Guarantors

                                       By:
                                          ----------------------------------
                                            Name:
                                            Title:

                                       74
<PAGE>

                                       WILMINGTON TRUST COMPANY,
                                       as Trustee,

                                       By:
                                          ----------------------------------
                                            Name:
                                            Title:

                                       75
<PAGE>

                                                                      APPENDIX A

                    PROVISIONS RELATING TO INITIAL SECURITIES

                             AND EXCHANGE SECURITIES

         1. Definitions

         1.1  Definitions

         For the purposes of this Appendix A the following terms shall have the
meanings indicated below:

                  "Cedel" means Cedel Bank, S.A., or any successor securities
clearing agency.

                  "Definitive Security" means a certificated Initial Security or
Exchange Security or Private Exchange Security bearing, if required, the
restricted securities legend set forth in Section 2.3(c).

                  "Depository" means The Depository Trust Company, its nominees
and their respective successors.

                  "Exchange Securities" means the 12% Senior Secured Notes due
2005 to be issued pursuant to the Indenture in connection with a Registered
Exchange Offer pursuant to the Registration Agreement.

                  "Euroclear" means the Euroclear Clearance System or any
successor securities clearing agency.

                  "IAI" means an institutional "accredited investor" as
described in Rule 501(a)(1), (2), (3) or (7) under the Securities Act.

                  "Initial Purchasers" means Salomon Smith Barney Inc., Bear,
Stearns & Co. Inc. and Lehman Brothers Inc.

                  "Initial Securities" means the 12% Senior Secured Notes due
2005, to be issued from time to time, as provided for in this Indenture.

                  "Original Securities" means Initial Securities in the
aggregate principal amount of $363,000,000 issued on November 26, 2001.

                  "Private Exchange" means the offer by the Company, pursuant to
Section 1 of the Registration Agreement dated November 26, 2001, or pursuant to
any similar provision of any other Registration Agreement, to issue and deliver
to certain purchasers, in exchange for the Initial Securities held by such
purchasers as part of their initial distribution, a like aggregate principal
amount of Private Exchange Securities.

<PAGE>

                  "Private Exchange Securities" means the 12% Senior Secured
Notes due 2005 to be issued pursuant to this Indenture in connection with a
Private Exchange pursuant to a Registration Agreement.

                  "Purchase Agreement" means the Purchase Agreement dated
November 19, 2001, among the Company, the Guarantors and the Initial Purchasers
relating to the Original Securities, or any similar agreement relating to any
future sale of Initial Securities by the Company.

                  "QIB" means a "qualified institutional buyer" as defined in
Rule 144A.

                  "Registered Exchange Offer" means the offer by the Company,
pursuant to a Registration Agreement, to certain Holders of Initial Securities,
to issue and deliver to such Holders, in exchange for the Initial Securities, a
like aggregate principal amount of Exchange Securities registered under the
Securities Act.

                  "Registration Agreement" means the Registration Agreement
dated November 26, 2001, among the Company, the Guarantors and the Initial
Purchasers relating to the Original Securities, or any similar agreement
relating to any additional Initial Securities.

                  "Rule 144A Securities" means all Initial Securities offered
and sold to QIBs in reliance on Rule 144A.

                  "Securities" means the Initial Securities and the Exchange
Securities, treated as a single class.

                  "Securities Act" means the Securities Act of 1933, as amended.

                  "Securities Custodian" means the custodian with respect to a
Global Security (as appointed by the Depository) or any successor person
thereto, who shall initially be the Trustee.

                  "Shelf Registration Statement" means a registration statement
issued by the Company in connection with the offer and sale of Initial
Securities or Private Exchange Securities pursuant to the Registration
Agreement.

                  "Transfer Restricted Securities" means Definitive Securities
and any other Securities that bear or are required to bear the legend set forth
in Section 2.3(c) hereto.

         1.2  Other Definitions

                                                                 Defined in
                  Term                                             Section:

"Agent Members"......................................................2.1(b)
"Global Security"....................................................2.1(a)
"IAI Global Security"................................................2.1(a)

                                        2
<PAGE>

"Regulation S" .........................................................2.1
"Rule 144A".............................................................2.1
"Rule 144A Global Security"..........................................2.1(a)
"Regulation S Global Security" ......................................2.1(a)

         2.   The Securities

         2.1  Form and Dating

                  The Initial Securities will be offered and sold by the
Company, from time to time, pursuant to one or more Purchase Agreements. The
Initial Securities will be resold initially only to QIBs in reliance on Rule
144A under the Securities Act ("Rule 144A") and in reliance on Regulation S
under the Securities Act ("Regulation S"). Initial Securities may thereafter be
transferred to, among others, QIBs, purchasers in reliance on Regulation S and
IAIs under Rule 501(a)(1), (2), (3) or (7) under the Securities Act, subject to
the restrictions on transfer set forth herein.

                  (a) Global Securities. Initial Securities initially resold
pursuant to Rule 144A shall be issued initially in the form of one or more
permanent global Securities in definitive, fully registered form (collectively,
the "Rule 144A Global Security"), Initial Securities initially resold pursuant
to Regulation S shall be issued initially in the form of one or more global
securities (collectively, the "Regulation S Global Security") and, subject to
Section 2.4 hereof, Initial Securities transferred subsequent to the initial
resale thereof to IAIs shall be issued initially in the form of one or more
permanent global securities in definitive, fully registered form (collectively,
the "IAI Global Security"), in each case without interest coupons and with the
global securities legend and restricted securities legend set forth in Exhibit 1
hereto, which shall be deposited on behalf of the purchasers of the Initial
Securities represented thereby with the Securities Custodian, and registered in
the name of the Depository or a nominee of the Depository, duly executed by the
Company and authenticated by the Trustee as provided in this Indenture. The Rule
144A Global Security, IAI Global Security, and Regulation S Global Security are
collectively referred to herein as "Global Securities." The aggregate principal
amount of the Global Securities may from time to time be increased or decreased
by adjustments made on the records of the Trustee and the Depository or its
nominee as hereinafter provided.

                  (b) Book-Entry Provisions. This Section 2.1(b) shall apply
only to a Global Security deposited with or on behalf of the Depository.

                  The Company shall execute and the Trustee shall, in accordance
with this Section 2.1(b) and pursuant to an order of the Company, authenticate
and deliver initially one or more Global Securities that (a) shall be registered
in the name of the Depository for such Global Security or Global Securities or
the nominee of such Depository and (b) shall be delivered by the Trustee to such
Depository or pursuant to such Depository's instructions or held by the Trustee
as Securities Custodian.

                                       3
<PAGE>

                  Members of, or participants in, the Depository ("Agent
Members") shall have no rights under this Indenture with respect to any Global
Security held on their behalf by the Depository or by the Trustee as Securities
Custodian or under such Global Security, and the Depository may be treated by
the Company, the Trustee and any agent of the Company or the Trustee as the
absolute owner of such Global Security for all purposes whatsoever.
Notwithstanding the foregoing, nothing herein shall prevent the Company, the
Trustee or any agent of the Company or the Trustee from giving effect to any
written certification, proxy or other authorization furnished by the Depository
or impair, as between the Depository and its Agent Members, the operation of
customary practices of such Depository governing the exercise of the rights of a
holder of a beneficial interest in any Global Security.

                  (c) Definitive Securities. Except as provided in Section 2.3
or 2.4, owners of beneficial interests in Global Securities will not be entitled
to receive physical delivery of Definitive Securities.

         2.2 Authentication. The Trustee shall authenticate and deliver: (1)
Original Securities for original issue in an aggregate principal amount of
$363,000,000, (2) additional Initial Securities, if and when issued, in an
aggregate principal amount of up to $300,000,000, and (3) the Exchange
Securities or Private Exchange Securities for issue only in a Registered
Exchange Offer or a Private Exchange, respectively, pursuant to the Registration
Agreement, for a like principal amount of Initial Securities or Private Exchange
Securities, as applicable, upon a written order of the Company signed by two
Officers or by an Officer and either an Assistant Treasurer or an Assistant
Secretary of the Company. Such order shall specify the amount of the Securities
to be authenticated and the date on which the original issue of Securities is to
be authenticated and whether the Securities are to be Initial Securities or
Exchange Securities. The aggregate principal amount of Securities outstanding at
any time may not exceed $663,000,000 except as provided in Section 2.08 of this
Indenture.

         2.3 Transfer and Exchange. (a) Transfer and Exchange of Definitive
Securities. When Definitive Securities are presented to the Registrar or a
co-registrar with a request:

                  (x) to register the transfer of such Definitive Securities; or

                  (y) to exchange such Definitive Securities for an equal
         principal amount of Definitive Securities of other authorized
         denominations,

the Registrar or co-registrar shall register the transfer or make the exchange
as requested if its reasonable requirements for such transaction are met;
provided, however, that the Definitive Securities surrendered for transfer or
exchange:

                  (i) shall be duly endorsed or accompanied by a written
         instrument of transfer in form reasonably satisfactory to the Company
         and the Registrar or co-registrar, duly executed by the Holder thereof
         or his attorney duly authorized in writing; and

                                       4
<PAGE>

                  (ii) if such Definitive Securities bear a restricted
         securities legend, they are being transferred or exchanged pursuant to
         an effective registration statement under the Securities Act or
         pursuant to clause (A), (B) or (C) below, and are accompanied by the
         following additional information and documents, as applicable:

                           (A) if such Definitive Securities are being delivered
                  to the Registrar by a Holder for registration in the name of
                  such Holder, without transfer, a certification from such
                  Holder to that effect; or

                           (B) if such Definitive Securities are being
                  transferred to the Company, a certification to that effect; or

                           (C) if such Definitive Securities are being
                  transferred pursuant to an exemption from registration in
                  accordance with Rule 144 under the Securities Act, (i) a
                  certification to that effect and (ii) if the Company so
                  requests, an opinion of counsel or other evidence reasonably
                  satisfactory to it as to the compliance with the restrictions
                  set forth in the legend set forth in Section 2.3(c)(i).

                  (b) Transfer and Exchange of Global Securities. (i) The
transfer and exchange of Global Securities or beneficial interests therein shall
be effected through the Depository, in accordance with this Indenture (including
applicable restrictions on transfer set forth herein, if any) and the procedures
of the Depository therefor. A transferor of a beneficial interest in a Global
Security shall deliver a written order given in accordance with the Depository's
procedures containing information regarding the participant account of the
Depository to be credited with a beneficial interest in the Global Security and
such account shall be credited in accordance with such instructions with a
beneficial interest in the Global Security and the account of the Person making
the transfer shall be debited by an amount equal to the beneficial interest in
the Global Security being transferred. In the case of a transfer of a beneficial
interest in a Global Security to an IAI, the transferee must furnish a signed
letter to the Trustee containing certain representations and agreements in the
form of Exhibit B hereto.

                  (ii) If the proposed transfer is a transfer of a beneficial
         interest in one Global Security to a beneficial interest in another
         Global Security, the Registrar shall reflect on its books and records
         the date and an increase in the principal amount of the Global Security
         to which such interest is being transferred in an amount equal to the
         principal amount of the interest to be so transferred, and the
         Registrar shall reflect on its books and records the date and a
         corresponding decrease in the principal amount of the Global Security
         from which such interest is being transferred.

                  (iii) Notwithstanding any other provisions of this Appendix A
         (other than the provisions set forth in Section 2.4), a Global Security
         may not be transferred as a whole except by the Depository to a nominee
         of the Depository or by a nominee of the Depository to the Depository
         or another nominee of the

                                       5
<PAGE>

         Depository or by the Depository or any such nominee to a successor
         Depository or a nominee of such successor Depository.

                  (iv) In the event that a Global Security is exchanged for
         Definitive Securities pursuant to Section 2.4 prior to the consummation
         of a Registered Exchange Offer or the effectiveness of a Shelf
         Registration Statement with respect to such Securities, such Securities
         may be exchanged only in accordance with such procedures as are
         substantially consistent with the provisions of this Section 2.3
         (including the certification requirements set forth on the reverse of
         the Initial Securities intended to ensure that such transfers comply
         with Rule 144A, Regulation S or such other applicable exemption from
         registration under the Securities Act, as the case may be) and such
         other procedures as may from time to time be adopted by the Company.

                  (c)  Legend.

                  (i) Except as permitted by the following paragraphs (ii),
         (iii) and (iv), each certificate evidencing the Global Securities and
         the Definitive Securities (and all Securities issued in exchange
         therefor or in substitution thereof) shall bear a legend in
         substantially the following form:

         "THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
         AMENDED (THE "SECURITIES ACT"). THE HOLDER HEREOF, BY PURCHASING THIS
         NOTE, AGREES FOR THE BENEFIT OF THE COMPANY THAT THIS NOTE MAY NOT BE
         RESOLD, PLEDGED OR OTHERWISE TRANSFERRED (X) PRIOR TO THE SECOND
         ANNIVERSARY OF THE ISSUANCE HEREOF (OR ANY PREDECESSOR SECURITY HERETO)
         OR (Y) BY ANY HOLDER THAT WAS AN AFFILIATE OF THE COMPANY AT ANY TIME
         DURING THE THREE MONTHS PRECEDING THE DATE OF SUCH TRANSFER, IN EITHER
         CASE OTHER THAN (1) TO THE COMPANY, (2) SO LONG AS THIS NOTE IS
         ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT
         ("RULE 144A"), TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A
         QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A
         PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED
         INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE RESALE, PLEDGE OR
         OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A (AS INDICATED BY
         THE BOX CHECKED BY THE TRANSFEROR ON THE CERTIFICATE OF TRANSFER ON THE
         REVERSE OF THIS NOTE), (3) IN AN OFFSHORE TRANSACTION IN ACCORDANCE
         WITH REGULATION S UNDER THE SECURITIES ACT (AS INDICATED BY THE BOX
         CHECKED BY THE TRANSFEROR ON THE CERTIFICATE OF TRANSFER ON THE REVERSE
         OF THIS NOTE), (4) TO AN INSTITUTION THAT IS AN "ACCREDITED INVESTOR"
         AS DEFINED IN RULE 501(a)(1), (2), (3) OR (7) UNDER THE SECURITIES ACT
         (AS INDICATED BY THE BOX CHECKED BY THE TRANSFEROR ON THE CERTIFICATE
         OF TRANSFER

                                       6
<PAGE>

         ON THE REVERSE OF THIS NOTE) THAT IS ACQUIRING THIS NOTE FOR INVESTMENT
         PURPOSES AND NOT FOR DISTRIBUTION, AND A CERTIFICATE WHICH MAY BE
         OBTAINED FROM THE COMPANY OR THE TRUSTEE IS DELIVERED BY THE TRANSFEREE
         TO THE COMPANY AND TRUSTEE , (5) PURSUANT TO AN EXEMPTION FROM
         REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144 (IF
         APPLICABLE) UNDER THE SECURITIES ACT, OR (6) PURSUANT TO AN EFFECTIVE
         REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH CASE IN
         ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE
         UNITED STATES. AN INSTITUTIONAL ACCREDITED INVESTOR HOLDING THIS NOTE
         AGREES THAT IT WILL FURNISH TO THE COMPANY AND THE TRUSTEE SUCH
         CERTIFICATES AND OTHER INFORMATION AS THEY MAY REASONABLY REQUIRE TO
         CONFIRM THAT ANY TRANSFER BY IT OF THIS NOTE COMPLIES WITH THE
         FOREGOING RESTRICTIONS. THE HOLDER HEREOF, BY PURCHASING THIS NOTE,
         REPRESENTS AND AGREES FOR THE BENEFIT OF THE COMPANY THAT IT IS (1) A
         QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A OR (2)
         PURCHASING FROM A PERSON NOT PARTICIPATING IN THE INITIAL DISTRIBUTION
         OF THIS SECURITY (OR ANY PREDECESSOR SECURITY), THAT IT IS AN
         INSTITUTION THAT IS AN "ACCREDITED INVESTOR" AS DEFINED IN RULE
         501(a)(1), (2), (3) OR (7) UNDER THE SECURITIES ACT AND THAT IT IS
         HOLDING THIS NOTE FOR INVESTMENT PURPOSES AND NOT FOR DISTRIBUTION OR
         (3) A NON-U.S. PERSON OUTSIDE THE UNITED STATES WITHIN THE MEANING OF
         (OR AN ACCOUNT SATISFYING THE REQUIREMENTS OF PARAGRAPH (k)(2)(i) OF
         RULE 902 UNDER) REGULATION S UNDER THE SECURITIES ACT."

Each Definitive Security will also bear the following additional legend:

                  "IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO
                  THE REGISTRAR AND TRANSFER AGENT SUCH CERTIFICATES AND OTHER
                  INFORMATION AS SUCH TRANSFER AGENT MAY REASONABLY REQUIRE TO
                  CONFIRM THAT THE TRANSFER COMPLIES WITH THE FOREGOING
                  RESTRICTIONS."

                  (ii) Upon any sale or transfer of a Transfer Restricted
         Security (including any Transfer Restricted Security represented by a
         Global Security) pursuant to Rule 144 under the Securities Act:

                           (A) in the case of any Transfer Restricted Security
                  that is a Definitive Security, the Registrar shall permit the
                  Holder thereof to exchange such Transfer Restricted Security
                  for a Security that does not bear the legends set forth above
                  and rescind any restriction on the transfer of such Transfer
                  Restricted Security; and

                                       7
<PAGE>

                           (B) in the case of any Transfer Restricted Security
                  that is represented by a Global Security, the Registrar shall
                  permit the Holder thereof to exchange such Transfer Restricted
                  Security for a Security that does not bear the legends set
                  forth above and rescind any restriction on the transfer of
                  such Transfer Restricted Security,

in either case, if the Holder certifies in writing to the Registrar that its
request for such exchange was made in reliance on Rule 144 (such certification
to be in the form set forth on the reverse of the Initial Security).

                  (iii) After a transfer of any Initial Securities or Private
         Exchange Securities, as the case may be, during the period of the
         effectiveness of a Shelf Registration Statement with respect to such
         Initial Securities or Private Exchange Securities, all requirements
         pertaining to restricted legends on such Initial Security or such
         Private Exchange Security will cease to apply and an Initial Security
         or Private Exchange Security, as the case may be, in global form
         without restricted legends will be available to the transferee of the
         beneficial interests of such Initial Securities or Private Exchange
         Securities. Upon the occurrence of any of the circumstances described
         in this paragraph, the Company will deliver an Officers' Certificate to
         the Trustee instructing the Trustee to issue Securities without
         restricted legends.

                  (iv) Upon the consummation of a Registered Exchange Offer with
         respect to the Initial Securities pursuant to which certain Holders of
         such Initial Securities are offered Exchange Securities in exchange for
         their Initial Securities, Exchange Securities in global form without
         the restricted legends will be available to Holders or beneficial
         owners that exchange such Initial Securities (or beneficial interests
         therein) in such Registered Exchange Offer. Upon the occurrence of any
         of the circumstances described in this paragraph, the Company will
         deliver an Officers' Certificate to the Trustee instructing the Trustee
         to issue Securities without restricted legends.

                  (e) Cancellation or Adjustment of Global Security. At such
time as all beneficial interests in a Global Security have either been exchanged
for Definitive Securities, redeemed, repurchased or canceled, such Global
Security shall be returned by the Depository to the Trustee for cancelation or
retained and canceled by the Trustee. At any time prior to such cancelation, if
any beneficial interest in a Global Security is exchanged for Definitive
Securities, redeemed, repurchased or canceled, the principal amount of
Securities represented by such Global Security shall be reduced and an
adjustment shall be made on the books and records of the Trustee (if it is then
the Securities Custodian for such Global Security) with respect to such Global
Security, by the Trustee or the Securities Custodian, to reflect such reduction.

                  (f)  Obligations with Respect to Transfers and Exchanges of
Securities.

                                       8
<PAGE>

                  (i) To permit registrations of transfers and exchanges, the
         Company shall execute and the Trustee shall authenticate Definitive
         Securities and Global Securities at the Registrar's or co-registrar's
         request.

                  (ii) No service charge shall be made for any registration of
         transfer or exchange, but the Company may require payment of a sum
         sufficient to cover any transfer tax, assessments, or similar
         governmental charge payable in connection therewith (other than any
         such transfer taxes, assessments or similar governmental charge payable
         upon exchange or transfer pursuant to Sections 3.06, 4.07, 4.09 and
         9.05 of this Indenture).

                  (iii) The Registrar or co-registrar shall not be required to
         register the transfer of or exchange of any Security for a period
         beginning 15 days before the mailing of a notice of redemption or an
         offer to repurchase Securities or 15 days before an interest payment
         date.

                  (iv) Prior to the due presentation for registration of
         transfer of any Security, the Company, the Trustee, the Paying Agent,
         the Registrar or any co-registrar may deem and treat the person in
         whose name a Security is registered as the absolute owner of such
         Security for the purpose of receiving payment of principal of and
         interest on such Security and for all other purposes whatsoever,
         whether or not such Security is overdue, and none of the Company, the
         Trustee, the Paying Agent, the Registrar or any co-registrar shall be
         affected by notice to the contrary.

                  (v) All Securities issued upon any transfer or exchange
         pursuant to the terms of this Indenture shall evidence the same debt
         and shall be entitled to the same benefits under this Indenture as the
         Securities surrendered upon such transfer or exchange.

                  (g)  No Obligation of the Trustee.

                  (i) The Trustee shall have no responsibility or obligation to
         any beneficial owner of a Global Security, a member of, or a
         participant in the Depository or any other Person with respect to the
         accuracy of the records of the Depository or its nominee or of any
         participant or member thereof, with respect to any ownership interest
         in the Securities or with respect to the delivery to any participant,
         member, beneficial owner or other Person (other than the Depository) of
         any notice (including any notice of redemption or repurchase) or the
         payment of any amount, under or with respect to such Securities. All
         notices and communications to be given to the Holders and all payments
         to be made to Holders under the Securities shall be given or made only
         to the registered Holders (which shall be the Depository or its nominee
         in the case of a Global Security). The rights of beneficial owners in
         any Global Security shall be exercised only through the Depository
         subject to the applicable rules and procedures of the Depository. The
         Trustee may rely and shall be fully protected in relying upon
         information

                                       9
<PAGE>

         furnished by the Depository with respect to its members, participants
         and any beneficial owners.

                  (ii) The Trustee shall have no obligation or duty to monitor,
         determine or inquire as to compliance with any restrictions on transfer
         imposed under this Indenture or under applicable law with respect to
         any transfer of any interest in any Security (including any transfers
         between or among Depository participants, members or beneficial owners
         in any Global Security) other than to require delivery of such
         certificates and other documentation or evidence as are expressly
         required by, and to do so if and when expressly required by, the terms
         of this Indenture, and to examine the same to determine substantial
         compliance as to form with the express requirements hereof.

         2.4  Definitive Securities

                  (a) A Global Security deposited with the Depository or
with the Trustee as Securities Custodian pursuant to Section 2.1 shall be
transferred to the beneficial owners thereof in the form of Definitive
Securities in an aggregate principal amount equal to the principal amount of
such Global Security, in exchange for such Global Security, only if such
transfer complies with Section 2.3 and (i) the Depository notifies the Company
that it is unwilling or unable to continue as a Depository for such Global
Security or if at any time the Depository ceases to be a "clearing agency"
registered under the Exchange Act, and a successor Depository is not appointed
by the Company within 90 days of such notice, or (ii) a Default or an Event of
Default has occurred and is continuing or (iii) the Company, in its sole
discretion, notifies the Trustee in writing that it elects to cause the issuance
of Definitive Securities under this Indenture.

                  (b) Any Global Security that is transferable to the beneficial
owners thereof pursuant to this Section 2.4 shall be surrendered by the
Depository to the Trustee, to be so transferred, in whole or from time to time
in part, without charge, and the Trustee shall authenticate and deliver, upon
such transfer of each portion of such Global Security, an equal aggregate
principal amount of Definitive Securities of authorized denominations.
Definitive Securities issued in exchange for any portion of a Global Security
transferred pursuant to this Section shall be executed, authenticated and
delivered only in denominations of $1,000 and any integral multiple thereof and
registered in such names as the Depository shall direct. Any Definitive Security
delivered in exchange for an interest in the Global Security shall, except as
otherwise provided by Section 2.3(c), bear the restricted securities legend set
forth in Exhibit 1 hereto.

                  (c) The registered Holder of a Global Security may grant
proxies and otherwise authorize any Person, including Agent Members and Persons
that may hold interests through Agent Members, to take any action that a Holder
is entitled to take under this Indenture or the Securities.

                  (d) In the event of the occurrence of any of the events
specified in Section 2.4(a)(i), (ii) or (iii), the Company will promptly make
available to the Trustee a

                                       10
<PAGE>

reasonable supply of Definitive Securities in definitive, fully registered form
without interest coupons.

                                       11
<PAGE>

                                                         EXHIBIT 1 TO APPENDIX A

                                                                              to

                                                                       INDENTURE

                       [FORM OF FACE OF INITIAL SECURITY]

                           [Global Securities Legend]

                  UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"),
NEW YORK, NEW YORK, TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF
CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
DTC (AND ANY PAYMENT IS MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC) ANY TRANSFER, PLEDGE OR OTHER
USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS
THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

                  TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO
TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR
THEREOF OR SUCH SUCCESSOR'S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL
SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS
SET FORTH IN THE INDENTURE REFERRED TO ON THE REVERSE HEREOF.

                         [Restricted Securities Legend]

         THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "SECURITIES ACT"). THE HOLDER HEREOF, BY PURCHASING THIS NOTE,
AGREES FOR THE BENEFIT OF THE COMPANY THAT THIS NOTE MAY NOT BE RESOLD, PLEDGED
OR OTHERWISE TRANSFERRED (X) PRIOR TO THE SECOND ANNIVERSARY OF THE ISSUANCE
HEREOF (OR ANY PREDECESSOR SECURITY HERETO) OR (Y) BY ANY HOLDER THAT WAS AN
AFFILIATE OF THE COMPANY AT ANY TIME DURING THE THREE MONTHS PRECEDING THE DATE
OF SUCH TRANSFER, IN EITHER CASE, OTHER THAN (1) TO THE COMPANY, (2) SO LONG AS
THIS NOTE IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT
("RULE 144A") TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED
INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A, PURCHASING FOR ITS OWN
ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS
GIVEN THAT THE RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON
RULE 144A (AS INDICATED BY THE BOX CHECKED BY THE TRANSFEROR ON THE CERTIFICATE
OF TRANSFER ON

<PAGE>

THE REVERSE OF THIS NOTE), (3) IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH
REGULATION S UNDER THE SECURITIES ACT (AS INDICATED BY THE BOX CHECKED BY THE
TRANSFEROR ON THE CERTIFICATE OF TRANSFER ON THE REVERSE OF THIS NOTE), (4) TO
AN INSTITUTION THAT IS AN "ACCREDITED INVESTOR" AS DEFINED IN RULE 501(a)(1),
(2), (3) OR (7) UNDER THE SECURITIES ACT (AS INDICATED BY THE BOX CHECKED BY THE
TRANSFEROR ON THE CERTIFICATE OF TRANSFER ON THE REVERSE OF THIS SECURITY) THAT
IS ACQUIRING THIS SECURITY FOR INVESTMENT PURPOSES AND NOT FOR DISTRIBUTION, AND
A CERTIFICATE WHICH MAY BE OBTAINED FROM THE COMPANY OR THE TRUSTEE IS DELIVERED
BY THE TRANSFEREE TO THE COMPANY AND TRUSTEE, (5) PURSUANT TO AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144 (IF APPLICABLE) UNDER
THE SECURITIES ACT, OR (6) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER
THE SECURITIES ACT, IN EACH CASE IN ACCORDANCE WITH ANY APPLICABLE SECURITIES
LAWS OF ANY STATE OF THE UNITED STATES. AN INSTITUTIONAL ACCREDITED INVESTOR
HOLDING THIS NOTE AGREES THAT IT WILL FURNISH TO THE COMPANY AND THE TRUSTEE
SUCH CERTIFICATES AND OTHER INFORMATION AS THEY MAY REASONABLY REQUIRE TO
CONFIRM THAT ANY TRANSFER BY IT OF THIS NOTE COMPLIES WITH THE FOREGOING
RESTRICTIONS. THE HOLDER HEREOF, BY PURCHASING THIS NOTE, REPRESENTS AND AGREES
FOR THE BENEFIT OF THE COMPANY THAT IT IS (1) A QUALIFIED INSTITUTIONAL BUYER
WITHIN THE MEANING OF RULE 144A OR (2) PURCHASING FROM A PERSON NOT
PARTICIPATING IN THE INITIAL DISTRIBUTION OF THIS SECURITY (OR ANY PREDECESSOR
SECURITY), THAT IT IS AN INSTITUTION THAT IS AN "ACCREDITED INVESTOR" AS DEFINED
IN RULE 501(a)(1), (2), (3) OR (7) UNDER THE SECURITIES ACT AND THAT IT IS
HOLDING THIS NOTE FOR INVESTMENT PURPOSES AND NOT FOR DISTRIBUTION OR (3) A
NON-U.S. PERSON OUTSIDE THE UNITED STATES WITHIN THE MEANING OF (OR AN ACCOUNT
SATISFYING THE REQUIREMENTS OF PARAGRAPH (k)(2)(i) OF RULE 902 UNDER) REGULATION
S UNDER THE SECURITIES ACT.

                         [Definitive Securities Legend]

[IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE REGISTRAR AND
TRANSFER AGENT SUCH CERTIFICATES AND OTHER INFORMATION AS SUCH TRANSFER AGENT
MAY REASONABLY REQUIRE TO CONFIRM THAT THE TRANSFER COMPLIES WITH THE FOREGOING
RESTRICTIONS.]

                                       2
<PAGE>

[*/]

CUSIP No.                                                           $

                        12% Senior Secured Note Due 2005

                  Revlon Consumer Products Corporation, a Delaware corporation,
promises to pay to , or registered assigns, the principal sum of Dollars on
December 1, 2005.

                  Interest Payment Dates: June 1 and December 1.

                  Record Dates:  May 15 and November 15.

                  Additional provisions of this Security are set forth on the
other side of this Security.

Dated:                                  REVLON CONSUMER PRODUCTS
                                          CORPORATION

                                        By:
                                           --------------------------------
                                                       [Title]

[SEAL]                                  By:
                                           --------------------------------
                                                       [Title]

TRUSTEE'S CERTIFICATE OF
  AUTHENTICATION

WILMINGTON TRUST COMPANY,
as Trustee, certifies
that this is one of
the Securities referred
to in the Indenture.

by
  -------------------------------
       Authorized Signatory

*/ [If the Security is to be issued in global form add the Global Securities
Legend from Exhibit 1 to Appendix A and the attachment from such Exhibit 1 to
Appendix A captioned "[TO BE ATTACHED TO GLOBAL SECURITIES] - SCHEDULE OF
INCREASES OR DECREASES IN GLOBAL SECURITY".]

                                       3
<PAGE>

                   [FORM OF REVERSE SIDE OF INITIAL SECURITY]

                        12% Senior Secured Note Due 2005

1.       Interest

                  Revlon Consumer Products Corporation, a Delaware corporation
(such corporation, and its successors and assigns under the Indenture
hereinafter referred to, being herein called the "Company"), promises to pay
interest on the Principal amount of this Security at the rate per annum shown
above; provided, however, that if (a) by February 25, 2002, neither the Shelf
Registration Statement nor the Exchange Offer Registration Statement has been
filed with the SEC, the rate per annum at which this Security bears interest
will increase by 0.5% from and including such date until but excluding the
earlier of (i) the date on which the Shelf Registration Statement or the
Exchange Offer Registration Statement is filed and (ii) June 24, 2002 and if (b)
by June 24, 2002, neither (i) the Registered Exchange Offer is consummated nor
(ii) the Shelf Registration Statement is declared effective, the rate per annum
at which this Security bears interest will increase by 0.5% from and including
such date until but excluding the earlier of (i) the consummation of the
Registered Exchange Offer and (ii) the effective date of the Shelf Registration
Statement. The Company will pay interest semiannually on June 1 and December 1
of each year, commencing June 1, 2002; provided, however, that interest accruing
on this Security prior to the consummation of the Registered Exchange Offer will
be paid to the holder of this Security, the Exchange Security or the Private
Exchange Security, as the case may be, on the record date next preceding the
interest payment date following the consummation of the Registered Exchange
Offer. Interest on the Securities will accrue from the most recent date to which
interest has been paid or, if no interest has been paid, from November 26, 2001.
Interest will be computed on the basis of a 360-day year of twelve 30-day
months. The Company shall pay interest on overdue Principal at the rate borne by
the Securities plus 1% per annum, and it shall pay interest on overdue
installments of interest at the same rate to the extent lawful.

2.       Method of Payment

                  The Company will pay interest referred to in paragraph 1 above
(except defaulted interest) on the Securities to the persons who are registered
holders of Securities at the close of business on the May 15 and November 15
next preceding the interest payment date even if Securities are canceled after
the record date and on or before the interest payment date. Holders must
surrender Securities to a Paying Agent to collect Principal payments. The
Company will pay Principal, interest and premium, if any, in money of the United
States that at the time of payment is legal tender for payment of public and
private debts. Payments in respect of the Securities represented by a Global
Security (including principal, premium and interest) will be made by wire
transfer of immediately available funds to the accounts specified by The
Depository Trust Company. The Company will make all payments in respect of a
Definitive Security (including principal, premium and interest) by mailing a
check to the registered address of each Holder thereof; provided, however, that
payments on a Definitive Security will be made

<PAGE>

by wire transfer to a U.S. dollar account maintained by the payee with a bank in
the United States if such Holder elects payment by wire transfer by giving
written notice to the Trustee or the Paying Agent to such effect designating
such account no later than 30 days immediately preceding the relevant due date
for payment (or such other date as the Trustee may accept in its discretion).

3.       Paying Agent, Registrar and Collateral Agent

                  Initially, Wilmington Trust Company, as trustee ("Trustee"),
will act as Paying Agent and Registrar. The Company may appoint and change any
Paying Agent, Registrar or co-registrar without notice. The Company or any of
its domestically incorporated Wholly Owned Recourse Subsidiaries may act as
Paying Agent, Registrar or co-registrar. Initially, Wilmington Trust Company
will act as Collateral Agent.

4.       Indenture

                  The Company issued the Securities under an Indenture dated as
of November 26, 2001 ("Indenture"), between the Company and the Trustee. The
terms of the Securities include those stated in the Indenture and those made
part of the Indenture by reference to the Trust Indenture Act of 1939 (15 U.S.C.
ss.ss. 77aaa-77bbbb) as in effect on the date of the Indenture (the "Act").
Capitalized terms used herein and not defined herein have the meanings ascribed
thereto in the Indenture. The Securities are subject to all such terms, and
Securityholders are referred to the Indenture and the Act for a statement of
those terms.

                  The Securities are obligations of the Company secured as
provided in paragraph 11 below and limited to $663,000,000 aggregate Principal
amount (subject to Section 2.07 of the Indenture). This Security is one of the
Initial Securities referred to in the Indenture. The Securities constitute
"Designated Senior Debt" of the Company for purposes of the Company's Indenture
dated as of February 1, 1998 with U.S. Bank Trust National Association, as
trustee. [This Security is one of the Original Securities referred to in the
Indenture issued in an aggregate Principal amount of $363,000,000. The
Securities include the Original Securities, up to an aggregate Principal amount
of $300,000,000 of Additional Securities that may be issued under the Indenture
and any Exchange Securities or Private Exchange Securities issued in exchange
for Initial Securities]. [This Security is one of up to $300,000,000 aggregate
Principal amount of Additional Securities. The Securities include such
Additional Securities, the Initial Securities in an aggregate principal amount
of $363,000,000 previously issued under the Indenture and any Exchange
Securities or Private Exchange Securities issued in exchange for Initial
Securities.] The Initial Securities, the Exchange Securities, the Private
Exchange Securities and any Additional Securities are treated as a single class
of securities under the Indenture. The Indenture imposes certain limitations on,
among other things, the issuance of debt and redeemable stock by the Company,
the issuance of debt and preferred stock by the Subsidiaries of the Company, the
payment of dividends and other distributions and acquisitions or retirements of
the Company's Capital Stock and Subordinated Obligations, the incurrence by the
Company and its Subsidiaries of Liens on its property and assets, the sale or
transfer of assets and Subsidiary stock by the

                                       2
<PAGE>

Company and transactions with Affiliates. In addition, the Indenture limits the
ability of the Company and its Subsidiaries to restrict distributions and
dividends from Subsidiaries.

5.       Optional Redemption

                  The Company may redeem the Securities at the option of the
Company at any time or from time to time, in whole or in part, at a redemption
price equal to the sum of (i) the then outstanding aggregate Principal amount
thereof, plus (ii) accrued and unpaid interest (if any) to the redemption date,
plus (iii) the Applicable Premium.

6.       Mandatory Redemption

                  In the event that the conditions set forth in Section 2(b) of
the Escrow Agreement shall not have been satisfied on or prior to December 7,
2001, the Company shall redeem all the Securities at a redemption price in cash
equal to 96.569% of the Principal amount (the "Discounted Amount") plus accrued
and unpaid interest calculated at a rate of 13.125% per annum on the Discounted
Amount to the redemption date (which aggregate redemption price for all
Securities outstanding on the redemption date shall equal $352,590,319) on
December 12, 2001.

7.       Notice of Redemption

                  Notice of redemption under paragraph 5 will be mailed at least
30 days but not more than 60 days before the redemption date to each Holder of
Securities to be redeemed at his registered address. In the case of a redemption
under paragraph 6, the Company shall give notice of redemption to the Trustee
and Escrow Agent promptly after the event triggering the requirement to redeem
the Securities. Securities in denominations larger than $1,000 may be redeemed
in part but only in whole multiples of $1,000. If money sufficient to pay the
redemption price of and accrued interest on all Securities (or portions thereof)
to be redeemed on the redemption date is deposited with the Paying Agent on or
before the redemption date and certain other conditions are satisfied, on and
after such date interest ceases to accrue on such Securities (or such portions
thereof) called for redemption.

8.       Put Provisions

                  Upon a Change of Control, any Holder of Securities will have
the right, subject to certain conditions, to cause the Company to repurchase all
or any part of the Securities of such Holder at a repurchase price equal to the
Put Amount of the Securities to be repurchased plus accrued and unpaid interest
to the repurchase (subject to the right of Holders of record on the relevant
record date to receive interest due on the related interest payment date) as
provided in, and subject to the terms of, the Indenture.

                                       3
<PAGE>

9.       Denominations; Transfer; Exchange

                  The Securities are in registered form without coupons in
denominations of $1,000 and whole multiples of $1,000. A Holder may transfer or
exchange Securities in accordance with the Indenture. The Registrar may require
a Holder, among other things, to furnish appropriate endorsements or transfer
documents and to pay any taxes and fees required by law or permitted by the
Indenture. The Registrar need not register the transfer of or exchange any
Securities selected for redemption (except, in the case of a Security to be
redeemed in part, the portion of the Security not to be redeemed) or any
Securities for a period of 15 days before a selection of Securities to be
redeemed.

10.      Persons Deemed Owners

                  The registered Holder of this Security may be treated as the
owner of it for all purposes.

11.      Guarantees; Security

                  The payment of Principal of and interest, if any, on the
Securities and other Obligations of the Company under the Securities and the
Indenture will be (i) unconditionally and jointly and severally guaranteed by
the Guarantors, pursuant to, and subject to the terms (including release
provisions) of, Section 4.10 and Article X of the Indenture and (ii) secured on
a second-priority basis by the Lien of the Security Documents pursuant to, and
subject to the terms (including release provisions) of, Section 4.12 and Article
XI of the Indenture and the Collateral Agency Agreement.

12.      Unclaimed Money

                  If money for the payment of Principal or interest remains
unclaimed for two years, the Trustee or Paying Agent shall pay the money back to
the Company at its request unless an abandoned property law designates another
person. After any such payment, Holders entitled to the money must look only to
the Company and not to the Trustee for payment.

13.      Discharge and Defeasance

                  Subject to certain conditions, the Company at any time may
terminate some or all of its obligations under the Securities and the Indenture
if the Company deposits with the Trustee money or U.S. Government Obligations
for the payment of Principal and interest on the Securities to redemption or
maturity, as the case may be.

14.      Amendment, Waiver

                  Subject to certain exceptions set forth in the Indenture, (i)
the Indenture, any Indenture Guarantee or the Securities or any other Indenture
Document may be amended with the written consent of the Holders of at least a
majority in Principal amount outstanding of the Securities and (ii) any default
or noncompliance with any

                                       4
<PAGE>

provision may be waived with the written consent of the Holders of a majority in
Principal amount outstanding of the Securities. Subject to certain exceptions
set forth in the Indenture, without the consent of any Securityholder, the
Company, the Guarantors and the Trustee may amend the Indenture, any Indenture
Guarantee or the Securities or any other Indenture Document to cure any
ambiguity, omission, defect or inconsistency, or to comply with Sections 4.10,
4.11 or 4.12 or Article V or XI of the Indenture, or to provide for
uncertificated Securities in addition to or in place of certificated Securities,
or to add Indenture Guarantees with respect to the Securities or to secure the
Securities, or to add additional covenants or surrender rights and powers
conferred on the Company, or to comply with any requirement of the SEC in
connection with qualifying the Indenture under the Act, or to otherwise comply
with the Act, or to provide for the issuance of the Exchange Securities or the
Private Exchange Securities, or to make any change that does not adversely
affect the rights of any Securityholder. A consent to any amendment or waiver of
any provision in the Indenture or in the Securities by any Holder given in
connection with a tender of such Holder's Securities shall not be rendered
invalid by such tender.

15.      Defaults and Remedies

                  Under the Indenture, Events of Default include (i) default for
30 days in payment of interest on the Securities; (ii) default in payment of
Principal on the Securities at maturity, upon redemption pursuant to paragraph 5
or paragraph 6 of the Securities, upon declaration or otherwise, or failure by
the Company to repurchase Securities when required; (iii) failure by the Company
to comply with other agreements in the Indenture or the Securities, in certain
cases subject to notice and lapse of time; (iv) certain accelerations (including
failure to pay within any grace period after final maturity) of other Debt of
the Parent Guarantor, the Company or any Significant Subsidiary if the amount
accelerated (or so unpaid) exceeds $25 million and continues for 10 days after
the required notice to the Company; (v) certain events of bankruptcy or
insolvency with respect to the Parent Guarantor, the Company or any Significant
Subsidiary; (vi) certain judgments or decrees for the payment of money in excess
of $25 million if such default continues for 10 days after the required notice
to the Company; (vii) the invalidity or asserted invalidity by the Company or
any Guarantor of the Liens created by the Security Documents (with certain
exceptions) if such default continues for 10 days after the required notice to
the Company; and (viii) an Indenture Guarantee ceasing to be in full force and
effect (other than in accordance with the Indenture) if such default continues
for 10 days after the required notice to the Company or denial or disaffirmation
by a Guarantor of its obligations under its Indenture Guarantee. If an Event of
Default occurs and is continuing, the Trustee or the Holders of at least 25% in
Principal amount of the Securities may declare all the Securities to be due and
payable immediately. Certain events of bankruptcy or insolvency are Events of
Default which will result in the Securities being due and payable immediately
upon the occurrence of such Events of Default.

                  Securityholders may not enforce the Indenture or the
Securities except as provided in the Indenture. The Trustee may refuse to
enforce the Indenture or the

                                       5
<PAGE>

Securities unless it receives reasonable indemnity or security. Subject to
certain limitations, Holders of a majority in Principal amount of the Securities
may direct the Trustee in its exercise of any trust or power. The Trustee may
withhold from Securityholders notice of any continuing Default (except a Default
in payment of Principal or interest) if it determines that withholding notice is
in their interest.

16.      Trustee Dealings with the Company

                  Subject to certain limitations imposed by the Act, the Trustee
under the Indenture, in its individual or any other capacity, may become the
owner or pledgee of Securities and may otherwise deal with and collect
obligations owed to it by the Company or its Affiliates and may otherwise deal
with the Company or its Affiliates with the same rights it would have if it were
not Trustee.

17.      No Recourse Against Others

                  A director, officer, employee or stockholder, as such, of the
Company or the Trustee shall not have any liability for any obligations of the
Company or the Trustee under the Securities or the Indenture or for any claim
based on, in respect of or by reason of such obligations or their creation. By
accepting a Security, each Securityholder waives and releases all such
liability. The waiver and release are part of the consideration for the issue of
the Securities.

18.      Authentication

                  This Security shall not be valid until an authorized signatory
of the Trustee (or an authenticating agent) manually signs the certificate of
authentication on the other side of this Security.

19.      Abbreviations

                  Customary abbreviations may be used in the name of a
Securityholder or an assignee, such as TEN COM (=tenants in common), TEN ENT
(=tenants by the entireties), JT TEN (=joint tenants with rights of survivorship
and not as tenants in common), CUST (=custodian), and U/G/M/A (=Uniform Gift to
Minors Act).

20.      CUSIP Numbers

                  Pursuant to a recommendation promulgated by the Committee on
Uniform Security Identification Procedures the Company has caused CUSIP numbers
to be printed on the Securities and has directed the Trustee to use CUSIP
numbers in notices of redemption as a convenience to Securityholders. No
representation is made as to the accuracy of such numbers either as printed on
the Securities or as contained in any notice of redemption and reliance may be
placed only on the other identification numbers placed thereon.

                                       6
<PAGE>

21.      Governing Law

                  THIS SECURITY SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK BUT WITHOUT GIVING EFFECT TO
APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF
THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

                  The Company will furnish to any Securityholder upon written
request and without charge to the Securityholder a copy of the Indenture which
has in it the text of this Security in larger type. Requests may be made to the
Company at:

                  625 Madison Avenue
                  New York, New York  10022
                  Attention of General Counsel

                                       7
<PAGE>

                                 ASSIGNMENT FORM

                  To assign this Security, fill in the form below:

                  I or we assign and transfer this Security to

              (Print or type assignee's name, address and zip code)

                  (Insert assignee's soc. sec. or tax I.D. No.)

                  and  irrevocably  appoint                           agent
                  to transfer this Security on the books of the Company. The
                  agent may substitute another to act for him.

Date:                   Your Signature:
     -----------------                 -----------------------------------------
                                       (Sign exactly as your name appears on the
                                       other side of this Security)

                  In connection with any transfer of any of the Securities
evidenced by this certificate occurring prior to the expiration of the period
referred to in Rule 144(k) under the Securities Act after the later of the date
of original issuance of such Securities and the last date, if any, on which such
Securities were owned by the Company or any Affiliate of the Company, the
undersigned confirms that such Securities are being transferred in accordance
with its terms:

CHECK ONE BOX BELOW

(1) [ ]  to the Company; or

(2) [ ]  pursuant to an effective registration statement under the Securities
         Act of 1933; or

(3) [ ]  inside the United States to a "qualified institutional buyer" (as
         defined in Rule 144A under the Securities Act of 1933) that purchases
         for its own account or for the account of a qualified institutional
         buyer to whom notice is given that such transfer is being made in
         reliance on Rule 144A, in each case pursuant to and in compliance with
         Rule 144A under the Securities Act of 1933; or

(4) [ ]  outside the United States in an offshore transaction within the
         meaning of Regulation S under the Securities Act in compliance with
         Rule 904 under the Securities Act of 1933; or

(5) [ ]  inside the United States to an institutional "accredited investor"
         (as defined in Rule 501(a)(1), (2), (3) or (7) of Regulation D under
         the Securities Act of 1933) that, prior to such transfer, furnishes to
         the Trustee a signed letter containing certain representations and
         agreements (the form of which letter can be obtained from the Trustee)
         and, if such transfer is in

                                       8
<PAGE>

         respect of an aggregate Principal amount of Securities at the time of
         transfer of less than $250,000, an opinion of counsel acceptable to the
         Company that such transfer is in compliance with the restrictions set
         forth in the legend on the Securities; or

(6) [ ]  pursuant to another available exemption from registration provided by
         Rule 144 under the Securities Act of 1933.

         Unless one of the boxes is checked, the Trustee will refuse to register
any of the Securities evidenced by this certificate in the name of any person
other than the registered holder thereof; provided, however, that if box (4),
(5) or (6) is checked, the Trustee may require, prior to registering any such
transfer of the Securities, such legal opinions, certifications and other
information as the Company has reasonably requested to confirm that such
transfer is being made pursuant to an exemption from, or in a transaction not
subject to, the registration requirements of the Securities Act of 1933, such as
the exemption provided by Rule 144 under such Act.

                                        ---------------------------------
                                        Signature
Signature Guarantee:
                                        ---------------------------------
                                        Signature must be guaranteed by a
                                        participant in a recognized signature
                                        guaranty medallion program or other
                                        signature guarantor acceptable to the
                                        Trustee.

                                       9
<PAGE>

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

              TO BE COMPLETED BY PURCHASER IF (3) ABOVE IS CHECKED.

                  The undersigned represents and warrants that it is purchasing
this Security for its own account or an account with respect to which it
exercises sole investment discretion and that it and any such account is a
"qualified institutional buyer" within the meaning of Rule 144A under the
Securities Act of 1933, and is aware that the sale to it is being made in
reliance on Rule 144A and acknowledges that it has received such information
regarding the Company as the undersigned has requested pursuant to Rule 144A or
has determined not to request such information and that it is aware that the
transferor is relying upon the undersigned's foregoing representations in order
to claim the exemption from registration provided by Rule 144A.

Dated:
      -----------------                 ---------------------------------------
                                        NOTICE: To be executed by an executive
                                        officer

                                       10
<PAGE>

                      [TO BE ATTACHED TO GLOBAL SECURITIES]

              SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY

                  The following increases or decreases in this Global Security
have been made:

Date of     Amount of        Amount of        Principal          Signature of
Exchange    decrease in      increase in      amount of this     authorized
            Principal        Principal        Global Security    officer of
            amount of this   amount of this   following such     Trustee or
            Global Security  Global Security  decrease of        Securities
                                              increase)          Custodian

                                       11
<PAGE>

                       OPTION OF HOLDER TO ELECT PURCHASE

                  If you want to elect to have this Security purchased by the
Company pursuant to Section 4.07 or 4.09 of the Indenture, check the box:

                                     [ ]

                  If you want to elect to have only part of this Security
purchased by the Company pursuant to Section 4.07 or 4.09 of the Indenture,
state the amount in Principal amount: $

Date:                   Your Signature:
     -----------------                 -----------------------------------------
                                       (Sign exactly as your name appears on the
                                       other side of this Security)

Signature Guarantee:
                    -----------------------------------
                     (Signature must be guaranteed.)

                                       12
<PAGE>

                                                                       EXHIBIT A

                                                                              to

                                                                       INDENTURE

        [FORM OF FACE OF EXCHANGE SECURITY OR PRIVATE EXCHANGE SECURITY]

[*/]

CUSIP No.                                                      $

                  12% Senior Secured Exchange Note Due 2005

                  Revlon Consumer Products Corporation, a Delaware corporation,
promises to pay to , or registered assigns, the principal sum of Dollars on
December 1, 2005.

                  Interest Payment Dates: June 1 and December 1.

                  Record Dates: May 15 and November 15.

                  Additional provisions of this Security are set forth on the
other side of this Security.

Dated:                                  REVLON CONSUMER PRODUCTS
                                          CORPORATION

                                        By:
                                           --------------------------------
                                                       [Title]

[SEAL]                                  By:
                                           --------------------------------
                                                       [Title]

TRUSTEE'S CERTIFICATE OF
AUTHENTICATION

WILMINGTON TRUST COMPANY,
as Trustee, certifies
that this is one of
the Securities referred
to in the Indenture.

by
  -----------------------------
Authorized Signatory

<PAGE>

*/ [If the Security is to be issued in global form add the Global Securities
Legend from Exhibit 1 to Appendix A and the attachment from such Exhibit 1 to
Appendix A captioned "[TO BE ATTACHED TO GLOBAL SECURITIES] - SCHEDULE OF
INCREASES OR DECREASES IN GLOBAL SECURITY".]

**/ [If the Security is a Private Exchange Security issued in a Private Exchange
Offer to an Initial Purchaser holding an unsold portion of its initial
allotment, add the Restricted Securities Legend from Exhibit 1 to Appendix A and
replace the Assignment Form included in this Exhibit A with the Assignment Form
included in such Exhibit 1 to Appendix A.]

                                       2
<PAGE>

                   [FORM OF REVERSE SIDE OF EXCHANGE SECURITY
                          OR PRIVATE EXCHANGE SECURITY]

                    12% Senior Secured Exchange Note Due 2005

1.       Interest

                  Revlon Consumer Products Corporation, a Delaware corporation
(such corporation, and its successors and assigns under the Indenture
hereinafter referred to, being herein called the "Company"), promises to pay
interest on the Principal amount of this Security at the rate per annum shown
above (without duplication of the interest that accrued on the Initial Security
in exchange for which this Security was issued)[; provided, however, that if (a)
by February 25, 2002, neither the Shelf Registration Statement nor the Exchange
Offer Registration Statement has been filed with the SEC, the rate per annum at
which this Security bears interest will increase by 0.5% from and including such
date until but excluding the earlier of (i) the date on which the Shelf
Registration Statement or the Exchange Offer Registration Statement is filed and
(ii) June 24, 2002 and if (b) by June 24, 2002, neither (i) the Registered
Exchange Offer is consummated nor (ii) the Shelf Registration Statement is
declared effective, the rate per annum at which this Security bears interest
will increase by 0.5% from and including such date until but excluding the
earlier of (i) the consummation of the Registered Exchange Offer and (ii) the
effective date of the Shelf Registration Statement.]1 The Company will pay
interest semiannually on June 1 and December 1 of each year, commencing June 1,
2002. Interest on the Securities will accrue from the most recent date to which
interest has been paid on the Initial Securities, or, if no interest has been
paid on the Initial Securities, the Exchange Securities or the Private Exchange
Securities, as the case may be, from November 26, 2001. Interest will be
computed on the basis of a 360-day year of twelve 30-day months. The Company
shall pay interest on overdue Principal at the rate borne by the Securities plus
1% per annum, and it shall pay interest on overdue installments of interest at
the same rate to the extent lawful.

2.       Method of Payment

                  The Company will pay interest referred to in paragraph 1 above
(except defaulted interest) on the Exchange Securities or Private Exchange
Securities to the persons who are registered holders of Securities at the close
of business on the May 15 and November 15 next preceding the interest payment
date even if Exchange Securities or Private Exchange Securities are canceled
after the record date and on or before the interest payment date. The Company
will pay interest referred to in paragraph 1 of the Initial Securities (except
defaulted interest) on the Initial Securities in exchange for which the Exchange
Securities or Private Exchange Securities were issued to the Persons who,

--------
1    Insert if at the time of issuance of the Exchange Security or Private
     Exchange Security (as the case may be) neither the Registered Exchange
     Offer has been consummated nor a Shelf Registration Statement has been
     declared effective in accordance with the Registration Agreement.

<PAGE>

at the close of business on the May 15 or the November 15 next preceding each
interest payment date, are registered holders of such Initial Securities, if
such record date occurs prior to such exchange, or registered holders of the
Exchange Securities or Private Exchange Securities, if such record date occurs
on or after the date of such exchange, even if Exchange Securities or Private
Exchange Securities are canceled after the record date and on or before the
interest payment date. Holders must surrender Securities to a Paying Agent to
collect Principal payments. The Company will pay Principal, interest and
premium, if any, in money of the United States that at the time of payment is
legal tender for payment of public and private debts. Payments in respect of the
Securities represented by a global note (including principal, premium and
interest) will be made by wire transfer of immediately available funds to the
accounts specified by The Depository Trust Company. The Company will make all
payments in respect of a certificated Security (including principal, premium and
interest) by mailing a check to the registered address of each Holder thereof;
provided, however, that payments on a certificated Security will be made by wire
transfer to a U.S. dollar account maintained by the payee with a bank in the
United States if such Holder elects payment by wire transfer by giving written
notice to the Trustee or the Paying Agent to such effect designating such
account no later than 30 days immediately preceding the relevant due date for
payment (or such other date as the Trustee may accept in its discretion).

3.       Paying Agent, Registrar and Collateral Agent

                  Initially, Wilmington Trust Company, as trustee ("Trustee"),
will act as Paying Agent and Registrar. The Company may appoint and change any
Paying Agent, Registrar or co-registrar without notice. The Company or any of
its domestically incorporated Wholly Owned Recourse Subsidiaries may act as
Paying Agent, Registrar or co-registrar. Initially, Wilmington Trust Company
will act as Collateral Agent.

4.       Indenture

                  The Company issued the Securities under an Indenture dated as
of November 26, 2001 ("Indenture"), between the Company and the Trustee. The
terms of the Securities include those stated in the Indenture and those made
part of the Indenture by reference to the Trust Indenture Act of 1939 (15 U.S.C.
ss.ss. 77aaa-77bbbb) as in effect on the date of the Indenture (the "Act").
Capitalized terms used herein and not defined herein have the meanings ascribed
thereto in the Indenture. The Securities are subject to all such terms, and
Securityholders are referred to the Indenture and the Act for a statement of
those terms.

                  The Securities are obligations of the Company secured as
provided in paragraph 9 below and limited to $663,000,000 aggregate Principal
amount (subject to Section 2.07 of the Indenture). This Security is one of the
Exchange Securities referred to in the Indenture. The Securities constitute
"Designated Senior Debt" of the Company for purposes of the Company's Indenture
dated as of February 1, 1998 with U.S. Bank Trust National Association, as
trustee. [This Security is one of the Original Securities referred to in the
Indenture issued in an aggregate Principal amount of $363,000,000. The
Securities include the Original Securities, up to an aggregate Principal amount
of

                                       2
<PAGE>

$300,000,000 of Additional Securities that may be issued under the Indenture and
any Exchange Securities or Private Exchange Securities issued in exchange for
Initial Securities]. [This Security is one of up to $300,000,000 aggregate
Principal amount of Additional Securities. The Securities include such
Additional Securities, the Initial Securities in an aggregate principal amount
of $363,000,000 previously issued under the Indenture and any Exchange
Securities or Private Exchange Securities issued in exchange for Initial
Securities.] The Initial Securities, the Exchange Securities, the Private
Exchange Securities and any Additional Securities are treated as a single class
of securities under the Indenture. The Indenture imposes certain limitations on,
among other things, the issuance of debt and redeemable stock by the Company,
the issuance of debt and preferred stock by the Subsidiaries of the Company, the
payment of dividends and other distributions and acquisitions or retirements of
the Company's Capital Stock and Subordinated Obligations, the incurrence by the
Company and its Subsidiaries of Liens on its property and assets, the sale or
transfer of assets and Subsidiary stock by the Company and transactions with
Affiliates. In addition, the Indenture limits the ability of the Company and its
Subsidiaries to restrict distributions and dividends from Subsidiaries.

5.       Optional Redemption

                  The Company may redeem the Securities at the option of the
Company at any time or from time to time, in whole or in part, at a redemption
price equal to the sum of (i) the then outstanding aggregate Principal amount
thereof, plus (ii) accrued and unpaid interest (if any) to the redemption date,
plus (iii) the Applicable Premium.

6.       Notice of Redemption

                  Notice of redemption under paragraph 5 will be mailed at least
30 days but not more than 60 days before the redemption date to each Holder of
Securities to be redeemed at his registered address. Securities in denominations
larger than $1,000 may be redeemed in part but only in whole multiples of
$1,000. If money sufficient to pay the redemption price of and accrued interest
on all Securities (or portions thereof) to be redeemed on the redemption date is
deposited with the Paying Agent on or before the redemption date and certain
other conditions are satisfied, on and after such date interest ceases to accrue
on such Securities (or such portions thereof) called for redemption.

7.       Put Provisions

                  Upon a Change of Control, any Holder of Securities will have
the right, subject to certain conditions, to cause the Company to repurchase all
or any part of the Securities of such Holder at a repurchase price equal to the
Put Amount of the Securities to be repurchased plus accrued and unpaid interest
to the repurchase date (subject to the right of Holders of record on the
relevant record date to receive interest due on the related interest payment
date) as provided in, and subject to the terms of, the Indenture.

                                       3
<PAGE>

8.       Denominations; Transfer; Exchange

                  The Securities are in registered form without coupons in
denominations of $1,000 and whole multiples of $1,000. A Holder may transfer or
exchange Securities in accordance with the Indenture. The Registrar may require
a Holder, among other things, to furnish appropriate endorsements or transfer
documents and to pay any taxes and fees required by law or permitted by the
Indenture. The Registrar need not register the transfer of or exchange any
Securities selected for redemption (except, in the case of a Security to be
redeemed in part, the portion of the Security not to be redeemed) or any
Securities for a period of 15 days before a selection of Securities to be
redeemed.

9.       Guarantees; Security

                  The payment of Principal of and interest, if any, on the
Securities and other Obligations of the Company under the Securities and the
Indenture will be (i) unconditionally and jointly and severally guaranteed by
the Guarantors, pursuant to, and subject to the terms (including release
provisions) of, Section 4.10 and Article X of the Indenture and (ii) secured on
a second-priority basis by the Lien of the Security Documents pursuant to, and
subject to the terms (including release provisions) of, Section 4.12 and Article
XI of the Indenture and the Collateral Agency Agreement.

10.      Persons Deemed Owners

                  The registered Holder of this Security may be treated as the
owner of it for all purposes.

11.      Unclaimed Money

                  If money for the payment of Principal or interest remains
unclaimed for two years, the Trustee or Paying Agent shall pay the money back to
the Company at its request unless an abandoned property law designates another
person. After any such payment, Holders entitled to the money must look only to
the Company and not to the Trustee for payment.

12.      Discharge and Defeasance

                  Subject to certain conditions, the Company at any time may
terminate some or all of its obligations under the Securities and the Indenture
if the Company deposits with the Trustee money or U.S. Government Obligations
for the payment of Principal and interest on the Securities to redemption or
maturity, as the case may be.

13.      Amendment, Waiver

                  Subject to certain exceptions set forth in the Indenture, (i)
the Indenture, any Indenture Guarantee or the Securities or any other Indenture
Document may be amended with the written consent of the Holders of at least a
majority in Principal amount outstanding of the Securities and (ii) any default
or noncompliance with any

                                       4
<PAGE>

provision may be waived with the written consent of the Holders of a majority in
Principal amount outstanding of the Securities. Subject to certain exceptions
set forth in the Indenture, without the consent of any Securityholder, the
Company, the Guarantors and the Trustee may amend the Indenture, any Indenture
Guarantee or the Securities or any other Indenture Document to cure any
ambiguity, omission, defect or inconsistency, or to comply with Sections 4.10,
4.11 or 4.12 or Article V or XI of the Indenture, or to provide for
uncertificated Securities in addition to or in place of certificated Securities,
or to add Indenture Guarantees with respect to the Securities or to secure the
Securities, or to add additional covenants or surrender rights and powers
conferred on the Company, or to comply with any requirement of the SEC in
connection with qualifying the Indenture under the Act, or to otherwise comply
with the Act or to provide for the issuance of the Exchange Securities or the
Private Exchange Securities, or to make any change that does not adversely
affect the rights of any Securityholder. A consent to any amendment or waiver of
any provision in the Indenture or in the Securities by any Holder given in
connection with a tender of such Holder's Securities shall not be rendered
invalid by such tender.

14.      Defaults and Remedies

                  Under the Indenture, Events of Default include (i) default for
30 days in payment of interest on the Securities; (ii) default in payment of
Principal on the Securities at maturity, upon redemption pursuant to paragraph 5
of the Securities, upon declaration or otherwise, or failure by the Company to
repurchase Securities when required; (iii) failure by the Company, as
applicable, to comply with other agreements in the Indenture or the Securities,
in certain cases subject to notice and lapse of time; (iv) certain accelerations
(including failure to pay within any grace period after final maturity) of other
Debt of the Parent Guarantor, the Company or any Significant Subsidiary if the
amount accelerated (or so unpaid) exceeds $25 million and continues for 10 days
after the required notice to the Company; (v) certain events of bankruptcy or
insolvency with respect to the Parent Guarantor, the Company or any Significant
Subsidiary; (vi) certain judgments or decrees for the payment of money in excess
of $25 million if such default continues for 10 days after the required notice
to the Company; (vii) the invalidity or asserted invalidity by the Company or
any Guarantor of the Liens created by the Security Documents (with certain
exceptions) if such default continues for 10 days after the required notice to
the Company; and (viii) an Indenture Guarantee ceasing to be in full force and
effect (other than in accordance with the Indenture) if such default continues
for 10 days after the required notice to the Company or denial or disaffirmation
by a Guarantor of its obligations under its Indenture Guarantee. If an Event of
Default occurs and is continuing, the Trustee or the Holders of at least 25% in
Principal amount of the Securities may declare all the Securities to be due and
payable immediately. Certain events of bankruptcy or insolvency are Events of
Default which will result in the Securities being due and payable immediately
upon the occurrence of such Events of Default.

                  Securityholders may not enforce the Indenture or the
Securities except as provided in the Indenture. The Trustee may refuse to
enforce the Indenture or the

                                       5
<PAGE>

Securities unless it receives reasonable indemnity or security. Subject to
certain limitations, Holders of a majority in Principal amount of the Securities
may direct the Trustee in its exercise of any trust or power. The Trustee may
withhold from Securityholders notice of any continuing Default (except a Default
in payment of Principal or interest) if it determines that withholding notice is
in their interest.

15.      Trustee Dealings with the Company

                  Subject to certain limitations imposed by the Act, the Trustee
under the Indenture, in its individual or any other capacity, may become the
owner or pledgee of Securities and may otherwise deal with and collect
obligations owed to it by the Company or its Affiliates and may otherwise deal
with the Company or its Affiliates with the same rights it would have if it were
not Trustee.

16.      No Recourse Against Others

                  A director, officer, employee or stockholder, as such, of the
Company or the Trustee shall not have any liability for any obligations of the
Company or the Trustee under the Securities or the Indenture or for any claim
based on, in respect of or by reason of such obligations or their creation. By
accepting a Security, each Securityholder waives and releases all such
liability. The waiver and release are part of the consideration for the issue of
the Securities.

17.      Authentication

                  This Security shall not be valid until an authorized signatory
of the Trustee (or an authenticating agent) manually signs the certificate of
authentication on the other side of this Security.

18.      Abbreviations

                  Customary abbreviations may be used in the name of a
Securityholder or an assignee, such as TEN COM (=tenants in common), TEN ENT
(=tenants by the entireties), JT TEN (=joint tenants with rights of survivorship
and not as tenants in common), CUST (=custodian), and U/G/M/A (=Uniform Gift to
Minors Act).

19.      CUSIP Numbers

                  Pursuant to a recommendation promulgated by the Committee on
Uniform Security Identification Procedures the Company has caused CUSIP numbers
to be printed on the Securities and has directed the Trustee to use CUSIP
numbers in notices of redemption as a convenience to Securityholders. No
representation is made as to the accuracy of such numbers either as printed on
the Securities or as contained in any notice of redemption and reliance may be
placed only on the other identification numbers placed thereon.

                                       6
<PAGE>

20.  Holders' Compliance with Registration Agreement

                  Each Holder of a Security, by acceptance hereof, acknowledges
and agrees to the provisions of the Registration Agreement, including, without
limitation, the obligations of the Holders with respect to a registration and
the indemnification of the Company to the extent provided therein.

21.  Governing Law

                  THIS SECURITY SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK BUT WITHOUT GIVING EFFECT TO
APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF
THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

                  The Company will furnish to any Securityholder upon written
request and without charge to the Securityholder a copy of the Indenture which
has in it the text of this Security in larger type. Requests may be made to the
Company at:

                  625 Madison Avenue
                  New York, New York  10022
                  Attention of General Counsel

                                       7
<PAGE>

                                 ASSIGNMENT FORM

                  To assign this Security, fill in the form below:

                  I or we assign and transfer this Security to

              (Print or type assignee's name, address and zip code)

                  (Insert assignee's soc. sec. or tax I.D. No.)

                  and  irrevocably  appoint                agent  to transfer
                  this Security on the books of the Company. The agent may
                  substitute another to act for him.

Date:                   Your Signature:
     -----------------                 -----------------------------------------
                                       (Sign exactly as your name appears on the
                                       other side of this Security)

                                       ---------------------------------
                                       Signature must be guaranteed by a
                                       participant in a recognized signature
                                       guaranty medallion program or other
                                       signature guarantor acceptable to the
                                       Trustee.

                                        8
<PAGE>

                       OPTION OF HOLDER TO ELECT PURCHASE

                  If you want to elect to have this Security purchased by the
Company pursuant to Section 4.07 or 4.09 of the Indenture, check the box:

                                       [ ]

                  If you want to elect to have only part of this Security
purchased by the Company pursuant to Section 4.07 or 4.09 of the Indenture,
state the amount in Principal amount: $

Date:                   Your Signature:
     ---------------                   ---------------------------------------
                                       (Sign exactly as your name appears on the
                                       other side of the Security)

Signature Guarantee:
                    -----------------------------------------
                           (Signature must be guaranteed by a member firm of the
                           New York Stock Exchange or a commercial bank or trust
                           company.

                                       9
<PAGE>

                                                                       EXHIBIT B

                                                                              to

                                                                       INDENTURE

                      [FORM OF CERTIFICATE TO BE DELIVERED
                         IN CONNECTION WITH TRANSFERS TO
                   NON-QIB INSTITUTIONAL ACCREDITED INVESTORS]

                                     [date]

Revlon Consumer Products Corporation
c/o Wilmington Trust Company
Rodney Square North
1100 N. Market Street
Wilmington, DE  19890
Attention:  Corporate Trust Administration

Dear Sirs:

                  This certificate is delivered to request a transfer of $
aggregate principal amount of 12% Senior Secured Notes due 2005 (the "Notes") of
Revlon Consumer Products Corporation (the "Company").

                  The undersigned represents and warrants to you that:

                  (1) We are an institutional "accredited investor" (as defined
                  in Rule 501(a)(1), (2), (3) or (7) of Regulation D under the
                  Securities Act of 1933, as amended (the "Securities Act"))
                  purchasing for our own account or for the account of such an
                  institutional "accredited investor" at least $250,000
                  principal amount of the Notes, and we are acquiring the Notes
                  not with a view to, or for offer or sale in connection with,
                  any distribution in violation of the Securities Act or other
                  applicable securities law and we have such knowledge and
                  experience in financial and business matters as to be capable
                  of evaluating the merits and risks of our investment in the
                  Notes and invest in or purchase securities similar to the
                  Notes in the normal course of our business. We and any
                  accounts for which we are acting are each able to bear the
                  economic risk of our or its investment.

                  (2) We understand and acknowledge that the Notes have not been
                  registered under the Securities Act, or any other applicable
                  securities law and unless so registered, may not be sold
                  except as permitted in the following sentence. We agree on our
                  own behalf and on behalf of any investor account for which we
                  are purchasing Notes to offer, sell or otherwise transfer such
                  Notes prior to the date which is two years after the later of
                  the date of original issue and the last date on which the
                  Company or any affiliate of the Company was the owner of such
                  Notes (or any predecessor thereto) (the "Resale Restriction
                  Termination Date") only

<PAGE>

                  (i) to the Company, (ii) pursuant to a registration statement
                  which has been declared effective under the Securities Act,
                  (iii) in a transaction complying with the requirements of Rule
                  144A under the Securities Act, to a person we reasonably
                  believe is a "Qualified Institutional Buyer" within the
                  meaning of Rule l44A (a "QIB") that purchases for its own
                  account or for the account of a QIB and to whom notice is
                  given that the transfer is being made in reliance on Rule
                  144A, (iv) pursuant to offers and sales that occur outside the
                  United States within the meaning of Regulation S under the
                  Securities Act, (v) pursuant to any other exemption from
                  registration under the Securities Act or (vi) to an
                  institutional "accredited investor" within the meaning of
                  subparagraphs (a)(1), (a)(2), (a)(3) or (a)(7) of Rule 501
                  under the Securities Act that is purchasing the Notes for its
                  own account or for the account of such an institutional
                  "accredited investor", in each case, in a transaction
                  involving a minimum principal amount of $250,000 for such
                  Notes, subject in each of the foregoing cases to any
                  requirement of law that the disposition of our property or the
                  property of such investor account or accounts be at all times
                  within our or their control and in compliance with any
                  applicable state securities laws. The foregoing restrictions
                  on resale will not apply subsequent to the Resale Restriction
                  Termination Date. If any resale or other transfer of the Notes
                  is proposed to be made pursuant to clause (vi) above prior to
                  the Resale Restriction Termination Date, the transferor shall
                  deliver to the Company and the trustee under the Indenture
                  pursuant to which the Notes are issued a letter from the
                  transferee substantially in the form of this letter, which
                  shall provide, among other things, that the transferee is an
                  institutional "accredited investor" within the meaning of
                  subparagraphs (a)(1), (a)(2), (a)(3) or (a)(7) of Rule 501
                  under the Securities Act and that it is acquiring such Notes
                  for investment purposes and not for distribution in violation
                  of the Securities Act. We acknowledge that the Company and the
                  Trustee reserve the right prior to any offer, sale or other
                  transfer of the Notes pursuant to clauses (iv), (v) or (vi)
                  above prior to the Resale Restriction Termination Date to
                  require the delivery of an opinion of counsel, certifications
                  and/or other information satisfactory to the Company and the
                  Trustee.

                  (3) We are acquiring the Notes purchased by us for our own
                  account or for one or more accounts as to each of which we
                  exercise sole investment discretion.

                                        2
<PAGE>

                  (4) You are entitled to rely upon this letter and you are
                  irrevocably authorized to produce this letter or a copy hereof
                  to any interested party in any administrative or legal
                  proceeding or official inquiry with respect to the matters
                  covered hereby.

                                                  Very truly yours,

                                                  By:
                                                     --------------------------
                                                        (Name of Purchaser)

                                                  Date:

                  Upon transfer the Notes would be registered in the name of the
new beneficial owner as follows:

                                                               TAXPAYER ID
NAME                                    ADDRESS                  NUMBER
----                                    -------                  ------

                                       3
<PAGE>

                                                                       EXHIBIT C

                   [FORM OF SUBSIDIARY SUPPLEMENTAL INDENTURE]

                  SUBSIDIARY SUPPLEMENTAL INDENTURE, dated as of ___________,
between ________________, a _____________ (the "New Guarantor"), and Wilmington
Trust Company, as trustee under the Indenture referred to below (the "Trustee").

                              W I T N E S S E T H :

                  WHEREAS, Revlon Consumer Products Corporation, a Delaware
corporation (the "Company"), certain guarantors named therein and the Trustee
heretofore executed and delivered the Indenture, dated as of November 26, 2001
(as heretofore amended and supplemented, the "Indenture"), providing for the
issuance of the 12% Senior Secured Notes Due 2005 (the "Securities")
(capitalized terms used herein but not otherwise defined have the meanings
ascribed thereto in the Indenture);

                  WHEREAS, pursuant to Section 4.10 of the Indenture, the
Company is required to cause the New Guarantor to execute and deliver to the
Trustee this Subsidiary Supplemental Indenture pursuant to which the New
Guarantor shall provide an Indenture Guarantee as set forth in Article X of the
Indenture;

                  WHEREAS, Section 9.01(4) of the Indenture provides that the
Company, the Guarantors and the Trustee may amend the Indenture and the
Securities without notice to or consent of any Holders of the Securities to add
Indenture Guarantees; and

                  WHEREAS, this Supplemental Indenture has been duly authorized
by all necessary corporate action on the part of the New Guarantor.

                  NOW, THEREFORE, in consideration of the premises and for other
good and valuable consideration, the receipt of which is hereby acknowledged,
the Company, the existing Guarantors, the New Guarantor and the Trustee mutually
covenant and agree for the equal and ratable benefit of the Holders as follows:

                                    ARTICLE I

                             Agreement to Guarantee

                  Section 1.1. Agreement to Guarantee. The New Guarantor hereby
agrees, jointly and severally with all other Guarantors, irrevocably and
unconditionally, to guarantee the punctual payment when due, whether at Stated
Maturity, by acceleration or otherwise, of all Obligations of the Company and
the Guarantors under the Securities, the Indenture and the other Indenture
Documents on the terms and subject to the conditions set forth in Article X of
the Indenture, which guarantee shall be subject to automatic release in
accordance with the provisions of Section 4.10(b) of the Indenture.

<PAGE>

                  Section 1.2. Trustee's Acceptance. The Trustee hereby accepts
this Supplemental Indenture and agrees to perform the same under terms and
conditions set forth in the Indenture.

                                   ARTICLE II

                                  Miscellaneous

                  Section 2.1. Effect of Supplemental Indenture. Upon the
execution and delivery of this Supplemental Indenture by the Company, the
existing Guarantors, the New Guarantor and the Trustee, the Indenture shall be
supplemented in accordance herewith, and this Supplemental Indenture shall form
a part of the Indenture for all purposes, and every Holder of Securities
heretofore or hereafter authenticated and delivered under the Indenture shall be
bound thereby.

                  Section 2.2. Indenture Remains in Full Force and Effect.
Except as supplemented hereby, all provisions in the Indenture shall remain in
full force and effect.

                  Section 2.3. Indenture and Supplemental Indenture Construed
Together. This Supplemental Indenture is an indenture supplemental to and
implementation of the Indenture, and the Indenture and this Supplemental
Indenture shall henceforth be read and construed together.

                  Section 2.4. Confirmation and Preservation of Indenture. The
Indenture as supplemented by this Supplemental Indenture is in all respects
confirmed and preserved.

                  Section 2.5. Conflict with Trust Indenture Act. If any
provision of this Supplemental Indenture limits, qualifies or conflicts with any
provision of the TIA that is required under the TIA to be part of and govern any
provision of this Supplemental Indenture, the provision of the TIA shall
control. If any provision of this Supplemental Indenture modifies or excludes
any provision of the TIA that may be so modified or excluded, the provision of
the TIA shall be deemed to apply to the Indenture as so modified or to be
excluded by this Supplemental Indenture, as the case may be.

                  Section 2.6. Severability. In case any provision in this
Supplemental Indenture shall be invalid, illegal or unenforceable, the validity,
legality and enforceability of the remaining provisions shall not in any way be
affected or impaired thereby.

                  Section 2.7. Benefits of Supplemental Indenture. Nothing in
this Supplemental Indenture or the Securities, express or implied, shall give to
any Person, other than the parties hereto and thereto and their successors
hereunder and thereunder and the Holders of the Securities, any benefit of any
legal or equitable right, remedy or claim under the Indenture, this Supplemental
Indenture or the Securities.

                                       2
<PAGE>

                  Section 2.8. Successors. All agreements of the New Guarantor
in this Supplemental Indenture shall bind its successors except as provided in
the Indenture. All agreements of the Trustee in this Supplemental Indenture
shall bind its successors.

                  Section 2.9. Certain Duties and Responsibilities of the
Trustee. In entering into this Supplemental Indenture, the Trustee shall be
entitled to the benefit of every provision of the Indenture and the Securities
relating to the conduct or affecting the liability or affording protection to
the Trustee, whether or not elsewhere herein so provided.

                  Section 2.10. Governing Law. This Supplemental Indenture shall
be governed by, and construed in accordance with, the laws of the State of New
York but without giving effect to applicable principles of conflicts of law to
the extent that the application of the laws of another jurisdiction would be
required thereby.

                  Section 2.11. Multiple Originals. The parties may sign any
number of copies of this Supplemental Indenture. Each signed copy shall be an
original, but all of them together represent the same agreement. One signed copy
is enough to prove this Supplemental Indenture.

                  Section 2.12. Headings. The Article and Section headings
herein are have been inserted for convenience of reference only, are not
intended to be considered a part hereof and shall not modify or restrict any of
the terms or provisions hereof.

                  IN WITNESS WHEREOF, the parties hereto have caused this
Supplemental Indenture to be duly executed as of the date first written above.

                                             [NEW GUARANTOR]

                                             By:
                                                -------------------------------
                                                Name:
                                                Title:

                                             REVLON CONSUMER PRODUCTS
                                             CORPORATION

                                             By:
                                                -------------------------------
                                                Name:
                                                Title:

                                       3
<PAGE>

                                             [EXISTING GUARANTORS]

                                             By:
                                                -------------------------------
                                                Name:
                                                Title:

                                             WILMINGTON TRUST COMPANY
                                                as Trustee

                                             By:
                                                -------------------------------
                                                Name:
                                                Title:

                                       4
<PAGE>

                                                                      SCHEDULE I
                                                                              to
                                                                       INDENTURE

                             PERMITTED TRANSACTIONS

1.       Asset Transfer Agreement by and among Revlon, Inc. (now known as Revlon
         Holdings Inc.), Charles of the Ritz Group Ltd., National Health Care
         Group Inc., New Revlon, Inc. (now known as Revlon, Inc.) and Revlon
         Consumer Products Corporation dated as of June 24, 1992 (and the
         ancillary agreements thereto).

2.       Real Property Asset Transfer Agreement by and among Revlon, Inc., (now
         known as Revlon Holdings Inc.), New Revlon, Inc. (now known as Revlon,
         Inc.) and Revlon Consumer Products Corporation dated as of June 24,
         1992.

3.       Benefit Plans Assumption Agreement dated as of July 1, 1992 by and
         among Revlon Holdings Inc. (formerly known as Revlon, Inc.) , Revlon,
         Inc., (formerly known as New Revlon, Inc) and Revlon Consumer Products
         Corporation.

4.       Reimbursement and Expense Allocation Agreement dated May 3, 1996 by and
         among MacAndrews & Forbes Holdings Inc., Revlon, Inc. and Revlon
         Consumer Products Corporation.

5.       Reimbursement Agreement by and among MacAndrews & Forbes Holdings Inc.,
         Revlon, Inc. (formerly known as New Revlon, Inc.) and Revlon Consumer
         Products Corporation dated June 24, 1992.

6.       Indemnification Agreement by and between Revlon Holdings Inc. and
         Revlon Consumer Products Corporation dated as of July 31, 1998 (related
         to Revlon Consumer Product Corporation's lease of the Edison Facility).

7.       Purchase and Sale Agreement dated July 31, 2001 by and between Revlon
         Holdings Inc. and Revlon, Inc. related to Revlon Inc.'s acquisition and
         subsequent contribution of the Charles of the Ritz business to Revlon
         Consumer Products Corporation (and ancillary agreements thereto).

8.       MacAndrews & Forbes Group Incorporated Occupancy Memorandum Amendment
         dated June 1, 2001 (4th floor at 625 Madison Avenue, New York, New
         York).

9.       Airplane Usage Memorandum between GDL Aviation Inc. and Revlon Consumer
         Products Corporation dated November 16, 1994.

10.      Permitted Affiliate Debt

<PAGE>

                                                                     SCHEDULE II
                                                                              to
                                                                       INDENTURE

                               SECURITY DOCUMENTS

                  All documents identified as "Second Lien Documents" on
Schedule I to the Collateral Agency Agreement.

<PAGE>

                                                                    SCHEDULE III
                                                                              to
                                                                       INDENTURE

                              OTHER EXISTING DEBT

                  None.<PAGE>
                                                                     EXHIBIT 4.4

                  MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY
            FLEXINVEST(R)-PLUS PROTOTYPE PROFIT-SHARING/401(K) PLAN

<TABLE>
<S>               <C>
PART I            DEFINITIONS
PART II           CREDITING SERVICE
PART III          ELIGIBILITY AND PARTICIPATION
PART IV           CONTRIBUTIONS
PART V            LIMITATION ON ALLOCATIONS
PART VI           PLAN INVESTMENT - CONTRACT
PART VII          PLAN INVESTMENT - POLICIES
PART VIII         PARTICIPANT'S ACCOUNT
PART IX           VESTING
PART X            IN-SERVICE WITHDRAWALS
PART XI           PARTICIPANT LOANS
PART XII          TERMINATION OF EMPLOYMENT
PART XIII         FORFEITURES
PART XIV          RETIREMENT BENEFITS
PART XV           DEATH BENEFITS
PART XVI          TOP-HEAVY REQUIREMENTS
PART XVII         INSURANCE COMPANY
PART XVIII        AMENDMENT, TERMINATION, MERGER, ETC. OF PLAN
PART XIX          ADMINISTRATION OF PLAN
PART XX           MISCELLANEOUS
PART XXI          TRANSITIONAL RULE-RETIREMENT DISTRIBUTIONS
PART XXII         TRANSITIONAL RULE-SURVIVOR ANNUITIES
</TABLE>

(C)Copyright 1996 by Massachusetts Mutual Life Insurance Company.
All Rights Reserved. No reproduction of provisions in this document are
permitted without the express written consent of Massachusetts Mutual Life
Insurance Company, Springfield, Massachusetts 01111-0001.

Dated 12/96

<PAGE>

               MASSACHUSETTS MUTUAL FLEXINVEST(R)-PLUS PROTOTYPE
                           PROFIT-SHARING/401(K) PLAN

                               Table of Contents

<TABLE>
<CAPTION>
INTRODUCTION                                                                                              PAGE

<S>                                                                                                       <C>
           Prototype Profit-Sharing 401(k) Plan and Adoption Agreement                                     1
           Purpose of Plan                                                                                 1

PART I - DEFINITIONS

           1.1             Administrator                                                                   2
           1.2             Anniversary Date                                                                2
           1.3             Annual Additions                                                                2
           1.4             Automatic Joint and Survivor Annuity                                            2
           1.5             Beneficiary                                                                     3
           1.6             Benefiting                                                                      3
           1.7             Business Day                                                                    3
           1.8             Code                                                                            3
           1.9             Company                                                                         3
           1.10            Company Matching Contributions                                                  3
           1.11            Company Profit-Sharing Contributions                                            3
           1.12            Company Qualified Matching Contributions                                        3
           1.13            Company Qualified Nonelective Contributions                                     3
           1.14            Compensation                                                                    4
           1.15            Contract                                                                        6
           1.16            Deferred Salary Agreement                                                       6
           1.17            Direct Rollover                                                                 6
           1.18            Effective Date                                                                  6
           1.19            Election Period                                                                 6
           1.20            Elective Deferrals                                                              6
           1.21            Eligible Retirement Plan                                                        6
           1.22            Eligible Rollover Distribution                                                  7
           1.23            Employee                                                                        7
           1.24            Employer                                                                        7
           1.25            Entry Date                                                                      7
           1.26            Excess Aggregate Contributions                                                  7
           1.27            Excess Annual Additions                                                         8
           1.28            Excess Contributions                                                            8
           1.29            Excess Deferrals                                                                8
           1.30            Highly Compensated Employee                                                     8
           1.31            Hour of Service                                                                10
           1.32            Insurance Company                                                              11
           1.33            Leased Employee                                                                11
           1.34            Limitation Year                                                                11
</TABLE>

<PAGE>

<TABLE>
<S>                                                                                                       <C>
           1.35            Maximum Permissible Amount                                                     12
           1.36            One-Year Break in Service                                                      12
           1.37            Participant                                                                    12
           1.38            Participant Matched Contributions                                              12
           1.39            Participant Nondeductible Voluntary Contributions                              12
           1.40            Plan                                                                           13
           1.41            Plan Year                                                                      13
           1.42            Policy                                                                         13
           1.43            Prototype Plan                                                                 13
           1.44            Qualified Election                                                             13
           1.45            Spouse                                                                         13
           1.46            Straight Life Annuity                                                          13
           1.47            Termination of Employment                                                      14
           1.48            Valuation Date                                                                 14
           1.49            Year of Service                                                                14

PART II - CREDITING SERVICE

           2.1             General Method of Crediting Service                                            14
           2.2             Equivalency Methods Based Upon Periods
                             of Employment                                                                14
           2.3             One Method of Crediting Service
                             for All Employees                                                            14
           2.4             Service With a Predecessor Employer                                            14

PART III - ELIGIBILITY AND PARTICIPATION

           3.1             Eligibility                                                                    15
           3.2             Eligibility Computation Period                                                 15
           3.3             Break in Service/Return to Service                                             15
           3.4             Notification of Eligible Employees                                             16
           3.5             Conditions of Continued Participation                                          16

PART IV - CONTRIBUTIONS

           4.1             Contributions to the Plan                                                      16
           4.2             Limitations on Elective Deferrals                                              17
           4.3             Excess Contributions                                                           20
           4.4             Limitations on Company and Participant
                             Contributions                                                                21
           4.5             Excess Aggregate Contributions                                                 23
           4.6             Multiple Use of Alternative Test                                               25
           4.7             Permitted Disparity                                                            25
           4.8             Collection of Participant Contributions                                        26
</TABLE>

                                       ii
<PAGE>

<TABLE>
<S>                                                                                                       <C>
           4.9             Company Contributions - Timing                                                 26
           4.10            Company Contributions - Profits                                                27
           4.11            Return of Company Contributions                                                27
           4.12            Rollover Contributions                                                         27
           4.13            Transfers of Amounts From Other Plans                                          28
           4.14            Participant Deductible
                             Voluntary Contributions                                                      28
           4.15            Additional Requirements for Owner-Employees                                    28

PART V - LIMITATION ON ALLOCATIONS

           5.1             Maximum Permissible Amount                                                     29
           5.2             Estimate of Maximum                                                            29
           5.3             Reconciliation                                                                 30
           5.4             Excess Annual Additions                                                        30
           5.5             If Company Maintains Other
                             Defined Contribution Plans                                                   31
           5.6             If Company Maintains Other Plans                                               32
           5.7             Controlled Group of Employers, Etc.                                            32
           5.8             Definitions                                                                    32

PART VI - PLAN INVESTMENT - CONTRACT

           6.1             Funding Policy                                                                 34
           6.2             Contract                                                                       35
           6.3             Insurance Company's Authority
                             to Direct Investments                                                        35
           6.4             Participant-Directed Investments                                               36
           6.5             Combining Assets of More Than One Plan
                             in a Single Contract                                                         36

PART VII - PLAN INVESTMENT - POLICIES

           7.1             Request of Participant                                                         37
           7.2             Limitations on Purchase                                                        37
           7.3             Company is Owner                                                               37
           7.4             Premium Payments                                                               37
           7.5             Dividends                                                                      37
           7.6             Distribution of Policies                                                       38
           7.7             Change in Amount of Insurance                                                  38
           7.8             Policies upon Termination of Employment                                        38
</TABLE>

                                      iii
<PAGE>

<TABLE>
<S>                                                                                                       <C>
PART VIII - PARTICIPANT'S ACCOUNTS

           8.1             Participant's Account                                                          38
           8.2             Valuation of Accounts                                                          39

PART IX - VESTING

           9.1             Full Vesting in Certain Separate Accounts                                      40
           9.2             Vesting in Participant's Accounts
                             Attributable to Company Matching
                             and Profit-Sharing Contributions                                             40
           9.3             Vesting Years of Service/Breaks in Service                                     41

PART X - IN-SERVICE WITHDRAWALS

           10.1            In General                                                                     41
           10.2            Sequence and Conditions for Withdrawal                                         41
           10.3            Financial Hardship                                                             42
           10.4            No Forfeiture of Participant's Account
                             Attributable to Participant Contributions                                    43

PART XI - PARTICIPANT LOANS

           11.1            In General                                                                     43
           11.2            Application for Loans                                                          44
           11.3            Amount of Loan                                                                 44
           11.4            Interest Rate                                                                  45
           11.5            Repayments                                                                     45
           11.6            Default and/or Acceleration                                                    45

PART XII - TERMINATION OF EMPLOYMENT

           12.1            Notice of Termination of Employment                                            46
           12.2            Amount of Participant's Benefit                                                46
           12.3            Participant's Election of a Form of Benefit                                    46
           12.4            Forfeiture of Nonvested Portion of
                             Participant's Account                                                        47
           12.5            Repayment                                                                      48

PART XIII - FORFEITURES

           13.1            Occurrence of Forfeiture                                                       49
           13.2            Application of Forfeitures                                                     49
</TABLE>

                                       iv
<PAGE>

<TABLE>
<S>                                                                                                       <C>
PART XIV - RETIREMENT BENEFITS

           14.1            Normal Form of Retirement Benefit                                              49
           14.2            Optional Forms of Benefit                                                      50
           14.3            Special Rule                                                                   50
           14.4            Waiver of Thirty-Day Period for Consent                                        50
           14.5            Amount of Retirement Benefit                                                   51
           14.6            Participant Election of a Retirement Date                                      51
           14.7            Participant's Right to Defer Retirement                                        51
           14.8            Distribution of Retirement Benefits                                            52
           14.9            Minimum Amounts to be Distributed from
                             Participant Account                                                          53

PART XV - DEATH BENEFITS

           15.1            Preretirement Death of a Participant                                           53
           15.2            Preretirement Survivor Annuity                                                 55
           15.3            Post-retirement Death of a Participant                                         55
           15.4            Designation of a Beneficiary                                                   56

PART XVI - TOP-HEAVY REQUIREMENTS

           16.1            In General                                                                     56
           16.2            Minimum Contribution Under a Top-Heavy Plan                                    56
           16.3            Nonforfeitability of Minimum Contribution                                      57
           16.4            Top-Heavy Vesting                                                              57
           16.5            Top-Heavy Definitions                                                          57

PART XVII - INSURANCE COMPANY

           17.1            Not a Party                                                                    60
           17.2            Not Responsible for the Acts of
                             the Company or Administrator                                                 60
           17.3            Reliance on Signatures                                                         60
           17.4            Acquittance                                                                    60
           17.5            Duties of the Insurance Company                                                60
           17.6            Plan Controls                                                                  61

PART XVIII - AMENDMENT, TERMINATION, MERGER, ETC. OF PLAN

           18.1            Permanency                                                                     61
           18.2            Amendment by Insurance Company                                                 61
           18.3            Permissible Amendments by Company                                              61
           18.4            Restrictions on Amendments                                                     62
</TABLE>

                                       v
<PAGE>

<TABLE>
<S>                                                                                                       <C>
           18.5            Termination of Plan                                                            62
           18.6            Full Vesting Upon Termination                                                  63
           18.7            Merger, Consolidation or
                             Transfer of Plan Assets                                                      63

PART XIX- ADMINISTRATION OF PLAN

           19.1            Appointment of Administrator                                                   64
           19.2            Administrator's Powers and Duties                                              64
           19.3            Delegation of Administrative
                              Responsibilities                                                            65
           19.4            Bonding                                                                        66
           19.5            Fiduciary Liability Insurance
                             and Indemnification                                                          66
           19.6            Compensation of Administrator                                                  66
           19.7            Service of Legal Process                                                       66
           19.8            Company Census Report                                                          66
           19.9            Information About Plan                                                         66
           19.10           Information About Participants
                             and Beneficiaries                                                            67
           19.11           Claim for Benefits                                                             67
           19.12           Claims Review Procedure                                                        67
           19.13           Missing Participants or Beneficiaries                                          68

PART XX - MISCELLANEOUS

           20.1            Assignment or Alienation                                                       68
           20.2            Responsibility for Qualification of Plan                                       68
           20.3            Original Document                                                              69
           20.4            State Law                                                                      69
           20.5            Not an Employment Contract                                                     69
           20.6            Word Usage                                                                     69
           20.7            Interpretation of Plan                                                         69
           20.8            Headings                                                                       69

PART XXI - TRANSITIONAL RULE - RETIREMENT DISTRIBUTIONS                                                   70

PART XXII - TRANSITIONAL RULE - SURVIVOR ANNUITIES                                                        72
</TABLE>

                                       vi
<PAGE>

                               ADOPTION AGREEMENT

A.       Plan Name
B.       Contract
C.       Dates
D.       Eligibility Requirements
E.       Compensation
F.       Retirement
G.       Elective Deferrals
H.       Company Qualified Nonelective Contributions
I.       Company Matching and Company Qualified
            Matching Contributions
J.       Participant Contributions
K.       Company Profit-Sharing Contributions
L.       Forfeitures
M.       Investment Allocation And Profit Requirement
N.       Policies
O.       In-Service Withdrawals
P.       Loans
Q.       Special Top-Heavy Elections
R.       Vesting
S.       Termination of Employment
T.       Limitation on Allocating Contributions
U.       Present Value of Accrued Benefits
V.       Adoption Conditional Upon IRS Approval

                                      vii
<PAGE>

                  Massachusetts Mutual Life Insurance Company

                  FLEXINVEST(R)PROTOTYPE PROFIT-SHARING/401(k)
                                      PLAN
                    Established Under Revenue Procedure 89-9
     IRS Serial No. D265755a (Standardized) and D365756a (Non-standardized)

Massachusetts Mutual Life Insurance Company of Springfield, Massachusetts
(MassMutual) has prepared this Profit-Sharing/401(k) Plan for Employers
interested in providing retirement benefits for their Employees. Any Company
may adopt this Plan, provided that it executes an agreement, hereinafter
referred to as the Adoption Agreement, delivers a copy of the executed Adoption
Agreement to MassMutual and agrees to conform to and abide by all of the terms
and provisions of this Plan. The Company must also apply for and have issued to
it a group annuity contract to fund the Plan and to provide benefits under the
Plan. The Company may also apply for and have issued to it individual life
insurance Policies.

MassMutual has received a favorable Opinion Letter for this Prototype plan from
the Internal Revenue Service in accordance with Revenue Procedure 89-9. A copy
of that Opinion Letter is contained in the Adoption Agreement. MassMutual
strongly suggests that the Company adopting the non-standardized Plan file with
the appropriate Internal Revenue Service Key District Office for a
Determination Letter. If the Company adopting the standardized Plan maintains
or later adopts another Plan in addition to this Plan, MassMutual strongly
suggests that the adopting Company file with the appropriate Internal Revenue
Service Key District Office for a Determination Letter.

                                PURPOSE OF PLAN

The Company establishes this Plan to provide funds for its Employees'
retirement and to provide funds for their Beneficiaries in the event of death.
The benefits provided in this Plan shall be paid from a Group Annuity Contract
and individual life insurance policies issued to the Company. The Plan is
established and shall be maintained for the exclusive benefit of eligible
Employees and their Beneficiaries. If the Company adopts this Plan as an
amendment to an existing plan, the existing plan shall be superseded by this
Plan.

This Plan and any related documents are instruments having IMPORTANT FINANCIAL,
LEGAL AND TAX IMPLICATIONS. Neither MassMutual nor its representatives can give
assurances that the adoption of this Plan shall create a qualified Plan for a
particular Company. Each Company must assume responsibility for the tax or
legal aspects pertaining to its Plan. EACH COMPANY SHOULD CONSULT ITS OWN
ATTORNEY FOR LEGAL ADVICE.

References to Parts and to numbered Paragraphs relate to the Plan document and
those made to Sections relate to the Adoption Agreement.

                                       1
<PAGE>

                              PART I - DEFINITIONS

1.1      ADMINISTRATOR - The person or persons designated by the Company in
         accordance with Paragraph 19.1 to manage the Plan. If no person is
         appointed, the Administrator shall be the Company.

1.2      ANNIVERSARY DATE - The first day of each Plan Year designated in
         Section (C) by the Company.

1.3      ANNUAL ADDITIONS - The sum of the following amounts credited to a
         Participant's Account for the Limitation Year:

         (a)      Company contributions,

         (b)      Participant contributions,

         (c)      Forfeitures,

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

         (e)      Allocations under a simplified employee pension plan.

         For this purpose, any Excess Annual Additions applied under Paragraphs
         5.4 or 5.5 in the Limitation Year to reduce Company contributions
         shall be considered Annual Additions for such Limitation Year.

         The Annual Addition for any Limitation Year beginning before January
         1, 1987 shall not be recomputed to treat all Participant contributions
         as an Annual Addition.

1.4      AUTOMATIC JOINT AND SURVIVOR ANNUITY - An immediate annuity for the
         life of the Participant with a survivor annuity for the life of the
         Participant's Spouse which is not less than 50 percent and not more
         than 100 percent of the amount of the annuity which is payable during
         the joint lives of the Participant and his Spouse, and which is the
         amount of benefit which can be purchased with the Participant's vested
         account balance. The percentage of the survivor annuity under the Plan
         shall be 50 percent unless a different percentage is elected by a
         Participant.

                                       2
<PAGE>

1.5      BENEFICIARY - The person or persons designated under Paragraph 15.4 in
         accordance with Code Section 401(a)(9) (and the Regulations
         thereunder), to receive any benefits under the Plan on account of the
         death of the Participant. If any Policy is issued hereunder on the
         life of a Participant, the Beneficiary thereunder shall be designated
         separately under such Policy.

1.6      BENEFITING - A Participant is treated as benefiting under the Plan for
         any Plan Year during which the Participant received or is deemed to
         receive an allocation in accordance with Code Section 1.410(b)-3(a).

1.7      BUSINESS DAY- A day on which the New York Stock Exchange is open for
         business.

1.8      CODE - The Internal Revenue Code of 1986, as amended.

1.9      COMPANY - The employer adopting this Plan.

1.10     COMPANY MATCHING CONTRIBUTIONS - If elected in Section (I), the
         Company may contribute money to match the Participant's Elective
         Deferrals and/or Participant Matched Contributions. The amount of the
         contribution shall be determined in accordance with the formula
         elected in Section (I).

1.11     COMPANY PROFIT-SHARING CONTRIBUTIONS - If elected in Section (K), the
         Company may make an extra contribution to the Plan. The amount of the
         contribution is determined at the sole discretion of the Company. The
         Administrator shall allocate Company Profit-Sharing Contributions to
         Participants' Accounts in accordance with the allocation formula
         elected in Section (K). Company Profit-Sharing Contributions shall be
         allocated to the Account of each Participant who has completed the
         requirements elected in Section (K). In the case of a Participant
         whose Entry Date is other than the first day of the Plan Year, all
         Hours of Service during the Plan Year in which participation commenced
         (or recommenced), including Hours of Service credited to a Participant
         prior to his Entry Date, shall be taken into account when determining
         whether or not the Participant has met the Hours of Service
         requirement during the Plan Year.

1.12     COMPANY QUALIFIED MATCHING CONTRIBUTIONS - If elected in Section (I),
         the Company may contribute money to match the Participant's Elective
         Deferrals and/or Participant Matched Contributions. These
         contributions are subject to the distribution and nonforfeitability
         requirements under Code Section 401(k) when made. The amount of the
         contribution shall be determined in accordance with the formula
         elected in Section (I).

1.13     COMPANY QUALIFIED NONELECTIVE CONTRIBUTIONS - If elected in Section
         (H), the Company may elect to make an extra annual contribution to the
         Plan. These contributions are nonforfeitable when made; and are
         distributable only in accordance with the distribution provisions of
         Code Section 401(k).

                                       3
<PAGE>

         In addition, in accordance with Paragraphs 4.3(a) and 4.5(a), a
         Company may make Qualified Nonelective Contributions on behalf of
         non-Highly Compensated Employees that are sufficient to satisfy either
         the Actual Deferral Percentage test or the Actual Contribution
         Percentage test, or both, pursuant to Regulations under the Code.

1.14     COMPENSATION - As elected by the Company in Section (E), for all
         purposes of this Plan other than Part V, Limitation on Allocations,
         Compensation shall mean all of each Participant's:

         (a) INFORMATION REQUIRED TO BE REPORTED UNDER CODE SECTIONS 6041 AND
         6051 (Wages, Tips and Other Compensation as reported on Form W-2).
         Compensation is defined as wages within the meaning of Code Section
         3401(a) and all other payments of compensation to an Employee by the
         Company (in the course of the Company's trade or business) for which
         the Company is required to furnish the Employee with a written
         statement under Code Sections 6041(d), 6051(a)(3) and 6052.
         Compensation must be determined without regard to any rules under Code
         Section 3401(a) that limit the remuneration included in wages based on
         the nature or location of the employment or the services performed
         (such as the exception for agricultural labor in Code Section
         3401(a)(2)).

         (b) CODE SECTION 3401(A) WAGES. Compensation is defined as wages as
         defined in Code Section 3401(a) for the purposes of income tax
         withholding at the source, but determined without regard to any rules
         that limit the remuneration included in wages based on the nature or
         location of the employment or the services performed (such as the
         exception for agricultural labor in Code Section 3401(a)(2)).

         (c) CODE SECTION 415 SAFE-HARBOR COMPENSATION UNDER IRS REG.
         SS. 415-2(D)(10). Compensation is defined as wages, salaries, and fees
         for professional services and other amounts received (without regard
         to whether or not an amount is paid in cash) for personal services
         actually rendered in the course of employment with the Company to the
         extent that the amounts are includible in gross income (including, but
         not limited to, commissions paid to salesmen, compensation for
         services on the basis of a percentage of profits, commissions on
         insurance premiums, tips, bonuses, fringe benefits, and reimbursements
         and expense allowances under a nonaccountable plan as described in IRS
         Reg. ss.1.62-2(c)), and excluding all other amounts including the
         following: (1) Company contributions to a plan of deferred
         compensation which are not includible in the Employee's gross income
         for the taxable year in which contributed, or Company contributions
         under a simplified Employee pension plan to the extent such
         contributions are deductible by the Employee, or any distributions
         from a plan or deferred compensation; (2) Amounts realized from the
         exercise of a non-qualified stock option, or when restricted stock (or
         property) held by the Employee either becomes freely transferable or
         is no longer subject to a substantial risk of forfeiture; (3) Amounts
         realized from the sale, exchange or other disposition of stock
         acquired under a qualified stock option; and (4) Other amounts which
         received special tax benefits, or contributions made by the Company
         (whether or not under a salary reduction agreement) towards the
         purchase of an annuity contract

                                       4
<PAGE>

         described in Code Section 403(b) (whether or not the contributions are
         actually excludable from the gross income of the Employee).

         (d) TOTAL COMPENSATION AS DEFINED UNDER IRS REG. SS. 1.415-2(D)(1) AND
         (2). Compensation is defined as immediately above in Subparagraph
         1.14(c), but also including the following: (1) In the case of a
         Participant who is an Employee within the meaning of Code Section
         401(c)(1) and the regulations thereunder, the Participant's earned
         income (as described in Code Section 401(c)(2) and the regulations
         thereunder). (2) Amounts described in Code Sections 104(a)(3), 105(a)
         and 105(h), but only to the extent that these amounts are includible
         in the gross income of the Employee. (3) Amounts paid or reimbursed by
         the Company for moving expenses incurred by an Employee, but only to
         the extent that these amounts are not deductible by the Employee under
         Code Section 217. (4) The value of a non-qualified stock option
         granted to an Employee by the Company, but only to the extent that the
         value of the option is includible in the gross income of the Employee
         for the taxable year in which granted. (5) The amount includible in
         the gross income of an Employee upon making the election described in
         Code Section 83(b).

         The Compensation of each Participant taken into account annually for
         determining all benefits provided under the Plan for any Plan Year
         shall not exceed $150,000, as adjusted for increases in the
         cost-of-living in accordance with Code Section 401(a)(17)(B). The
         cost-of-living adjustment in effect for a calendar year applies to the
         plan year beginning in such calendar year. If a plan year consists of
         fewer than 12 months, the Compensation limit is an amount equal to the
         otherwise applicable annual compensation limit multiplied by a
         fraction, the numerator of which is the number of months in the short
         plan year, and the denominator of which is 12.

         In determining the Compensation of a Participant for purposes of this
         limitation, the rules of Code Section 414(q)(6) shall apply, except in
         applying such rules, the term "family" shall include only the Spouse
         of the Participant and any lineal descendants of the Participant who
         have not attained age 19 before the close of the year. If, as a result
         of the application of such rules, the adjusted $150,000 limitation is
         exceeded, then (except for the purposes of determining the portion of
         Compensation up to the integration level if this Plan provides for
         permitted disparity), the limitation shall be prorated among the
         affected individuals in proportion to each such individual's
         Compensation as determined under this Paragraph prior to the
         application of this limitation.

         For any self-employed individual covered under the Plan, Compensation
         shall mean earned income. Earned income means the net earnings from
         self-employment in the trade or business with respect to which the
         Plan is established, for which personal services of the individual are
         a material income-producing factor. Net earnings shall be determined
         without regard to items not included in gross income and the
         deductions allocable to such items. Net earnings are reduced by
         contributions by the Company to a qualified plan to the extent
         deductible under Code Section 404. Net earnings shall be determined
         with regard to the deduction allowed to the Company by Code Section
         164(f) for taxable years beginning after December 31, 1989.

                                       5
<PAGE>

1.15     CONTRACT - The group annuity contract issued by the Insurance Company
         to the Company or as specified in Section (B).

1.16     DEFERRED SALARY AGREEMENT - The agreement entered into by a
         Participant with the Company to reduce his Compensation pursuant to
         Paragraph 1.20. Any Deferred Salary Agreement or other deferral
         mechanism cannot be adopted retroactively.

1.17     DIRECT ROLLOVER - A direct rollover is a payment by the plan to the
         eligible retirement plan specified by the distributee.

1.18     EFFECTIVE DATE - The date elected in Section (C) as the first day of
         the first Plan Year.

1.19     ELECTION PERIOD - The period during which a Participant may waive the
         Preretirement Survivor Annuity under Paragraph 15.2. If Paragraph 14.3
         is operative, this period begins on the first day of the Plan Year in
         which the Participant attains age 35 and ends on the date of the
         Participant's death. If a Participant separates from service prior to
         the first day of the Plan Year in which age 35 is attained, with
         respect to the account balance as of the date of separation, the
         Election Period shall begin on the date of separation. In addition, a
         Participant who has not yet attained age 35 as of the end of any
         current Plan Year may make a special Qualified Election to waive the
         Preretirement Survivor Annuity for the period beginning on the date of
         such election and ending on the first day of the Plan Year in which
         the Participant attains age 35. Such election shall not be valid
         unless the Participant receives a written explanation of the
         Preretirement Survivor Annuity in such terms as are comparable to the
         explanation required under Paragraph 14.3. Preretirement Survivor
         Annuity coverage shall be automatically reinstated as of the first day
         of the Plan Year in which the Participant attains age 35. Any new
         waiver on or after such date shall be subject to the full requirements
         of Paragraphs 1.44 and 15.2.

1.20     ELECTIVE DEFERRALS - If elected in Section (G), the Company may make
         contributions to the Plan at the election of the Participant, in lieu
         of cash Compensation. Elective Deferrals shall include contributions
         made pursuant to a Deferred Salary Agreement or other deferral
         mechanism. Elective Deferrals shall not include any deferrals properly
         distributed as Excess Annual Additions.

1.21     ELIGIBLE RETIREMENT PLAN - An eligible retirement plan is an
         individual retirement account described in Code Section 408(a), an
         individual retirement annuity described in Code Section 408(b), an
         annuity plan described in Code Section 403(a), or a qualified trust
         described in Code Section 401(a), that accepts the Participant'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. For purposes of this definition, a former spouse who is the
         alternate payee under a qualified domestic relations order, as defined
         in section 414(p) of the Code may make an Eligible Rollover
         Distribution to an Eligible Retirement Plan described in Code Section
         402(c)(8)(B).

                                       6
<PAGE>

1.22     ELIGIBLE ROLLOVER DISTRIBUTION - An eligible rollover distribution is
         any distribution of all or any portion of the balance to the credit of
         the Participant or Spousal Beneficiary, 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 Participant or Spousal Beneficiary or the joint lives (or joint
         life expectancies) of the Participant and the Participant's designated
         beneficiary (if permitted in the Plan), or for a specified period of
         ten years or more; any distribution to the extent such distribution is
         required under Code Section 401(a)(9); and the portion of any
         distribution that is not includible in gross income (determined
         without regard to the exclusion for net unrealized appreciation with
         respect to Employer securities).

1.23     EMPLOYEE - Any person employed by the Company or any other Company
         required to be aggregated under Paragraph 1.24. The term Employee
         shall also include an individual who is self-employed, an
         owner-Employee, or a Leased Employee.

         Self-employed individual means a person who has earned income for the
         taxable year from the trade or business for which the Plan is
         established; also, a person who would have had earned income but for
         the fact that the trade or business had no net profits for the taxable
         year.

         Owner-Employee means a person who is sole proprietor, or who is a
         partner owning more than 10 percent of either the capital or profits
         interest in the partnership.

1.24     EMPLOYER - The entity that establishes or maintains this Plan; any
         organization which has adopted this Plan with the consent of such
         establishing Employer; and any successor of such Employer. Except as
         provided for purposes of Limitation on Allocations in Paragraph 5.7,
         and for separate lines of business in Code Section 414(r), all
         Employees of all corporations which are members of a controlled group
         of corporations (as defined in Code Section 414(b)), all trades or
         businesses (whether or not incorporated) which are under common
         control (as defined in Code Section 414(c)), all members of an
         affiliated service group (as defined in Code Section 414(m)) and any
         other entity required to be aggregated pursuant to Regulations under
         Code Section 414(o) shall be treated as employed by a single Employer.

1.25     ENTRY DATE - The date on which an Employee becomes a Participant as
         designated in Section (D) after satisfying the eligibility
         requirements of Section (D).

1.26     EXCESS AGGREGATE CONTRIBUTIONS - With respect to any Plan Year, the
         excess of:

         (a)      The aggregate Actual Contribution Percentage amounts taken
                  into account in computing the numerator of the ACP actually
                  made on behalf of Highly Compensated Employees for such Plan
                  Year, over

                                       7
<PAGE>

         (b)      The maximum Actual Contribution Percentage amounts permitted
                  by the ACP test (determined by reducing contributions made on
                  behalf of Highly Compensated Employees in order of their ACP,
                  beginning with the highest of such percentages).

         Such determination shall be made after first determining Excess
         Deferrals pursuant to Paragraph 4.2(a) and then determining Excess
         Contributions pursuant to Paragraph 4.2(b).

1.27     EXCESS ANNUAL ADDITIONS - The excess of the Participant's Annual
         Additions for the Limitation Year over the Maximum Permissible Amount.

1.28     EXCESS CONTRIBUTIONS - With respect to any Plan Year, the excess of:

         (a)      The aggregate amount of Company contributions actually taken
                  into account in computing the ADP of Highly Compensated
                  Employees for such Plan Year, over

         (b)      The maximum amount of such contributions permitted by the ADP
                  test (determined by reducing contributions made on behalf of
                  Highly Compensated Employees in order of their ADPs,
                  beginning with the highest of such percentages).

1.29     EXCESS DEFERRALS - A Participant's Elective Deferrals that are
         includible in the Participant's gross income under Code Section 402(g)
         to the extent such Participant's Elective Deferrals for a taxable year
         exceed the dollar limitation under such Code Section. Excess Deferrals
         shall be treated as Annual Additions under the Plan, unless such
         amounts are distributed no later than the first April 15 following the
         close of the Participant's taxable year.

1.30     HIGHLY COMPENSATED EMPLOYEE - The group of Highly Compensated
         Employees ("HCEs") includes any Employee who is employed by the
         Employer on the snapshot day and who (i) is a 5-percent owner on the
         snapshot day, (ii) receives compensation for the Plan Year in excess
         of the Code Section 414(q)(1)(B) amount for the Plan Year, (iii)
         receives compensation for the Plan Year in excess of the Code Section
         414(q)(1)(C) amount for the Plan Year and is a member of the top paid
         group of Employees within the meaning of Code Section 414(q)(4), or
         (iv) is an officer on the snapshot day and receives compensation
         during the Plan Year that is greater than 50 percent of the dollar
         limitation in effect under Code Section 415(b)(1)(A). If no officer
         satisfies the compensation requirement of (iv) above, the highest paid
         officer for such Plan Year shall be treated as a HCE.

         For purposes of determining who is a HCE, compensation means
         compensation within the meaning of Code Section 415(c)(3) as set forth
         in the Plan for purposes of determining the Code Section 415 limits,
         except that amounts excluded pursuant to Code Sections 125, 402(e)(3),
         402(h)(1)(B) and 403(b) are included. If compensation used for
         purposes of determining the Code Section 415 limits under the Plan is
         not defined as total compensation as provided under Code Section

                                       8
<PAGE>

         415(c)(3) and the regulations thereunder, then for purposes of
         determining who is a HCE, compensation means compensation within the
         meaning of Code Section 1.415-2(d)(11)(i) of the Income Tax
         Regulations, except that amounts excluded pursuant to Code Sections
         125, 402(e)(3), 402(h)(1)(B) and 403(b) are included.

         If, as of the snapshot day, an Employee is a family member of either a
         5-percent owner (whether active or former) or a HCE who is one of the
         10 most HCEs ranked on the basis of compensation paid by the Employer
         during such year, then the family member and the 5-percent owner or
         top-ten HCE shall be aggregated. In such case, the family member and
         5-percent owner or top-ten HCE shall be treated as a single Employee
         receiving compensation and Plan contributions or benefits equal to the
         sum of the compensation and contributions and benefits of the family
         member and 5-percent owner or top-ten HCE. For purposes of this
         Section, family member includes the spouse, lineal ascendants and
         descendants of the Employee or former Employee, and the spouses of
         such ascendants and descendants.

         The snapshot day selected in Section (C)(5) must be a single day
         during the Plan Year that is reasonably representative of the
         Employer's workforce and the Plan's coverage throughout the Plan Year.
         In addition, if the Employer uses a snapshot day in substantiating
         compliance with the nondiscrimination requirements of Code Sections
         401(a)(4), 410(b), or 414(s), the same snapshot day must be used for
         purposes of determining the HCEs.)

         The group of HCEs will also include any Employee who during the Plan
         Year:

         (a)      terminated employment prior to the snapshot day and was a HCE
                  in the prior Plan Year;

         (b)      terminated employment prior to the snapshot day and (i) was a
                  5-percent owner, or (ii) has compensation for the Plan Year
                  which is greater than or equal to the compensation of any
                  Employee who is treated as a HCE on the snapshot day (except
                  for Employees who are HCEs solely because they are 5-percent
                  owners or officers), or (iii) was an officer and has
                  compensation greater than or equal to the compensation of any
                  other officer who is a HCE on the snapshot day solely because
                  that person is an officer; or

         (c)      becomes employed subsequent to the snapshot day during the
                  Plan Year and (i) is a 5-percent owner, or (ii) has
                  compensation for the Plan Year that is greater than or equal
                  to the compensation of any Employee who is treated as a HCE
                  on the snapshot day (except Employees who are HCEs solely
                  because they are 5-percent owners or officers), or (iii) is
                  an officer and has compensation that is greater than or equal
                  to the compensation of any other officer who is a HCE on the
                  snapshot day solely because that person is an officer.

         The determination of who is a HCE, including the determinations of the
         number and identity of Employees in the top paid group, the number of
         Employees treated as officers and the compensation that is taken into
         account, will be made in accordance

                                       9
<PAGE>

         with Code Section 414(q) and Code Section 1.414(q)-1T of the temporary
         Income Tax Regulations to the extent they are not inconsistent with
         the method established above.

1.31     HOUR OF SERVICE -

         (a)      Each hour for which an Employee is paid, or entitled to
                  payment, for the performance of duties for the Company. These
                  hours shall be credited to the Employee for the computation
                  period in which the duties are performed;

         (b)      Each hour for which an Employee is paid, or entitled to
                  payment, by the Company 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 is incorporated herein by this reference; and

         (c)      Each hour for which back pay, irrespective of mitigation of
                  damages, is either awarded or agreed to by the Company. The
                  same Hours of Service shall not be credited both under
                  Subparagraph (a) or Subparagraph (b), as the case may be, and
                  under this Subparagraph (c). These Hours 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.

         (d)      Where an Employee leaves a non-temporary position with the
                  Company to enter the United States military service and
                  receives an honorable discharge upon completion of military
                  service, application for reemployment must be made within the
                  following time periods: if the military service is less than
                  31 days, the employee must report for reemployment on the
                  first full working day; if the service is from 31 to 181
                  days, the employee must apply to the company within 14 days;
                  and if service is over 180 days, the employee must apply to
                  the Company within 90 days. If the employee is hospitalized
                  or injured, the time to apply to the Company is extended for
                  two years.

         (e)      Hours of Service shall be credited for employment with other
                  members of an affiliated service group (under Code Section
                  414(m)), a controlled group of corporations (under Code
                  Section 414(b)), a group of trades or businesses under common
                  control (under Code Section 414(c)), of which the adopting
                  Company is a member, and any other entity required to be
                  aggregated with the Company pursuant to Code Section 414(o)
                  and the Regulations thereunder. Hours of Service shall also
                  be credited for any individual considered an Employee for
                  purposes of this Plan under Code Section 414(n) or Section
                  414(o) and the Regulations thereunder.

                                       10
<PAGE>

         (f)      Hours of Service shall be determined on the basis of the
                  method selected in Section (D).

         (g)      Solely for purposes of determining whether a Break in
                  Service, as defined in Paragraph 1.36, 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, 8 Hours of Service per day of such absence. For
                  purposes of this Subparagraph, an absence from work for
                  maternity or paternity reasons means an absence (1) by reason
                  of the pregnancy of the individual, (2) by reason of a birth
                  of a child of the individual, (3) by reason of the placement
                  of a child with the individual in connection with the
                  adoption of such child by such individual, or (4) for
                  purposes of caring for such child for a period beginning
                  immediately following such birth or placement.

                  The Hours of Service credited under this Subparagraph shall
                  be credited (1) in the computation period in which the
                  absence begins if the crediting is necessary to prevent a
                  Break in Service in that period, or (2) in all other cases,
                  in the following computation period.

1.32     INSURANCE COMPANY - Massachusetts Mutual Life Insurance Company or MML
         Pension Insurance Company, or with respect to Policies, any other
         legal reserve life insurance company authorized to do business in the
         state of policy issue.

1.33     LEASED EMPLOYEE - Any person (other than an Employee of the recipient)
         who pursuant to an agreement between the recipient and any other
         person ("leasing organization"), has performed services for the
         recipient (or for the recipient and related persons determined in
         accordance with Code Section 414(n)(6)) on a substantially full-time
         basis for a period of at least one year, and such services are of a
         type historically performed by Employees in the business field of the
         recipient Company. Contributions or benefits provided a leased
         Employee by the leasing organization which are attributable to
         services performed for the recipient Company shall be treated as
         provided by the recipient Company.

         A leased Employee shall not be considered an Employee of the recipient
         if: (1) such Employee is covered by a money purchase pension plan
         providing: (i) a non-integrated Company contribution rate of at least
         10 percent of Compensation, as defined in Code Section 415(c)(3) but
         including amounts contributed by the Company pursuant to a Deferred
         Salary Agreement which are excludable from the Employee's gross income
         under Code Sections 125, 402(e)(3), 402(h)(1)(B) or 403(b), (ii)
         immediate participation, and (iii) full and immediate vesting; and (2)
         leased Employees do not constitute more than 20 percent of the
         recipient's non-Highly Compensated workforce.

1.34     LIMITATION YEAR - A calendar year or any other 12-consecutive month
         period elected by the Company in Section (C). All qualified plans
         maintained by the

                                       11
<PAGE>

         Company must use the same Limitation Year. If the Limitation Year is
         amended to a different 12-consecutive month period, the new Limitation
         Year must begin on a date within the Limitation Year in which the
         amendment is made.

1.35     MAXIMUM PERMISSIBLE AMOUNT - The maximum Annual Addition that may be
         contributed or allocated to a Participant's Account under the Plan for
         any Limitation Year shall not exceed the lesser of: (a) the defined
         contribution dollar limitation, or (b) 25 percent of the Participant's
         Compensation for the Limitation Year.

         The Compensation limit referred to in (b), shall not apply to any
         contribution for medical benefits (within the meaning of Code Sections
         401(h) or 419A(f)(2)) which is otherwise treated as an Annual
         Addition, under Code Sections 415(l)(1) or 419A(d)(2).

         The defined contribution dollar limitation is $30,000 or if greater,
         one-fourth of the defined benefit dollar limitation set forth in Code
         Section 415(b)(1) as in effect for the Limitation Year.

         If a short Limitation Year is created because of an amendment changing
         the Limitation Year to a different 12-consecutive month period, the
         Maximum Permissible Amount shall not exceed the defined contribution
         dollar limitation multiplied by the following fraction:

                 Number of months in the short Limitation Year
                                       12

1.36     ONE-YEAR BREAK IN SERVICE - A 12-consecutive month period (computation
         period) during which the Participant does not complete more than 500
         Hours of Service with the Company.

1.37     PARTICIPANT - Any eligible active Employee of the Company who became a
         member of this Plan on an Entry Date.

1.38     PARTICIPANT MATCHED CONTRIBUTIONS - The Company may elect in Section
         (J) to allow Participants to contribute amounts to the Plan based on
         nondeferred (after-tax) Compensation. Participants may or may not be
         required to make the contribution to the Plan. However, if the
         contribution is made, it shall cause the Company to contribute amounts
         to the Plan on behalf of the Participant known as Company Matching
         Contributions or Company Qualified Matching Contributions.

1.39     PARTICIPANT NONDEDUCTIBLE VOLUNTARY CONTRIBUTIONS - The Company may
         elect in Section (J) to allow the Participant to contribute amounts to
         the Plan based on non-deferred (after-tax) Compensation. The
         Participant is not required to contribute to the Plan and the
         contributions shall not cause the Company to contribute additional
         amounts to the Plan on behalf of a Participant, but they provide
         additional benefits for the Participant under the Plan.

                                       12
<PAGE>

1.40     PLAN - The MassMutual FLEXINVEST(R)Prototype Profit-Sharing/401(k)
         Plan as applied separately to the Company.

1.41     PLAN YEAR - The 12-consecutive month period designated by the Company
         in Section (C).

1.42     POLICY - An individual life insurance policy issued by the Insurance
         Company to the Company on the life of a Participant.

1.43     PROTOTYPE PLAN - A plan, the form of which is the subject of a
         favorable opinion letter from the Internal Revenue Service.

1.44     QUALIFIED ELECTION - A waiver of an Automatic Joint and Survivor
         Annuity or a Preretirement Survivor Annuity. A waiver shall not be
         effective unless: (a) the Participant's Spouse consents in writing to
         the election; (b) the election designates a specific Beneficiary,
         including any class of Beneficiaries or any contingent Beneficiary,
         which may not be changed without spousal consent (or the Spouse
         expressly permits designations by the Participant without any further
         spousal consent); (c) the Spouse's consent acknowledges the effect of
         the election; and (d) the Spouse's consent is witnessed by a plan
         representative or notary public. Additionally, a Participant's waiver
         of the Automatic Joint and Survivor Annuity shall not be effective
         unless the election designates a form of benefit payment which may not
         be changed without spousal consent (or the Spouse expressly permits
         designations by the Participant without any further spousal consent).
         If it is established to the satisfaction of a plan representative that
         there is no Spouse or that the Spouse cannot be located, a waiver
         shall be deemed a Qualified Election.

         Any consent by a Spouse obtained under this provision (or
         establishment that the consent of a Spouse may not be obtained) shall
         be effective only with respect to such Spouse. A consent that permits
         designations by the Participant without any requirement of further
         consent by such Spouse must acknowledge that the Spouse has the right
         to limit consent to a specific Beneficiary, and a specific form of
         benefit where applicable, and that the Spouse voluntarily elects to
         relinquish either or both of such rights. A revocation of a prior
         waiver may be made by a Participant without the consent of the Spouse
         at any time before the commencement of benefits. The number of
         revocations shall not be limited. No consent obtained under this
         provision shall be valid unless the Participant has received notice as
         provided in Paragraph 14.3.

1.45     SPOUSE - The Spouse or surviving spouse of the Participant, provided
         that a former spouse shall be treated as the Spouse or surviving
         spouse and a current spouse shall not be treated as the Spouse or
         surviving spouse to the extent provided under a qualified domestic
         relations order as described in Code Section 414(p).

1.46     STRAIGHT LIFE ANNUITY - An annuity payable in equal installments for
         the life of the Participant that terminates upon the Participant's
         death.

                                       13
<PAGE>

1.47     TERMINATION OF EMPLOYMENT - The separation from service of the
         Participant before Normal Retirement Date other than by reason of
         death, disability as determined under Section (F)or early retirement,
         if elected in Section (F).

1.48     VALUATION DATE - Each Business Day.

1.49     YEAR OF SERVICE - A 12-consecutive month period (computation period)
         during which the Employee completes at least 1,000 Hours of Service.
         The applicable 12-consecutive month period for eligibility and
         participation purposes can be found in Part III, and for vesting in
         Part IX.

                          PART II - CREDITING SERVICE

2.1      GENERAL METHOD OF CREDITING SERVICE. The Administrator shall count
         actual Hours of Service during the applicable 12-consecutive month
         computation period as elected under Section (D). The Employee shall
         receive credit for a Year of Service if the Employee is credited with
         1000 or more Hours of Service during the computation period and shall
         incur a One-Year Break in Service if the Participant is not credited
         with more than 500 Hours of Service during the computation period. In
         general, the Employee's entitlement with respect to participation and
         vesting shall be determined by totaling the number of Years of Service
         credited to the Employee.

2.2      EQUIVALENCY METHODS BASED UPON PERIODS OF EMPLOYMENT. The
         Administrator shall credit the Employee with a specified number of
         Hours of Service for each period of employment if the Employee would
         receive credit for at least one Hour of Service in that period of
         employment as elected under Section (D). The periods of employment on
         which equivalency may be based, if applicable and subject to this
         election, are: days worked, weeks worked, semi-monthly payroll period
         and months worked. The Employee shall receive credit for a Year of
         Service if the Employee is credited with 1000 or more equivalency
         Hours of Service during a computation period and shall incur a
         One-Year Break in Service if the Participant does not complete more
         than 500 equivalency Hours of Service during the computation period.
         In general, the Employee's entitlement with respect to participation
         and vesting shall be determined by totaling the number of Years of
         Service credited to the Employee.

2.3      ONE METHOD OF CREDITING SERVICE FOR ALL EMPLOYEES. The Administrator
         shall credit Service for all classifications of Employees under the
         Plan using the same method of crediting service set forth in Section
         (D).

2.4      SERVICE WITH A PREDECESSOR EMPLOYER. Where the Company maintains the
         plan of a predecessor employer, service for such predecessor employer
         shall be treated as service for the Company for purposes of
         determining an Employee's eligibility to participate in the Plan and
         vesting. Where a Company establishes the Plan which was not maintained
         by a predecessor employer, service with the

                                       14
<PAGE>

         predecessor employer, including a sole proprietorship or partnership,
         shall be treated as service with the Company for eligibility to
         participate and vesting only if elected by the Company in Section (D).

                    PART III - ELIGIBILITY AND PARTICIPATION

3.1      ELIGIBILITY. Each present and future Employee of the Company shall be
         entitled to participate in this Plan on the Effective Date or on an
         Entry Date coincident with or immediately following the date on which
         he satisfies the classification, service, and age requirements set
         forth in Section (D). If this Plan amends and restates a former plan
         that was qualified under Code Sections 401(a) or 403(a), each Employee
         who was a Participant (or entitled to participate) in the former plan
         on the day before the Effective Date of this restated Plan shall
         continue as a Participant (or continue to be entitled to participate)
         in the Plan.

3.2      ELIGIBILITY COMPUTATION PERIOD. Years of Service and Breaks in Service
         shall be measured on the same eligibility computation period. The
         initial eligibility computation period is the 12-consecutive month
         period beginning on the date the Employee first performs an Hour of
         Service for the Company (employment commencement date).

         The succeeding 12-consecutive month periods commence with the first
         Plan Year which commences prior to the first anniversary of the
         Employee's employment commencement date regardless of whether the
         Employee is entitled to be credited with 1,000 Hours of Service during
         the initial eligibility computation period. An Employee who is
         credited with 1,000 Hours of Service in both the initial eligibility
         computation period and the first Plan Year which commences prior to
         the first anniversary of the Employee's initial eligibility
         computation period shall be credited with two Years of Service for
         purposes of eligibility to participate.

3.3      BREAK IN SERVICE/RETURN TO SERVICE. A former Participant shall become
         a Participant immediately upon his return to the employ of the Company
         if such former Participant had a nonforfeitable right to all or a
         portion of his account balance derived from Company contributions at
         the time of his termination.

         For a former Participant who did not have any nonforfeitable right to
         the account balance derived from Company contributions, Years of
         Service before a period of consecutive One-Year Breaks in Service
         shall not be taken into account in computing eligibility service if
         the number of consecutive One-Year Breaks in Service in such period
         equals or exceeds the greater of 5 or the aggregate number of Years of
         Service. Such aggregate number of Years of Service shall not include
         any Years of Service disregarded under the preceding sentence by
         reason of prior Breaks in Service.

         If a Participant's Years of Service are disregarded pursuant to the
         preceding paragraph, such Participant shall be treated as a new
         Employee for eligibility purposes. If a Participant's Years of Service
         may not be disregarded pursuant to the

                                       15
<PAGE>

         preceding paragraph, such Participant shall continue to participate in
         the Plan, or, if terminated, shall participate immediately upon
         reemployment.

         In the event a Participant is no longer a member of an eligible class
         of Employees and becomes ineligible to participate but has not
         incurred a Break in Service, such Employee shall participate
         immediately upon returning to an eligible class of Employees. If such
         Participant incurs a Break in Service, eligibility shall be determined
         pursuant to the three preceding paragraphs.

         In the event an Employee who is not a member of the eligible class of
         Employees becomes a member of the eligible class, such Employee shall
         participate immediately if such Employee has satisfied the minimum age
         and service requirements and would have otherwise previously become a
         Participant.

3.4      NOTIFICATION OF ELIGIBLE EMPLOYEES. The Administrator shall notify
         each Employee of his right to participate in the Plan prior to the
         Entry Date he first becomes entitled to participate. On the date of
         such notification, the Administrator shall furnish such Employee with
         a summary plan description of the Plan, the options available to him
         under the Plan and an enrollment form. If a Participant requests to
         have a Policy purchased on his behalf, the Participant shall also
         complete an application for the Policy. To become a Participant as of
         the Entry Date provided in Section (D), the Employee must complete the
         form and file it with the Administrator not later than one week after
         his Entry Date. If the Employee files the form later than one week
         after his Entry Date, he shall become a Participant on the first day
         of the second calendar month next following the date he files the
         form.

3.5      CONDITIONS OF CONTINUED PARTICIPATION. As a condition of continued
         participation under the Plan, each Participant agrees to:

         (a)      Limit his recourse for payment of any benefits to which he is
                  entitled to the assets of the Plan;

         (b)      Complete and file with the Administrator an enrollment form,
                  a Deferred Salary Agreement and such other forms as required
                  by the Administrator or Insurance Company;

         (c)      Submit such evidence of insurability as may be required; and

         (d)      Provide the Administrator with such information about himself
                  and his Beneficiary as required by Paragraph 19.10.

                            PART IV - CONTRIBUTIONS

4.1      CONTRIBUTIONS TO THE PLAN. The Company shall contribute to the Plan,
         for each Plan Year:

                                       16
<PAGE>

         (a)      Elective Deferrals (if elected in Section (G));

         (b)      Company Matching Contributions (if elected in Section (I));

         (c)      Company Qualified Matching Contributions (if elected in
                  Section (I));

         (d)      Company Profit-Sharing Contributions (if elected in Section
                  (K)); and

         (e)      Company Qualified Nonelective Contributions (if elected in
                  Section (H)).

         Each Participant may, by written direction to the Administrator, elect
         to make to the Plan:

         (a)      Participant Matched Contributions (if permitted by Section
                  (J));

         (b)      Participant Nondeductible Voluntary Contributions (if
                  permitted by Section (J)).

         The Participant may suspend his contributions, if allowed, during any
         time period by filing a written notice with the Administrator.

4.2      LIMITATIONS ON ELECTIVE DEFERRALS.

         (a)      Maximum Amount of Elective Deferrals: No Participant shall be
                  permitted to have Elective Deferrals made under this Plan, or
                  any other qualified plan maintained by the Company, during
                  the Participant's taxable year, in excess of the dollar
                  limitations contained in Code Section 402(g) in effect at the
                  beginning of such taxable year. With respect to any taxable
                  year, a Participant's elective deferrals are the sum of all
                  Company contributions made on behalf of such Participant
                  pursuant to an election to defer under any qualified CODA as
                  described in Code Section 401(k), a simplified employee
                  pension cash or deferred arrangement as described in Code
                  Section 402(h)(1)(B), any eligible deferred compensation plan
                  under Code Section 457, any plan as described under Code
                  Section 501(c)(18), and any Company contributions made on
                  behalf of a Participant for the purchase of an annuity
                  contract under Code Section 403(b) pursuant to a Deferred
                  Salary Agreement. A Participant may assign to this Plan any
                  Excess Deferrals made during a taxable year by notifying the
                  Administrator in writing on or before March 1st of the amount
                  of the Excess Deferrals to be designated to the Plan. A
                  Participant is deemed to notify the Administrator of any
                  Excess Deferrals that arise by taking into account only those
                  Elective Deferrals made to this Plan and any other plans of
                  this Employer. Notwithstanding any other provision of the
                  Plan, Excess Deferrals, plus any income and minus any loss
                  allocable thereto, shall be distributed no later than April
                  15 to any Participant to whose account Excess Deferrals were
                  assigned for the preceding year and who claims Excess
                  Deferrals for such taxable year.

                                       17
<PAGE>

                  Excess Deferrals shall be adjusted for any income or loss.
                  The income or loss allocable to Excess Deferrals is the sum
                  of income or loss allocable to the Participant's Elective
                  Deferral account for the taxable year multiplied by a
                  fraction, the numerator of which is such Participant's Excess
                  Deferrals for the year and the denominator is the
                  Participant's account balance attributable to Elective
                  Deferrals plus any withdrawals of Elective Deferrals without
                  regard to any income or loss occurring during such taxable
                  year. In the event that any Excess Deferrals returned under
                  this Paragraph were matched by Company Matching
                  Contributions, those Company Matching Contributions, together
                  with earnings, shall be forfeited and applied under Paragraph
                  4.5(b).

         (b)      Actual Deferral Percentage: The Actual Deferral Percentage
                  (hereinafter "ADP") for Participants who are Highly
                  Compensated Employees for each Plan Year and the ADP for
                  Participants who are non-Highly Compensated Employees for the
                  same Plan Year must satisfy one of the following tests:

                  (1) The ADP for the Participants who are Highly Compensated
                  Employees for the Plan Year shall not exceed the ADP for
                  Participants who are non-Highly Compensated Employees for the
                  same Plan Year multiplied by 1.25; or

                  (2) The ADP for the Participants who are Highly Compensated
                  Employees for the Plan Year shall not exceed the ADP for
                  Participants who are non-Highly Compensated Employees for the
                  same Plan Year multiplied by 2.0, provided that the ADP for
                  Participants who are Highly Compensated Employees does not
                  exceed the ADP for Participants who are non-Highly
                  Compensated Employees by more than two (2) percentage points.

                  "Actual Deferral Percentage" shall mean, for a specified
                  group of Participants for a Plan Year, the average of the
                  ratios (calculated separately for each Participant in such
                  group) of (1) the amount of Company contributions actually
                  paid over to the Plan on behalf of such Participant for the
                  Plan Year to (2) the Participant's Compensation for such Plan
                  Year. Compensation taken into account for this purpose may be
                  limited to Compensation received by an employee while the
                  employee is a Participant. Company contributions on behalf of
                  any Participant shall include: (1) any Elective Deferrals
                  made pursuant to the Participant's deferral election,
                  including Excess Deferrals of the Highly Compensated
                  Employees, but excluding Excess Deferrals of Non-Highly
                  Compensated Employees that arise solely from Elective
                  Deferrals made under the Plan or plans of this Employer and
                  Elective Deferrals that are taken into account in the Actual
                  Contribution Percentage test (provided the ADP test is
                  satisfied both with and without exclusion of these Elective
                  Deferrals); and (2) at the election of the Company, Company
                  Qualified Nonelective Contributions and Company Qualified
                  Matching Contributions. For purposes of computing ADP's, an
                  Employee who would be a Participant but for the failure to
                  make Elective Deferrals shall be treated as a Participant on
                  whose behalf no Elective Deferrals are made.

                                       18
<PAGE>

                  The ADP for any Participant who is a Highly Compensated
                  Employee for the Plan Year and who is eligible to have
                  Elective Deferrals (and Company Qualified Nonelective
                  Contributions or Company Qualified Matching Contributions, or
                  both, if treated as Elective Deferrals for purposes of the
                  ADP test) allocated to his accounts under two or more
                  arrangements described in Code Section 401(k) that are
                  maintained by the Company, shall be determined as if such
                  Elective Deferrals (and, if applicable, such Company
                  Qualified Nonelective Contributions or Company Qualified
                  Matching Contributions, or both) were made under a single
                  arrangement. If a Highly Compensated Employee participates in
                  two or more cash or deferred arrangements that have different
                  Plan years, all cash or deferred arrangements ending with or
                  within the same calendar year shall be treated as a single
                  arrangement.

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

                  For purposes of determining the ADP of a Participant who is a
                  5 percent owner or one of the ten most highly-paid Highly
                  Compensated Employees, the Elective Deferrals (and Company
                  Qualified Nonelective Contributions or Qualified Matching
                  Contributions, or both, if treated as Elective Deferrals for
                  purposes of the ADP test) and Compensation of such
                  Participant shall include the Elective Deferrals (and, if
                  applicable, Company Qualified Nonelective Contributions and
                  Qualified Matching Contributions, or both) and Compensation
                  for the Plan Year of the family members (as defined in Code
                  Section 414(q)(6)). The combined actual deferral ratio for
                  the family group shall be the actual deferral ratio
                  determined by combining the Elective Deferrals, Compensation
                  and amounts treated as Elective Deferrals of all the eligible
                  family members. Family members with respect to such Highly
                  Compensated Employees, shall be disregarded as separate
                  Employees in determining the ADP both for Participants who
                  are non-Highly Compensated Employees and for Participants who
                  are Highly Compensated Employees.

                  For purposes of determining the ADP test, Elective Deferrals,
                  Qualified Nonelective Contributions, and Qualified Matching
                  Contributions must be made before the last day of the
                  twelve-month period immediately following the Plan Year to
                  which contributions relate.

                  The Company shall maintain records sufficient to demonstrate
                  satisfaction of the ADP test and the amount of Company
                  Qualified Nonelective Contributions or Company Qualified
                  Matching Contributions, or both, used in such test. The
                  determination and treatment of the ADP amounts of any

                                       19
<PAGE>

                  Participant shall satisfy such other requirements as may be
                  prescribed by the Secretary of the Treasury.

4.3      EXCESS CONTRIBUTIONS.

         (a)      Extra Contribution: If the ADP limitation in Paragraph 4.2(b)
                  is not met, the Company may elect to make an extra Company
                  Qualified Nonelective Contribution to eligible non-Highly
                  Compensated Employees sufficient to satisfy the ADP limit.
                  The contribution shall be subject to the distribution and
                  nonforfeitability requirements of Code Section 401(k).

                  If the Company does not make such a contribution, a
                  corrective distribution of Excess Contributions will be made
                  in accordance with Section 4.3(b) below.

         (b)      Corrective Distributions of Excess: The Company may also
                  satisfy Paragraph 4.2(b) by distributing the Excess
                  Contributions in accordance with this Paragraph. Excess
                  Contributions, plus any income and minus any loss allocable
                  thereto, shall be distributed no later than the last day of
                  each Plan Year to Participants to whose accounts such Excess
                  Contributions were allocated for the preceding Plan Year. If
                  such excess amounts are distributed more than 2 1/2 months
                  after the last day of the Plan Year in which such excess
                  amounts arose, a ten (10) percent excise tax shall be imposed
                  on the Company maintaining the Plan with respect to such
                  amounts. Such distributions shall be made to Highly
                  Compensated Employees on the basis of the respective portions
                  of the Excess Contributions attributable to each of such
                  Employees. Excess Contributions shall be allocated among
                  Participants who are subject to the family member aggregation
                  rules of Code Section 414(q)(6) in proportion to the Elective
                  Deferrals of each family member that are combined to
                  determine the actual deferral ratio. Excess Contributions
                  (including the amounts recharacterized) shall be treated as
                  Annual Additions under the Plan.

                  Excess Contributions shall be adjusted for any income or loss
                  up to the date of distribution. The income or loss allocable
                  to Excess Contributions is the income or loss allocable to
                  the Participant's Elective Deferral account (and, if
                  applicable, the Company Qualified Nonelective Contribution
                  account or the Company Qualified Matching Contribution
                  account or both) for the Plan Year multiplied by a fraction,
                  the numerator of which is such Participant's Excess
                  Contributions for the year and the denominator is the
                  Participant's account balance attributable to Elective
                  Deferrals (and Company Qualified Nonelective Contributions or
                  Company Qualified Matching Contributions, or both, if any of
                  such contributions are included in the ADP test) plus any
                  withdrawals of these contributions and without regard to any
                  income or loss occurring during such Plan Year.

                  Excess Contributions shall be distributed from the
                  Participant's Elective Deferral account and Company Qualified
                  Matching Contribution account (if

                                       20
<PAGE>

                  applicable) in proportion to the Participant's Elective
                  Deferrals and Company Qualified Matching Contributions (to
                  the extent used in the ADP test) for the Plan Year. Excess
                  Contributions shall be distributed from the Participant's
                  Company Qualified Nonelective Contribution account only to
                  the extent that such Excess Contributions exceed the balance
                  in the Participant's Elective Deferral account and Company
                  Qualified Matching Contribution account. In the event that
                  any Excess Contributions returned under this Paragraph were
                  matched by Company Matching Contributions, those Company
                  Matching Contributions, together with earnings, shall be
                  forfeited and applied under Paragraph 4.5(b).

         (c)      Recharacterization: If all Participants are eligible to make
                  Participant contributions under the Plan, the Company may
                  also satisfy Paragraph 4.2(b) by recharacterizing the Excess
                  Contributions. A Participant may treat his Excess
                  Contributions as an amount distributed to him and then
                  contributed by him to the Plan. Excess Contributions may only
                  be recharacterized in the Plan from which they arose.
                  Recharacterized amounts shall remain nonforfeitable and
                  subject to the same distribution requirements as Elective
                  Deferrals. Amounts may not be recharacterized by a Highly
                  Compensated Employee to the extent that such amount in
                  combination with other Participant contributions made by that
                  Employee would exceed any stated limit under the Plan on
                  Participant contributions.

                  Recharacterization must occur no later than 2 1/2 months
                  after the last day of the Plan Year in which such Excess
                  Contributions arose and is deemed to occur no earlier than
                  the date the last Highly Compensated Employee is informed in
                  writing of the amount recharacterized and the consequences
                  thereof. Recharacterized amounts shall be taxable to the
                  Participant for the Participant's tax year in which the
                  Participant would have received them in cash.

4.4      LIMITATIONS ON COMPANY AND PARTICIPANT CONTRIBUTIONS. The Actual
         Contribution Percentage ("hereinafter ACP") for Participants who are
         Highly Compensated Employees for each Plan Year and the ACP for
         Participants who are non-Highly Compensated Employees for the same
         Plan Year must satisfy one of the following tests:

         (a)      The ACP for Participants who are Highly Compensated Employees
                  for the Plan Year shall not exceed the ACP for Participants
                  who are non-Highly Compensated Employees for the same Plan
                  Year multiplied by 1.25; or

         (b)      The ACP for Participants who are Highly Compensated Employees
                  for the Plan Year shall not exceed the ACP for Participants
                  who are non-Highly Compensated Employees for the same Plan
                  Year multiplied by 2.0, provided that the ACP for
                  Participants who are Highly Compensated Employees does not
                  exceed the ACP for Participants who are non-Highly
                  Compensated Employees by more than two (2) percentage points.

                                       21
<PAGE>

                  "Actual Contribution Percentage" shall mean, for a specified
                  group of Participants for a Plan Year, the average of the
                  ratios (calculated separately for each Participant in such
                  group) of (1) the Participant's Actual Contribution
                  Percentage amounts to (2) the Participant's Compensation for
                  the Plan Year. Compensation taken into account for this
                  purpose may be limited to Compensation received by an
                  Employee while the Employee is a Participant. Actual
                  Contribution Percentage amounts are the sum of the
                  Participant Nondeductible Voluntary Contributions,
                  recharacterized Elective Deferrals (Paragraph 4.3(c)),
                  Participant Matched Contributions, Company Matching
                  Contributions, and Company Qualified Matching Contributions
                  (to the extent not taken into account for purposes of the ADP
                  test) made under the Plan on behalf of the Participant for
                  the Plan Year. Such Actual Contribution Percentage amounts
                  shall not include Matching Contributions that are forfeited
                  either to correct Excess Aggregate Contributions or because
                  the contributions to which they relate are forfeited due to
                  Excess Deferrals, Excess Contributions, or Excess Aggregate
                  Contributions. Such Actual Contribution Percentage amounts
                  shall include forfeitures of Excess Aggregate Contributions
                  or Company Matching Contributions allocated to the
                  Participant's Company Match Account, which shall be taken
                  into account in the year in which such forfeiture is
                  allocated.

                  The Company may include in the ACP amounts, Elective
                  Deferrals or Company Qualified Nonelective Contributions, or
                  both, so long as the ADP test is met before the Elective
                  Deferrals and Company Qualified Nonelective Contributions are
                  used in the ACP test and continues to be met following the
                  exclusion of these contributions that are used to meet the
                  ACP test. The inclusion of Company Qualified Nonelective
                  Contributions and Elective Contributions in the ACP amounts
                  shall be performed in a manner consistent with the provisions
                  of Reg. ss. 1.401(m)-1(b)(5).

                  For purposes of computing the ACP, any Employee is eligible
                  if he can make a Participant contribution, or an Elective
                  Deferral (if the Company takes such contributions into
                  account in the calculation of the Actual Contribution
                  Percentage), or can receive a Company Matching Contribution
                  (including forfeitures) or a Company Qualified Matching
                  Contribution. If a Participant contribution is required as a
                  condition of participation in the Plan, any Employee who
                  would be a Participant in the Plan if such Employee made such
                  a contribution shall be treated as an eligible Participant on
                  behalf of whom no Participant contributions are made.

                  The ACP for any Participant who is a Highly Compensated
                  Employee for the Plan Year and who is eligible to have Actual
                  Contribution Percentage amounts allocated to his accounts
                  under two or more plans described in Code Section 401(a), or
                  arrangements described in Code Section 401(k) that are
                  maintained by the Company, shall be determined as if such
                  Actual Contribution Percentage amounts were made under a
                  single plan. If a Highly Compensated Employee participates in
                  two or more plans described in Code Section 401(a) or
                  arrangements described in Code Section 401(m) that have
                  different Plan Years, all such plans or arrangements ending
                  with or within the same calendar year shall be treated as a
                  single plan.

                  In the event that this Plan satisfies the requirements of
                  Code Sections 401(m), 401(a)(4) or 410(b) only if aggregated
                  with one or more other plans, or if one or

                                       22
<PAGE>

                  more other plans satisfy the requirements of such Code
                  Sections only if aggregated with this Plan, then this
                  Paragraph shall be applied by determining the ACP of
                  Employees as if all such plans were a single plan. Plans may
                  be aggregated to satisfy Code Section 401(m) only if they
                  have the same Plan Year.

                  For purposes of determining the ACP of a Participant who is a
                  5 percent owner or one of the ten most highly-paid Highly
                  Compensated Employees, the Actual Contribution Percentage
                  amounts and Compensation of such Participant shall include
                  the Actual Contribution Percentage amounts and Compensation
                  for the Plan Year of family members (as defined in Code
                  Section 414(q)(6). The combined actual contribution ratio for
                  the family group shall be the actual contribution ratio
                  determined by combining the Participant contributions,
                  Compensation, matching contributions and amounts treated as
                  matching contributions of all the eligible family members.
                  Family members, with respect to Highly Compensated Employees,
                  shall be disregarded as separate Employees in determining the
                  ACP both for Participants who are non-Highly Compensated
                  Employees and for Participants who are Highly Compensated
                  Employees.

                  For purposes of determining the ACP test, Participant
                  contributions are considered to have been made in the Plan
                  Year in which contributed to the Plan. Company Matching and
                  Qualified Matching Contributions and Company Qualified
                  Nonelective Contributions shall be considered made for a Plan
                  Year if made no later than the end of the twelve-month period
                  beginning on the day after the close of the Plan Year.

                  The Company shall maintain records sufficient to demonstrate
                  satisfaction of the ACP test and the amount of Company
                  Qualified Nonelective Contributions or Qualified Matching
                  Contributions, or both, used in such test. The determination
                  and treatment of the ACP amounts of any Participant shall
                  satisfy such other requirements as may be prescribed by the
                  Secretary of the Treasury.

                  In addition, a Company shall not allocate contributions to a
                  Participant's Account which would result in an Excess Annual
                  Addition under Part V, Limitation on Allocations. The
                  aggregate Company contributions for any Plan Year may also be
                  limited to the amount deductible by the Company under Code
                  Section 404 with reductions made, in order, to Company
                  Profit-Sharing, Company Matching, Company Qualified Matching,
                  Company Qualified Nonelective and Elective Deferral
                  Contributions.

4.5      EXCESS AGGREGATE CONTRIBUTIONS.

         (a)      Extra Contribution: If the ACP limitation in Paragraph 4.4 is
                  not met, the Company may elect to make an extra Company
                  Qualified Nonelective Contribution to eligible non-Highly
                  Compensated Employees sufficient to satisfy the ACP limit.
                  The contribution shall be subject to the distribution and
                  nonforfeitability requirements of Code Section 401(k).

         (b)      Corrective Distribution of Excess: The Company may also
                  satisfy Paragraph 4.4 by distributing or forfeiting the
                  Excess Aggregate Contributions in

                                       23
<PAGE>

                  accordance with this Paragraph. Excess Aggregate
                  Contributions, plus any income and minus any loss allocable
                  thereto, shall be forfeited, if forfeitable, or if not
                  forfeitable, distributed no later than the last day of each
                  Plan Year to Participants to whose accounts such Excess
                  Aggregate Contributions were allocated for the preceding Plan
                  Year. If such Excess Aggregate Contributions are distributed
                  more than 2 1/2 months after the last day of the Plan year in
                  which such excess amounts arose, a ten (10) percent excise
                  tax shall be imposed on the Company maintaining the Plan with
                  respect to such amounts. Any distribution or forfeiture of
                  Excess Aggregate Contributions for any Plan Year shall be
                  made on the basis of the respective portions of such amounts
                  attributable to each Highly Compensated Employee. Excess
                  Aggregate Contributions shall be allocated to Participants
                  who are subject to the family member aggregation rules of
                  Code Section 414(q)(6) in proportion to the Participant
                  contributions and matching contributions of each family
                  member that are combined to determine the actual contribution
                  ratio. Excess Aggregate Contributions shall be treated as
                  Annual Additions under the Plan. In the event that any Excess
                  Aggregate Contributions returned under this Paragraph were
                  matched by Company Matching Contributions, those Company
                  Matching Contributions, together with earnings, shall be
                  forfeited and applied under this Paragraph.

                  Excess Aggregate Contributions shall be adjusted for any
                  income or loss. The income or loss allocable to Excess
                  Aggregate Contributions is the income or loss allocable to
                  the Participant's Participant Contribution account, Company
                  Matching Contribution account (if any, and if all amounts
                  therein are not used in the ADP test) and, if applicable,
                  Company Qualified Nonelective Contribution account and
                  Elective Deferral account for the Plan Year multiplied by a
                  fraction, the numerator of which is such Participant's Excess
                  Aggregate Contributions for the year and the denominator is
                  the Participant's account balance(s) attributable to Actual
                  Contribution Percentage amounts plus any withdrawals of these
                  amounts and without regard to any income or loss occurring
                  during such Plan Year.

                  Forfeitures of Excess Aggregate Contributions shall be
                  applied to reduce Company contributions. Excess Aggregate
                  Contributions attributable to amounts other than Participant
                  contributions, including forfeited matching contributions,
                  shall be treated as Company contributions for purposes of
                  Code Sections 404 and 415, even if distributed from the Plan.

                  Excess Aggregate Contributions shall first be distributed
                  from the Participant Nondeductible Voluntary Contributions
                  Account. To the extent that Excess Aggregate Contributions
                  exceed the balance in the Participant Nondeductible Voluntary
                  Contribution Account, the Excess Aggregate Contributions
                  shall be forfeited, if forfeitable, or distributed on a pro
                  rata basis from the Participant Matched Contribution accounts
                  and Company Matching Contribution accounts.

                                       24
<PAGE>

4.6      MULTIPLE USE OF ALTERNATIVE TEST. If one or more Highly Compensated
         Employees participate in both a CODA and a plan subject to the ACP
         test maintained by the Company and the sum of the ADP and ACP of those
         Highly Compensated Employees subject to either or both tests exceeds
         the Aggregate Limit, then the ADP or ACP of those Highly Compensated
         Employees who also participate in a CODA shall be reduced (beginning
         with such Highly Compensated Employee whose ACP is the highest) so
         that the limit is not exceeded. The amount by which each Highly
         Compensated Employee's Actual Contribution Percentage Amounts is
         reduced shall be treated as an Excess Aggregate Contribution. The ADP
         and ACP of the Highly Compensated Employees are determined after any
         corrections required to meet the ADP and ACP tests. Multiple use does
         not occur if both the ADP and ACP of the Highly Compensated Employees
         does not exceed 1.25 multiplied by the ADP and ACP of the non-Highly
         Compensated Employees.

         The "Aggregate Limit" shall mean the greater of:

         (a) the sum of (i) 125 percent of the greater of the ADP of the
         non-Highly Compensated Employees for the Plan Year or the ACP of
         non-Highly Compensated Employees under the Plan subject to Code
         Section 401(m) for the Plan Year beginning with or within the Plan
         Year of the CODA and (ii) two percentage points plus the lesser of the
         relevant ADP or the relevant ACP. In no event, however, shall this
         amount exceed twice the lesser of the relevant ADP or the relevant
         ACP; or

         (b) (i) 125 percent of the lesser of the ADP of the non-Highly
         Compensated Employees for the Plan Year or the ACP of non-Highly
         Compensated Employees under the Plan subject to Code Section 401(m)
         for the Plan Year beginning with or within the Plan Year of the CODA
         and (ii) two percentage points plus the greater of the relevant ADP or
         the relevant ACP. In no event, however, shall this amount exceed twice
         the greater of the relevant ADP or the relevant ACP.

4.7      PERMITTED DISPARITY. Unless elected otherwise in Section (K), the
         Company Profit-Sharing Contribution for the Plan Year shall be
         allocated to each Participant's account:

         First, in the ratio that each Participant's Compensation not in excess
         of the integration level bears to all Participants' Compensation not
         in excess of the integration level, but such allocation percentage
         shall not be in excess of the profit-sharing maximum disparity rate.

         Second, any remaining contribution shall be allocated to each
         Participant's account in the ratio that each Participant's
         Compensation for the Plan Year in excess of the integration level
         bears to the excess Compensation of all Participants. This excess
         contribution, as a percentage of excess Compensation, cannot exceed
         two times the allocation percentage of the above paragraph.

         Third, any remaining Company Profit-Sharing contribution shall be
         allocated to each Participant's account in the ratio that each
         Participant's total Compensation bears to the sum of all Participants'
         total Compensation.

                                       25
<PAGE>

         The integration level shall be equal to the taxable wage base or such
         lesser amount elected by the Company in Section (K). The taxable wage
         base is the maximum amount of earnings which may be considered wages
         for a year under Code Section 3121(a)(1) in effect as of the beginning
         of the Plan Year.

         The profit-sharing maximum disparity rate shall be as follows:

                  If the integration level is more than $0 but not more than 20
                  percent of the taxable wage base, the rate shall be 5.7
                  percent.

                  If the integration level is more than 20 percent of the
                  taxable wage base but not more than 80 percent of the taxable
                  wage base, the rate shall be 4.3 percent. If the integration
                  level is more than 80 percent of the taxable wage base, but
                  less than 100 percent of the taxable wage base, the rate
                  shall be 5.4 percent. If the integration level used is equal
                  to the taxable wage base, the rate shall be 5.7 percent.

         The Company Profit-Sharing Contribution for top-heavy plans shall be
         allocated in accordance with Paragraph 16.2, Minimum Contribution
         Under a Top-Heavy Plan.

         Notwithstanding the preceding paragraphs, for any Plan Year this Plan
         benefits any Participant who benefits under another qualified plan or
         simplified employee pension plan, as defined in Code Section 408(k),
         maintained by the Company that provides for permitted disparity (or
         imputes disparity), Company contributions and forfeitures will be
         allocated to the account of each Participant in the ratio that such
         Participant's Compensation bears to the Compensation of all
         Participants.

         Effective for Plan Years beginning on or after January 1, 1995, the
         cumulative permitted disparity limit for a Participant is 35 total
         cumulative permitted disparity years. Total cumulative permitted years
         means the number of years credited to the Participant for allocation
         or accrual purposes under this Plan, any other qualified plan or
         simplified employee pension plan (whether or not terminated) ever
         maintained by the Company. For purposes of determining the
         Participant's cumulative permitted disparity limit, all years ending
         in the same calendar year are treated as the same year. If the
         Participant has not benefited under a defined benefit or target
         benefit plan for any year beginning on or after January 1, 1994, the
         Participant has no cumulative disparity limit.

4.8      COLLECTION OF PARTICIPANT CONTRIBUTIONS. Participant contributions
         shall be collected by the Company through payroll deduction or
         otherwise within the limits set forth in this Part. All such
         contributions shall be paid over to the Insurance Company.

4.9      COMPANY CONTRIBUTIONS - TIMING. The Company shall pay its
         Contributions for each Plan Year on or before the time required by law
         for filing the Company's federal income tax return (including
         extensions) for the taxable year with respect to which the
         contributions are made.

                                       26
<PAGE>

4.10     COMPANY CONTRIBUTIONS - PROFITS. If the Company elects in Section (M),
         Company contributions, including Elective Deferrals, may be made
         without regard to profits. The Plan shall continue to qualify as a
         profit-sharing plan for purposes of Code Sections 401(a), 402, 412 and
         417.

4.11     RETURN OF COMPANY CONTRIBUTIONS. Except as provided below, no part of
         the Plan's assets shall revert to the Company or be diverted for
         purposes other than the exclusive benefit of the Employees or their
         Beneficiaries:

         (a)      Any contribution made by the Company because of a mistake of
                  fact shall be returned to the Company upon written notice to
                  the Insurance Company. A contribution shall not be refunded
                  more than one year after the payment of the contribution.

         (b)      In the event that the Commissioner of Internal Revenue
                  determines that the Plan is not initially qualified under the
                  Code, any contribution made incident to that initial
                  qualification by the Company must be returned to the Company
                  within one year of the date the initial qualification is
                  denied but only if the application for the qualification is
                  made by the time prescribed by law for filing the Company's
                  return for the taxable year in which the Plan is adopted, or
                  such later date as the Secretary of the Treasury may
                  prescribe. After the denial of qualification and upon receipt
                  of evidence thereof, the Contract, and Policies shall be
                  canceled and an amount equal to the value of all
                  Participants' Accounts as determined in accordance with the
                  terms of the Contract or Policies shall be paid to the
                  Company.

         (c)      Any contribution made by the Company is conditioned on the
                  deductibility of such contribution, and shall be refunded to
                  the Company, to the extent disallowed, upon written notice to
                  the Insurance Company. A contribution shall not be returned
                  more than one year after the disallowance of the
                  contribution. If the Internal Revenue Service determines that
                  the Plan is not qualified, the amount returned shall be
                  determined under Paragraph 20.2.

4.12     ROLLOVER CONTRIBUTIONS. Subject to approval by the Administrator and
         Insurance Company and if permitted in Section (M), an Employee who
         satisfies the classification requirements of Section (D) may
         contribute to the Plan an amount which qualifies as a rollover
         contribution within the meaning of Code Sections 402(a)(5), 403(a)(4),
         or 408(d)(3)(A)(ii). As such, the rollover contribution must have been
         distributed to the Employee from a qualified employee trust or
         qualified annuity plan or must be a directed rollover from such trust
         or plan to this Plan as specified by the Employee; or from an
         individual retirement arrangement ("IRA"), but only if such funds
         originated from a qualified employee trust or qualified annuity plan.
         The amount distributed to the Employee from the qualified employee
         trust, qualified annuity plan or IRA must be transferred to the Plan
         in cash within 60 days after the Employee receives it. The maximum
         amount which the Employee may rollover is the amount distributed to
         him less the sum of nondeductible employee contributions made to the
         prior qualified employee trust or qualified annuity plan. A

                                       27
<PAGE>

         lesser amount may be rolled over and the difference retained by the
         Employee. The amount retained shall be subject to tax.

         The Rollover Contribution shall be paid to the Contract, and invested
         as selected in Section (M). Rollover contributions shall be accounted
         for separately and shall be fully vested at all times. The separate
         account established for Rollover Contributions shall be withdrawn in
         accordance with Section (O).

4.13     TRANSFERS OF AMOUNTS FROM OTHER PLANS. If the Plan amends and
         restates, or replaces a former plan that was qualified under Code
         Sections 401(a) or 403(a), the Company may cause amounts from such
         former plan to be transferred into the Contract subject to consent of
         the Insurance Company. At the discretion of the Administrator and
         subject to the consent of the Insurance Company, the Plan may also
         accept other plan-to-plan transfers. The amounts so transferred shall
         be accompanied by written instructions from the Administrator
         identifying: the former plan; this Plan; the name of each Participant;
         the amount of any account balance transferred to the Plan from the
         former plan attributable to the contributions of each Participant and
         of the Company on his behalf; the vesting percentage for amounts
         attributable to Company contributions; and any other information that
         may be required by the Insurance Company.

         The Administrator shall advise the Insurance Company in writing of the
         allocation of such amounts within the Contract. The amounts so
         transferred may be deposited in the Participant's Account in
         accordance with the most recent allocation instructions or with
         special allocation instructions. The amounts transferred shall be
         distributed to Participants in accordance with the terms of the Plan.

4.14     PARTICIPANT DEDUCTIBLE VOLUNTARY CONTRIBUTIONS. The Administrator
         shall not accept Participant Deductible Voluntary Contributions which
         are made for a taxable year beginning after December 31, 1986.
         Contributions made prior to that date shall be maintained in a
         separate account which shall be nonforfeitable at all times. The
         account shall share in the gains and losses of the Plan in the same
         manner as described in Paragraph 8.1. No part of the Participant
         Deductible Voluntary Contribution account shall be used to purchase
         life insurance. Subject to Paragraphs 14.3 and 14.4, the Participant
         may withdraw any part of the Deductible Voluntary Contribution account
         by making a written application to the Administrator.

4.15     ADDITIONAL REQUIREMENTS FOR OWNER-EMPLOYEES. If this Plan provides
         contributions for one or more owner-Employees who control both the
         business for which this Plan is established and one or more other
         trades or businesses, this Plan and the plan established for other
         trades or businesses must, when looked at as a single plan, satisfy
         Code Sections 401(a) and (d) for the Employees of this and all other
         trades or businesses.

         If this Plan provides contributions for one or more owner-Employees
         who control one or more trades or businesses, the Employees of the
         other trades or businesses

                                       28
<PAGE>

         must be included in a plan which satisfies Code Sections 401(a) and
         (d) and which provides contributions not less favorable than provided
         for owner-Employees under this Plan.

         If an individual is covered as an owner-Employee under the plans of
         two or more trades or businesses which are not controlled and the
         individual controls a trade or business, then the contributions of the
         Employees under the plan of the trades or businesses which are
         controlled must be as favorable as those provided for him under the
         most favorable plan of the trade or business which is not controlled.

         For purposes of the preceding Paragraphs, an owner-Employee or two or
         more owner-Employees shall be considered to control a trade or
         business if such owner-Employee, or such two or more owner-Employees
         together:

         (a)      own the entire interest in an unincorporated trade or
                  business, or

         (b)      in the case of a partnership, own more than 50 percent of
                  either the capital interest or the profits interest in such
                  partnership.

         For purposes of the preceding sentence, an owner-Employee, or two or
         more owner-Employees shall be treated as owning any interest in a
         partnership which is owned, directly or indirectly, by a partnership
         which the owner-Employee, or such two or more owner-Employees, are
         considered to control within the meaning of the preceding sentence.

                       PART V - LIMITATION ON ALLOCATIONS

5.1      MAXIMUM PERMISSIBLE AMOUNT. If the Participant does not participate
         in, and has never participated in another qualified plan maintained by
         the Company, a welfare benefit fund, as defined in Code Section
         419(e), maintained by the adopting Company, or an individual medical
         account as defined in Code Section 415(l)(2), maintained by the
         Company, which provides an Annual Addition as defined in Paragraph
         1.3, the amount of Annual Additions which may be credited to the
         Participant's Account for any Limitation Year shall not exceed the
         lesser of the Maximum Permissible Amount or any other limitation
         contained in this Plan. If the Company contribution that would
         otherwise be contributed or allocated to the Participant's Account
         would cause the Annual Additions for the Limitation Year to exceed the
         Maximum Permissible Amount, the amount contributed or allocated shall
         be reduced so that the Annual Additions for the Limitation Year shall
         equal the Maximum Permissible Amount.

         For purposes of applying Part V, Limitations on Allocations,
         compensation for a Limitation Year is the compensation actually paid
         or includible in gross income during such Limitation Year as defined
         in Paragraph 1.14 only.

5.2      ESTIMATE OF MAXIMUM. Prior to determining the Participant's actual
         Compensation for the Limitation Year, the Company may determine the
         Maximum

                                       29
<PAGE>

         Permissible Amount for the Participant on the basis of a reasonable
         estimation of the Participant's Compensation for the Limitation Year,
         uniformly determined for all Participants similarly situated.

5.3      RECONCILIATION. As soon as is administratively feasible after the end
         of the Limitation Year, the Maximum Permissible Amount for the
         Limitation Year shall be determined on the basis of the Participant's
         actual Compensation for the Limitation Year.

5.4      EXCESS ANNUAL ADDITIONS. If, pursuant to Paragraph 5.3 or as a result
         of the allocation of Forfeitures, there is an Excess Annual Addition,
         the excess shall be disposed of as follows:

         (a)      First, any Participant Nondeductible Voluntary Contributions,
                  and any earnings thereon, to the extent they reduce the
                  Excess Annual Additions, shall be returned to the
                  Participant.

                  Second, any Participant Matched Contributions, and any
                  earnings thereon, shall be returned to the Participant.

         (b)      If after the application of Paragraph (a) Excess Annual
                  Additions still exist, any Elective Deferrals and any
                  earnings thereon shall be returned to the Participant.

         (c)      If after the application of Paragraphs (a) and (b) Excess
                  Annual Additions still exist and the Participant is covered
                  by the Plan at the end of the Limitation Year, the Excess
                  Annual Additions in the Participant's Account shall be held
                  unallocated in a suspense account and used to reduce Company
                  contributions (including any allocation of forfeitures) for
                  such Participant in the next Limitation Year, and each
                  succeeding Limitation Year if necessary.

                  If after the application of Paragraphs (a) and (b) Excess
                  Annual Additions still exist, and the Participant is not
                  covered by the Plan at the end of the Limitation Year, the
                  Excess Annual Additions shall be held unallocated in a
                  suspense account. The suspense account shall be applied to
                  reduce future Company contributions (including allocation of
                  any forfeitures) for all remaining Participants in the next
                  Limitation Year, and each succeeding Limitation Year if
                  necessary.

                  The Excess Annual Additions in a Participant's Account shall
                  be determined as being first from Company Profit-Sharing
                  Contributions, then from Company Nonelective Contributions,
                  then from Company Qualified Matching Contributions, and
                  finally from Company Matching Contributions. Neither the
                  consent of the Participant nor the Participant's Spouse shall
                  be required to the extent that the distribution is required
                  to satisfy Code Section 415.

                  If a suspense account is in existence at any time during the
                  Limitation Year pursuant to this Paragraph 5.4, it shall
                  participate in the allocation of the

                                       30
<PAGE>

                  gains and losses. All amounts in a suspense account must be
                  allocated to Participants accounts before any Company or any
                  Participant contributions may be made to the Plan for that
                  Limitation year. Excess Annual Additions held in the suspense
                  account may not be distributed to Participants or Former
                  Participants.

5.5      IF COMPANY MAINTAINS OTHER DEFINED CONTRIBUTION PLANS. Prior to
         determining the Participant's actual Compensation for the Limitation
         Year, the Company may determine the Maximum Permissible Amount for a
         Participant in the manner described in Paragraph 5.2. This Paragraph
         applies if, in addition to this Plan, the Participant is covered under
         another qualified master or Prototype defined contribution plan
         maintained by the Company, a welfare benefit fund, as defined in Code
         Section 419(e), maintained by the Company, or an individual medical
         account, as defined in Code Section 415(l)(2), maintained by the
         Company, which provides an Annual Addition as defined in Paragraph
         1.3, during any Limitation Year. The Annual Additions which may be
         credited to the Participant's Account under this Plan for any such
         Limitation Year shall be limited in accordance with this Paragraph,
         unless the Company provides other limitations in Section (U). Annual
         Additions shall not exceed the Maximum Permissible Amount reduced by
         the Annual Additions credited to the Participant's Account under the
         other plans and welfare benefit funds for the same Limitation Year. If
         the Annual Additions with respect to the Participant under other
         defined contribution plans and welfare benefit funds maintained by the
         Company are less than the Maximum Permissible Amount and the Company
         contribution that would otherwise be contributed or allocated to the
         Participant's Account under this Plan would cause the Annual Additions
         for the Limitation Year to exceed this limitation, the amount
         contributed or allocated shall be reduced so that the Annual Additions
         under all such plans and funds for the Limitation Year shall equal the
         Maximum Permissible Amount.

         If the Annual Additions with respect to the Participant under such
         other defined contribution plans and welfare benefit funds in the
         aggregate are equal to or greater than the Maximum Permissible Amount,
         no amount shall be contributed or allocated to the Participant's
         Account under this Plan for the Limitation Year.

         As soon as is administratively feasible after the end of the
         Limitation Year, the Maximum Permissible Amount for the Limitation
         Year shall be determined on the basis of the Participant's actual
         Compensation for the Limitation Year. If, pursuant to the preceding
         sentence or as a result of the allocation of forfeitures, a
         Participant's Annual Additions under this Plan and such other plans
         would result in Excess Annual Additions for a Limitation Year, the
         Excess Annual Additions shall be deemed to consist of the Annual
         Additions last allocated, except that Annual Additions attributable to
         a welfare benefit fund or individual medical account shall be deemed
         to have been allocated first regardless of the actual allocation date.

                                       31
<PAGE>

         If an Excess Annual Addition was allocated to a Participant on an
         allocation date of this Plan which coincides with an allocation date
         of another plan, the Excess Annual Additions attributed to this Plan
         shall be the product of:

         (a)      The total Excess Annual Additions allocated as of such date,
                  times

         (b)      The ratio of (i) the Annual Additions allocated to the
                  Participant for the Limitation Year as of such date under
                  this Plan to (ii) the total Annual Additions allocated to the
                  Participant for the Limitation Year as of such date under
                  this and all the other qualified Master or Prototype defined
                  contribution plans.

         Any Excess Annual Additions attributed to the Plan shall be disposed
         of in the manner described in Paragraph 5.4.

5.6      IF COMPANY MAINTAINS OTHER PLANS. If the Participant is covered under
         another qualified defined contribution plan maintained by the Company
         which is not a master or Prototype Plan, Annual Additions which may be
         credited to the Participant's Account under this Plan for any
         Limitation Year shall be limited in accordance with Paragraphs 5.1
         through 5.6 as though the other plan were a master or Prototype Plan
         unless the Company provides other limitations in Section (T).

         If the Company maintains, or at any time maintained, a qualified
         defined benefit plan covering any Participant in this Plan, the sum of
         the Participant's Defined Benefit Plan Fraction and Defined
         Contribution Plan Fraction shall not exceed 1.0 in any Limitation
         Year. The Annual Additions which may be credited to the Participant's
         Account under this Plan for any Limitation Year shall be limited in
         accordance with Section (T).

5.7      CONTROLLED GROUP OF EMPLOYERS, ETC. For purposes of this Part,
         Employer shall mean the Company that adopts this Plan, and all members
         of a controlled group of corporations (as defined in Code Section
         414(b) as modified by Code Section 415(h)), all commonly controlled
         trades or businesses (as defined in Code Section 414(c) as modified by
         Code Section 415(h)), or affiliated service groups (as defined in Code
         Section 414(m)), of which the adopting Company is a part, and any
         other entity required to be aggregated with the Company pursuant to
         Regulations under Code Section 414(o).

5.8      DEFINITIONS.

         (a)      Defined Benefit Fraction - A fraction, the numerator of which
                  is the sum of a Participant's Projected Annual Benefit under
                  all the defined benefit plans (whether or not terminated)
                  maintained by the Company, and the denominator of which is
                  the lesser of: 125 percent of the dollar limitation
                  determined for the Limitation Year under Code Section 415(b)
                  and (d) or 140 percent of the highest average Compensation,
                  including any adjustments under Code Section 415(b).

                                       32
<PAGE>

                  The highest average Compensation is the Participant's average
                  Compensation for the three consecutive Years of Service with
                  the Company that produces the highest average. A Year of
                  Service with the Company is the 12-consecutive month period
                  defined in Paragraph 1.49.

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

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

                  (i)      the Participant shall continue employment until
                           normal retirement date under the Plan (or current
                           age, if later) and

                  (ii)     the Participant's Compensation for the current
                           Limitation Year and all other relevant factors used
                           to determine benefits under the Plan shall remain
                           constant for all future Limitation Years.

         (c)      Defined Contribution Fraction - A fraction, the numerator of
                  which is the sum of the Annual Additions to the Participant's
                  Accounts under all the defined contribution plans (whether or
                  not terminated) maintained by the Company for the current and
                  all prior Limitation Years (including the Annual Additions
                  attributable to the Participant's Nondeductible Voluntary
                  Contributions to all defined benefit plans, whether or not
                  terminated, maintained by the Company and the Annual
                  Additions attributable to all welfare benefit funds, as
                  defined in Code Section 419(e), and individual medical
                  accounts, as defined in Code Section 415(l)(2), maintained by
                  the Company), and the denominator of which is the sum of the
                  maximum aggregate amounts for the current and all prior
                  Limitation Years of Service with the Company (regardless of
                  whether a defined contribution plan was maintained by the
                  Company). The maximum aggregate amount in any Limitation Year
                  is the lesser of: 125 percent of the dollar limitation
                  determined under Code Sections 415(b) and (d) in effect under
                  Code Section 415(c)(1)(A) or 35 percent of the Participant's
                  Compensation for such year.

                                       33
<PAGE>

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

                      PART VI - PLAN INVESTMENT - CONTRACT

6.1      FUNDING POLICY. Plan benefits shall be provided under a Contract owned
         by the Company and any Policies purchased under Paragraph 7.1. The
         Company shall have the duty to establish attending policy to carry out
         the objectives of the Plan. The funding policy is intended to
         establish a desired ratio of fixed income to equity risk for the Plan
         taking into account plan liquidity and diversification needs, the type
         of qualified plan and the financial stability of the Company. The
         funding policy shall include the selection of investment funds offered
         by the Insurance Company and a determination of the portion of
         contributions and funds held under the Contract to be invested in the
         investment funds selected. The general funding policy of the Plan
         shall be at all times to maintain a balance between safety in capital
         investment and investment return. The funding policy should consider
         anticipated future contributions and rates of return on investments
         and should be designed to meet the short and long-term financial needs
         of the Plan. Once the Company has directed the investment of Plan
         assets under the Contract to achieve the basic assets mix objective,
         the Company shall monitor the Plan's participation in investment funds
         under the Contract. The Company shall meet periodically for the
         purpose of reviewing and, if necessary, revising the funding policy of
         the Plan.

         The Company may request the Insurance Company to amend the Contract to
         change the investment funds offered under the Contract. Any actions
         taken by the Company shall be communicated in writing to the
         Administrator and shall be recorded in the official records of the
         Company. The Company may delegate the responsibility for allocation of
         Plan assets among investment funds maintained by the Insurance Company
         to an investment manager by entering into an agreement for
         discretionary asset management services. An investment manager named
         by the Company shall serve at the pleasure of the Company, but may
         resign by a written resignation to the Company. The Company shall
         periodically review the performance of the investment manager.

                                       34
<PAGE>

6.2      CONTRACT. The Plan shall be funded by a Contract issued by the
         Insurance Company. The Company shall execute the application for the
         Contract and shall be the owner of such Contract. The Contract shall
         provide for investment of contributions in the general investment
         account and/or separate investment accounts offered by the Insurance
         Company. The Contract shall provide for the valuation of assets and
         Participants' Accounts as of each Valuation Date. The Contract shall
         provide the terms and conditions by which sums may be transferred
         between such investment funds or withdrawn from the Contract.

6.3      INSURANCE COMPANY'S AUTHORITY TO DIRECT INVESTMENTS. The Insurance
         Company shall be the fiduciary with authority to carry out the funding
         policy of the Plan subject to the following limitations:

         (a)      All contributions made under the Plan by and for a
                  Participant, less applicable Plan and Contract expenses, and
                  premiums to provide Policies shall be invested, as directed
                  by the Company (or investment manager, if appointed) in
                  written allocation instructions to the Insurance Company in
                  the general investment account and/or separate investment
                  accounts of the Insurance Company to the extent permissible
                  under the Contract.

         (b)      The Insurance Company shall follow directions of the Company
                  (or investment manager, if appointed) concerning the exercise
                  or non-exercise of any power or options concerning the
                  Contract and any Policies held under the Plan. However, if
                  sums under the Contract are invested in the separate
                  investment accounts of the Insurance Company, the Insurance
                  Company retains the right to, in its sole discretion,
                  exercise any of the powers of an owner with respect to
                  stocks, bonds, securities or other property held in the
                  separate investment accounts. Sums held under the Contract
                  may be transferred in accordance with its terms among
                  investment funds within the Contract by direction of the
                  Company (or investment manager, if appointed).

         (c)      The Insurance Company shall follow the directions of each
                  Participant to the extent provided in Paragraph 6.4.

         (d)      The Insurance Company shall invest funds according to the
                  stated objectives of its various investment funds. The
                  Company may obtain a description of such stated objectives
                  from the Insurance Company. The Insurance Company does not
                  make investments with a view to the needs of a particular
                  plan. The Company (or investment manager, if appointed)
                  retains the responsibility for allocation of funds between
                  the investment funds.

         (e)      For purposes of determining the fiduciary responsibilities of
                  the Insurance Company, the Contract is the Plan asset with
                  respect to contributions invested in the general investment
                  account. To the extent the Contract also invests in separate
                  investment accounts of the Insurance Company, the Plan assets
                  shall be the assets held by the separate investment accounts.

                                       35
<PAGE>

6.4      PARTICIPANT-DIRECTED INVESTMENTS. If permitted in Section (M)(1), each
         Participant shall designate in writing the investment funds under the
         Contract in which his Participant contributions and Company
         contributions on his behalf are to be invested. The investment funds
         which shall be available shall be stated in the Contract. Subject to
         the terms of the Contract, such Participant direction may be to
         allocate 100 percent of such contributions to one of the investment
         funds or to allocate such contributions among more than one investment
         fund, provided that such allocation shall be integral percentages. The
         Administrator may establish minimum percentages for any contribution
         on account of any Participant that may be allocated to each investment
         fund. If permitted in Section L, forfeitures shall be reallocated in
         the same percentages and in the same investment funds allocable to
         Company contributions. A Participant may elect in writing to change
         his allocation of future contributions. Such election shall become
         effective upon receipt by the Insurance Company. Subject to any
         restrictions in the Contract, a Participant may elect in writing to
         transfer all or a portion of his Participant's Account between
         investment funds as often as permitted by the Contract. If a
         Participant fails to make an initial written election, his
         Participant's Account shall be allocated to an investment fund
         designated by the Company and if none is designated, to the Guaranteed
         Interest Account under the Contract.

6.5      COMBINING ASSETS OF MORE THAN ONE PLAN IN A SINGLE CONTRACT. With the
         consent of the Insurance Company, the assets of the Plan may be
         combined with the assets of any other qualified retirement plan of the
         Company, or an affiliated Employer which is a member of the same
         controlled group of corporations (as defined in Code Section 414(b)),
         the same controlled group of trades or businesses (as defined in Code
         Section 414(c)) or the same affiliated service group (as defined in
         Code Section 414(m)) as the Company; in a single Contract for
         investment purposes without terminating the separateness of such Plan;
         provided that, in such event:

         (a)      Accounting records shall be maintained so that the assets of
                  each Plan can be separately determined.

         (b)      All contributions to the Contract shall be accompanied by
                  written instructions from the Company designating the amount
                  or amounts allocable to each Plan in which such Company
                  participates.

         (c)      None of the contributions and assets attributable to one Plan
                  shall be used to pay benefits or expenses under any other
                  plan.

                  So long as the foregoing provisions are complied with, the
                  provisions of Paragraph 18.7 shall not be deemed to apply to
                  such combining of assets in one Contract.

                                       36
<PAGE>

                     PART VII - PLAN INVESTMENT - POLICIES

7.1      REQUEST OF PARTICIPANT. At the Participant's request and if permitted
         by Section (N), the Company shall purchase life insurance Policies
         from the Insurance Company for the benefit of a Participant and his
         Beneficiary and charged against the Participant's Account. The
         premiums for the Policies shall be paid with Company contributions as
         elected in Section (N).

7.2      LIMITATIONS ON PURCHASE. In the event a Participant directs the
         Company to purchase a Policy or Policies on the Participant's life,
         the Company shall limit the amount of Company contributions to be
         invested in the Policies as follows:

         (a)      Ordinary life - For purposes of these incidental insurance
                  provisions, ordinary life insurance policies are policies
                  with both nondecreasing death benefits and nonincreasing
                  premiums. If such policies are purchased, less than 1/2 of
                  the aggregate Company contributions allocated to any
                  Participant shall be used to pay the premiums attributable to
                  them.

         (b)      Term and universal life - No more than 1/4 of the aggregate
                  Company contributions allocated to any Participant shall be
                  used to pay the premiums on term life insurance policies,
                  universal life insurance policies, and all other life
                  insurance policies which are not ordinary life.

         (c)      Combination - The sum of 1/2 of the ordinary life insurance
                  premiums and all other life insurance premiums shall not
                  exceed 1/4 of the aggregate Company contributions allocated
                  to any Participant.

7.3      COMPANY IS OWNER. The Company shall apply for and shall be the owner
         of any Policies purchased under the terms of this Plan. The Policies
         must provide that proceeds shall be payable to the Company, however
         the Company shall be required to pay over all proceeds of the policies
         to the Participant's designated Beneficiary in accordance with the
         distribution provisions of this Plan. A Participant's Spouse shall be
         the designated Beneficiary of the proceeds in all circumstances unless
         a Qualified Election has been made in accordance with Paragraph 1.44.
         Under no circumstances shall the Plan retain any part of the proceeds.
         In the event of any conflict between the terms of this Plan and the
         terms of any Policy purchased hereunder, the Plan provisions shall
         control.

7.4      PREMIUM PAYMENTS. All Policies shall, as far as is practical, have a
         common premium due date. The Company shall pay the initial and renewal
         premiums under the Policies on any Participant's life. If no
         contribution is to be made at the time a policy premium is due, the
         Company may pay the premium by a policy loan or by withdrawing the
         amount from the Participant's Account under the Contract if the limits
         set forth in Paragraph 7.2 are not exceeded.

7.5      DIVIDENDS. At the discretion of the Company, a Policy may provide
         that: (i) dividends be applied to accumulate with interest, or to
         purchase annual additions, in which case dividends shall be added to
         the proceeds of the Policy for the benefit of

                                       37
<PAGE>

         the Participant or his Beneficiary, or (ii) dividends shall be used to
         reduce premiums. Any dividends paid after retirement, however, shall
         be paid to the Participant; and any dividends paid after the
         Participant's death shall be added to and become a part of the
         proceeds of the Policy.

7.6      DISTRIBUTION OF POLICIES. Subject to Paragraph 14.3, if applicable,
         the Policies on the Participant's life shall be converted to cash or
         an annuity or distributed to the Participant upon commencement of
         benefits.

7.7      CHANGE IN AMOUNT OF INSURANCE. When an increase or decrease of the
         amount of insurance is required because of a change in the amount of
         contributions allocated to the Participant or because the aggregate
         Policy premiums would exceed the limits in Paragraph 7.2, the Company
         shall advise the Insurance Company to adjust the amount of the
         Participant's Policies.

7.8      POLICIES UPON TERMINATION OF EMPLOYMENT. In the event a terminated
         Participant is entitled to the full value of a Policy on his life, the
         Participant may request the Administrator to transfer and distribute
         the Policy to him. In the event a terminating Participant is not
         entitled to the full value of the Policy, the Administrator after
         consulting with the Participant, may:

         (a)      Surrender the Participant's Policy and pay the Participant's
                  vested portion to him;

         (b)      Obtain a policy loan equal to the nonvested portion of its
                  value and distribute the Policy to him; or

         (c)      Sell the Policy to the Participant for an amount equal to its
                  cash surrender value. The proceeds of the sale shall be
                  credited to the Participant's Account. If the Participant
                  declines to purchase the Policy, the Policy may also be sold
                  to: (i) a relative of the Participant who is a Beneficiary
                  under the Policy, (ii) the Company, or (iii) to another
                  employee benefit plan in which he is a Participant.

                       PART VIII - PARTICIPANT'S ACCOUNT

8.1      PARTICIPANT'S ACCOUNT. A separate account shall be maintained for each
         Participant to which shall be credited the Company contributions and
         earnings thereon. At any time, a Participant's Account shall equal:
         (i) the sum of the value of accounts established and maintained under
         the Contract on behalf of the Participant as of the latest Valuation
         Date, and (ii) the value of any Policies on the life of the
         Participant.

         Contributions of a Participant shall be accounted for separately from
         the Company's contributions. The Insurance Company shall maintain
         appropriate contribution

                                       38
<PAGE>

         accounts for each type of contribution referred to in Part IV and made
         to the Plan, including accounts for:

         (a)      Elective Deferrals (if elected in Section (G));

         (b)      Company Matching Contributions (if elected in Section (I))
                  and reallocated Matching Contribution forfeitures;

         (c)      Company Profit-Sharing Contributions (if elected in Section
                  (K)) and reallocated Profit-Sharing Contribution forfeitures;

         (d)      Company Qualified Nonelective Contributions (if elected in
                  Section (H));

         (e)      Company Qualified Matching Contributions (if elected in
                  Section (I));

         (f)      Participant Matched Contributions (if elected in Section
                  (J));

         (g)      Participant Nondeductible Voluntary Contributions (if elected
                  in Section (J));

         (h)      Rollover Contributions, if permitted under Section (M); and

         (i)      Direct transfers from other plans.

         Contributions made by or for a Participant shall be credited to the
         Participant's Account as of the date such contributions are applied
         under the Contract. The amount of any premium for Policies purchased
         by the Company shall be charged against the value of the Participant's
         separate accounts under this Plan. Administrative expenses shall be
         charged against the value of the Participants' accounts, unless the
         Company agrees to pay them. Such administrative expenses, if charged
         against the value of the Participants' accounts, shall be allocated on
         a pro rata basis among the investment funds under the Contract.

         Premiums for Policies on the life of the Participant shall be paid for
         with Company contributions as elected in Section (N). If premiums for
         Policies are paid for with both Elective Deferrals and other Company
         contributions, then the cash surrender value of the Policies derived
         from Elective Deferrals shall equal the value which bears the same
         ratio to the cash surrender value of the Policies as the total amount
         of Elective Deferrals used to pay Policy premiums bears to the total
         amount of premiums paid. The value of the Policies derived from
         Company Matching and/or Company Profit-Sharing Contributions is the
         cash surrender value of the Policies on the Participant's life less
         the cash surrender value of the Policies derived from Elective
         Deferrals.

8.2      VALUATION OF ACCOUNTS. The Administrator shall determine the value of
         each Participant's Account at least annually as of the last Valuation
         Date on or prior to the last day of the Plan Year.

                                       39
<PAGE>

                               PART IX - VESTING

9.1      FULL VESTING IN CERTAIN SEPARATE ACCOUNTS. Each Participant shall at
         all times have a 100 percent vested interest in the following
         accounts:

         (a)      Elective Deferral account (if elected in Section (G));

         (b)      Participant Matched Contribution account (if elected in
                  Section (J));

         (c)      Participant Nondeductible Voluntary Contribution account (if
                  elected in Section (J));

         (d)      Company Qualified Nonelective Contribution account (if
                  elected in Section (H));

         (e)      Company Qualified Matching Contribution account (if elected
                  in Section (I));

         (f)      Rollover Contributions account if permitted under Section
                  (M); and

         (g)      Account for direct transfers from other plans.

         In addition, each Participant shall be fully vested in the cash
         surrender value of any Policy on his life derived from Elective
         Deferrals.

9.2      VESTING IN PARTICIPANT'S ACCOUNTS ATTRIBUTABLE TO COMPANY MATCHING AND
         PROFIT-SHARING CONTRIBUTIONS. Each Participant shall be vested in the
         value of his: (i) Company Matching Contribution account, if any; (ii)
         Company Profit-Sharing Contribution account, if any; and reallocated
         forfeitures (if reallocated under Section (L)); and (iii) the cash
         surrender value of any Policy on his life derived from Company
         Profit-Sharing and/or Matching Contributions as follows:

         (a)      100 percent upon attainment of Participant's Normal
                  Retirement Date (as elected in Section (F));

         (b)      100 percent upon retirement on or after Participant's Early
                  Retirement Date (if elected in Section (F));

         (c)      100 percent upon Participant's death prior to the date an
                  annuity becomes effective;

         (d)      100 percent upon Participant's Disability Retirement Date (if
                  elected in Section (F)); and

         (e)      at any other time, including Termination of Employment, the
                  percentage determined in accordance with the vesting schedule
                  specified in Section (R).

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<PAGE>

9.3      VESTING YEARS OF SERVICE/BREAKS IN SERVICE. All Years of Service with
         the Company shall be included for purposes of determining the
         Participant's vested interest under Paragraph 9.2(e), except that
         Years of Service shall not include Service disregarded in Section (R).
         For purposes of computing a Participant's nonforfeitable right to the
         Account balance derived from Company contributions, the Years of
         Service and Breaks in Service shall be the Plan Year.

         In the case of a Participant who incurred a One-Year Break in Service,
         Years of Service before such Break shall not be taken into account
         until the Participant has completed a Year of Service after such Break
         in Service.

         In the case of a Participant who has 5 or more consecutive One-Year
         Breaks in Service, all service after such Breaks in Service shall be
         disregarded for the purpose of vesting the Company-derived account
         balance that accrued before such Breaks in Service. Such Participant's
         pre-break service shall count in vesting the post-break
         Company-derived account balance only if either:

         (a)      such Participant has any nonforfeitable interest in the
                  account balance attributable to Company contributions at the
                  time of separation from service; or

         (b)      upon returning to service the number of consecutive One-Year
                  Breaks In Service is less than the number of Years Of
                  Service.

         Separate accounts shall be maintained for the Participant's pre-break
         and post-break Company-derived account balance. Both accounts shall
         share in the earnings and losses of the fund.

                        PART X - IN-SERVICE WITHDRAWALS

10.1     IN GENERAL. A Participant or former Participant may request cash
         withdrawals or a Direct Rollover of an Eligible Rollover Distribution,
         under the Plan in accordance with Paragraph 14.4, if operative, and
         procedures established by the Administrator, subject to the sequence
         and conditions for withdrawal set forth in Paragraph 10.2. The minimum
         amount of withdrawal shall be set by the Administrator. If Paragraph
         14.3 is operative, withdrawals that may be made are subject to the
         spousal and Participant consent requirements contained in Code
         Sections 401(a)(11) and 417.

10.2     SEQUENCE AND CONDITIONS FOR WITHDRAWAL. A Participant shall request
         the Administrator to effect a cash withdrawal and such amounts shall
         be debited from his Participant's Account. The Administrator shall
         withdraw amounts in the following sequence and upon the following
         conditions:

         (a)      First (if permitted by Section (O)), a Participant may
                  withdraw all or part of the value from his contribution
                  accounts for Participant Nondeductible Voluntary
                  Contributions and for Participant Matched Contributions.

                                       41
<PAGE>

         (b)      Second (if permitted by Section (O)), a Participant may
                  withdraw all or part of the value of his contribution account
                  for Rollover Contributions.

         (c)      Third (if permitted by Section (O)), a Participant may
                  withdraw all or part of the full value of his vested interest
                  determined under Section (R) in his contribution accounts
                  for: Company Matching Contributions; Company Profit-Sharing
                  Contributions; and transfers from Employer-provided benefits
                  from other plans.

                  If a Participant receives a withdrawal attributable to
                  Company contributions, the Participant's future vested
                  interest after the distribution shall be equal to an amount
                  ("X") determined by the formula:

                               X = P(AB + D) - D

                  For purposes of applying the formula: P is the nonforfeitable
                  percentage at the relevant time, AB is the account balance at
                  the relevant time, and D is the amount of the withdrawal.

         (d)      Fourth (if permitted by Section (O)), a Participant may
                  withdraw all or part of the value of his account for Elective
                  Deferrals, Company Qualified Matching Contributions and
                  Company Qualified Nonelective Contributions if the
                  Participant is age 59 1/2 or older. If a Participant is less
                  than age 59 1/2, a Participant may withdraw upon written
                  request to the Administrator all or part of his Elective
                  Deferrals (and earnings thereon accrued as of December 31,
                  1988) due to financial hardship.

10.3     FINANCIAL HARDSHIP. A withdrawal shall be on account of financial
         hardship if it is based on an immediate and heavy financial need of
         the Participant where such Participant lacks other available
         resources. The following are the only financial needs considered
         immediate and heavy: (1) expenses incurred or necessary for medical
         care, described in Code Section 213(d) of the Participant, his Spouse,
         children or dependents; (2) the purchase (excluding mortgage payments)
         of a principal residence for the Participant; (3) payment of tuition
         and related educational fees and room and board expenses for the next
         12 months of post-secondary education for the Participant, his Spouse,
         children or dependents; or (4) the need to prevent eviction of the
         Participant from, or a foreclosure on the mortgage of, the
         Participant's principal residence.

         A withdrawal shall be considered necessary to satisfy an immediate and
         heavy financial need of the Participant only if:

         a.       The Participant has obtained all distributions other than
                  hardship distributions, and all non-taxable loans under all
                  plans maintained by the Company;

         b.       All plans maintained by the Company provide that the
                  Participant's Elective Deferrals (and Participant
                  contributions) shall be suspended for twelve months after
                  receipt of the hardship distribution;

                                       42
<PAGE>

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

         d.       All plans maintained by the Company provide that the
                  Participant may not make Elective Deferrals for the
                  Participant's taxable year immediately following the taxable
                  year of the hardship distribution in excess of the applicable
                  limit under Code Section 402(g) for such taxable year less
                  the amount of such Participant's Elective Deferrals for the
                  taxable year of the hardship distribution.

10.4     NO FORFEITURE OF PARTICIPANT'S ACCOUNT ATTRIBUTABLE TO PARTICIPANT
         CONTRIBUTIONS. No forfeiture of the Participant's account shall occur
         solely as a result of the withdrawal of Participant contributions.

                          PART XI - PARTICIPANT LOANS

11.1     IN GENERAL. If permitted in Section (P) and if the Company has
         designated Trustees for this loan program pursuant to the Trust, a
         Participant or beneficiary who is a party-in-interest with respect to
         the Plan may request a loan under the Plan. All loans made by the
         Trustees shall be subject to the terms and conditions set forth in
         this Part and the Trust. A loan to a Participant is considered a
         Participant-directed investment.

         The Trustee shall have the responsibility to develop rules regarding
         the financial ability of the Participant to repay the amount he seeks
         to borrow and the authority to adopt additional terms and conditions,
         provided that all such rules, terms and conditions shall apply to all
         Participants uniformly. Loans shall be made available to all
         Participants on a reasonably equivalent basis and such availability
         shall be communicated to all Participants. The amount available to
         Highly Compensated Employees shall not be in an amount greater than
         the amount made available to other Employees.

         No loan shall be made to any owner-Employee or shareholder-Employee
         unless such Participant has applied for and received a prohibited
         transaction exemption. For purposes of this requirement, a
         shareholder-Employee means an Employee or officer of an electing small
         business (Subchapter S) corporation who owns (or is considered as
         owning within the meaning of Code Section 318(a)(1), on any day during
         the taxable year of such corporation, more than 5 percent of the
         outstanding stock of the corporation.

         The order of withdrawal from contribution accounts for loans are:
         Deferred Salary/Deferred Bonus, Qualified Nonelective/Qualified
         Elective, Rollover/Transfer, Company Profit-Sharing, Company Matching
         and Participant Nondeductible Voluntary Contributions, to the extent
         there are assets in the contribution accounts.

                                       43
<PAGE>

         The amount withdrawn from the Participant's accounts shall be prorated
         across all funds in which the accounts are invested.

11.2     APPLICATION FOR LOANS. The Participant shall make written application
         for a loan to the Trustee, on a form provided by the Administrator and
         executed by the Participant. The Participant shall execute a
         promissory note in the amount of the loan including interest, payable
         to the Trustee, which indicates the repayment period, the amount of
         loan, the rate of interest and other provisions pertaining to
         repayment of the loan.

         Loans must be adequately secured. At the time each new loan is made,
         in no event shall the sum of the new loan and remaining principal
         balance of any loan outstanding be secured by less than one-half of
         the Participant's current vested account balance under the Plan.
         Additionally, no more than 50 percent of the Participant's vested
         account balance will be considered by the Plan as security for the
         outstanding loan balance of all Plan loans made to that Participant.

         If Paragraph 14.3 is operative, a Participant must obtain the consent
         of his Spouse, if any, to use the account balance as security for the
         loan. Spousal consent shall be obtained no earlier than the beginning
         of the 90-day period that ends on the date on which the loan is to be
         so secured. The consent must be in writing, must acknowledge the
         effect of the loan, and must be witnessed by a plan representative or
         notary public. Such consent shall thereafter be binding with respect
         to the consenting Spouse or any subsequent Spouse with respect to that
         loan. A new consent shall be required if the account balance is used
         for renegotiation, extension, renewal, or other revision of the loan.

         If valid spousal consent has been obtained in accordance with the
         prior Paragraph, then, notwithstanding any other provision of this
         Plan, the portion of the Participant's vested account balance used as
         a security interest held by the Plan by reason of a loan outstanding
         to the Participant shall be taken into account for purposes of
         determining the amount of the account balance payable at the time of
         death or distribution, but only if the reduction is used as repayment
         of the loan.

11.3     AMOUNT OF LOAN. The minimum loan shall be $1,000. The aggregate amount
         of any new loan and of all other outstanding loans made to the
         Participant shall be limited to the lesser of:

         (a)      $50,000 reduced by the excess (if any) of the highest
                  outstanding balance of loans during the 1-year period ending
                  on the day before the loan application is approved by the
                  Trustee over the outstanding balance of loans from the Plan
                  on the date the loan application is approved, or

         (b)      One-half the present value of the nonforfeitable accrued
                  benefit of the Participant.

                                       44
<PAGE>

         For the purpose of the above limitation, all loans from all plans of
         the Company and other members of a group of Employers described in
         Code Sections 414(b), 414(c) and 414(m) are aggregated.

11.4     INTEREST RATE. Loans must bear a reasonable rate of interest. The rate
         of interest shall be the prevailing rate used by commercial lending
         institutions.

11.5     REPAYMENTS. The loan repayment period shall not exceed five years. If
         elected in Section (P), this 5-year requirement shall not apply to any
         loan used to acquire a principal residence for the Participant. The
         maximum repayment period for such home loans shall be a reasonable
         number of years.

         Repayment of loans (principal and interest) shall be by payroll
         deduction, on a level amortization basis over the term of the loan.
         All loan repayments shall be transmitted monthly to the Insurance
         Company, and invested in accordance with Section (M). Subject to
         approval by the Insurance Company, a Participant may prepay all or a
         portion of the loan principal prior to separation from service.

         Loan repayments returned to the Participant's account(s) shall be
         prorated based on the amount of the loan withdrawn from the
         account(s). The money shall be placed in the Contract's funds and/or
         invested in Shares of the Fund based on the Participant's and/or
         Company's current investment selections, unless otherwise stipulated
         in a prepayment agreement with the Insurance Company and/or Fund. In
         no event shall any part of a Participant's loan repayment be allocated
         to an alternate payee's account.

         As of such valuation dates as the Trustee may set from time to time,
         but not less frequently than once every twelve months, the Trustee
         shall report to the Company the outstanding balance of such loans and
         the fair market value of the other assets held in the Trust.

11.6     DEFAULT AND/OR ACCELERATION. Default shall be defined in the
         Participant's promissory note or other loan documents. The Trustee
         must notify the Insurance Company when a Participant defaults on a
         loan repayment. In the event the Participant defaults on a loan
         repayment, the Trustee shall notify the Participant that the loan is
         immediately due and payable. The Trustee may also direct the
         Administrator to refuse to make any Plan benefit payment otherwise due
         to the Participant or Beneficiary until scheduled loan repayments are
         made, or to offset overdue loan repayments against the amount of
         benefits which otherwise may be due. In the event of default,
         attachment of security shall not occur until a distributable event
         occurs in the Plan.

         The loan must be paid in full upon the Participant's death, disability
         or separation from service, upon the Participant's failure to make
         loan repayments for three consecutive months or failure to receive
         Compensation in an amount at least equivalent to the periodic loan
         repayment amount for over three consecutive months, or upon
         termination of this Plan or the Trust. The Trustee may also direct the

                                       45
<PAGE>

         Administrator to offset the remaining loan balance against the amount
         of benefits which otherwise may be due the Participant or Beneficiary.

                      PART XII - TERMINATION OF EMPLOYMENT

12.1     NOTICE OF TERMINATION OF EMPLOYMENT. If the Termination of Employment
         of a Participant occurs, the Company shall immediately give written
         notice to the Administrator of the date of Termination of Employment
         of such Participant. Upon receipt of such notice, the Administrator
         shall determine the Participant's vested interest in his Participant's
         Account pursuant to Part IX, Vesting, or if the Plan is or was
         top-heavy pursuant to Part XVI.

12.2     AMOUNT OF PARTICIPANT'S BENEFIT. The amount of a Participant's Plan
         benefit upon Termination of Employment shall equal his vested
         Participant's Account. A Participant whose Termination of Employment
         occurs prior to the end of the Plan Year shall share in Company
         contributions and reallocations of forfeitures credited prior to his
         Termination of Employment, but shall or shall not share in Company
         contributions and reallocated forfeitures for such Plan Year credited
         after the date of his Termination of Employment as elected in Section
         (K) and (L).

12.3     PARTICIPANT'S ELECTION OF A FORM OF BENEFIT. If Termination of
         Employment occurs, the Participant shall receive his vested
         Participant's Account in a form of benefit elected by him, subject to
         the provisions of Paragraph 14.3 or 14.4, whichever is operative. The
         Participant's election shall occur within 60 days after the forms of
         benefit first become available to him. Written notice shall be made on
         such forms provided by the Administrator, including a form necessary
         to comply with Paragraph 14.3 or 14.4, whichever is operative. The
         forms of benefit are:

         (a)      Option A. The Participant may elect to continue his Account
                  until age 70 1/2 (if elected in Section (S)(1)), his Normal
                  Retirement Date or earlier, at which time he may elect Option
                  B, Option C, Option D,, or Option E (if permitted in Section
                  (S)(1)). If the Participant dies prior to commencement of
                  retirement benefits, the value of the Participant's Account
                  shall be paid in one sum to his Beneficiary.

         (b)      Option B. The Participant may elect to receive an annuity in
                  accordance with Part XIV, Retirement Benefits, to commence on
                  his Early Retirement Date, if permitted in Section (F)(2), or
                  on his Normal Retirement Date as specified in Section (F)(1).
                  Once made this election shall be irrevocable.

         (c)      Option C. If permitted in Section (S)(1), the Participant may
                  elect a one-sum cash payment. Such election is subject to a
                  Qualified Election if Paragraph 14.3 is operative. One-sum
                  cash payments or a partial cash payment in addition to any of
                  the other options shall be made during the Plan Year in which
                  the event which gives rise to the distribution occurs or as
                  soon thereafter as is reasonably practical.

                                       46
<PAGE>

         (d)      Option D. If permitted in Section (S)(1), the Participant may
                  elect installment payments, in accordance with Paragraph
                  14.2, to commence upon separation from service. Such election
                  is subject to a Qualified Election if Paragraph 14.3 is
                  operative.

         (e)      Option E. Subject to the consent of the Administrator and the
                  Insurance Company, and in accordance with procedures set
                  forth in the recipient plan, the Participant may elect a
                  plan-to-plan transfer. The account balance shall be
                  transferred to the Participant's account under a plan
                  maintained by his new employer that is qualified under Code
                  Sections 401(a) or 403(a).

         (f)      A Participant may elect to have any portion of an Eligible
                  Rollover Distribution paid directly to an Eligible Retirement
                  Plan specified by the Participant in a Direct Rollover.

         If the value of the Participant's vested account balance derived from
         Company and Participant contributions exceeds (or at the time of any
         prior distribution exceeded) $3,500, and the account balance is
         immediately distributable, the Participant and the Participant's
         Spouse (if Paragraph 14.3 is operative), (or where either the
         Participant or the Spouse has died, the survivor) must consent to any
         distributions of such Account balance. Consent is not valid unless the
         Administrator notifies the Participant and the Participant's Spouse of
         the right to defer any distribution until the Participant's Account
         balance is no longer immediately distributable. The notice shall
         acknowledge the right, if any, to defer distributions and must
         describe the investment features.

         Notwithstanding any form of benefit permitted under this Paragraph, if
         a distribution from a Participant's Account would cause the remaining
         account balance to equal or to be less than $3,500, such distribution
         will only be permitted if the entire vested account balance is
         distributed.

         An amount distributed to a Participant prior to his attaining age 59
         1/2 (except for amounts distributed due to disability, death,
         separation from service on or after attaining age 55 or equal periodic
         payments made for the life or life expectancy of the Participant and
         Spouse) may be deemed to be a premature distribution made during a
         taxable year. The distribution is subject to a 10 percent excise tax
         on the portion of the amount received which is includible in his gross
         income for the taxable year.

12.4     FORFEITURE OF NONVESTED PORTION OF PARTICIPANT'S ACCOUNT. If a
         Participant terminates employment, the amounts which were in excess of
         his vested interest shall be withdrawn from the appropriate investment
         funds under the Contract and under the Funds and any Policies and
         shall be allocated to the fixed investment option under the Contract.
         If the value of the Participant's vested account balance derived from
         Company and the Participant contributions is not greater than $3,500,
         the Participant shall receive a distribution of the value of the
         entire vested portion of such account balance and the nonvested
         portion shall be treated as a forfeiture. For purposes of this
         Paragraph and Paragraph 12.5, if the value of a Participant's vested

                                       47
<PAGE>

         account balance is zero, the Participant shall be deemed to have
         received a distribution of such vested account balance. A
         Participant's vested account balance shall not include accumulated
         Participant Deductible Voluntary Contributions within the meaning of
         Code Section 72(o)(5)(B) for Plan Years beginning prior to January 1,
         1989.

         If a Participant terminates service, and elects, in accordance with
         Section (T), to receive the value of the Participant's vested account
         balance, the nonvested portion shall be treated as a forfeiture. If
         the Participant elects to have distributed less than the entire vested
         portion of the account balance derived from Company contributions, the
         part of the nonvested portion that shall be treated as a forfeiture is
         the total nonvested portion multiplied by a fraction, the numerator of
         which is the amount of the distribution attributable to Company
         contributions and the denominator of which is the total value of the
         vested Company derived account balance.

         In the case of a Participant who receives a distribution of part of
         his Account attributable to Company contributions and does not repay
         under Paragraph 12.5, the Participant's future nonforfeitable interest
         at any relevant time shall be equal to an amount ("X") determined by
         the formula:

                               X = P(AB + D) - D

         For purposes of applying the formula: P is the nonforfeitable
         percentage at the relevant time, AB is the account balance at the
         relevant time, and D is the amount of the distribution.

12.5     REPAYMENT. In accordance with Section (S), a returning Participant may
         repay the full amount of any distribution from the Plan attributable
         to Company contributions made on account of Termination of Employment.
         All or part of the amount of the distribution attributable to
         Participant contributions may also be repaid. Such repayment, if any,
         must be made before the earlier of:

         (a)      five years after the first date on which the Participant is
                  subsequently reemployed by the Company; or

         (b)      the date the Participant incurs five consecutive One-Year
                  Breaks in Service following the date of distribution.

         If a Participant receives or is deemed to receive a distribution
         pursuant to this Part and the Participant resumes employment covered
         under this Plan before incurring five consecutive One-Year Breaks in
         Service, the amount so forfeited, unadjusted for subsequent gains and
         losses, shall be restored to the Participant's Account at the end of
         the Plan Year, subject to the repayment requirement if elected in
         Section (S). Permissible sources for restoration of the Participant's
         Account are amounts forfeited from his Account, other forfeitures, and
         if necessary an extraordinary Company contribution sufficient when
         added to the forfeiture to restore the Participant's Account.

                                       48
<PAGE>

         Any Policy distributed to the Participant that is still in effect on a
         premium-paying basis on the date of repayment may be transferred to
         the Plan, and the cash value shall be counted as part of the amount
         repaid.

                            PART XIII - FORFEITURES

13.1     OCCURRENCE OF FORFEITURE. In accordance with Paragraph 12.4, a
         forfeiture shall occur as of the date a Participant terminates
         employment with the Company and receives a distribution. If the
         Participant does not receive a distribution, forfeiture shall occur
         after five (5) consecutive One-Year Breaks in Service. The forfeiture
         shall be the Participant's account attributable to Company Matching
         and Profit-Sharing Contributions which has not become vested under
         Part IX. In addition, a Highly Compensated Participant shall forfeit
         his nonvested Company contributions (and earnings thereon) in excess
         of the amount permitted under the Actual Contribution Percentage
         limits of Paragraph 4.4 and such forfeitures shall be applied under
         Paragraph 4.5(b). A Participant shall not forfeit any part of his
         nonvested Participant's account attributable to Company contributions
         solely as a result of a withdrawal prior to retirement under Part X.
         Furthermore, a Participant shall not forfeit any part of his
         Participant's account for any other cause.

         The nonvested portion of a Company contribution or a forfeiture
         allocation credited to a Participant's account in a Plan Year
         following his Termination of Employment shall be allocated at the next
         allocation date.

13.2     APPLICATION OF FORFEITURES. Forfeitures shall first be allocated to
         the accounts of Participants whose benefits are entitled to be
         restored under Paragraph 12.4. The remaining forfeitures shall then be
         applied in the manner elected in Section (L). If forfeitures are
         reallocated, a Participant whose employment is terminated before the
         end of the Plan Year, but after he has completed 1,000 Hours of
         Service or more during the Plan Year shall or shall not share in
         reallocated forfeitures for the Plan Year allocated after the date of
         his Termination of Employment as elected in Section (L). Forfeitures
         derived from Company Matching Contributions and Company Profit-Sharing
         Contributions shall be reallocated to the account for Company
         Profit-Sharing Contributions of each Participant who is entitled to
         share in the forfeitures. Forfeitures shall not be reallocated to a
         Participant to the extent it would be an Excess Annual Addition under
         Part V, Limitation on Allocations. If more than one Company adopts the
         Plan, any forfeitures reallocated will be applied in accordance with
         Section (L).

                         PART XIV - RETIREMENT BENEFITS

14.1     NORMAL FORM OF RETIREMENT BENEFIT. The Normal Form of benefit shall be
         a one-sum cash distribution or, at the election of the Participant,
         the form of benefit described in Paragraph 14.2.

                                       49
<PAGE>

14.2     OPTIONAL FORMS OF BENEFIT. The Participant may elect a form of
         distribution consisting of installments, any form of annuity provided
         by the Insurance Company, a Direct Rollover of an Eligible Rollover
         Distribution or a partial cash payment in addition to the optional
         form of benefits described in this section, instead of the Normal Form
         described in Paragraph 14.1.

         Installment payments shall be made over a period not to exceed the
         Participant's (or the Participant's and Spouse's) life expectancy.

         Any annuity contract distributed herefrom must be nontransferable. The
         terms of any annuity contract purchased and distributed by the Plan to
         a Participant and Spouse shall comply with the requirements of this
         Plan.

14.3     SPECIAL RULE. This Paragraph shall be operative with respect to the
         Participant if it is determined that this Plan is a direct or indirect
         transferee of a defined benefit plan, money purchase plan, target
         benefit plan, stock bonus or profit-sharing plan which is subject to
         the survivor annuity requirements of Code Sections 401(a)(11) and 417.
         In addition, this Paragraph applies to the Participant if at least one
         of the following two conditions are met: (1) the Participant elects
         retirement benefits in the form of a life annuity under Paragraph
         14.2, and (2) on the death of the Participant, the Participant's
         vested account balance is not paid to the Participant's surviving
         Spouse in accordance with Paragraph 15.1.

         If this Paragraph is operative, the Normal Form of benefit shall be a
         life annuity. The Normal Form shall be paid to a Participant who is
         not married and does not elect a one-sum cash payment or an optional
         form of benefit under Paragraph 14.2. A married Participant's entire
         account balance (attributable to both Company and Participant
         contributions) shall be paid in the form of an Automatic Joint and
         Survivor Annuity, unless a one-sum cash payment or an optional form of
         benefit is selected (pursuant to a Qualified Election) within the
         90-day period ending on the annuity starting date. The annuity
         starting date is the first day of the first period for which an amount
         is paid as an annuity or any other form.

         In the case of an Automatic Joint and Survivor Annuity, the
         Administrator shall provide each Participant no less than 30 days and
         no more than 90 days prior to the annuity starting date a written
         explanation of: (i) the terms and conditions of an Automatic Joint and
         Survivor Annuity; (ii) the Participant's right to make and effect of
         an election to waive the Automatic Joint and Survivor Annuity form of
         benefit; (iii) the rights of a Participant's Spouse; and (iv) the
         right to make, and the effect of, a revocation of a previous election
         to waive the Automatic Joint and Survivor Annuity.

14.4     WAIVER OF THIRTY-DAY PERIOD FOR CONSENT

         If the provisions of Paragraph 14.3 are not operative, a distribution
         may commence less than 30 days after the notice required under Section
         1.411(a)-11(c) of the Income Tax Regulations is given, that: (1) the
         Administrator clearly informs the Participant that the Participant has
         a right to a period of at least 30 days after

                                       50
<PAGE>

         receiving the notice to consider the decision of whether or not to
         elect a distribution (and, if applicable, a particular distribution
         option); and (2) the Participant, after receiving the notice,
         affirmatively elects a distribution.

14.5     AMOUNT OF RETIREMENT BENEFIT. The amount of a Participant's retirement
         benefit shall equal the Participant's vested account balance. The
         vested account balance is the aggregate value of the Participant's
         vested Account balances derived from Company and Participant
         contributions (including rollovers), including the proceeds of
         insurance contracts, if any, on the Participant's life.

         Upon retirement, contributions by or on behalf of a Participant shall
         cease. If a Participant retires prior to the end of a Plan Year, any
         contributions credited prior to retirement to his Participant's
         Account for the Plan Year shall be applied for him as part of his
         retirement benefit.

14.6     PARTICIPANT ELECTION OF A RETIREMENT DATE. A Participant shall be
         entitled to a retirement benefit upon separation from service:

         (a)      On or after his Normal Retirement Date as designated in
                  Section (F);

         (b)      On his Early Retirement Date as permitted in Section (F);

         (c)      On his Disability Retirement Date as permitted in Section
                  (F).

         The Participant's Account shall be paid in a form and on a Retirement
         Date elected by the Participant. A Participant shall give the
         Administrator written notice of his intention to retire on a
         Retirement Date within 90 days prior to separation from service.
         Written notice shall be made on a form required by the Administrator.

         If a Participant separates from service before satisfying the age
         requirement for early retirement, if elected in Section (F), but has
         satisfied the Service requirement, the Participant shall be entitled
         to elect an early retirement benefit upon satisfaction of such age
         requirement.

14.7     PARTICIPANT'S RIGHT TO DEFER RETIREMENT. A Participant may defer
         retirement without Company approval. If, however, any Participant
         after the age of 65 is employed in a bona-fide executive or high
         policymaking position during the two-year period immediately before
         his retirement date and if such Participant is entitled to an
         immediate nonforfeitable annual retirement benefit from this Plan and
         from all other pension, profit-sharing, savings or deferred
         compensation plans of the Company, or any combination of such plans,
         which equals, in aggregate $44,000 or more, then the Company may
         provide for the retirement of such Participant on or after Normal
         Retirement Date without such Participant's consent.

         In the case of continued employment after Normal Retirement Date,
         Company contributions and forfeitures shall continue to be allocated
         on behalf of Participants. Investment gains and losses shall continue
         to be credited to the Participant's

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<PAGE>

         Account. A Participant who defers retirement after his Normal
         Retirement Date shall defer distribution of his Participant's Account,
         in accordance with Paragraph 14.8.

14.8     DISTRIBUTION OF RETIREMENT BENEFITS. If the Participant's Account
         balance is $3,500 or less, the entire Participant's Account shall be
         distributed. No one-sum cash distribution shall be made under the
         preceding sentence after the annuity starting date.

         Unless the Participant elects otherwise, distribution of benefits
         shall begin the first day of the calendar month coincident with or,
         otherwise, next following the later of:

         (a)      the Participant attaining age 65 (or Normal Retirement Date,
                  if earlier);

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

         (c)      the Participant terminates service with the Company;
                  provided, however, that if the Participant's vested account
                  balance derived from Company and Participant contributions
                  exceeds $3,500, no distribution shall be made without the
                  consent of the Participant (and, if Paragraph 14.3 is
                  operative, surviving Spouse) before the Participant attains
                  or would have attained, if not deceased, the later of the
                  Normal Retirement Date or age 62. Failure to consent shall be
                  deemed an election to defer commencement of payment of any
                  benefit.

         If allowed in Section (F), a retired Participant may also elect to
         defer payment of any benefit after retirement. However, the entire
         interest of the Participant must be distributed or begin to be
         distributed no later than the Participant's required beginning date.
         The required beginning date of a retired or active Participant is the
         first day of April following the calendar year in which such
         individual attains age 70 1/2, except as otherwise elected in
         accordance with Part XXI. Notwithstanding the prior sentence, if an
         active Participant attained age 70 1/2 in 1987 or earlier, and was not
         a 5 percent owner in any year since attaining age 66 1/2, the
         Participant's account balance can be distributed upon retirement. The
         minimum distribution for other calendar years, including the minimum
         distribution for the distribution calendar year in which the
         Participant's required beginning date occurs, must be made on or
         before December 31 of that distribution calendar year. A distribution
         calendar year is a calendar year for which a minimum distribution is
         required. The first distribution calendar year is the calendar year
         immediately preceding the calendar year which contains the
         Participant's required beginning date. Neither the consent of the
         Participant nor of the Participant's Spouse shall be required to the
         extent that a distribution is required to satisfy this Paragraph.

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

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<PAGE>

14.9     MINIMUM AMOUNTS TO BE DISTRIBUTED FROM PARTICIPANT ACCOUNT. If a
         Participant has attained age 70 1/2, benefits to be distributed in
         installment payments will not exceed a period beyond the life
         expectancy of the Participant or the joint life and last survivor
         expectancy of the Participant and the Participant's Spouse. The amount
         required to be distributed for each calendar year, beginning with
         distributions for the first distribution calendar year, shall not be
         less than the quotient obtained by dividing the Participant's benefit
         by the applicable life expectancy. If elected by the Participant, life
         expectancies shall be recalculated annually. Such election shall be
         irrevocable as to the Participant (or Spouse) and shall apply to all
         subsequent years.

         The Participant's benefit is the account balance as of the last
         Valuation Date in the calendar year immediately preceding the
         distribution calendar year (valuation calendar year) increased by the
         amount of any contributions or forfeitures allocated to the account
         balance as of dates in the valuation calendar year after the Valuation
         Date and decreased by distributions made in the valuation calendar
         year after the Valuation Date. For purposes of this Paragraph, if any
         portion of the minimum distribution for the first distribution
         calendar year is made in the second distribution calendar year on or
         before the required beginning date, the amount of the minimum
         distribution made in the second distribution calendar year shall be
         treated as if it had been made in the immediately preceding
         distribution calendar year.

         Unless the Administrator directs in writing an alternative method of
         determining life expectancy in accordance with IRS Reg. Sections
         1.401(a)(9)-1 and 1.401(a)(9)-2, the life expectancy (or joint and
         last survivor expectancy) calculated using the attained age of the
         Participant (or Participant and Spouse) as of the Participant's (or
         Participant's and Spouse's) birthday in the applicable calendar year
         shall be reduced by one for each calendar year which has elapsed since
         the date life expectancy was first calculated. If life expectancy is
         being recalculated, the applicable life expectancy shall be the life
         expectancy as so recalculated. The applicable calendar year shall be
         the first distribution calendar year, and if life expectancy is being
         recalculated, such succeeding calendar year. If installment payments
         commence before the required beginning date, the date distribution is
         considered to begin is the date distribution actually commences.

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

                            PART XV - DEATH BENEFITS

15.1     PRERETIREMENT DEATH OF A PARTICIPANT. If the Participant dies before
         distribution of his interest begins, the Participant's account balance
         shall become fully vested. The account balance shall be paid to the
         Participant's surviving Spouse. The Spouse may elect whether to
         receive the Participant's account balance in the form of a
         Preretirement Survivor Annuity, installments, a one-sum cash payment,
         or

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<PAGE>

         as a Direct Rollover of an Eligible Rollover Distribution. If the
         surviving Spouse elects the latter option as the form of benefit, the
         requirements of Paragraph 12.3(f) shall apply.

         If there is no surviving Spouse, or, if the surviving Spouse has
         already consented in a manner conforming to a Qualified Election, the
         account balance shall be paid to the Participant's designated
         Beneficiary. Unless otherwise elected by the Participant, any portion
         of the Participant's interest payable to a designated Beneficiary
         other than the Participant's surviving Spouse shall be paid in the
         form of an annuity, installments, or a one-sum cash payment. A
         Qualified Election is not required with respect to the amount at risk
         portion of any Policies. For purposes of the foregoing consent
         requirements, the Participant's vested account balance shall not
         include amounts attributable to accumulated Participant Deductible
         Voluntary Contributions within the meaning of Code Section
         72(o)(5)(B).

         Distribution of the Participant's entire interest shall be completed
         by December 31 of the calendar year containing the fifth anniversary
         of the Participant's death except to the extent that an election is
         made to receive distributions in accordance with (a) or (b) below:

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

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

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

         For purposes of this Paragraph, if the surviving Spouse dies after the
         Participant, but before payments to such Spouse begin, the provisions
         of this Paragraph, with the exception of Paragraph (b) therein, shall
         be applied as if the surviving Spouse were the Participant.

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<PAGE>

         For the purposes of this Paragraph, distribution of a Participant's
         interest is considered to begin on the Participant's required
         beginning date (or, if the Spouse dies after the Participant, the date
         distribution is required to begin to the surviving Spouse). If
         distribution in the form of an annuity irrevocably commences to the
         Participant before the required beginning date, the date distribution
         is considered to begin is the date distribution actually commences.

         The entire Participant's Account shall be distributed if the
         Participant's Account is $3,500 or less. No one-sum cash distribution
         shall be made to the surviving Spouse under the preceding sentence
         after the annuity starting date or if the Account exceeds $3,500
         unless the surviving Spouse consents in writing to such distribution.

15.2     PRERETIREMENT SURVIVOR ANNUITY. The Preretirement Survivor Annuity is
         an annuity for the life of the surviving Spouse. The surviving Spouse
         may elect to have such annuity distributed within a reasonable period
         after the Participant's death. If Paragraph 14.3 or 14.4 is operative,
         the Administrator shall provide each Participant a written explanation
         of the Preretirement Survivor Annuity in such terms and in such manner
         as would be comparable to the explanation provided for meeting the
         requirements applicable to an Automatic Joint and Survivor Annuity.

         The applicable period for a Participant is whichever of the following
         periods end last:

         (a)      The period beginning with the first day of the Plan Year in
                  which the Participant attains age 32 and ending with the
                  close of the Plan Year preceding the Plan Year in which the
                  Participant attains age 35;

         (b)      A reasonable period ending after the Employee becomes a
                  Participant;

         (c)      A reasonable period ending after Paragraph 14.3 first applies
                  to the Participant.

         Notwithstanding the foregoing, notice must be provided within a
         reasonable period ending after Termination of Employment in the case
         of a Participant who separates from service before attaining age 35.

         For purposes of applying the preceding Paragraph, a reasonable period
         ending after the enumerated events is the end of the two-year period
         beginning one year prior to the date of the applicable event occurs,
         and ending one year after that date.

         In the case of a Participant who separates from service before the
         Plan Year in which age 35 is attained, notice shall be provided within
         the two-year period beginning one year prior to separation and ending
         one year after separation. If such a Participant thereafter returns to
         employment with the Company, the applicable period for such
         Participant shall be redetermined.

15.3     POST-RETIREMENT DEATH OF A PARTICIPANT. If the Participant dies after
         distribution of his interest has begun, the remaining portion of such
         interest shall

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<PAGE>

         continue to be distributed at least as rapidly as under the method of
         distribution being used prior the Participant's death. In the case of
         an installment payment option, installment payments remaining at the
         Participant's death shall be distributed as a one-sum cash payment.

15.4     DESIGNATION OF A BENEFICIARY. Subject to Code Sections 401(a)(11) and
         417, the Participant shall have the right to designate his Beneficiary
         and to change his Beneficiary in accordance with the terms of the
         Contract and Policy. The Participant shall also have the right to
         designate or change the form of death benefit to his Beneficiary in
         accordance with the terms of the Contract and Policy. Any such right
         may be exercised by filing written notice(s) with the Insurance
         Company, and the effective date thereof shall be as provided in the
         Contract or Policy, whichever is applicable. If no Beneficiary is
         named, the payment of death benefits shall be made in accordance with
         the terms of the Contract and the Policy. A designation of a
         Beneficiary other than the Spouse of a married Participant may be made
         only as a Qualified Election.

                       PART XVI - TOP-HEAVY REQUIREMENTS

16.1     IN GENERAL. If the Plan is or becomes top-heavy in any Plan Year, the
         provisions of this Part XVI shall supersede any conflicting provisions
         in the Plan or Adoption Agreement. For purposes of this Part,
         compensation shall mean Compensation as defined in Section (E)(1) of
         the Adoption Agreement, but including amounts contributed by the
         Company pursuant to a Deferred Salary Agreement which are excludable
         from the Employee's gross income under Code Section 125, 402(e)(3),
         402(h)(1)(B) or 403(b).

16.2     MINIMUM CONTRIBUTION UNDER A TOP-HEAVY PLAN. Company contributions and
         forfeitures allocated on behalf of any Participant who is a non-Key
         Employee shall not be less than the lesser of 3 percent of such
         Participant's compensation or in the case where the Company has no
         defined benefit plan which designates this Plan to satisfy Code
         Section 401, the largest percentage of Company contributions and
         forfeitures, as a percentage of the first $150,000 of the Key
         Employee's compensation, allocated on behalf of any Key Employee for
         that year. This minimum contribution is determined without regard to
         any Social Security contribution. The minimum contribution shall be
         made even though, under other Plan provisions, the Participant would
         not otherwise be entitled to receive a contribution, or would have
         received a lesser contribution for the year because of:

         (a)      the Participant's failure to complete 1,000 Hours of Service
                  (or any equivalent provided in the Plan),

         (b)      the Participant's failure to make Elective Deferrals, as
                  described in Section (G), or

         (c)      compensation less than a stated amount.

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<PAGE>

         Notwithstanding the above, the provision contained in the preceding
         Subparagraph shall not apply to any Participant who was not employed
         by the Company on the last day of the Plan Year. Also, such provision
         shall not apply to any Participant to the extent provided by Section
         (R).

         Elective Deferrals, Company Qualified Matching, and Company Matching
         on behalf of Key Employees shall be taken into account in determining
         the minimum contribution. However, Elective Deferrals on behalf of
         non-Key Employees may not be taken into account for the purpose of
         satisfying the minimum top-heavy contribution requirements. Further,
         Company Matching and Company Qualified Matching Contributions cannot
         be utilized to satisfy the minimum contribution requirements for Plan
         Years beginning after 1988.

16.3     NONFORFEITABILITY OF MINIMUM CONTRIBUTION. The minimum contribution
         required (to the extent required to be nonforfeitable under Code
         Section 416(b)) may not be forfeited under Code Section 411(a)(3)(B)
         or 411(a)(3)(D).

16.4     TOP-HEAVY VESTING. During and subsequent to the first Plan Year in
         which this Plan is top-heavy, one of the minimum vesting schedules as
         elected by the Company in Section (R) shall automatically apply to the
         Plan. The minimum vesting schedule applies to all benefits within the
         meaning of Code Section 411(a)(7) except those attributable to
         Participant contributions and Elective Deferrals, including benefits
         accrued before the effective date of Code Section 416 and benefits
         accrued before the Plan became top-heavy. However, this Paragraph does
         not apply to the account balances of any Participant who does not have
         an Hour of Service after the Plan has initially become top-heavy and
         such Participant's account balance attributable to Company
         contributions and forfeitures shall be determined without regard to
         this Paragraph.

16.5     TOP-HEAVY DEFINITIONS.

         (a)      KEY EMPLOYEE: Any Employee or former Employee (and the
                  Beneficiaries of such Employee) who at any time during the
                  determination period was an officer of the Company if such
                  individual's annual compensation exceeded 50 percent of the
                  dollar limitation under Code Section 415(b)(1)(A), an owner
                  (or considered an owner under Code Section 318) of one of the
                  ten largest interests in the Company if such individual's
                  compensation exceeds 100 percent of the dollar limitation
                  under Code Section 415(c)(1)(A), a 5 percent owner of the
                  Company, or a 1 percent owner of the Company who has annual
                  compensation of more than $150,000.

                  For purposes of determining the number of officers taken into
                  account, Employees described in Code Section 414(q)(8) shall
                  be excluded. The determination period is the Plan Year
                  containing the Determination Date and the four preceding Plan
                  Years. The determination of who is a Key Employee shall be
                  made in accordance with Code Section 416(i)(1) and the
                  Regulations thereunder. For purposes of determining whether a
                  plan is top-heavy under Code Section 416, Elective Deferrals
                  are considered Company contributions.

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<PAGE>

         (b)      TOP-HEAVY PLAN: For any Plan Year beginning after December
                  31, 1983, this Plan is top-heavy if any of the following
                  conditions exists:

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

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

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

         (c)      TOP-HEAVY RATIO

                  (i)      Defined Contribution Plan Only:

                           If the Company maintains one or more defined
                           contribution plans (including any simplified
                           employee pension plan) and the Company has never
                           maintained any defined benefit plan which during the
                           5-year period ending on the Determination Date(s)
                           has or has had accrued benefits, the top-heavy ratio
                           for this Plan alone or for the required or
                           permissive aggregation group as appropriate is a
                           fraction, the numerator of which is the sum of the
                           account balances of all Key Employees as of the
                           Determination Date(s) (including any part of any
                           account balance distributed in the 5-year period
                           ending on the Determination Date(s)), and the
                           denominator of which is the sum of all account
                           balances (including any part of any account balance
                           distributed in the 5-year period ending on the
                           Determination Date(s)), both computed in accordance
                           with Code Section 416 and the Regulations
                           thereunder.

                           Both the numerator and denominator of the top-heavy
                           ratio are increased to reflect any contribution not
                           actually made as of the Determination Date, but
                           which is required to be taken into account on that
                           date under Code Section 416 and the Regulations
                           thereunder.

                  (ii)     Defined Contribution and Defined Benefit Plan:

                           If the Company maintains one or more defined
                           contribution plans (including any simplified
                           employee pension plan) and the Company maintains or
                           has maintained one or more defined benefit plans
                           which during the 5-year period ending on the
                           Determination Date(s) has or has had any accrued
                           benefits, the top-heavy ratio for any required or
                           permissive aggregation group as appropriate is a
                           fraction, the numerator of which is the sum of
                           account balances under the aggregated defined
                           contribution plan or plans for all Key Employees
                           determined in

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<PAGE>

                           accordance with (i) above, and the present value of
                           accrued benefits under the aggregated defined
                           benefit plan or plans for all Key Employees as of
                           the Determination Date(s), and the denominator of
                           which is the sum of the account balances under the
                           aggregated defined contribution plan or plans for
                           all Participants determined in accordance with (i)
                           above, and the present value of accrued benefits
                           under the defined benefit plans for all Participants
                           as of the Determination Date(s), all determined in
                           accordance with Code Section 416 and the Regulations
                           thereunder.

                           The accrued benefits under a defined benefit plan in
                           both the numerator and denominator of the top-heavy
                           ratio are adjusted for any distribution of an
                           accrued benefit made in the 5-year period ending on
                           the Determination Date.

                  (iii)    For purposes of (i) and (ii) above, the value of
                           account balances and the present value of accrued
                           benefits shall be determined as of the most recent
                           Valuation Date that falls within or ends with the
                           12-month period ending on the Determination Date,
                           except as provided in Code Section 416 and the
                           Regulations thereunder for the first and second plan
                           years of a defined benefit plan. The account
                           balances and accrued benefits of a Participant (1)
                           who is a non-Key Employee but who was a Key Employee
                           in a prior year or (2) who has not been credited
                           with at least one Hour of Service with any Employer
                           maintaining the Plan at any time during the 5-year
                           period ending on the Determination Date shall be
                           disregarded. The calculation of the top-heavy ratio,
                           and the extent to which distributions, rollovers,
                           and transfers are taken into account shall be made
                           in accordance with Code Section 416(g)(4)(A) and the
                           Regulations thereunder. For purposes of determining
                           whether a plan is top-heavy under Code Section 416,
                           Elective Deferrals are considered Company
                           contributions.

                           When aggregating plans, the value of account
                           balances and accrued benefits shall be calculated
                           with reference to the Determination Dates that fall
                           within the same calendar year. The accrued benefit
                           of an Employee other than a Key Employee shall be
                           determined under (a) the method, if any, that
                           uniformly applies for accrual purposes under all
                           plans maintained by the Company, or (b) if there is
                           no such method, as if such benefit accrued not more
                           rapidly than the slowest accrual rate permitted
                           under the fractional accrual rate of Code Section
                           411(b)(1)(C).

         (d)      PERMISSIVE AGGREGATION GROUP: The required aggregation group
                  of plans plus any other plan or plans of the Company which,
                  when considered as a group with the required aggregation
                  group, would continue to satisfy the requirements of Code
                  Sections 401(a)(4) and 410(b).

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<PAGE>

         (e)      REQUIRED AGGREGATION GROUP:

                  (i)      Each qualified plan of the Company in which at least
                           one Key Employee participates, or participated at
                           any time during the determination period (regardless
                           of whether the Plan has terminated), and

                  (ii)     any other qualified plan of the Company which
                           enables a plan described in (i) to meet the
                           requirements of Code Sections 401(a)(4) or 410(b).

         (f)      DETERMINATION DATE: For any Plan Year subsequent to the first
                  Plan Year, the last day of the preceding Plan Year. For the
                  first Plan Year of the Plan, the last day of that year.

         (g)      VALUATION DATE: The date stated in Section (C)(4) as of which
                  account balances or accrued benefits are valued for purposes
                  of calculating the top-heavy ratio.

         (h)      PRESENT VALUE: Present value shall be based only on the
                  interest and mortality rates specified in Section (U).

                         PART XVII - INSURANCE COMPANY

17.1     NOT A PARTY. The Insurance Company is not a party to the Plan and is
         not responsible for the validity of the Plan as adopted by the Company
         or the qualification of the Plan under the tax laws.

17.2     NOT RESPONSIBLE FOR THE ACTS OF THE COMPANY OR ADMINISTRATOR. The
         Insurance Company shall not be responsible to look to the terms of the
         Plan to determine whether or not any action of the Company or
         Administrator is authorized by its terms.

17.3     RELIANCE ON SIGNATURES. Any instruments executed by the Administrator
         or officers of the Company may be accepted by the Insurance Company as
         the duly authorized act of the Administrator or the Company.

17.4     ACQUITTANCE. The Insurance Company shall be discharged from all
         liability for any amount paid to the Company or paid in accordance
         with the direction of the Company and shall not be obliged to see to
         the distribution or further application of any monies by it.

17.5     DUTIES OF THE INSURANCE COMPANY. The obligations of the Insurance
         Company shall be determined solely by the terms of its Contracts,
         Policies and other agreements executed by it. The Insurance Company
         shall maintain records concerning its Contracts and Policies and shall
         supply such records to the Administrator when necessary to assure
         proper administration of the Plan. The

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<PAGE>

         Insurance Company also shall perform such duties as are directed by
         the Administrator pursuant to an executed services agreement on behalf
         of the Plan.

17.6     PLAN CONTROLS. In the event of any conflict between the provisions of
         the Plan and the terms of any Contract or Policy, the provisions of
         the Plan shall control, provided that the mutual rights and
         obligations of the parties to any Contract, agreement or Policy shall
         not thereby be altered.

           PART XVIII - AMENDMENT, TERMINATION, MERGER, ETC. OF PLAN

18.1     PERMANENCY. The expectation of the Company is that the Plan and the
         payment of contributions hereunder, shall be continued indefinitely,
         but continuance of the Plan is not assured as a contractual obligation
         of the Company. This Plan may be amended or terminated only as
         provided in this Part. All Plan amendments, including one to terminate
         the Plan, shall be adopted in writing by the Company's board of
         directors. Any material modification of the Plan by amendment or
         termination shall be communicated to all interested parties, the
         Department of Labor, and the Internal Revenue Service in the time and
         manner prescribed by law.

18.2     AMENDMENT BY INSURANCE COMPANY. The Company hereby delegates to the
         Insurance Company, the Sponsoring Organization, the right to amend the
         Plan and its Adoption Agreement and the Company and Administrator
         shall be deemed to have consented to such amendment. Such delegation
         shall be limited to the right to amend and shall not be construed to
         make the Insurance Company a party to this Plan or the Adoption
         Agreement. The Insurance Company shall, after amendment, contact each
         Company of record who has previously adopted the Prototype Plan and
         give the Company the opportunity to continue under the amended
         Prototype Plan.

18.3     PERMISSIBLE AMENDMENTS BY COMPANY. Subject to Paragraph 18.4, the
         Company, through its duly authorized management committee or by such
         persons as the committee delegates its authority, may (1) change the
         choice of options in the Adoption Agreement, (2) add overriding
         language in the Adoption Agreement when such language is necessary to
         satisfy Code Sections 415 or 416 because of the required aggregation
         of multiple plans, and (3) add certain model amendments published by
         the Internal Revenue Service which specifically provide that their
         adoption shall not cause the Plan to be treated as individually
         designed. A Company that amends the Plan for any other reason,
         including a waiver of the minimum funding requirement under Code
         Section 412(d), shall no longer participate in this master or
         Prototype Plan and shall be considered to have an individually
         designed plan.

         Any amendment shall be stated by executing an amended Adoption
         Agreement and delivering a copy of such amendment to the Administrator
         and the Insurance Company. Upon execution and delivery of the executed
         Adoption Agreement, the Participants and Beneficiaries shall be bound
         thereby.

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<PAGE>

18.4     RESTRICTIONS ON AMENDMENTS. No amendment:

         (a)      Shall increase the duties of the Administrator without his
                  written consent.

         (b)      To the vesting schedule under Section (R) shall deprive a
                  Participant of his nonforfeitable rights to benefits accrued
                  to the date of the amendment. Further, if the vesting
                  schedule of the Plan is amended, if the Plan is amended in
                  any way that directly or indirectly affects the computation
                  of a Participant's nonforfeitable percentage, or if the Plan
                  is deemed amended by an automatic change to a top-heavy
                  vesting schedule, each Participant with at least 3 Years of
                  Service with the Company may elect, within a reasonable
                  period after the adoption of the amendment, to have his
                  nonforfeitable percentage computed under the Plan without
                  regard to such amendment or changes. The period during which
                  the election may be made shall commence with the date the
                  amendment is adopted and shall end on the later of:

                  (i)      60 days after the amendment is adopted;

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

                  (iii)    60 days after the Participant is issued written
                           notice of the amendment by the Company or
                           Administrator.

         (c)      Shall be effective to the extent that it has the effect of
                  decreasing a Participant's accrued benefit. Notwithstanding
                  the preceding sentence, a Participant's account balance may
                  be reduced to the extent permitted under Code Section
                  412(c)(8). For purposes of this Paragraph, a Plan amendment
                  which has the effect of decreasing a Participant's account
                  balance or eliminating an optional form of benefit, with
                  respect to benefits attributable to service before the
                  amendment, shall be treated as reducing an accrued benefit.
                  Furthermore, if the vesting schedule of the Plan is amended,
                  in the case of an Employee who is a Participant as of the
                  later of the date of the date such amendment is adopted or
                  the date it becomes effective, the nonforfeitable percentage
                  (determined as of such date) of such Employee's
                  Employer-derived accrued benefit shall not be less than the
                  percentage computed under the Plan without regard to such
                  amendment.

         (d)      Shall change the funding method unless the new funding method
                  has been approved by the Internal Revenue Service.

         (e)      Shall change the Plan Year unless the new Plan Year has been
                  approved by the Internal Revenue Service or is permitted by
                  IRS Revenue Procedure 87-27.

18.5     TERMINATION OF PLAN. The Company expressly reserves the right to
         terminate the Plan in whole or in part at any time without the consent
         of any Participant or Beneficiary. The Company shall give written
         notice of termination of this Plan to

                                       62
<PAGE>

         the Administrator and the Insurance Company. The Plan shall terminate
         upon the first of the following events:

         (a)      The date terminated by the Company without establishment of
                  another defined contribution plan;

         (b)      The date the Company is judicially determined bankrupt or
                  insolvent;

         (c)      The date of the disposition by a corporation to an unrelated
                  corporation of substantially all of the assets (within the
                  meaning of Code Section 409(d)(2)) used in a trade or
                  business of such corporation if such corporation continues to
                  maintain this Plan after the disposition, but only with
                  respect to Employees who continue employment with the
                  corporation acquiring such assets; or

         (d)      The date of the disposition by a corporation to an unrelated
                  corporation of such corporation's interest in a subsidiary
                  (within the meaning of Code Section 409(d)(3)) if such
                  corporation continues to maintain this Plan after the
                  disposition, but only with respect to Employees who continue
                  employment with such subsidiary.

18.6     FULL VESTING UPON TERMINATION. If this Plan is terminated or partially
         terminated or upon a complete discontinuance of contributions, each
         affected Participant shall be fully vested in his Participant's
         Account. Upon termination of this Plan, all unallocated forfeitures
         shall be reallocated among Participants' Accounts of those
         Participants then entitled to share in current allocations, without
         the restrictions of Section (L)(2). Following this final allocation,
         if any forfeiture causes a Participant's Account to be in excess of
         the limitation on allocations provided in Code Section 415, such
         excess will be disposed of in accordance with Part V of the Plan.

         The value of the Participants' accounts shall be distributed to all
         affected Participants as one-sum cash payments. However, if elected by
         the Administrator, all affected Participants shall have their benefits
         distributed to them in the form of an annuity under the Contract.

         If one-sum cash payments are made to the Participants and the Contract
         values include allocations to the general investment account of the
         Insurance Company, the amounts distributed shall be less any
         investment loss charges and other deductions authorized by the
         Contract. Any distributions pursuant to this Paragraph are subject to
         the spousal and Participant consent requirements (if Paragraph 14.3 is
         operative) contained in Code Sections 401(a)(11) and 417.

         Notwithstanding the above provision, if any affected Participant had
         commenced to receive annuity payments upon separation from service, he
         shall continue to receive payments in the form elected.

18.7     MERGER, CONSOLIDATION, OR TRANSFER OF PLAN ASSETS. No merger or
         consolidation of this Plan with, or transfer of assets or liabilities
         to any other plan

                                       63
<PAGE>

         shall become effective until at least 30 days after the Company or
         Administrator has filed with the Secretary of the Treasury such
         statement as shall be required by law. In the case of any such merger,
         consolidation or transfer of assets to any other plan, each
         Participant shall receive a benefit immediately after the merger,
         etc., (as if the plan then terminated) which is at least equal to the
         benefit the Participant was entitled to immediately before such
         merger, etc., (as if the Plan had terminated).

                       PART XIX - ADMINISTRATION OF PLAN

19.1     APPOINTMENT OF ADMINISTRATOR. The Company shall appoint an
         Administrator. A written appointment shall be filed in the Company's
         official records. The Insurance Company may not be appointed as
         Administrator. The Administrator may be a person, organization, or
         Plan committee. Any person so appointed shall accept by filing a
         written acceptance with the Company. The Administrator shall serve at
         the discretion of the Company, but may resign by filing a written
         resignation with the Company.

         The discharge of an Administrator shall be made in writing by the
         Company, delivered to the person and filed in the official records of
         the Company. A new Administrator shall be appointed as soon as
         possible after an Administrator resigns or is discharged. If no
         appointment is effective at any time, the Administrator shall be the
         Company. The Secretary of the Company shall certify in writing the
         name and signature of the Administrator, or person acting on behalf of
         the Administrator, his address and telephone number to the Insurance
         Company. The Insurance Company may assume that such person continues
         to hold office until a new certificate is received from the Company.
         The Company agrees to fully protect and to indemnify the Insurance
         Company in relying upon any authorization or direction the Insurance
         Company reasonably believes to be authentic.

19.2     ADMINISTRATOR'S POWERS AND DUTIES. The Administrator shall be
         responsible for the day-to-day administration of this Plan and for the
         exercise of all fiduciary responsibilities provided for in the Plan
         that are not assigned to other parties pursuant to the terms of the
         Plan. The Administrator's duties shall include, but not be limited to
         the following:

         (a)      To construe and interpret the provisions of the Plan;

         (b)      To decide all questions of eligibility for Plan participation
                  and for the payment of benefits;

         (c)      To provide appropriate parties, including government
                  agencies, with such returns, reports, schedules,
                  descriptions, and individual statements as are required by
                  law within the times prescribed by law; and to furnish to the
                  Company, upon request, copies of any or all such materials,
                  and further, to make copies of such instruments, reports, and
                  descriptions as are required by law to be available for
                  examination by Participants and such of their Beneficiaries
                  who are or may be entitled to benefits under the Plan in such

                                       64
<PAGE>

                  places and in such manner as required by law; (the
                  Administrator may make a reasonable charge for copies);

         (d)      To furnish to each Participant and each Beneficiary receiving
                  benefits under the Plan a copy of a summary plan description
                  and a summary of any material modifications thereof at the
                  time and in the manner prescribed by law;

         (e)      To obtain from the Company, the Employees and the Insurance
                  Company such information as shall be necessary for the proper
                  administration of the Plan;

         (f)      To determine the amount, manner and time of payment of
                  benefits thereunder;

         (g)      Subject to the approval of the Company only as to any
                  additional expense, to appoint and retain such agents,
                  counsel, and accountants for the purpose of properly
                  administering the Plan;

         (h)      To take all actions and to communicate to the Insurance
                  Company in writing all necessary information to carry out the
                  terms of the Plan;

         (i)      To notify the Insurance Company in writing of a termination,
                  a partial termination or a complete discontinuance of
                  contributions to the Plan;

         (j)      To direct the Insurance Company to distribute benefits of the
                  Plan to each Participant and Beneficiary in accordance with
                  the terms of the Plan;

         (k)      To provide each Participant within the time period set forth
                  in Paragraphs 14.3 and 15.2, if applicable, a written
                  explanation of: the Automatic Joint and Survivor Annuity and
                  the Preretirement Survivor Annuity; and

         (l)      To do such other acts reasonably required to administer the
                  Plan in accordance with its provisions or as may be provided
                  for or required by law.

         The Administrator and each other fiduciary shall discharge their
         duties with respect to the Plan in accordance with the provisions of
         the Plan, including the Adoption Agreement.

19.3     DELEGATION OF ADMINISTRATIVE RESPONSIBILITIES. The Administrator may
         appoint other persons to perform any of his administrative functions.
         Such appointment shall be made in writing and shall be effective upon
         the written approval of the Company. The Administrator and any such
         appointee may employ advisors and other persons necessary to help the
         Administrator carry out his functions, including fiduciary functions.
         The Administrator shall monitor the work and review the performance of
         each such appointee, and he shall remove any such appointee from his
         position if the Administrator determines that his performance is
         unsatisfactory. Any person or group of persons may serve in more than
         one

                                       65
<PAGE>

         fiduciary capacity. The Administrator may delegate one or more of his
         responsibilities to the Insurance Company by a written administrative
         services agreement entered into with the Insurance Company. The
         Insurance Company's administrative responsibilities shall be limited
         to those services set forth in such agreement.

19.4     BONDING. The Administrator, and any other fiduciary, officer of the
         Company and Employee of the Company who handles funds of the Plan
         shall be bonded as required by ERISA. Such bond shall protect the Plan
         against loss by reason of acts of fraud or dishonesty by such persons
         directly or through the connivance of others. The amount of the bond
         shall not be less than 10 percent of the value of the Contract at the
         beginning of the Year nor more than $500,000. In no event shall the
         bond be less than $1000. If the Secretary of the U.S. Department of
         Labor prescribes an amount in excess of $500,000, however, a bond in
         the prescribed amount shall be obtained.

19.5     FIDUCIARY LIABILITY INSURANCE AND INDEMNIFICATION. The Company may
         purchase fiduciary liability insurance or agree to indemnify and hold
         harmless the Administrator and persons appointed by the Administrator
         or Company to carry out fiduciary functions against any and all
         claims, loss, damage, expense or liability arising from their official
         capacities in the administration of the Plan, unless the same is
         determined to be due to gross negligence or willful misconduct.

19.6     COMPENSATION OF ADMINISTRATOR. The Company shall reimburse the
         Administrator for any reasonable costs and expenses, including
         fiduciary liability insurance, incurred by the Administrator as a
         result of performance of his duties or functions. The Company shall
         compensate the Administrator for services rendered under this Plan,
         except that no Administrator who receives full-time compensation from
         the Company shall be so compensated.

19.7     SERVICE OF LEGAL PROCESS. The Administrator is the designated agent to
         receive service of legal process on behalf of the Plan, unless the
         Company designates some other party in writing in the summary plan
         description.

19.8     COMPANY CENSUS REPORT. To enable the Administrator to perform his
         functions, the Company shall furnish the Administrator full and timely
         information on or before each Plan Year (and more frequently, if
         required) on all matters relating to classification of Employees,
         their dates of employment, ages, Hours of Service, Compensation, dates
         of retirement, death, disability or Termination of Employment, causes
         of Termination of Employment and such other census data as may be
         required to administer the Plan. The Administrator shall advise the
         Insurance Company in writing of such information about Participants'
         and Beneficiaries' status, including changes in status, pertinent to
         determining benefit entitlements under the Contract or Policies.

19.9     INFORMATION ABOUT PLAN. Any Participant in the Plan, or any
         Beneficiary receiving benefits under the Plan, may examine copies of
         the Plan, the Contract, any Policies on his life, the summary plan
         description, the latest annual report, any

                                       66
<PAGE>

         collective bargaining agreement, Contract or any other instrument
         under which this Plan is maintained or operated. The Administrator
         shall maintain all items listed in this Paragraph in his office, or in
         other places as he may designate from time to time to comply with
         regulations issued under ERISA, for examination during normal business
         hours. Upon written request of a Participant or Beneficiary receiving
         benefits under this Plan, the Administrator shall furnish him with a
         copy of any item listed in this Paragraph. The Administrator may
         impose a charge equal to the costs of reproduction, but in no event
         shall the costs exceed 25 cents per page.

19.10    INFORMATION ABOUT PARTICIPANTS AND BENEFICIARIES. Each Participant and
         each Beneficiary of a deceased Participant shall file with the
         Administrator from time to time in writing his current post office
         address. Any communication, statement, or notice addressed to a
         Participant or a Beneficiary at his last post office address filed
         with the Administrator or as shown on the Company's records, shall
         bind the Participant or Beneficiary for all purposes of this Plan.
         Each Participant shall file with the Administrator his name, Social
         Security number, date of birth, and marital status. Each married
         Participant shall file, upon request, with the Administrator the name,
         date of birth, and date of marriage to his Spouse. The Administrator
         may require satisfactory evidence of any personal information required
         to administer the Plan. The information provided by the Participant
         concerning his Spouse shall bind the Participant, the Participant's
         Spouse and their heirs for all purposes of the Plan. The Participant
         shall be required to notify the Administrator of any changes in
         information previously filed.

19.11    CLAIM FOR BENEFITS. All applications for benefits under the Plan shall
         be submitted to the Administrator in writing on forms prescribed by
         the Administrator. The application shall be signed by the Participant,
         and the Participant's Spouse if required by the Administrator, or in
         the case of a death benefit by the Beneficiary or legal representative
         of the deceased Participant. Each Participant and each Beneficiary of
         a deceased Participant must furnish the Administrator with such
         evidence, data or other information as the Administrator or Insurance
         Company considers necessary or desirable for purposes of administering
         the Plan. The provisions of this Plan are effective for the benefit of
         each Participant subject to the condition that each Participant or
         Beneficiary shall furnish promptly full, true and complete evidence,
         data or other information when requested by the Administrator,
         provided the Participant or Beneficiary is advised of the affect of
         his failure to comply with the request. The Administrator shall make
         all determinations as to the right of any person to a benefit under
         the Plan. The Administrator shall notify the claimant of the
         acceptance or denial of any claim within 90 days, unless special
         circumstances are deemed by the Administrator to require an additional
         period of no more than 90 days. If an extension is necessary, the
         Administrator shall notify the claimant in writing explaining why more
         time is needed and indicate a date by which the Administrator expects
         to render a decision.

19.12    CLAIMS REVIEW PROCEDURE. The Administrator shall provide to any
         claimant whose claim for benefits under the Plan has been fully or
         partially denied a written notice setting forth the specific reasons
         for such denial. Such notice shall state that the claimant is entitled
         to request a review by the Administrator of the decision

                                       67
<PAGE>

         denying the claim, the reasons for denial, the Plan provisions upon
         which the denial is based, a description and reason for needing any
         additional information needed to consider the claim, and an
         explanation of the review procedure. The claimant or his authorized
         representative may within 60 days of the denial of the claim: request
         a claim review by the Administrator, review pertinent documents
         relating to the denial, and submit issues and comments in writing to
         the Administrator. The Administrator must make a final decision on a
         claim reviewed within sixty days. The Administrator shall make a full
         and fair review of such claim and any written materials submitted by
         the claimant and may require the claimant or the Company to submit
         such additional evidence as the Administrator deems necessary or
         advisable to make a claims review.

         On the basis of the review, the Administrator shall make an
         independent determination of the claimant's entitlement to benefits
         under the Plan. The decision of the Administrator upon review, if
         supported by substantial evidence in the record, shall be final and
         conclusive on all parties to the Plan. The Administrator shall give
         the claimant written notice of his decision upon review which shall
         include specific reasons and references to the Plan provision upon
         which his decision is based. The 60-day review period may be extended
         for another 60 days if the Administrator finds that special
         circumstances require an extension of time. If after such review the
         Administrator concludes that the denial of benefits was erroneous or
         contrary to the Plan or to the law, the Administrator shall take such
         action as shall be appropriate to provide such benefit.

19.13    MISSING PARTICIPANTS OR BENEFICIARIES. In the event a person entitled
         to a benefit is unable to be found after a diligent one-year search by
         the Administrator, the benefit payable to that person shall be
         forfeited and applied to reduce the Company's contributions under the
         Plan, provided, however, that the Administrator shall reinstate the
         benefit in the event the person entitled thereto is found or makes a
         claim. The sources for restoration of the benefit shall be forfeitures
         or an additional Company contribution.

                            PART XX - MISCELLANEOUS

20.1     ASSIGNMENT OR ALIENATION. No benefit or interest available hereunder
         shall be subject to assignment or alienation, either voluntarily or
         involuntarily. The preceding sentence shall also apply to the
         creation, assignment, or recognition of a right to any benefit payable
         with respect to a Participant pursuant to a domestic relations order,
         unless such order is determined to be a qualified domestic relations
         order, as defined in Code Section 414(p), or any domestic relations
         order entered before January 1, 1985. Notwithstanding any other
         provision to the Plan and as directed in writing by the Administrator,
         a distribution shall be made immediately to an alternate payee
         pursuant to such qualified domestic relations order.

20.2     RESPONSIBILITY FOR QUALIFICATION OF PLAN. The Company is solely
         responsible for the qualification of the Plan under the Code. Should
         the Plan fail to initially attain qualified plan status, the Plan
         shall terminate and contributions shall

                                       68
<PAGE>

         be returned to the Company and to Participants in accordance with
         Subparagraph 4.11(b). If an initially qualified plan fails to retain
         qualified plan status, the Plan shall terminate and the interest of
         each Participant shall be distributed in the same manner as provided
         under Paragraph 18.6.

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

20.4     STATE LAW. The Plan is to be regulated and construed in accordance
         with the laws of the State in which the Company maintains its
         principal office, except to the extent such laws are preempted by
         Federal law.

20.5     NOT AN EMPLOYMENT CONTRACT. No Employee of the Company nor anyone else
         shall have any rights against the Company as a result of this Plan,
         except those expressly granted hereunder. Nothing herein shall be
         construed to give any Participant the right to remain in the employ of
         the Company.

20.6     WORD USAGE. Words when used herein are used irrespective of number or
         gender unless the context clearly requires otherwise.

20.7     INTERPRETATION OF PLAN. The intention of the Company is that the Plan
         shall comply with the provisions of the Code, the Employee Retirement
         Income Security Act, the Tax Equity and Fiscal Responsibility Act, and
         the corresponding provisions of any subsequent laws, and the
         provisions of the Plan shall be construed to effectuate such
         intention.

         In the event any provision or provisions shall be determined to be
         illegal or invalid for any reason, the illegal or invalid provision
         shall not affect the remaining parts of the Plan and the Company,
         Administrator, or Trustee may perform such alternative acts which most
         clearly carry out the intent and purpose of the Plan.

20.8     HEADINGS. The headings of the Parts, Paragraphs and Sections of this
         Plan are for convenience and reference only, and any conflict between
         such headings and the text shall be resolved in favor of the text.

                                       69
<PAGE>

                                    PART XXI

Transitional Rule - Retirement Distributions

Subject to Part XIV and XV, distributions on behalf of any Participant,
including a 5-percent owner, may be made in accordance with all of the
following requirements (regardless of when such distribution commences):

(1)      The distribution by the Plan is one which would not have disqualified
         such Plan under Code Section 401(a)(9) as in effect prior to amendment
         by DEFRA.

(2)      The distribution is in accordance with a method of distribution
         designated by the Participant whose interest in the Plan is being
         distributed or, if the Participant is deceased, by a Beneficiary of
         such Participant.

(3)      Such designation was in writing, was signed by the Participant or the
         Beneficiary, and was made before January 1, 1984.

(4)      The Participant had accrued a benefit under the Plan as of December
         31, 1983.

(5)      The method of distribution designated by the Participant or the
         Beneficiary specifies the time at which distribution shall commence,
         the period over which distributions shall be made, and in the case of
         any distribution upon the Participant's death, the Beneficiaries of
         the Participant listed in order of priority.

A distribution upon death shall not be covered by this transitional rule unless
the information in the designation contains the required information described
above with respect to the distributions to be made upon the death of the
Participant.

For any distribution which commences before January 1, 1984, but continues
after December 31, 1983, the Participant, or the Beneficiary, to whom such
distribution is being made, shall be presumed to have designated the method of
distribution under which the distribution is being made if the method of
distribution was specified in writing and the distribution satisfies the
requirement in Subparagraph (5) above.

If a designation is revoked any subsequent distribution must satisfy the
requirements of Code Section 401(a)(9) and the Regulations thereunder. If a
designation is evoked subsequent to the date distributions are required to
begin, the Plan must distribute by the end of the calendar year following the
calendar year in which the revocation occurs the total amount not yet
distributed which would have been required to have been distributed to satisfy
Code Section 401(a)(9) and the Regulations thereunder, but for the Section
242(b)(2) election. For calendar years beginning after December 31, 1988, such
distributions must meet the minimum distribution incidental benefit
requirements in Section 1.401(a)-2 of the Income Tax Regulations. Any changes
in the designation shall be considered to be a revocation of the designation.
However, the mere substitution or addition of another Beneficiary (one not
named in the designation) under the designation shall not be considered to be a
revocation of the designation, so long as such substitution or addition does
not alter the period over which distributions are to be made under the
designation, directly or indirectly (for example, by altering the relevant
measuring life). In the case in which an amount is transferred or rolled over
from one plan to another plan, the rules in Q&A J-2 and Q&A J-3 shall apply.

                                       70
<PAGE>

                                   PART XXII

Transitional Rules - Survivor Annuities

B1.      Any living Participant not receiving benefits on August 23, 1984, who
         would otherwise not receive the benefits prescribed by Paragraphs 14.3
         and 15.2 of the Plan must be given the opportunity to elect to have
         such Paragraphs apply if the Participant is credited with at least one
         Hour Of Service under this Plan or a predecessor Plan in a Plan Year
         beginning on or after January 1, 1976, and such Participant had at
         least 10 years of vesting service when he separated from Service.

B2.      Any living Participant not receiving benefits on August 23, 1984, who
         was credited with at least one Hour Of Service under this Plan or a
         predecessor Plan on or after September 2, 1974, and who is not
         otherwise credited with any Service in a Plan Year beginning on or
         after January 1, 1976, must be given the opportunity to have his
         benefits paid in accordance with Paragraph B4.

B3.      The respective opportunities to elect (as described in Paragraphs B1
         and B2 above) must be afforded to the appropriate Participants during
         the period commencing on August 23, 1984, and ending on the date
         benefits would otherwise commence to said Participants.

B4.      Any Participant who has elected pursuant to Paragraph B2 and any
         Participant who does not elect under Paragraph B1 or who meets the
         requirements except that such Participant does not have at least 10
         years of vesting Service when he separates from Service, shall have
         his benefits distributed in accordance with all of the following
         requirements if benefits would have been payable in the form of a life
         annuity:

         (a)      Automatic Joint and Survivor Annuity. If benefits in the form
                  of a life annuity become payable to a married Participant
                  who:

                  (i)      begins to receive payments under the Plan on or
                           after Normal Retirement Date;

                  (ii)     dies on or after Normal Retirement Date while still
                           working for the Company;

                  (iii)    begins to receive payments on or after the Qualified
                           Early Retirement Date; or

                  (iv)     separates from service on or after attaining Normal
                           Retirement Date (or the Qualified Early Retirement
                           Date) and after satisfying the eligibility
                           requirements for the payment of benefits under the
                           Plan and thereafter dies before beginning to receive
                           such benefits; then such benefits shall be received
                           under this Plan in the form of an Automatic Joint
                           and Survivor Annuity, unless the Participant has
                           elected otherwise during the Election Period. The
                           Election Period must begin at least 6 months

                                       71
<PAGE>

                           before the Participant attains Qualified Early
                           Retirement Date and end not more than 90 days before
                           the commencement of benefits. Any election hereunder
                           shall be in writing and may be changed by the
                           Participant at any time.

         (b)      Election of Early Survivor Annuity. A Participant who is
                  employed after attaining the Qualified Early Retirement Date
                  shall be given the opportunity to elect, during the Election
                  Period, to have a survivor annuity payable on death. If the
                  Participant elects the survivor annuity, payments under such
                  annuity must not be less than the payments which would have
                  been made to the Spouse under the Automatic Joint and
                  Survivor Annuity if the Participant had retired on the day
                  before his death. Any election under this provision shall be
                  in writing and may be changed by the Participant at any time.
                  The election period begins on the later of (1) the 90th day
                  before the Participant attains the Qualified Early Retirement
                  Date, or (2) the date on which participation begins, and ends
                  on the date the Participant terminates employment.

         (c)      For purposes of this Paragraph B4, Qualified Early Retirement
                  Date is the latest of:

                  (i)      the earliest date, under the Plan, on which the
                           Participant may elect to receive retirement
                           benefits,

                  (ii)     the first day of the 120th month beginning before
                           the Participant reaches Normal Retirement Date, or

                  (iii)    the date the Participant begins participation.

                                       72
<PAGE>

PROTOTYPE                                                          FL 51272-001
-------------------------------------------------------------------------------

                                                                  FLEXINVEST(R)

                                                     --------------------------
                                                     PROFIT SHARING/401(K) PLAN
                                                     ADOPTION AGREEMENT
                                                     FOR NON-STANDARDIZED PLANS

<PAGE>

<TABLE>
<CAPTION>
        INTERNAL REVENUE SERVICE                                        DEPARTMENT OF THE TREASURY
<S>                                                                     <C>
Plan Description: Prototype Non-Standardized Profit Sharing Plan with CODA
FFN: 50338830007-002    Case: 9500848    EIN: 04-1590850                WASHINGTON, DC 20224
BPD: 07    Plan: 002    Letter Serial No: D365756a

MASSACHUSETTS MUTUAL LIFE INSURANCE CO                                  PERSON TO CONTACT: Ms. Arrington

1295 STATE STREET                                                       TELEPHONE NUMBER: (202) 622-8173

SPRINGFIELD, MA 01111                                                   REFER REPLY TO: CP:E:EP:T1

                                                                        DATE: 12/02/96
</TABLE>

Dear Applicant:

In our opinion, the form of the plan identified above is acceptable under
section 401 of the Internal Revenue Code for use by employers for the benefit
of their employees. This opinion relates only to the acceptability of the form
of the plan under the Internal Revenue Code. It is not an opinion of the effect
of other Federal or local statutes.

You must furnish a copy of this letter to each employer who adopts this plan.
You are also required to send a copy of the approved form of the plan, any
approved amendments and related documents to each Key District Director of
Internal Revenue Service in whose jurisdiction there are adopting employers.

Our opinion on the acceptability of the form of the plan is not a ruling or
determination as to whether an employer's plan qualifies under Code section
401(a). Therefore, an employer adopting the form of the plan should apply for a
determination letter by filing an application with the Key District Director of
Internal Revenue Service on Form 5307, Short Form Application for Determination
for Employee Benefit Plan.

Because you submitted this plan for approval after March 31, 1991, the
continued, interim and extended reliance provisions of sections 13 and 17.03 of
Rev. Proc. 89-9, 1989-1 C.B. 780, are not applicable.

Because you submitted this plan on or after July 1, 1994, it does not meet the
requirements for the extention of the remedial amendment period provided by
Rev. Proc. 95-12, 1995-3 I.R.B. 24.

This letter may not be relied upon with respect to whether the plan satisfies
the qualification requirements as amended by Uruguay Round Agreements Act, Pub.
L. 103-465.

If you, the sponsoring organization, have any questions concerning the IRS
processing of this case, please call the above telephone number. This number is
only for use of the sponsoring organization. Individual participants and/or
adopting employers with questions concerning the plan should contact the
sponsoring organization. The plan's adoption agreement must include the
sponsoring organization's address and telephone number for inquiries by
adopting employers.

If you write to the IRS regarding this plan, please provide your telephone
number and the most convenient time for us to call in case we need more
information. Whether you call or write, please refer to the Letter Serial
Number and File folder Number shown in the heading of this letter.

You should keep this letter as a permanent record. Please notify us if you
modify or discontinue sponsorship of this plan.

         Sincerely yours,

         /s/

                  Chief, Employee Plans Technical Branch 1

<PAGE>

                  MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY
               FLEXINVEST(R) PROTOTYPE PROFIT-SHARING/401(K) PLAN

                 PROFIT-SHARING/401(K) PLAN ADOPTION AGREEMENT
                           For Non-Standardized Plans

In accordance with and as permitted by the provisions of the Massachusetts
Mutual Life Insurance Company FLEXINVEST(R) Prototype Profit-Sharing/401(k)
Plan, herein called the Plan, a copy of which is hereto attached, the
undersigned Company pursuant to vote of its Board of Directors hereby adopts
the Plan to provide retirement and incidental benefits for its Employees, and
agrees

         1.       to conform to and abide by all of the terms, provisions and
                  requirements of the Plan;

         2.       that any action taken or to be taken in accordance with or as
                  required by the Plan or any action taken in conjunction with
                  the Plan as required by any law or regulations is and will be
                  its sole responsibility;

         3.       that the liability of Massachusetts Mutual Life Insurance
                  Company is limited to the obligations under the terms of the
                  Contract and the Policies.

         Sponsoring Organization:   Massachusetts Mutual Life Insurance Company
                                    Defined Contribution Operations
                                    1295 State Street
                                    Springfield, MA 01111-0001
                                    (413) 788-8411

         The Sponsoring Organization will notify the undersigned Company of any
         amendments made to the Plan or of the discontinuance or abandonment of
         the Plan.

         PLEASE NOTE:      Failure to properly fill out this Adoption Agreement
                           may result in disqualification of the Plan.

(C)Copyright 1996 by Massachusetts Mutual Life Insurance Company. All Rights
Reserved. No reproduction of provisions in this document are permitted without
the express written consent of Massachusetts Mutual Life Insurance Company,
Springfield, MA 01111-0001.

12/96 (Non-Standardized)

<PAGE>

The undersigned Company elects as follows:

(A)      Plan Name

         The Plan will be known as DALEEN TECHNOLOGIES, INC. 401(K) PROFIT
         SHARING PLAN.

         Amended (or Restated) Plans:

         The Plan is adopted by amendment in substitution for DALEEN
         TECHNOLOGIES, INC. 401(K) PROFIT SHARING PLAN AND TRUST, the Company's
         pre-existing Plan, which is hereby replaced.

(B)      CONTROLLED GROUPS/AFFILIATED EMPLOYERS (Paragraph 6.5)

         Check if applicable:

         [ ]      The Plan will be funded through the Contract of an affiliated
                  Employer's Plan, Contract No. _____________________________,
                  issued by the Insurance Company to _________________________.

(C)      DATES

         (1)      The Effective Date of the Plan is JANUARY 1, 1994. (The
                  original effective date of the Plan prior to any amendment.)

                  Amended (or Restated) Plans: The Effective Date of this
                  Amendment is JANUARY 1, 2000.

                  Notwithstanding any other plan provision, this Effective Date
                  applies to all current and future Participants including
                  terminated vested Participants who return to employment with
                  the Company.

         (2)      The Plan Year is a period beginning on JANUARY 1, 2000, and
                  ending on DECEMBER 31, 2000. Subsequent Plan Years will be
                  consecutive 12-month periods ending on the same date each
                  year thereafter.

         (3)      In the case of a top-heavy plan, the Determination Date will
                  be the last day of the Plan Year for the first Plan Year, and
                  for any other Plan Year, the last day of the preceding Plan
                  Year.

         (4)      The Valuation Date, for purposes of Part XVI, will be the
                  most recent Valuation Date occurring within the 12-month
                  period ending on the Determination Date.

         (5)      For purposes of determining Highly Compensated Employees
                  (Paragraph 1.30) and notwithstanding any Plan provision to
                  the contrary, the lookback provisions of Code Section 414(q)
                  shall not apply.

                  The snapshot day of DECEMBER 31ST (month and day) will be
                  used for purposes of determining Highly Compensated
                  Employees.

                                     - 2 -
<PAGE>

(C)      DATES (continued)

         (6)      Limitation Year will mean:

                  (a)      [X]      the calendar year.

                  (b)      [ ]      the 12-consecutive month period coinciding
                                    with the Plan Year.

                  (c)      [ ]      the 12-consecutive month period from
                                    _______________ to _______________.

                  NOTE: If the Company is a member of a controlled group of
                  corporations, a controlled group of trades or businesses or
                  an affiliated service group, the Limitation Year must be the
                  same for all members of the group.

(D)      ELIGIBILITY FOR PARTICIPATION (Part III)

         (1)      Classification(s) of eligible employees:

                  (a)      [X]      All

                           [ ]      Salaried

                           [ ]      Hourly

                           [ ]      Commissioned

                           [ ]      All non-Highly Compensated Employees

                  (b)      [X]      Division, Plant, Location or Other
                                    (specify). Excluding nonresident aliens
                                    with no U.S. source income

                  (c)      [X]      Employees not covered by a collective
                                    bargaining agreement.

         (2)      Present Employees:

                  (a)      [ ]      An Employee who is employed on the
                                    Effective Date (or Amendment Date, if
                                    later) will become a Participant on the
                                    Effective Date (or Amendment Date, if
                                    later).

                  (b)      [X]      An Employee who is employed on the
                                    Effective Date (or Amendment Date, if
                                    later) will become a Participant upon
                                    meeting the requirements in (D)(3).

         (3)      Future Employees: An Employee who becomes employed after the
                  Effective Date (or the Amendment Date, if later) will become
                  a Participant upon meeting the following requirements:

                  (a)      Service Requirement

                           (i)      [X]      None

                           (ii)     [ ]      Completion of ______ Years of
                                             Service (401(k) Plans: Not to
                                             exceed 1, or if (D)(7)(a) is
                                             elected, 1/2. Profit-Sharing Plans:
                                             Not to exceed 2, or if (D)(7)(a)
                                             is elected, 1 1/2. If years exceed
                                             1, (R)(1)(a) must be elected.)

                                     - 3 -
<PAGE>

(D)       ELIGIBILITY FOR PARTICIPATION (continued)

          NOTE: If a fractional year is elected, an Employee will not be
          required to complete any specified number of Hours of Service to
          receive credit for such fractional year.

                  (b)      Age Requirement

                           (i)      [ ]      None

                           (ii)     [X]      Attainment of age 18 (not to
                                             exceed 21, or if (D)(7)(a) is
                                             elected, 20 1/2)

         (4)      Employees eligible for participation under another plan
                  qualified under Code Sections 401 or 403 to which the Company
                  contributes will be eligible for participation in this Plan.

                  [ ] Yes  [ ] No  [X] Not Applicable. There is no other Plan.

                  Name of other plan: ________________________________________.

         (5)      If the Company has acquired the trade or business from
                  another Company, including a sole proprietorship or
                  partnership, service with the predecessor Company (name of
                  predecessor Company: __________) which did not maintain this
                  Plan will be considered Service with the Company for purposes
                  of determining:

                  (a)      [ ]      Initial and continued eligibility to
                                    participate in the Plan.

                  (b)      [ ]      A Participant's vested interest in his
                                    Participant's Account.

                  (c)      [ ]      No credit for prior service.

                  (d)      [X]      Not Applicable. There was no predecessor
                                    Company, or the predecessor Company
                                    maintained this Plan.

          (6)    Hours of Service will be determined on the basis of the method
                 selected below. Only one method may be selected. The method
                 selected will be applied to all Employees covered under the
                 Plan.

                  (a)      [X]      On the basis of actual hours for which an
                                    Employee is paid or entitled to payment.

                  (b)      [ ]      On the basis of days worked. An Employee
                                    will be credited with ten (10) Hours of
                                    Service if under Paragraph 1.31 of the Plan
                                    such Employee would be credited with at
                                    least one (1) Hour of Service during the
                                    day.

                  (c)      [ ]      On the basis of weeks worked. An Employee
                                    will be credited with forty-five (45) Hours
                                    of Service if under Paragraph 1.31 of the
                                    Plan such Employee would be credited with
                                    at least one (1) Hour of Service during the
                                    week.

                                     - 4 -
<PAGE>

(D)      ELIGIBILITY FOR PARTICIPATION (continued)

                  (d)      [ ]      On the basis of semi-monthly payroll
                                    periods. An Employee will be credited with
                                    ninety-five (95) Hours of Service if under
                                    Paragraph 1.31 of the Plan such Employee
                                    would be credited with at least one (1)
                                    Hour of Service during the semi-monthly
                                    payroll period.

                  (e)      [ ]      On the basis of months worked. An Employee
                                    will be credited with one hundred ninety
                                    (190) Hours of Service if under Paragraph
                                    1.31 of the Plan such Employee would be
                                    credited with at least one (1) Hour of
                                    Service during the month.

         (7)      The Entry Date will be:

                  (a)      [ ]      an Anniversary Date of the Plan.

                  (b)      [ ]      semi-annually, i.e., an Anniversary Date or
                                    the first day of the sixth month following
                                    an Anniversary Date.

                  (c)      [ ]      quarterly, i.e., an Anniversary Date or the
                                    first day of the third, sixth, or ninth
                                    month following an Anniversary Date.

                  (d)      [X]      the first day of any calendar month.

(E)      COMPENSATION (Paragraph 1.14)

         (1)      Compensation will mean all of each Participant's:

                  (a)      (i)      [ ]      Compensation required to be
                                             reported under Code Sections 6041
                                             and 6051 (Wages, Tips, and Other
                                             Compensation on Form W-2).

                           (ii)     [X]      Wages as defined in Code Section
                                             3401(a).

                           (iii)    [ ]      415 safe-harbor compensation.

                           (iv)     [ ]      Total compensation as defined in
                                             Treas. Reg. ss. 1.415-2(d)(1) and
                                             (2).

                  (b)      The definition selected above shall exclude the
                           following items (even if includible in gross
                           income): reimbursements or other expense allowances,
                           fringe benefits (cash and noncash), moving expenses,
                           and welfare benefits.

                           [X] yes  [ ] no

                                     - 5 -
<PAGE>

(E)      COMPENSATION (continued)

                  (c)      (i)      [ ]      The definition selected in (a) and
                                             (b) above will apply to integrated
                                             contributions, the operation of
                                             the ADP and ACP tests and the
                                             minimum contribution in a
                                             top-heavy plan. However, for all
                                             other Plan purposes, including
                                             forfeiture allocation,
                                             Compensation will mean all of each
                                             Participant's Regular or Base
                                             Salary or Wages including:

                                             [ ]      bonuses
                                             [ ]      overtime
                                             [ ]      commissions
                                             [ ]      discretionary bonuses
                                             [ ]      none of the above

                           (ii)     [X]      Not applicable. The definition
                                             selected in (a) will apply for all
                                             Plan purposes.

                           NOTE: If (i) above is elected, the Compensation
                           percentage for the Highly Compensated Employees
                           cannot be greater than the Compensation percentage
                           for other Employees. The Compensation percentage for
                           a group of Employees may be calculated by averaging
                           the separately calculated Compensation ratios for
                           each Employee in the group. An Employee's
                           Compensation ratio is calculated by dividing the
                           Employee's Compensation under (c) by the Employee's
                           Compensation under (a).

         (2)      Compensation will:

                  [X]      include

                  [ ]      not include

                  Company contributions made pursuant to deferred salary
                  agreements which are not includible in the gross income of
                  the Employees under Code Sections 125, 402(e)(3), 402(h)(l)
                  or 403(b).

(F)      RETIREMENT (Part XIV)

         (1)      The Normal Retirement Date of a Participant will be:

                  (a)      [ ]      Age____________________ (not to exceed 65).

                  (b)      [ ]      The later of age ______ (not to exceed 65)
                                    or the _______ (not to exceed 5th)
                                    anniversary of the participation
                                    commencement date. The participation
                                    commencement date is the first day of the
                                    first plan year in which the Participant
                                    commences participation in the Plan.

                  (c)      [X[      Age 65 (not to exceed 65) and 5 (not to
                                    exceed 5th) anniversary of the commencement
                                    date of service with the Employer.

                  NOTE: The Normal Retirement Date, as elected above, may not
                  exceed any mandatory retirement age enforced by the Company.

                                     - 6 -
<PAGE>

(F)      RETIREMENT (continued)

         (2)      The Early Retirement Date of a Participant will be:

                  (a)      [ ]      None.

                  (b)      [ ]      The first day of any calendar month after
                                    his ______ birthday.

                  (c)      [X]      The first day of any calendar month after
                                    his 55 birthday and his completion of:

                                    (i)      4 Years of Service.

                                    (ii)     _______ Years of Service following
                                             commencement of participation.

                  (d)      [ ]      The first day of any calendar month after
                                    his completion of:

                                    (i)      _______ Years of Service.

                                    (ii)     _______ Years of Service following
                                             commencement of participation.

         (3)      The Disability Retirement Date of a Participant will be:

                  (a)      [ ]      None.

                  (b)      [ ]      The first day of any calendar month after
                                    his ____ birthday.

                  (c)      [ ]      The first day of any calendar month after
                                    his ____ birthday and his completion of
                                    ______ Years of Service.

                  (d)      [X]      The first day of any calendar month.

          (4)     Determination of Disability:

                  (a)      [ ]      If entitled to disability benefits under
                                    the Federal Social Security Act.

                  (b)      [X]      Determined by the Company in accordance
                                    with its normal personnel practice applied
                                    in a uniform and nondiscriminatory manner.

                  (c)      [ ]      Determined by the Company in accordance
                                    with the collective bargaining agreement.

                  (d)      [ ]      If entitled to disability benefits under
                                    the Company's Long Term Disability
                                    Insurance Plan.

                  (e)      [ ]      Not Applicable. Disability Retirement is
                                    not allowed.

                                     - 7 -
<PAGE>

(F)      RETIREMENT (continued)

         (5)      Benefit Option

                  Continuation of retired Participant's Account until the first
                  day of April following the calendar year in which the retired
                  Participant attains age 70 1/2 is:

                  [X]      Permitted.

                  [ ]      Not Permitted.

                 If permitted under (M)(1), the retired Participant's account
                 balance will be invested in accordance with the Participant's
                 direction as permitted under the Plan.

(G)      ELECTIVE DEFERRALS (Paragraph 1.20)

         For each Plan Year the Company will make available the following
         amounts to the Plan:

          (1)     [X]      Deferred Salary - An amount not to exceed 15% of a
                           Participant's Compensation pursuant to a Deferred
                           Salary Agreement.

                           (a)      A Participant may elect to commence
                                    Elective Deferrals as of his Entry Date or
                                    any other date thereafter elected below:

                           [ ]      the first day of the Plan Year.

                           [X]      the first day of any month.

                           [ ]      ________________________________________.

                           Such election will become effective as soon as
                           administratively feasible thereafter.

                  (b)      A Participant's election to have Elective Deferrals
                           made pursuant to a Deferred Salary Agreement will
                           remain in effect until modified or terminated. A
                           Participant may modify the amount of Elective
                           Deferrals as of:

                           [ ]      the first day of the Plan Year.

                           [X]      the first day of any month.

                           [ ]      _________________________________________.

                           Such election will become effective as soon as
                           administratively feasible thereafter.

                                     - 8 -
<PAGE>

(G)      ELECTIVE DEFERRALS (continued)

         (2)      [ ]      Deferred Bonus - An amount under this Plan of:

                           [ ]      _____% of Compensation of each Participant.

                           [ ]      A uniform percentage of the Compensation of
                                    each Participant, which the Company, in its
                                    sole discretion, determines.

                           [ ]      A percentage of Compensation of a
                                    Participant, which the Company, in its sole
                                    discretion, determines.

                           A Participant will be afforded a reasonable period
                           to elect to defer all, part or none of the amount
                           described above. Such election will become effective
                           as soon as administratively feasible thereafter.

         (3)      [ ]      Elective Deferrals will not be contributed to the
                           Plan. The Plan is a profit-sharing plan only,
                           without a 401(k) feature.

(H)      COMPANY QUALIFIED NONELECTIVE CONTRIBUTIONS (Paragraph 1.13)

         (1)      The Company [ ] will  [X] will not make Qualified Nonelective
                  Contributions to the Plan. If the Company does make such
                  contributions to the Plan, then the amount of such
                  contributions for each Plan Year will be:

                  (a)      [ ]      _______% (not to exceed 15 percent) of the
                                    Compensation of all Participants eligible
                                    to share in the allocation.

                  (b)      [ ]      _______% of the net profits, but in no
                                    event more than $ ______ for any Plan Year.

                  (c)      [ ]      An amount determined by the Company.

          (2)     (a)      Allocation of Company Qualified Nonelective
                           Contributions will be made to the accounts of:

                           [ ]      All Participants.

                           [ ]      All non-Highly Compensated Participants.

                  (b)      Allocation of Company Qualified Nonelective
                           Contributions will be made:

                           [ ]      In the ratio in which each Participant's
                                    Compensation for the Plan Year bears to the
                                    total Compensation of all Participants for
                                    such Plan Year.

                           [ ]      In the ratio in which each Participant's
                                    Compensation not in excess of $ ______ for
                                    the Plan Year bears to the total
                                    Compensation of all Participants not in
                                    excess of $ ______ for such Plan Year.

                           [X]      Not Applicable. No Company Qualified
                                    Nonelective Contributions will be made.

                                     - 9 -
<PAGE>

(I)      COMPANY MATCHING AND COMPANY QUALIFIED MATCHING CONTRIBUTIONS
         (Paragraphs 1.10 and 1.12)

         (1)      The Company will:

                  (a)      [X]      Make Company Matching Contributions to the
                                    Plan.

                  (b)      [ ]      Make Company Qualified Matching
                                    Contributions to the Plan.

                  (c)      [ ]      Not make any Company Matching or Qualified
                                    Matching Contributions to the Plan.

         (2)      The Formula for determining the Company Matching or Qualified
                  Matching Contribution will be:

                  (a)      [ ]      FIXED PERCENTAGE - An amount equal to the
                                    percentages of the Elective Deferrals and
                                    Participant Matched Contributions
                                    designated below, the total contribution
                                    not to exceed the lesser of $___________
                                    or _____% of Compensation.

<TABLE>
<CAPTION>
                       ELECTIVE DEFERRALS AND
                  PARTICIPANT MATCHED CONTRIBUTION            PERCENTAGE MATCH
                  --------------------------------            ----------------

                  <S>                                         <C>
                  up to 1% of Compensation                     _______________
                  over 1% up to 2% of Compensation             _______________
                  over 2% up to 3% of Compensation             _______________
                  over 3% up to 4% of Compensation             _______________
                  over 4% up to 5% of Compensation             _______________
                  over 5% up to 6% of Compensation             _______________
                  over 6% up to 7% of Compensation             _______________
                  over 7% up to 8% of Compensation             _______________
                  over 8% up to 9% of Compensation             _______________
                  over 9% up to 10% of Compensation            _______________
                  over 10% of Compensation                     _______________
</TABLE>

                  (b)      [X]      DISCRETIONARY PERCENTAGE MATCH - An amount
                                    between the minimum and maximum percentages
                                    designated below of the Elective Deferrals
                                    and Participant Matched Contributions. The
                                    actual percentage will be determined by the
                                    Company prior to the beginning of each Plan
                                    Year, the total contribution not to exceed
                                    the lesser of $ _____ or 8% of Compensation.

<TABLE>
<CAPTION>
                       ELECTIVE DEFERRALS AND
                  PARTICIPANT MATCHED CONTRIBUTION            PERCENTAGE MATCH
                  --------------------------------            ----------------

                  <S>                                         <C>
                  up to 1% of Compensation                       0% to 100%
                  over 1% up to 2% of Compensation               0% to 100%
                  over 2% up to 3% of Compensation               0% to 100%
                  over 3% up to 4% of Compensation               0% to 100%
                  over 4% up to 5% of Compensation               0% to 100%
                  over 5% up to 6% of Compensation               0% to 100%
                  over 6% up to 7% of Compensation               0% to 100%
                  over 7% up to 8% of Compensation               0% to 100%
                  over 8% up to 9% of Compensation                  to
                  over 9% up to 10% of Compensation                 to
                  over 10% of Compensation                          to
</TABLE>

                                     - 10 -
<PAGE>

(I)      COMPANY MATCHING AND COMPANY QUALIFIED MATCHING CONTRIBUTIONS
         (continued)

                  (c)      [ ]      GRADUATED MATCH - An amount equal to a
                                    specified percentage of the Elective
                                    Deferrals and Participant Matched
                                    Contributions, the total contribution not
                                    to exceed the lesser of $ ______ or ______%
                                    of Compensation. The specified percentage
                                    will vary with the Years of Service
                                    credited to the Participant as follows:

<TABLE>
<CAPTION>
                                      YEAR OF SERVICE                    PERCENTAGE MATCH

                                      <S>                                <C>
                                               1                             _____%
                                               2                             _____%
                                               3                             _____%
                                               4                             _____%
                                               5                             _____%
                                               6                             _____%
                                               7                             _____%
                                               8                             _____%
                                               9                             _____%
                                          10 or more                         _____%
</TABLE>

                                    NOTE: If a Graduated Match is elected, this
                                    contribution must satisfy all applicable
                                    nondiscrimination requirements.

(J)      PARTICIPANT CONTRIBUTIONS (Paragraphs 1.38 and 1.39)

         (1)      Participant Matched Contributions:

                  (a)      [ ]      Will be accepted by the Plan if the
                                    Participant elects to make such a
                                    contribution, of no more than ______ % of
                                    the Participant's Compensation.

                  (b)      [X]      None

                  (c)      [ ]      Will be required as a:

                                    [ ]      condition of employment

                                    [ ]      condition of participation

                           The amount that a Participant must contribute is:

                           (i)      [ ]      an amount equal to _______% of the
                                             Participant's Compensation.

                           (ii)     [ ]      _____ cents per hour worked by the
                                             Participant.

                           (iii)    [ ]      a flat dollar amount of $_________
                                             per Plan Year, due ratably each
                                             pay period.

                  These contributions [ ] may [ ] may not be suspended by the
                  Participant. No Company Matched Contribution will be
                  allocated on behalf of a Participant during a time period in
                  which he suspends his contribution.

                                     - 11 -
<PAGE>

(J)      PARTICIPANT CONTRIBUTIONS (continued)

         (2)      Participant Nondeductible Voluntary Contributions:

                  (a)      [X]      Not Permitted

                  (b)      [ ]      Plan has frozen Participant Nondeductible
                                    Voluntary Contributions. Ongoing
                                    Participant Nondeductible Voluntary
                                    Contributions not permitted.

                  (c)      [ ]      Plan permits an amount equal to a
                                    percentage of the Participant's
                                    Compensation elected by him which is not
                                    more than ____ % (not to exceed 10 percent).

(K)      COMPANY PROFIT-SHARING CONTRIBUTIONS (Paragraph 1.11)

         (1)      (a)      The Company:

                           (i)      [X]      May make Company Profit-Sharing
                                             Contributions for any Plan Year at
                                             its discretion.

                           (ii)     [ ]      Will not make any Company
                                             Profit-Sharing Contributions to
                                             the Plan.

                  (b)      Company Profit-Sharing Contributions for any Plan
                           Year will be allocated to the Accounts of all
                           Participants except:

                           (i)      [ ]      Those Participants who have not
                                             been credited with 1000 or more
                                             Hours of Service during the Plan
                                             Year.

                           (ii)     [ ]      Those Participants whose
                                             employment with the Company
                                             terminated prior to the end of the
                                             Plan Year will not share in
                                             contributions allocated after the
                                             date of Termination of Employment.

                           (iii)    [X]      No exceptions.

                           NOTE 1: If (i) or (ii) above are elected,
                           contributions cannot be made more frequently than
                           annually.

                           NOTE 2: A zero dollar allocation to a Participant
                           under (1)(b)(ii) may result in prohibited
                           discrimination in favor of Highly Compensated
                           Employees and thereby disqualify the Plan. See Rev.
                           Rul. 76-250.

                  (c)      Notwithstanding (K)(1)(b)(i) or (ii), if a
                           Participant terminates employment due to death,
                           disability or retirement, Company Profit-Sharing
                           Contributions [ ] will [ ] will not be allocated to
                           the Participant in that Plan Year.

                                     - 12 -
<PAGE>

         (2)      For Non-Integrated Plans: Company Profit Sharing
                  Contributions, for the Plan Year, will be allocated to each
                  Participant's Account as follows:

                  (a)      [ ]      ____% of Compensation for each Participant.

                  (b)      [ ]      The ratio which a Participant's
                                    Compensation bears to the total
                                    Compensation of all Participants
                                    (calculated to the nearest dollar).

                  (c)      [ ]      The ratio which the units allocated to a
                                    Participant bear to the total units
                                    allocated to all Participants, with one
                                    unit allocated for each $100 of
                                    Compensation and [ ] no units [ ] one unit
                                    [ ] two units for each completed Year of
                                    Service.

                                    NOTE: If this method is elected, this
                                    contribution must satisfy all applicable
                                    nondiscrimination requirements.

                  (d)      [X]      Not Applicable. The Plan is integrated.

         (3)      For Integrated Plans: Company Profit Sharing Contributions,
                  for the Plan Year, will be allocated to each Participant's
                  Account as follows:

                  (a)      (i)      [X]      Based on the provisions of
                                             Paragraph 4.7, with the initial
                                             contribution amount determined by
                                             the Company prior to the end of
                                             the Plan Year.

                           (ii)     [ ]      Based on the provisions of
                                             Paragraph 4.7, except that the
                                             limit of Compensation in the first
                                             step will be ____ % (an amount not
                                             in excess of the profit-sharing
                                             permitted disparity rate).

                                             NOTE: If this integrated
                                             contribution is to be used as the
                                             top-heavy minimum contribution,
                                             the percentage selected cannot be
                                             lower than 3%.

                           (iii)    [ ]      Not Applicable. The Plan is
                                             non-integrated.

                  (b)      The integration level is equal to:

                           (i)      [X]      The Taxable Wage Base in effect on
                                             the first day of the Plan Year. It
                                             is the maximum amount of earnings
                                             which may be considered wages for
                                             such year under Code Section
                                             3121(a)(1).

                           (ii)     [ ]      $__________________ (a dollar
                                             amount less than the Taxable Wage
                                             Base).

                           (iii)    [ ]      ______% of the Taxable Wage Base
                                             (not to exceed 100%).

                           (iv)     [ ]      Not Applicable. Plan is
                                             non-integrated.

                                     - 13 -
<PAGE>

(L)      FORFEITURES (Paragraph 13.2)

         (1)      All forfeitures will be:

                  (a)      [ ]      Applied first to reduce expenses related to
                                    the administration of the Plan and then to
                                    reduce Company contributions to the Plan.
                                    (Elect this if any plan expenses will be
                                    billed to the Company.)

                  (b)      [X]      Applied to reduce Company contributions to
                                    the Plan. (Elect this if plan expenses will
                                    be deducted from Participant accounts.)

                  (c)      [ ]      Reallocated among Participants in the ratio
                                    that the Compensation of each Participant
                                    bears to the total Compensation of all
                                    Participants.

                  (d)      [ ]      Not Applicable. The Plan has 100% immediate
                                    vesting.

                  NOTE: Amounts forfeited by Highly Compensated Employees as a
                  result of Excess Aggregate Contributions will only be applied
                  under (a) or (b).

         (2)      If forfeitures will be reallocated in (1)(c) above for any
                  Plan Year, the allocation will be made to Accounts of all
                  Participants except:

                  (a)      [ ]      Those Participants who have not been
                                    credited with 1000 or more Hours of Service
                                    during the Plan Year.

                  (b)      [ ]      Those Participants whose employment with
                                    the Company terminated prior to the end of
                                    the Plan Year will not share in forfeitures
                                    allocated after the date of Termination of
                                    Employment.

                  (c)      [ ]      No exceptions.

         (3)      Notwithstanding (L)(2)(a) or (b), if a Participant terminates
                  employment due to death, disability or retirement,
                  forfeitures [ ] will [ ] will not be allocated to the
                  Participant in that Plan Year.

         (4)      If more than one Company adopts the Plan, and forfeitures
                  will be reallocated in (1)(c) above for any Plan Year:

                  (a)      [ ]      The allocation will be made to the Accounts
                                    of the remaining Participants of the
                                    Company in which the forfeiting Participant
                                    was employed.

                  (b)      [ ]      The allocation will be made to all
                                    Participant Accounts of companies who are
                                    members of an affiliated or controlled
                                    group.

                  (c)      [X]      Not applicable. This Plan has been adopted
                                    by a single employer.

                                     - 14 -
<PAGE>

(M)      INVESTMENT ALLOCATION AND PROFIT REQUIREMENT (Paragraphs 4.10, 4.12
         and 6.4)

         (1)      Investment allocation instructions will be made by the:

                  (a)      [ ]      Administrator

                  (b)      [X]      Participant

                  (c)      [ ]      Administrator for Company contributions,
                                    and Participant for Participant
                                    contributions and Elective Deferrals

          Note: Investment rights granted to Participants under Paragraph 6.4
          may be suspended by the Company by providing prior written notice to
          such affected Participants and the Insurance Company. Upon such
          notice, the Company or trustees, if applicable, shall control the
          investment of plan assets within the Participants' Accounts in
          accordance with their fiduciary obligations until such time as
          subsequent written notice is provided to the Participants and the
          Insurance Company specifying that Participants shall designate in
          writing the investment funds in which contributions are to be
          invested.

          (2)     Rollover contributions will be invested:

                  (a)      [ ]      The same as all other contributions in the
                                    Plan.

                  (b)      [ ]      The same as Participant Contributions and
                                    Elective Deferrals.

                  (c)      [ ]      The same as Company Matching and Company
                                    Profit-Sharing Contributions.

                  (d)      [X]      By a separate election of the Participant.

                  (e)      [ ]      Not applicable. Plan does not accept
                                    rollover contributions.

          (3)     The Company will make contributions to the Plan based on
                  current or accumulated earnings and profits for the taxable
                  year or years ending with or within the Plan Year.

                  [X]  Yes          [ ]  No

                  Contributions will be made from:

                  [ ]      current profits only.

                  [X]      current and accumulated profits.

(N)      POLICIES [ ] will [ ] will not be purchased under the Plan. If
         Policies will be purchased at the request of a Participant, the
         premium for the Policies will be paid with: (Paragraph 7.1)

         (1)      [ ]      Elective Deferrals

         (2)      [ ]      Company Matching Contributions

         (3)      [ ]      Company Profit-Sharing Contributions

                                     - 15 -
<PAGE>

(O)      IN-SERVICE WITHDRAWALS (Part X)

         (1)      Participant Contributions - The Participant may withdraw:

                  (a)      [ ]      His separate account attributable to
                                    Participant Nondeductible Voluntary
                                    Contributions.

                  (b)      [ ]      His separate account attributable to
                                    Participant Matched Contributions.

                  (c)      [ ]      No withdrawals permitted.

                  (d)      [X]      Not Applicable. No Participant
                                    contributions are permitted in Plan.

         (2)      Rollover Contributions - The Participant may withdraw his
                  separate account attributable to Rollover Contributions.

                  [X]  Yes          [ ]  No           [ ]  Not Applicable

                  If "Yes," withdrawal restrictions will be as follows:

                  (a)      [ ]      Same restrictions as Company contributions
                                    in (O)(3)(a).

                  (b)      [ ]      Same restrictions as Elective Deferrals in
                                    (O)(3)(b) and (c).

                  (c)      [X]      No restrictions.

         (3)      Company Contributions - If withdrawal of all Participant
                  contributions and the earnings attributable to them is
                  permitted in (O)(1), or if no Participant contributions are
                  allowed in the Plan, the Participant may withdraw:

                  (a)      [X]      The vested portion of the Participant's
                                    Account attributable to Company Matching
                                    Contributions and Company Profit-Sharing
                                    Contributions (only in a non-integrated
                                    plan). Participants may only withdraw this
                                    portion if:

                           (i)      [ ]      The Participant has 5 or more
                                             years of Plan participation.

                                    [ ]      The Company contributions and
                                             their earnings have been in the
                                             Plan for at least two years.

                                    [ ]      Amended/Restated Plans: The
                                             Participant has 5 or more years of
                                             Plan participation. However, if
                                             the Participant was employed on
                                             the Amendment Date, the
                                             Participant may withdraw the
                                             Company Contributions and their
                                             earnings that have accrued up
                                             until the Amendment Date after
                                             they have been in the
                                             Participant's Account for at least
                                             two years.

                                             NOTE: Only one or no election may
                                             be made in (i).

                           (ii)     [X]      The withdrawal is based on
                                             financial hardship as defined by
                                             Paragraph 10.3 notwithstanding any
                                             of the restrictions elected above.

                                     - 16 -
<PAGE>

(O)      IN-SERVICE WITHDRAWALS (continued)

                           (iii)    [X]      The withdrawal is based on the
                                             Participant attaining age 59 1/2
                                             notwithstanding any of the
                                             restrictions elected above.

                           (iv)     [ ]      The election under (i) [ ] will
                                             [ ] will not apply to (ii) and
                                             (iii) above.

                  (b)      [X]      Any amount not in excess of the sum of the
                                    Participant's Elective Deferrals:

                                    [X]      excluding

                                    [ ]      including

                                    pre-1989 earnings based on financial
                                    hardship as defined in Paragraph 10.3.

                  (c)      [X]      The portion of the Participant's Account
                                    attributable to:

                                    [X]      Elective Deferrals
                                    [ ]      Company Qualified Matching
                                             Contributions
                                    [ ]      Company Qualified Nonelective
                                             Contributions

                                    based on the Participant's attainment of
                                    age 59 1/2.

                  (d)      [ ]      Company Contributions cannot be withdrawn.

                  NOTE: If (a), (b), or (c) is elected, (d) should not be
                  elected.

         (4)      Suspension - If Company contributions may be withdrawn in
                  (O)(3)(a), will the Participant, upon withdrawal, forfeit the
                  right to future Company Matching Contributions or Company
                  Profit-Sharing Contributions (in a non-integrated plan) for
                  12-consecutive months beginning from the date of withdrawal?

                           [X]  Yes     [ ]  No      [ ]  Not Applicable

                  NOTE: Notwithstanding the elections made in this Section, a
                  Participant who has attained age 70 1/2 may withdraw all or a
                  portion of his vested account balance.

(P)      LOANS (Part XI)

         (1)      Loans [X] will [ ] will not be permitted to Participants. A
                  Participant may have up to 2 (not to exceed 5) loan(s)
                  outstanding at any one time.

         (2)      The Repayment Period for loans to purchase a principal
                  residence [X] can [ ] cannot exceed 5 years.

                                     - 17 -
<PAGE>

(Q)      SPECIAL TOP-HEAVY ELECTIONS (Paragraph 16.2)

         (1)      If Employees Participate in Multiple Plans of the Company: If
                  the Company maintains one or more plans in addition to this
                  Plan and if one or more Employees participate in this Plan
                  and in another plan, the minimum top-heavy contribution or
                  benefit will be determined as follows:

                  (a)      [ ]      a Minimum Contribution will be made to this
                                    Plan of:

                                    (i)      [ ]      3% of Compensation (for
                                                      Participants in defined
                                                      contribution plans only).

                                    (ii)     [ ]      5% of Compensation (for
                                                      Participants in this Plan
                                                      and in an active or
                                                      defined benefit plan or a
                                                      defined benefit plan that
                                                      has terminated within
                                                      five years of the
                                                      Determination Date).

                  (b)      [ ]      the Minimum Contribution or benefit will be
                                    satisfied by the Plan named hereafter:
                                    _________________________.

                  (c)      [X]      Not Applicable. Company has only this Plan
                                    and has not maintained a defined benefit
                                    plan within five years of the Determination
                                    Date.

         (2)      Maximum Defined Contribution and Defined Benefit Fractions:
                  If the Plan becomes top-heavy, the dollar limitation factor
                  in the denominators of the Defined Benefit Fraction and
                  Defined Contribution Fraction is computed by substituting a
                  factor of 1.0 for 1.25. The dollar limitation factor can be
                  restored under this Plan to 1.25 by electing one of the
                  following options. This election will be effective in any
                  year in which the top-heavy ratio is more than 60 percent but
                  not more than 90 percent. (Paragraphs 5.8(a) and 5.8(c))

                  (a)      [ ]      the Minimum Contribution under this Plan
                                    will be 4 percent of Compensation (if
                                    additional benefits are provided under this
                                    Plan and the defined benefit plan of the
                                    Company).

                  (b)      [ ]      the Minimum Contribution under this Plan
                                    will be: 7 1/2 percent of Compensation for
                                    Participants entitled to minimum benefits
                                    under both this Plan and the Company's
                                    defined benefit plan, and 4 percent of
                                    Compensation for Participants who are not
                                    entitled to minimum benefits under the
                                    defined benefit plan.

                  (c)      [ ]      Other (specify) __________________________.

                  (d)      [X]      Not Applicable. Company does not have an
                                    active or terminated defined benefit plan.

         (3)      The Company may set forth in the space provided below any
                  provisions to override Plan provisions in order to comply
                  with the rules regarding required aggregation of multiple
                  plans under Code Sections 415 and 416.

                                     - 18 -
<PAGE>

(R)      VESTING (Part IX)

         Prior to retirement or Plan termination, the value of a Participant's
         Account attributable to Company Matching and Company Profit-Sharing
         Contributions is as follows: (Select one option each under (1) and (2)
         below.) (Paragraphs 9.2 and 16.4)

         (1)      Regular Vesting Schedule.

                  (a)      [ ]      100%

                  (b)      [ ]      100% upon completion of ___ Years of Service
                                    (not more than 5).

                  (c)      [X]      25% after 1 Year of Service
                                    50% after 2 Years of Service
                                    75% after 3 Years of Service
                                    100% after 4 Years of Service
                                    % after 5 Years of Service
                                             (no less than 100%)

                  (d)      [ ]      _____% after 1 Year of Service
                                    _____% after 2 Years of Service
                                    _____% after 3 Years of Service
                                             (no less than 20%)
                                    _____% after 4 Years of Service
                                             (no less than 40%)
                                    _____% after 5 Years of Service
                                             (no less than 60%)
                                    _____% after 6 Years of Service
                                             (no less than 80%)
                                    _____% after 7 or more Years of Service
                                             (no less than 100%)

                  (e)      [ ]      Not applicable. No Company contributions
                                    will be made to this Plan.

         (2)      Top-Heavy Vesting Schedule.

                  During and subsequent to the first Plan Year for which the
                  Plan is a Top-Heavy Plan, the following vesting schedule will
                  apply notwithstanding the vesting schedule elected in Section
                  (R)(1). (Paragraph 16.4)

                  (a)      [ ]      100%

                  (b)      [ ]      _____% after 1 Year of Service
                                    _____% after 2 Years of Service
                                    _____% after 3 Years of Service
                                             (no less than 100%)

                                     - 19 -
<PAGE>

(R)      VESTING (continued)

                  (c)      [X]      25% after 1 Year of Service
                                    50% after 2 Years of Service
                                             (no less than 20%)
                                    75% after 3 Years of Service
                                             (no less than 40%)
                                    100% after 4 Years of Service
                                             (no less than 60%)
                                    % after 5 Years of Service
                                             (no less than 80%)
                                    % after 6 or more Years of Service
                                             (no less than 100%)

                  (d)      [ ]      Not Applicable. Plan's schedule elected in
                                    (R)(1) has the same or more rapid vesting
                                    than the above schedules.

         (3)      For purposes of this Section, "Years of Service" will not
                  include: (Paragraph 9.3)

                  (a)      [ ]      Years of Service before age 18.

                  (b)      [ ]      Years of Service during a period for which
                                    the Employee made no Participant Matched
                                    Contributions, if required by Section
                                    (J)(1)(c).

                  (c)      [ ]      Years of Service before the Company
                                    maintained this Plan or a predecessor plan.

(S)      Participant's Account Upon TERMINATION OF EMPLOYMENT (Paragraph 12.3)

         (1)      Benefit Options:

                  OPTION A -

                           (a)      Continuation of Account. If permitted under
                                    (M)(1), the Participant's vested interest
                                    will be invested in accordance with the
                                    Participant's direction as permitted under
                                    the Plan.

                           (b)      Continuation of terminated Participant's
                                    Account until the first day of April
                                    following the calendar year in which the
                                    terminated Participant attains age 70 1/2
                                    is:

                                    [ ]      Permitted

                                    [X]      Not Permitted

                  OPTION B - Deferred Annuity.

                  OPTION C - One-Sum Cash Distribution is:

                           (a)      [X]      Permitted immediately upon
                                             Termination of Employment of a
                                             Participant.

                           (b)      [ ]      Permitted 12 months following the
                                             date on which the Participant
                                             terminates employment.

                                     - 20 -
<PAGE>

(S)      Participant's Account Upon TERMINATION OF EMPLOYMENT (continued)

                           (c)      [ ]      Permitted only for distribution of
                                             Participant Nondeductible
                                             Voluntary Contributions and
                                             Elective Deferrals, if any.

                  OPTION D - Immediate installment payments are:

                                    [X]      Permitted

                                    [ ]      Not Permitted

                  OPTION E - Direct Rollover.

                  NOTE: If the vested Participant's Account is $3,500 or less,
                  the entire vested Participant's Account will be distributed
                  with or without the Participant's consent.

         (2)      Forfeiture Restoration (Paragraph 12.5):

                  A reinstated Participant must repay the full amount
                  distributed to him attributable to Company contributions at
                  Termination of Employment prior to restoration of any
                  forfeited nonvested Account balance.

                  [X] Yes  [ ] No  [ ] Not Applicable. Plan provides immediate
                                       100% vesting.

(T)      LIMITATION ON ALLOCATING CONTRIBUTIONS (Paragraphs 5.5 and 5.6)

         This Section will apply if the Company maintains or ever maintained
         another qualified plan in which any Participant in this Plan is (or
         was) a Participant or could become a Participant. It also applies if
         the Company maintains a welfare benefit fund, as defined in Code
         Section 419(e) or an individual medical account, as defined in Code
         Section 415(l)(2), under which amounts are treated as Annual Additions
         with respect to any Participant in this Plan.

         (l)      If the Participant is covered under another qualified defined
                  contribution plan maintained by the Company, other than a
                  master or Prototype plan:

                  (a)      [ ]      Annual Additions under this Plan will be
                                    reduced until the plans satisfy the Maximum
                                    Permissible Amount limit.

                  (b)      [ ]      The Annual Additions under the other
                                    plan(s) will be reduced until the plans
                                    satisfy the Maximum Permissible Amount
                                    limit.

                                    (Name of Plan) ___________________________.

                  (c)      [ ]      The provisions of Paragraph 5.5 will apply
                                    as if the other plan were a master or
                                    Prototype plan.

                  (d)      [ ]      Other method of limiting Annual Additions
                                    (describe below).

                                    ___________________________________________

                                    ___________________________________________

                                     - 21 -
<PAGE>

(T)      LIMITATION ON ALLOCATING CONTRIBUTIONS (continued)

                  (e)      [X]      Not Applicable. Company has only this Plan.

         (2)      If the Participant is or has ever been a Participant in a
                  defined benefit plan maintained by the Company:

                  (a)      [ ]      The Annual Additions will be limited to
                                    this and/or other qualified defined
                                    contribution plans for the Limitation Year
                                    so that the sum of the Defined Contribution
                                    Fraction and the Defined Benefit Fraction
                                    does not exceed 1.0. (State which plan will
                                    be limited and describe below if limitation
                                    is not under this Plan.)

                                    ___________________________________________

                                    ___________________________________________

                  (b)      [ ]      The Projected Annual Benefit will be
                                    reduced in one or more of the qualified
                                    defined benefit plans so that the sum of
                                    the Defined Contribution Fraction and the
                                    Defined Benefit Fraction does not exceed
                                    1.0 as described below.

                                    ___________________________________________

                                    ___________________________________________

                  (c)      [ ]      The Annual Additions will be limited and
                                    the Projected Annual Benefit will be
                                    reduced as described below.

                                    ___________________________________________

                                    ___________________________________________

                  (d)      [X]      Not Applicable. Company does not maintain a
                                    defined benefit plan.

(U)      PRESENT VALUE OF ACCRUED BENEFITS (Paragraph 16.5)

         If the Company has maintained one or more qualified defined benefit
         plans for purposes of establishing present value to compute the
         top-heavy ratio, any benefit will be discounted only for mortality and
         interest based on the following:

         (l)      [ ]      Interest Rate  ______%     Mortality Rate  ______%

         (2)      [X]      Not Applicable. The Company never maintained a
                           defined benefit plan.

                                     - 22 -
<PAGE>

(V)      ADOPTION CONTINGENT ON IRS APPROVAL

         The opinion letter issued to MassMutual by the National Office of the
         Internal Revenue Service evidences the acceptability of the form of
         the Prototype Plan under Code Section 401. The adopting Company may
         not rely on an opinion letter issued by the National Office of the
         Internal Revenue Service as evidence that the Plan is qualified under
         Code Section 401. To obtain reliance with respect to plan
         qualification, the Company must apply to the appropriate Key District
         Office of the Internal Revenue Service for a determination letter.

         The adoption of the Plan and contributions thereto are subject to the
         condition that the Internal Revenue Service will determine that
         initially the Plan, as it relates to the undersigned Company, meets
         the requirements of the Internal Revenue Code and Regulations issued
         thereunder and, until the Company has received a favorable
         determination letter from the Internal Revenue Service, no Participant
         will have any vested interest in any equity created by contributions
         made by the Company. As soon as reasonably possible, after the
         execution of this Adoption Agreement, the Administrator will submit to
         the Internal Revenue Service the documents required to obtain a
         determination as to the qualified status of this Plan as it relates to
         the Company. Up on receipt of a determination letter, the
         Administrator will submit evidence thereof to the Insurance Company.

         Upon receipt of evidence that the Plan is not so qualified or if
         evidence is not received within one year after adoption of the Plan,
         or such longer period as may be agreed to by the Insurance Company,
         the Contract will be canceled and the Insurance Company will pay to
         the Company an amount equal to the value of the total of all the
         Participant's Accounts as determined by the Insurance Company in
         accordance with the terms of the Contract and Policies.

         This Adoption Agreement may be used only in conjunction with basic
         plan document #002, IRS Serial No. D365756a.

         Has the Company terminated another plan, including a cash or deferred
         arrangement within the last 12 months of the Effective Date of the
         Plan, making this Plan the successor plan as defined under Code
         Section 401(k) and the Regulations thereunder?

                  [ ] Yes           [X] No

         The Company is [X] incorporated [ ]unincorporated.

         Plan Serial Number is 001

         Company's Fiscal Year is: JANUARY 1ST to DECEMBER 31ST

                                     - 23 -
<PAGE>

The undersigned has consulted their own tax-counsel in completing this
document.

Signed this _________ day of __________________________________/___________ at

_______________________________________________________________________________

By:
   ---------------------------------
              Signature

   ---------------------------------
        Printed Name and Title

        Daleen Technologies, Inc.
   ---------------------------------
            Company Name

             36-3697952
   ---------------------------------
      Company's Employer I.D. No.

FOR PARTICIPATING EMPLOYERS ADOPTING THIS PLAN:

<TABLE>
<S>                                        <C>
By:                                        By:
   ---------------------------------          ---------------------------------
             Signature                                     Signature

   ---------------------------------          ---------------------------------
       Printed Name and Title                        Printed Name and Title

   ---------------------------------          ---------------------------------
            Company Name                                 Company Name

   ---------------------------------          ---------------------------------
     Company's Employer I.D. No.                  Company's Employer I.D. No.

By:                                        By:
   ---------------------------------          ---------------------------------
             Signature                                     Signature

   ---------------------------------          ---------------------------------
       Printed Name and Title                        Printed Name and Title

   ---------------------------------          ---------------------------------
            Company Name                                 Company Name

   ---------------------------------          ---------------------------------
     Company's Employer I.D. No.                  Company's Employer I.D. No.
</TABLE>

                                     - 24 -

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