Document:

<PAGE>
                                                                    EXHIBIT 4.6

                       AMENDMENT NO. 4 TO RIGHTS AGREEMENT

         AMENDMENT NO. 4, dated as of March 22, 2002 (this "Amendment"), to the
Rights Agreement, dated as of June 26, 1992, as amended (the "Rights
Agreement"), between Spacelabs Medical, Inc., a Delaware corporation (the
"Company"), and EquiServe Trust Company, N.A. as successor to First Chicago
Trust Company of New York, as rights agent (the "Rights Agent").

                                   WITNESSETH

         WHEREAS, the Company and the Rights Agent have previously entered into
the Rights Agreement; and

         WHEREAS, no Distribution Date (as defined in Section 3(b) of the Rights
Agreement) has occurred as of the date of this Amendment; and

         WHEREAS, Section 26 of the Rights Agreement provides that (i) prior to
the Distribution Date (as such term is defined in the Rights Agreement), the
Company may and the Rights Agent shall, if the Company so directs, supplement or
amend any provision of the Rights Agreement without approval of any holder of
the Rights and (ii) any supplement or amendment duly approved by the Company
shall become effective immediately upon execution by the Company, whether or not
also executed by the Rights Agent; and

         WHEREAS, the Company, Instrumentarium Corporation ("Buyer") and Boxer
Acquisition Corp., a newly-formed wholly-owned indirect subsidiary of Buyer
("Merger Sub"), have entered into an Agreement and Plan of Merger, dated as of
March 22, 2002 (the "Merger Agreement") and an Agreement and Plan of
Reorganization of even date therewith (the "Reorganization Agreement") pursuant
to which Merger Sub will be merged with and into the Company and each share of
common stock of the Company outstanding will be converted into the right to
receive the consideration set forth therein; and

         WHEREAS, the Board of Directors has determined that it is in the best
interest of the Company and its stockholders to amend the Rights Agreement to
exempt the Merger Agreement and the transactions contemplated thereby from the
application of the Rights Agreement; and

         WHEREAS, the Board of Directors of the Company has approved and adopted
this Amendment and directed that the proper officers take all appropriate steps
to execute and put into effect this Amendment.

         NOW, THEREFORE, the Company hereby amends the Rights Agreement as
follows:

<PAGE>

         1.       Section 1(a) of the Rights Agreement is hereby amended by
inserting the following sentence after the last sentence thereof:

                  Notwithstanding any other provision of this Agreement, until
                  the termination of the Merger Agreement (as defined below) or
                  the Reorganization Agreement (as defined below), in accordance
                  with their respective terms, neither Instrumentarium
                  Corporation ("Buyer") nor any Affiliate of Buyer (collectively
                  with Buyer, the "Buyer Parties") shall be deemed to be an
                  Acquiring Person by virtue of the fact that Buyer is the
                  Beneficial Owner solely of shares of Common Stock of which any
                  Buyer Party is or becomes the Beneficial Owner by reason of
                  the approval, execution or delivery of (x) the Agreement and
                  Plan of Merger, dated as of March 22, 2002 (the "Merger
                  Agreement"), as may be amended from time to time, among the
                  Company, Buyer and Boxer Acquisition Corp, a newly-formed
                  wholly-owned indirect subsidiary of Buyer (the "Merger Sub")
                  or (y) the Agreement and Plan of Reorganization, dated as of
                  March 22, 2002 (the "Reorganization Agreement"), as may be
                  amended from time to time, among the Company, Buyer and Merger
                  Sub, or by reason of the consummation of any transaction
                  contemplated in the Merger Agreement or the Reorganization
                  Agreement.

         2.       Section 11 of the Rights Agreement is hereby amended to add
the following subsection (d) at the end thereof:

                  "Notwithstanding any other provision of this Agreement, in
                  accordance with the terms of the Merger Agreement, at the
                  Effective Time (as defined in the Merger Agreement), the
                  Common Stock will be converted into the consideration provided
                  for in the Merger Agreement, and all Rights attached thereto
                  shall simultaneously be extinguished with no additional
                  consideration being paid on account thereof."

         3.       Section 26 of the Rights Agreement is hereby modified and
amended to add the following sentence after the last sentence thereof:

                  "Amendment No.4 to the Rights Agreement shall be deemed to be
                  irrevocable."

         4.       Section 16(a) of the Rights Agreement is hereby modified and
amended to add the following sentence after the last sentence thereof:

                                       2
<PAGE>

                  "Nothing in this Agreement shall be construed to give any
                  holder of Rights or any other Person any legal or equitable
                  rights, remedies or claims under this Agreement in connection
                  with any transactions contemplated by the Merger Agreement or
                  the Reorganization Agreement."

         5.       This Amendment shall be deemed to be in force and effective
immediately prior to the execution and delivery of the Merger Agreement.

         6.       Except as amended hereby, the Rights Agreement shall remain in
full force and effect and shall be otherwise unaffected hereby.

         7.       Capitalized terms used in this Amendment and not defined
herein shall have the meanings assigned thereto in the Rights Agreement.

         8.       This Amendment may be executed in any number of counterparts
and each of such counterparts shall for all purposes be deemed to be an
original, and all such counterparts shall together constitute but one and the
same instrument.

         9.       In all respects not inconsistent with the terms and provisions
of this Amendment, the Rights Agreement is hereby ratified, adopted, approved
and confirmed. In executing and delivering this Amendment, the Rights Agent
shall be entitled to all the privileges and immunities afforded to the Rights
Agent under the terms and conditions of the Rights Agreement.

                                       3

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 4
to be duly executed and their respective corporate seals to be hereunto affixed
and attested, all as of the day and year first above written.

ATTEST:                              SPACELABS MEDICAL, INC.

By        /s/ Clay West                 By     /s/ Eugene V. DeFelice
         -------------------------            -------------------------------
         Name:Clay West                       Name:Eugene V. DeFelice
         Title:Assoc. General Counsel         Title:Vice President, General
                                                    counsel and Secretary

ATTEST:                              EQUISERVE TRUST COMPANY, N.A.

By        /s/ Randi Galan                 By   /s/ Thomas A. Ferrari
         -------------------------            -------------------------------
         Name:Randi Galan                      Name:Thomas A. Ferrari
         Title:Senior Account Manager          Title:Senior Managing Director

                                       4<PAGE>
                                                                   EXHIBIT 10.52

                             SPACELABS MEDICAL, INC.

                                 RETIREMENT PLAN

                              AMENDED AND RESTATED

                            EFFECTIVE JANUARY 1, 2001

Prepared for review by legal counsel.

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                           Page
                                                                                           ----
<S>                                                                                        <C>
PREAMBLE     ................................................................................1

ARTICLE I DEFINITIONS........................................................................2
        1.1  Accrued Benefit.................................................................2
        1.2  Actuarially Equivalent/Actuarially/Actuarial....................................2
        1.3  Affiliated Companies............................................................3
        1.4  Annuity Starting Date...........................................................3
        1.5  Beneficiary.....................................................................3
        1.6  Board...........................................................................3
        1.7  Code............................................................................4
        1.8  Compensation....................................................................4
        1.9  Credited Service................................................................4
        1.10 Disabled........................................................................4
        1.11 Earnings........................................................................5
        1.12 Effective Date..................................................................6
        1.13 Eligible Employee...............................................................7
        1.14 Employee........................................................................7
        1.15 Employer........................................................................7
        1.16 Employment Commencement Date....................................................7
        1.17 ERISA...........................................................................8
        1.18 Final Average Monthly Earnings..................................................8
        1.19 Foreign Employee................................................................8
        1.20 Participant.....................................................................8
        1.21 Period of Service...............................................................8
        1.22 Period of Severance.............................................................9
        1.23 Plan............................................................................9
        1.24 Plan Administrator..............................................................9
        1.25 Plan Year.......................................................................9
        1.26 Predecessor Employer............................................................9
        1.27 Predecessor Plan................................................................9
        1.28 Service.........................................................................9
        1.29 Severance From Service Date....................................................10
        1.30 Social Security Retirement Age.................................................10
        1.31 Spacelabs Medical, Inc. Benefits Committee/Committee...........................10
        1.32 Temporarily Terminated.........................................................10
        1.33 Terminated or Terminates.......................................................10
        1.34 Trust or Trust Fund............................................................10
        1.35 Trustee........................................................................10
        1.36 Additional Definitions in Plan.................................................11

ARTICLE II PARTICIPATION....................................................................12
        2.1  Eligibility for Participation..................................................12
</TABLE>

                                        i
<PAGE>

<TABLE>
<S>                                                                                       <C>
        2.2  Reemployment After a Termination...............................................12
        2.3  Employees in a Bargaining Unit.................................................13
        2.4  Waiver of Participation........................................................13
        2.5  Definitions....................................................................13

ARTICLE III RETIREMENT DATES................................................................16
        3.1  Normal Retirement Date.........................................................16
        3.2  Early Retirement Date..........................................................16
        3.3  Deferred Retirement Date.......................................................16
        3.4  Retirement Date................................................................16
        3.5  Vested Termination Date........................................................17

ARTICLE IV RETIREMENT BENEFITS..............................................................18
        4.1  Accrued Benefit................................................................18
        4.2  Accrued Benefit For Former Employees of Predecessor Employer...................18
        4.3  Accrued Benefit for Former Employees of Tektronix, Inc. and Squibb
             Vitatek, Inc. .................................................................18
        4.4  Normal Retirement Benefit......................................................19
        4.5  Early Retirement Benefit.......................................................19
        4.6  Deferred Retirement Benefit....................................................19
        4.7  Vested Termination Benefit.....................................................20
        4.8  Reemployment After Retirement..................................................20
        4.9  Benefits For Terminated Participants...........................................20

ARTICLE V FORMS OF PAYMENT..................................................................21
        5.1  Forms of Payment...............................................................21
        5.2  Automatic Form of Benefit......................................................22
        5.3  Limitation on Forms of Payment.................................................22
        5.4  Explanation of Forms of Payment................................................23
        5.5  Direct Rollover................................................................23

ARTICLE VI DEATH AND DISABILITY BENEFITS....................................................25
        6.1  Spouse's Death Benefit.........................................................25
        6.2  Disability Benefits............................................................26

ARTICLE VII VESTING.........................................................................27
        7.1  Vesting........................................................................27
        7.2  Termination Prior to Vesting...................................................27
        7.3  Forfeitures....................................................................28
        7.4  Amendment of Vesting Schedule..................................................28

ARTICLE VIII LIMITATIONS ON BENEFITS........................................................29
        8.1  Limitation on Benefits.........................................................29
        8.2  Maximum Annual Benefit Payable Under the Plan..................................31
        8.3  Additional Limitation Relating to Defined Contribution Plans...................35

ARTICLE IX TOP HEAVY PROVISIONS.............................................................37
        9.1  Scope..........................................................................37
</TABLE>

                                       ii
<PAGE>

<TABLE>
<S>                                                                                       <C>
        9.2    Top Heavy Status...............................................................37
        9.3    Minimum Benefit................................................................39
        9.4    Benefit Limitation.............................................................40
        9.5    Vesting........................................................................41
        9.6    Collectively Bargained Employees...............................................42

ARTICLE X ADMINISTRATION OF THE PLAN..........................................................43
        10.1   Plan Administrator.............................................................43
        10.2   Organization and Procedures....................................................43
        10.3   Duties and Authority of the Committee..........................................43
        10.4   Expenses.......................................................................44
        10.5   Bonding and Insurance..........................................................45
        10.6   Commencement of Benefits.......................................................45
        10.7   Appeal Procedure...............................................................47
        10.8   Plan Administration - Miscellaneous............................................48
        10.9   Domestic Relations Orders......................................................50
        10.10  Plan Qualification.............................................................51
        10.11  Deductible Contribution........................................................51
        10.12  Payment of Benefits Through Purchase of Annuity Contract.......................52

ARTICLE XI AMENDMENT AND TERMINATION..........................................................53
        11.1   Amendment-General..............................................................53
        11.2   Amendment - Consolidation, Merger, or Transfer.................................53
        11.3   Termination of the Plan........................................................54
        11.4   Allocation of the Trust Fund on Termination of Plan............................54

ARTICLE XII FUNDING...........................................................................56
        12.1   Contributions to the Trust.....................................................56
        12.2   Trust Fund for Exclusive Benefit of Participants...............................56
        12.3   Trustee........................................................................56
        12.4   Investment Manager.............................................................56

ARTICLE XIII FIDUCIARIES......................................................................58
        13.1   Limitation of Liability of the Employer and Others.............................58
        13.2   Indemnification of Fiduciaries.................................................58
        13.3   Scope of Indemnification.......................................................58

SIGNATURE PAGE................................................................................59

APPENDIX A -- PARTICIPATING EMPLOYERS.........................................................60
</TABLE>

                                      iii
<PAGE>

                                    PREAMBLE

THIS RETIREMENT PLAN (hereinafter referred to as the "Plan" and known as the
Spacelabs Medical, Inc. Retirement Plan) is amended and restated effective
January 1, 2001 by Spacelabs Medical, Inc. (hereinafter "Employer").

WHEREAS, the Employer established this Plan effective June 26, 1992 to provide
retirement benefits to Eligible Employees who become covered under the Plan; and

WHEREAS, effective June 26, 1992 the Westmark International Incorporated
Retirement Plan spunoff assets and liabilities to form this Plan; and

WHEREAS, this Plan is intended to provide substantially similar benefits on the
effective date to those provided to employees of the Employer under the
predecessor Westmark International Incorporated Retirement Plan on June 25,
1992; and

WHEREAS, the Employer has amended the Plan eight (8) times, effective June 26,
1992, October 29, 1993, January 1, 1993, January 1, 1994, June 26, 1992, July 1,
1995, January 1, 1996, and November 1, 1996.

WHEREAS, the Plan shall be maintained for the exclusive benefit of covered
Employees, and is intended to comply with the Internal Revenue Code of 1986, as
amended, the Employee Retirement Income Security Act of 1974, as amended, and
other applicable law;

NOW, THEREFORE, the Employer does hereby amend and restate the Plan as set forth
in the following pages effective January 1, 2000, except as otherwise
specifically stated herein.

                                       1
<PAGE>

                                    ARTICLE I

                                   DEFINITIONS

The following terms when used herein shall have the following meaning, unless a
different meaning is plainly required by the context. Capitalized terms are used
throughout the Plan text for terms defined by this and other Sections.

1.1     Accrued Benefit

        "Accrued Benefit" means, on any date, the benefit determined under the
        formula specified in Section 4.1 as of such date, modified as provided
        in Sections 4.2 and 4.3, if applicable.

1.2     Actuarially Equivalent/Actuarially/Actuarial

        (a)    General

               "Actuarially Equivalent" and similar terms (for purposes other
               than determining contributions to the Trust Fund) means that the
               present value of the two (2) payments or series of payments shall
               be of equal value when computed at an (8%) rate of interest and
               on the basis of the 1984 Unisex Pension Mortality Table;
               provided, however, that for purposes of calculating Lump Sum
               benefits, the following rules shall apply.

        (b)    Prior to January 1, 1996

               With respect to Participants who Terminate prior to January 1,
               1996, the mortality table used shall be the 1984 Unisex Pension
               Mortality Table and the interest rate used shall be the Pension
               Benefit Guaranty Corporation ("PBGC") interest rate for immediate
               or deferred annuities from a single employer plan in effect on
               the first day of the Plan Year which contains the proposed
               distribution date; and

        (c)    On or After January 1, 1996

               With respect to Participants who Terminate on or after January 1,
               1996, the mortality table used shall be the "applicable mortality
               table" for the first full calendar month preceding the calendar
               month that contains the Annuity Starting Date. The "applicable
               mortality table" shall be the mortality table prescribed by the
               Commissioner of the Internal Revenue Service for purposes of
               calculating the present value of annuities under Code Section
               417(e), as amended by the Retirement Protection Act of 1994. The
               "applicable interest rate" shall be the annual interest rate on
               thirty (30) year Treasury securities, as specified by the
               Commissioner of the Internal Revenue Service for purposes of
               calculating the

                                       2
<PAGE>

               present value of annuities under Code Section 417(e), as amended
               by the Retirement Protection Act of 1994.

1.3     Affiliated Companies

        "Affiliated Companies" means:

        (a)    the Employer;

        (b)    any other corporation which is a member of a controlled group of
               corporations which includes the Employer (as defined in Code
               Section 414(b));

        (c)    any other trade or business under common control with the
               Employer (as defined in Code Section 414(c));

        (d)    any other member of an affiliated service group which includes
               the Employer (as defined in Code Section 414(m)); or

        (e)    any other business or entity that is treated as a single Company
               with the Employer under Code Section 414(o).

        For purposes of the limitation on benefits in Sections 8.2 and 8.3, the
        determination of whether an entity is an Affiliated Company will be made
        by modifying Code Sections 414(b) and (c) as specified in Code Section
        415(h).

1.4     Annuity Starting Date

        "Annuity Starting Date" means the first day of the first period for
        which a Plan benefit is payable as an annuity, or any other form.

1.5     Beneficiary

        "Beneficiary" means the person or persons designated to be the
        Beneficiary by the Participant in writing to the Spacelabs Medical, Inc.
        Benefits Committee. In the event a married Participant designates
        someone other than his or her spouse as Beneficiary, such initial
        designation or subsequent change shall be invalid unless the spouse
        consents in a writing which names the designated Beneficiary and is
        notarized or witnessed by a Plan representative.

1.6     Board

        "Board" means the Board of Directors of Spacelabs Medical, Inc.

                                       3
<PAGE>

1.7     Code

        "Code" means the Internal Revenue Code of 1986, as amended and including
        all regulations promulgated pursuant thereto.

1.8     Compensation

        "Compensation" for any tax year has the meaning set forth in Treasury
        Regulation Section 1.415-2(d)(11)(i). Effective January 1, 1998,
        Compensation shall also include any elective deferrals as defined in
        Code Section 402(g)(3) made by the Participant during a Plan Year and
        pre-tax Employee contributions made by the Employer on behalf of the
        Employee for the Plan Year, pursuant to Code Sections 125 or 132(f)(4).

1.9     Credited Service

        "Credited Service" means all completed years and whole months of Service
        for the Employer on and after the Effective Date during a Period of
        Service (excluding Periods of Service forfeited due to a Period of
        Severance) and shall also include the following:

        (a)    with respect to an individual who becomes a Participant on June
               26, 1992, the Participant's Credited Service under the
               Predecessor Plan as of June 25, 1992; and

        (b)    with respect to an individual who transfers employment from the
               Predecessor Employer to the Employer after June 26, 1992 and
               prior to January 1, 1993, the individual's Credited Service under
               the Predecessor Plan as of the date on which his or her
               employment with the Predecessor Plan terminates.

        Notwithstanding the foregoing, with respect to an Employee who first
        becomes a Participant on or after July 1, 1995, Credited Service shall
        not include any Periods of Service occurring prior to the first day of
        such Employee's Eligibility Year of Service. An Employee's "Eligibility
        Year of Service" shall be the eligibility computation period during
        which such Employee satisfies the eligibility requirements for
        participation in the Plan (i.e., the eligibility computation period in
        which the Employee completes the one (1) year Period of Service or the
        one (1) Year of Service requirement, as applicable, set forth in Section
        2.1).

        A Participant's service earned while employed by JRS Clinical Systems,
        Inc. before it became an Affiliated Company shall be included in the
        Participant's Credited Service.

1.10    Disabled

        "Disabled" means a Participant who is entitled to benefits under an
        Employer-sponsored long term disability plan, or a long term disability
        plan to which the Employer contributes on behalf of the Participant.

                                       4
<PAGE>

1.11    Earnings

        "Earnings" for each month means:

        (a)    for Credited Service prior to January 1, 1989: the straight-time
               pay earned by an Employee from the Predecessor Employer prior to
               reduction for any contributions determined on a salary reduction
               basis under a flexible benefit plan established pursuant to Code
               Section 125 or under the Westmark International Incorporated
               Incentive Savings and Stock Ownership Plan, including shift
               differentials, special geographical location allowances, holiday
               pay, sick leave pay (exempt and non-exempt), short-term
               disability (exempt and non-exempt), retroactive pay as it applies
               to any of the above, and pay for vacation hours taken. Earnings
               will not include non-refundable draw, bonuses, commissions,
               employee referral bonuses, stock option payments, special
               bonuses, lump-sum payments or cash payoffs for unused vacation,
               severance pay, hiring bonus, long-term disability payments
               (exempt and non-exempt), finder's fees, any relocation payments
               in the form of reimbursement or relocation bonus and overtime;

        (b)    for all Participants who are not Foreign Employees, for Credited
               Service after December 31, 1988: the straight-time pay earned by
               an Employee from the Employer or the Predecessor Employer prior
               to reduction for any contributions determined on a salary
               reduction basis under a transportation fringe benefit pursuant to
               Code Section 132(f)(4), or a flexible benefit plan established
               pursuant to Code Section 125 or under the Westmark International
               Incorporated Incentive Savings and Stock Ownership Plan or
               Spacelabs Medical, Inc. Incentive Savings and Stock Ownership
               Plan, including:

               (i)    special geographical location allowances, holiday pay,
                      sick leave pay (exempt and non-exempt), short-term
                      disability (exempt and non-exempt), retroactive pay as it
                      applies to any of the above, and pay for vacation hours
                      taken;

               (ii)   overtime pay, shift differentials, and bonuses (including
                      MICP), not in excess of fifty percent (50%) of
                      straight-time pay prior to reduction as described above;
                      and

               (iii)  salesman and service commissions (including non-refundable
                      draws paid on and after June 1, 1994), to the extent such
                      commissions when added to the amount determined under (ii)
                      above do not exceed one hundred twenty five (125%) of
                      straight-time pay prior to reduction as described above.

        Effective June 1, 1994, Earnings will not include employee referral
        bonuses, Performance Unit Plan awards, car allowances, stock option
        payments, restricted stock awards, lump-sum payments or cash payoffs for
        unused vacation, severance pay, hiring bonus, long-

                                       5
<PAGE>

        term disability payments (exempt and non-exempt), finder's fees, and any
        relocation payments in the form of reimbursement or relocation bonus;
        and

        (c)    for all Foreign Employees, one-twelfth (1/12) of the annual
               notional salary and the actual bonus, if any, stated in U.S.
               dollars established in a uniform and nondiscriminatory manner for
               each Foreign Employee, on or after January 1, 1987. Notional
               salary shall include a Foreign Employee's commission quota, if
               applicable, without regard to the actual commission earned, and
               shall not include any special relocation or foreign assignment
               allowances.

        Notional salary shall include an equitable adjustment to reflect any
        retirement benefit which is expected to be earned under a foreign
        retirement plan to the extent attributable to contributions by an
        Employer or any foreign subsidiary of an Employer.

        Notional salary for each Foreign Employee shall be approved by the
        President of the applicable business unit.

        Notwithstanding the foregoing, annual Earnings in excess of the limit
        indicated below shall be disregarded; provided, however, that the
        $150,000 limit for 1994 ($170,000 for 2000) shall be automatically
        adjusted for future years to the maximum permissible dollar limitation
        permitted by the Commissioner of the Internal Revenue Service.

<TABLE>
<CAPTION>
                            Plan Year                Dollar Limitation
                            ---------                -----------------
<S>                                                  <C>
                               1989                      $200,000
                               1990                      $209,200
                               1991                      $222,220
                               1992                      $228,860
                               1993                      $235,840
                          1994 and later            $150,000 (indexed)
</TABLE>

        For Plan Years commencing prior to January 1, 1997, determining Earnings
        of a Participant for purposes of this limitation, the family aggregation
        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 nineteen (19) before the close of the year. If as a result
        of the application of such rules the limitation is exceeded, then the
        limitation shall be prorated among the affected individuals in
        proportion to each such individual's Earnings as determined under this
        Section 1.11 prior to the application of this limitation.

1.12    Effective Date

        "Effective Date" means June 26, 1992, or with respect to any Employer
        specified in appendices to this Plan, the date such Employer adopted the
        Plan.

                                       6
<PAGE>

1.13    Eligible Employee

        "Eligible Employee" means any Employee who is on the payroll of the
        Employer, provided, however, the term "Eligible Employee" does not
        include the following:

        (a)    a person who performs services for the Employer and is on the
               payroll of a third party employee leasing organization; or

        (b)    an individual who is not treated by the Employer as an employee
               for payroll tax purposes, but who is subsequently determined by a
               government agency, by the conclusion or settlement of threatened
               or pending litigation, or otherwise to be (or to have been) a
               common law employee of the Employer.

1.14    Employee

        "Employee" means any person (including any officer or director) who is
        employed by, and as such is enrolled on the payroll of the Employer and
        is performing services in the United States, and any person who is a
        Foreign Employee.

        "Employee" shall include any leased employee within the meaning of Code
        Section 414(n)(2); provided, however, if leased employees constitute
        twenty percent (20%) or less of the Employer's non-highly compensated
        work force, the term "Employee" shall not include a leased employee who
        is covered by a plan maintained by the leasing organization which meets
        the requirements of Code Section 414(n)(5).

1.15    Employer

        "Employer" means Spacelabs Medical, Inc. For purposes other than
        Articles X, XI and XII, the term "Employer" shall also include other
        Affiliated Companies that adopt the Plan with the approval of the
        Chairman of the Board and Chief Executive Officer of Spacelabs Medical,
        Inc. as provided from time to time in Appendix A to the Plan. A
        participating Employer shall be deemed to appoint Spacelabs Medical,
        Inc. as its exclusive agent with respect to all power and authority
        conferred by the Plan on an Employer.

1.16    Employment Commencement Date

        "Employment Commencement Date" means the later of the Effective Date and
        the date on which an Employee first completes an Hour of Service for the
        Employer or an Affiliated Company during the current period of
        employment. "Hour of Service" for purposes of this definition means each
        hour for which an Employee is paid or entitled to payment for the
        performance of duties for the Employer or any Affiliated Companies.

                                       7
<PAGE>

1.17    ERISA

        "ERISA" means the Employee Retirement Income Security Act of 1974, as
        amended, including all regulations thereunder.

1.18    Final Average Monthly Earnings

        "Final Average Monthly Earnings" means the highest average monthly
        Earnings received by the Participant during any sixty (60) consecutive
        month period. In the event the Participant has less than sixty (60)
        consecutive months of employment, the computation period shall be based
        upon (a) the most recent sixty (60) months of employment (whether or not
        consecutive), or (b) the total Period of Service with the Employer and
        the Predecessor Employer, whichever is less. Notwithstanding the
        foregoing, in calculating the Final Average Monthly Earnings of an
        Employee who first becomes a Participant in the Plan on or after July 1,
        1994, neither Periods of Service occurring prior to the first day of
        such Employee's Eligibility Year of Service, as defined in Section 1.9,
        nor Earnings for such Periods of Service shall be taken into account.

1.19    Foreign Employee

        "Foreign Employee" means any person (including an officer or director)
        who is employed by, and as such is on the payroll of the Employer or a
        foreign subsidiary or branch of an Employer, who relocates to a country
        outside the United States and outside such individual's country of
        citizenship to complete a temporary assignment for an Employer or a
        foreign subsidiary or branch of an Employer which is expected to be
        completed within five (5) years from the initial date of the assignment.

1.20    Participant

        "Participant" means any Eligible Employee who qualifies for
        participation pursuant to Section 2.1 or 2.2. A nonvested Participant
        shall cease to be a Participant on the date he or she Terminates. A
        vested Participant shall cease to be a Participant when his or her
        benefit payments from the Plan are completed.

1.21    Period of Service

        "Period of Service" means the period of time commencing with the
        Employment Commencement Date and ending on the Severance From Service
        Date. Non-successive periods are aggregated to determine the Employee's
        total Period of Service. For vesting and participation purposes, an
        Employee's Period of Service shall also include the following:

        (a)    Periods not in Service due to Temporary Termination;

        (b)    Periods of Service with an Affiliated Company; and

                                       8
<PAGE>

        (c)    for an individual who becomes an Employee on or after June 26,
               1992 and prior to January 1, 1993, any period of employment with
               the Employer under the Predecessor Plan to the extent such
               employment was credited as "service" under the Predecessor Plan.

1.22    Period of Severance

        "Period of Severance" means the period of time commencing at the
        Severance From Service Date and ending on the date the Employee again
        performs an Hour of Service as defined in Section 1.16 for the Employer;
        provided however, such period shall commence one (1) year later if a
        male or female Employee is absent due to pregnancy, birth or adoption of
        a child, or caring for a child immediately following birth or adoption.

1.23    Plan

        "Plan" means the Spacelabs Medical, Inc. Retirement Plan, either in its
        previous or present form, or as amended from time to time.

1.24    Plan Administrator

        "Plan Administrator" means the person or entity designated in Article X
        to administer the Plan.

1.25    Plan Year

        "Plan Year" means initially the period commencing June 26, 1992 and
        ending December 31, 1992 and thereafter means the twelve (12) month
        period commencing each January 1 and ending each December 31.

1.26    Predecessor Employer

        "Predecessor Employer" means Westmark International Incorporated and any
        of its subsidiaries participating in the Predecessor Plan on June 26,
        1992, and any successor employers thereto.

1.27    Predecessor Plan

        "Predecessor Plan" means the Westmark International Incorporated
        Retirement Plan. In the event the Plan recognizes service under other
        predecessor plans, the term "Predecessor Plan" shall also include other
        plans as provided from time to time in appendices to this Plan.

1.28    Service

        "Service" means periods for which an Employee is paid or entitled to
        payment for the performance of duties for the Employer or an Affiliated
        Company.

                                       9
<PAGE>

1.29    Severance From Service Date

        "Severance From Service Date" means the earlier of the date on which an
        Employee quits, retires, is discharged or dies, or the first anniversary
        of absence from work for any other reason. An individual employed by an
        Affiliated Company other than the Employer shall incur a Severance from
        Service Date if the individual's employer ceases to be an Affiliated
        Company of the Employer.

1.30    Social Security Retirement Age

        "Social Security Retirement Age" means the following ages depending on
        the Participant's year of birth: age sixty-five (65) for Participants
        born prior to 1938, age sixty-six (66) for Participants born after 1937
        but prior to 1959, and age sixty-seven (67) for Participants born after
        1959.

1.31    Spacelabs Medical, Inc. Benefits Committee/Committee

        "Spacelabs Medical, Inc. Benefits Committee" and "Committee" mean the
        committee appointed by the Employer to administer the Plan.

1.32    Temporarily Terminated

        Termination is deemed "Temporary" if the Employee is rehired and in
        Service within one (1) year of the initial date of absence from work.

1.33    Terminated or Terminates

        "Terminated" or "Terminates" means no longer in Service or employed as
        an Employee with the Employer for reasons of quit, retirement, discharge
        or death. An Employee shall also be deemed Terminated on the first
        anniversary of the initial date of absence for any other reason,
        provided such absence lasts at least twelve (12) months.

1.34    Trust or Trust Fund

        "Trust" or "Trust Fund" means the trust fund into which shall be paid
        all contributions and from which all benefits shall be paid under this
        Plan.

1.35    Trustee

        "Trustee" means the trustee or trustees who receive, hold, invest and
        disburse the assets of the Trust in accordance with the terms and
        provisions set forth in a trust agreement.

                                       10
<PAGE>

1.36    Additional Definitions in Plan

        The following terms are defined in the following Sections of the Plan:

<TABLE>
<CAPTION>
                                                                          Section
                                                                          -------
<S>                                                                       <C>
        Aggregate Account                                                 9.2(e)
        Aggregation Group                                                 9.2(h)
        Break in Service                                                  2.5(b)
        Claimant                                                          10.7(b)
        Deferred Retirement Benefit                                       4.6
        Deferred Retirement Date                                          3.3
        Determination Date                                                9.2(c)
        Earliest Retirement Date                                          6.1
        Early Retirement Benefit                                          4.5
        Early Retirement Date                                             3.2
        Eligibility Year of Service                                       1.9
        Highly Compensated Employee                                       8.1(c)
        Hour of Service                                                   1.16, 2.5(c)
        Investment Manager                                                12.4
        IRA                                                               5.5(a)
        Joint and Survivor Annuity                                        5.1(b)
        Key Employee                                                      9.2(g)
        Lump Sum                                                          5.1(c)
        Normal Retirement Benefit                                         4.4
        Normal Retirement Date                                            3.1
        Order                                                             10.9
        Parental Leave                                                    2.5(b)
        PBGC                                                              1.2(a)
        Permissive Aggregation Group                                      9.2(h)
        Present Value of Accrued Benefits                                 9.2(f)
        Primary Social Security Benefit                                   4.3
        Qualified Domestic Relations Order                                10.9
        Required Aggregation Group                                        9.2(h)
        Required Beginning Date                                           10.6(c)
        Retirement Date                                                   3.4
        Statutory 50% Joint and Survivor Annuity Option                   5.2(a)
        Super Top Heavy                                                   9.2(b)
        Top Heavy                                                         9.2(a)
        Valuation Date (for Top Heavy)                                    9.2(d)
        Vested Termination Date                                           3.5
        Vested Termination Benefit                                        4.7
        Whole Life Annuity                                                5.1(a)
        Year of Service                                                   2.5(a)
</TABLE>

                                       11
<PAGE>

                                   ARTICLE II

                                  PARTICIPATION

2.1     Eligibility for Participation

        Each Eligible Employee who was a participant in the Predecessor Plan on
        June 25, 1992 shall become a Participant in this Plan on the Effective
        Date.

        Each other Eligible Employee who is regularly scheduled to work at least
        thirty (30) hours per week, and who is not already a Participant, shall
        become a Participant under this Plan on the later of the first of the
        month coinciding with or next following completion of a one (1) Year
        Period of Service and the date his or her employer becomes an Employer
        for Plan purposes.

        Each other Eligible Employee who is regularly scheduled to work less
        than thirty (30) hours per week (including an Eligible Employee who
        changes from an Eligible Employee who is regularly scheduled to work at
        least thirty (30) hours per week to an Eligible Employee who is
        regularly scheduled to work less than thirty (30) hours per week prior
        to the time such Eligible Employee meets the eligibility requirements
        that apply to Employees who are regularly scheduled to work at least
        thirty (30) hours per week), and who is not already a Participant, shall
        become a Participant under this Plan on the later of the first of the
        month coinciding with or next following his or her completion of one (1)
        Year of Service, as defined in Section 2.5(a), and the date his or her
        employer becomes an Employer for Plan purposes.

        Notwithstanding the foregoing, a Foreign Employee who does not become a
        Participant on the Effective Date must complete an enrollment form prior
        to the date participation commences.

        Hours of Service and/or Periods of Service earned while an employee of
        JRS Clinical Systems before it became an Affiliated Company shall be
        counted in determining an Employee's eligibility to participate in the
        Plan.

2.2     Reemployment After a Termination

        Upon the reemployment of a Terminated former Participant as an Eligible
        Employee, he or she shall immediately become a Participant.

        An Employee who Terminates prior to becoming a Participant and is later
        reemployed shall become a Participant upon satisfying the requirements
        of Section 2.1.

                                       12
<PAGE>

2.3     Employees in a Bargaining Unit

        An Employee belonging to a collective bargaining unit, which has entered
        an agreement with the Employer which does not provide for retirement
        benefits under this Plan, shall not qualify for participation and the
        period of employment shall not be included in determining his or her
        Credited Service. If such an Employee is a Participant when such an
        agreement is entered, the Employee shall cease to accrue Credited
        Service on the effective date of the bargaining agreement. If such an
        agreement provides for Plan participation, a covered Employee may
        continue or resume participation and accrual of Credited Service.

2.4     Waiver of Participation

        A Foreign Employee may elect in writing to waive his or her right to be
        a Participant in this Plan by submitting a form to the Committee. A
        waiver of participation shall be effective on the first day of the Plan
        Year preceding the date of election. A Foreign Employee may
        prospectively rescind a waiver in a writing to the Committee at any
        time, effective on the date of rescission. During such period of
        non-participation, the Foreign Employee shall accrue no Periods of
        Service or Credited Service, nor shall he or she have any other rights
        inherent with participation in the Plan.

2.5     Definitions

        (a)    Year of Service

               Solely for purposes of Section 2.1, "Year of Service" means an
               eligibility computation period during which the Employee
               completes not less than one thousand (1,000) Hours of Service, as
               defined in Section 2.5(c). An Employee's initial eligibility
               computation period shall be the twelve (12) consecutive month
               period commencing on the Employee's Employment Commencement Date
               (or reemployment date following a Break in Service). If the
               Employee fails to complete one-thousand (1,000) Hours of Service
               during his or her initial eligibility computation period,
               subsequent eligibility computation periods shall be the twelve
               (12) consecutive month periods commencing on the first day of any
               Plan Year, beginning with the Plan Year containing the first
               anniversary of the Employee's Employment Commencement Date (or
               reemployment date following a Break in Service, as defined in
               Section 2.5(b)).

        (b)    Break in Service

               (i)    Solely for purposes of Section 2.5(a), an Employee incurs
                      a "Break in Service" if such Employee fails to complete
                      more than five hundred (500) Hours of Service during the
                      applicable eligibility computation period.

                                       13
<PAGE>

               (ii)   Solely for purposes of determining whether an Employee has
                      incurred a Break in Service, an Employee who is absent
                      from work on unpaid Parental Leave shall be credited with
                      up to five hundred and one (501) Hours of Service during
                      such absence. The Plan Administrator shall credit Hours of
                      Service during the absence period on the basis of:

                      (A)    The number of Hours of Service with which the
                             Employee would have been credited had he or she
                             been paid during the absence period; or

                      (B)    If the Plan Administrator cannot determine the
                             number of Hours of Service with which the Employee
                             would have been credited under subparagraph (A)
                             above, on the basis of eight (8) hours per day
                             during the absence period.

               The Plan Administrator shall credit only the number of Hours of
               Service (not exceeding five hundred and one (501)) necessary to
               prevent an Employee's Break in Service. The Plan Administrator
               shall credit all Hours of Service described in this paragraph to
               the computation period in which the absence period begins or, if
               the Employee does not need these Hours of Service to prevent a
               Break in Service in such computation period, the Plan
               Administrator shall credit these Hours of Service to the
               immediately following computation period. By way of illustration,
               if the Hours of Service credited under this paragraph prevent the
               Employee from incurring a Break in Service in the Employee's
               initial eligibility computation period, the Employee's subsequent
               eligibility computation period shall be the Plan Year, as
               provided in Section 2.5(a).

               (iii)  For purpose of paragraph (ii) above, "Parental Leave"
                      means a period during with the Employee is absent from
                      work due to the Employee's pregnancy, the birth of the
                      Employee's child, the placement with the Employee of an
                      adopted child, or the care of the Employee's child
                      immediately following the child's birth or placement.

        (c)    Hour of Service

               Solely for purposes of this Section 2.5, "Hour of Service" means
               each hour for which an Employee is paid or entitled to payment by
               the Employer or any Affiliated Companies on account of:

               (i)    Performance of duties;

               (ii)   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 five hundred and one
                      (501) Hours of Service shall be credited under this
                      paragraph for any

                                       14
<PAGE>

                      single continuous period of absence (whether or not such
                      period occurs in a single computation period). Hours
                      under this paragraph shall be calculated and credited
                      pursuant to 29 CFR 2530.200b-2(b) and (c), which are
                      incorporated herein by this reference; and

               (iii)  An award of back pay, irrespective of mitigation of
                      damages, agreed to by the Employer or any Affiliated
                      Company. However, hours credited under (i) or (ii) above
                      shall not also be credited under this Subsection (iii).

                                       15
<PAGE>

                                   ARTICLE III

                                RETIREMENT DATES

3.1     Normal Retirement Date

        The Normal Retirement Date for a Participant shall be the first day of
        the month coinciding with or next following the attainment of age
        sixty-five (65).

3.2     Early Retirement Date

        Each Participant who attains age fifty five (55) and completes a five
        (5) year Period of Service may elect, in writing, an Early Retirement
        Date. Notwithstanding the foregoing, a Participant who first becomes a
        Participant on or after July 1, 1995, may elect an Early Retirement Date
        only after attaining age fifty five (55) and completing sixty (60)
        months of Credited Service. Such Early Retirement Date shall be before
        the Normal Retirement Date and after Termination on the first day of any
        month coinciding with or following the date the early retirement
        requirements are met. A Participant who Terminates employment after
        meeting the service requirements for early retirement, but prior to
        attaining age fifty five (55), and who does not elect to receive a
        Vested Termination Benefit, shall be entitled to elect an Early
        Retirement Date at any time after attaining age fifty five (55). Such
        Early Retirement Date shall be before the Normal Retirement Date and on
        or after the Participant's 55th birthday.

        A Participant's service while employed for JRS Clinical Systems, Inc.
        before it became an Affiliated Company shall be included in determining
        whether the Participant is eligible for an Early Retirement Date.

3.3     Deferred Retirement Date

        The Deferred Retirement Date for a Participant who continues working
        after the Normal Retirement Date shall be the first day of the month
        coinciding with or next following his or her Termination date; provided,
        however, the Deferred Retirement Date shall not be later than the
        Participant's Required Beginning Date.

3.4     Retirement Date

        The Retirement Date for a Participant shall be one of the dates
        specified in Sections 3.1, 3.2 or 3.3 above, on which benefits are to
        commence. The Retirement Date for a Participant who Terminates prior to
        retirement with a vested Accrued Benefit shall be Normal Retirement
        Date, unless such Participant qualifies for and elects to receive
        benefits at an Early Retirement Date.

                                       16
<PAGE>

3.5     Vested Termination Date

        A vested Participant, whose Accrued Benefit has an Actuarially
        Equivalent present value not in excess of $7,500, who Terminates
        employment with the Employer and any Affiliated Companies prior to Early
        Retirement Date may elect in writing to receive the Vested Termination
        Benefit either as a Lump Sum, Whole Life Annuity or Joint and Survivor
        Annuity on a Vested Termination Date, which is the first day of any
        month following the date of Termination and prior to his or her earliest
        Retirement Date. In the event a married Participant elects to receive
        benefits on a Vested Termination Date and his or her Vested Termination
        Benefit exceeds $3,500 ($5,000 effective January 1, 2000), such election
        shall be void unless the election is signed by the Participant's spouse,
        acknowledges the effect of the election, and the spouse's signature is
        notarized or witnessed by a Plan representative.

                                       17
<PAGE>

                                   ARTICLE IV

                               RETIREMENT BENEFITS

4.1     Accrued Benefit

        The Accrued Benefit for any Participant shall equal the greater of (a)
        or (b) described below:

        (a)    1.0% of Final Average Monthly Earnings as of December 31, 1993,
               multiplied by Credited Service as of December 31, 1993, plus 1.0%
               of Final Average Monthly Earnings not in excess of the $150,000
               (indexed) ($170,000 for 2000) limit or such greater amount
               allowable under Internal Revenue Service guidance taking into
               account all periods, multiplied by Credited Service earned after
               December 31, 1993; or

        (b)    1.0% of Final Average Monthly Earnings, multiplied by
               Participant's Credited Service,

        then adjusted for any prior distribution (Section 4.8) or form of
        payment (Section 5.1).

        In no event shall a Participant's Accrued Benefit be less than his or
        her Accrued Benefit on the date immediately preceding the date on which
        any Plan provision that affects the Accrued Benefit is amended.

        The Accrued Benefit is payable in the form of a Whole Life Annuity
        commencing at Normal Retirement Date.

4.2     Accrued Benefit For Former Employees of Predecessor Employer

        The Accrued Benefit for a Participant who transferred employment from
        the Predecessor Employer to the Employer on or after the Effective Date
        and prior to January 1, 1993, shall not be less than his or her accrued
        benefit as of the date of termination of employment with the Predecessor
        Employer under the terms of the Predecessor Plan.

4.3     Accrued Benefit for Former Employees of Tektronix, Inc. and Squibb
        Vitatek, Inc. The Accrued Benefit for a Participant who is not a Highly
        Compensated Employee and who is a former participant in the Squibb
        Vitatek, Inc. Pension Plan who was employed continuously by Tektronix,
        Inc. from December 31, 1978 to January 9, 1981 and by Squibb Vitatek,
        Inc. from January 10, 1981 to December 31, 1982 shall be no less than
        the amount calculated from the following formula:

                         (.016 x A x B) - (.02 x C x B)

                                       18
<PAGE>

               where: A = Participant's Final Average Monthly Earnings,
               B =  Participant's years of Service not to exceed 25 years, and
               C =  the Participant's Primary Social Security Benefit.

        "Primary Social Security Benefit" means the Participant's estimated
        monthly benefit at age sixty-five (65) from Social Security based on the
        Social Security Act provisions in effect on the last day of employment
        with the Employer. If the Participant Terminates prior to attaining age
        sixty-five (65), the Primary Social Security Benefit shall be calculated
        on the assumption that his or her earnings remain constant until age
        sixty-five (65). Earnings prior to date of hire may be determined by
        projecting earnings backward at six percent (6%) per year. A Participant
        shall be given the opportunity to provide an actual earnings history
        which will be used in the calculation of the Primary Social Security
        Benefit in lieu of the above approximation. However, the Participant
        must supply such actual earnings history within one (1) year of
        Termination.

4.4     Normal Retirement Benefit

        A Participant's monthly Normal Retirement Benefit shall equal his or her
        vested Accrued Benefit as of the date of Termination, and then adjusted
        for form of payment.

4.5     Early Retirement Benefit

        A Participant's monthly Early Retirement Benefit shall equal his or her
        vested Accrued Benefit as of the date of Termination, reduced by one
        half ( 1/2) of one percent (1%) for each month that the Early Retirement
        Date precedes the Normal Retirement Date, and then adjusted for form of
        payment.

        Notwithstanding the above, the monthly Early Retirement Benefit for
        former participants of the Squibb Vitatek, Inc. Pension Plan who
        attained age fifty (50) with twenty five (25) years of service (under
        the Squibb Vitatek, Inc. Pension Plan) or age fifty five (55) with ten
        (10) years of service (under the Squibb Vitatek, Inc. Pension Plan prior
        to January 1, 1983 shall be equal to the Normal Retirement Benefit
        reduced by one fourth (1/4) of one percent (1%) per month as follows:

<TABLE>
<CAPTION>
                     If Years of Service     Retirement Benefit is Reduced
                     at Retirement Are:     for Each Month Younger Than Age:
                     -------------------    --------------------------------
<S>                  <C>                    <C>
                         30 or more                        60
                          25 -- 30                         62
                        Less than 25                       65
</TABLE>

4.6     Deferred Retirement Benefit

        A Participant's monthly Deferred Retirement Benefit shall equal his or
        her vested Accrued Benefit as of the date of Termination, and then
        adjusted for form of payment. Service and Earnings beyond the Normal
        Retirement Date shall be taken into

                                       19
<PAGE>

        consideration. In no event shall the benefit provided under this
        paragraph be less than the retirement benefit to which the Participant
        would have been entitled if he or she had actually retired on the Normal
        Retirement Date, Actuarially increased to reflect the deferred
        commencement of payments.

        In the event a Participant continues working after the date benefits are
        required to commence following his or her Required Beginning Date, the
        Deferred Retirement Benefit shall be recalculated and adjusted annually.

4.7     Vested Termination Benefit

        A Participant's Vested Termination Benefit shall equal his or her
        Accrued Benefit as of the date of Termination, Actuarially reduced to
        reflect the early commencement of payment of benefits, and then adjusted
        for form of payment.

4.8     Reemployment After Retirement

        Upon reemployment, a retired Participant shall cease receiving
        retirement benefits under the Plan, until the Participant's Required
        Beginning Date. At the Participant's subsequent retirement, benefits
        payable shall be based on his or her total Credited Service and Earnings
        at the time of subsequent retirement, and shall be reduced by the
        Actuarially Equivalent value of benefits previously received by the
        Participant. In no event shall the benefit upon subsequent retirement,
        after any reduction for previously received benefits, be less than the
        initial retirement benefit.

4.9     Benefits For Terminated Participants

        Benefits under the Plan shall be determined and paid in accordance with
        the provisions of the Plan as in effect on the most recent date of a
        Termination of employment.

                                       20
<PAGE>

                                    ARTICLE V

                                FORMS OF PAYMENT

5.1     Forms of Payment

        The following forms of benefit payments are available under this Plan:

        (a)    Whole Life Annuity

               A Whole Life Annuity shall be payable monthly from the Retirement
               Date or Vested Termination Date to the first of the month
               preceding death. The amount of the monthly benefit shall equal
               the monthly Normal, Early or Deferred Retirement Benefit or
               Vested Termination Benefit, whichever applies.

        (b)    Joint and Survivor Annuity

               A reduced Joint and Survivor Annuity shall be payable monthly to
               a retired Participant from the Retirement Date or Vested
               Termination Date to the first of the month preceding death.
               Following the Participant's death, a retirement benefit equal to
               fifty percent (50%) or one hundred percent (100%) of the reduced
               amount payable to the retired Participant shall be payable for
               life to the joint annuitant, if living at the time of the
               Participant's death. A Participant may elect, before benefits
               commence, which percentage shall be payable to the joint
               annuitant.

               If the joint annuitant dies after the Participant's retirement
               income begins, the Participant's payments will be in the same
               reduced amount as is otherwise payable under the Joint and
               Survivor Annuity. If the joint annuitant dies prior to the date
               as of which the Participant's retirement income begins, any
               election of a form of benefit under this Section 5.1(b) shall be
               automatically canceled. If the Participant dies prior to the date
               as of which his or her retirement income is to begin, the joint
               annuitant shall not be entitled to receive any payments under
               this Section 5.1(b). However, a spouse may be entitled to a
               benefit under Section 6.1.

               The Joint and Survivor Annuity shall be Actuarially Equivalent to
               the Participant's retirement benefit payable in the form of a
               Whole Life Annuity.

        (c)    Lump Sum

               A Lump Sum distribution shall be a single sum payment. The Lump
               Sum distribution shall be Actuarially Equivalent to the
               Participant's retirement benefit payable in the form of a Whole
               Life Annuity, and shall represent the Participant's entire
               interest in the Plan. Lump Sum distributions may not exceed
               $7,500.

                                       21
<PAGE>

5.2     Automatic Form of Benefit

        Unless a Participant elects otherwise, benefits shall be paid as
provided below:

        (a)    Married Participants

               Any Participant who is married on his or her Annuity Starting
               Date or Vested Termination Date shall automatically be deemed to
               have elected the fifty percent (50%) Joint and Survivor Annuity
               option, effective as of such date, with his or her spouse on the
               Annuity Starting Date as the joint annuitant (the "Statutory 50%
               Joint and Survivor Annuity Option").

               A married Participant may reject the Statutory 50% Joint and
               Survivor Annuity Option, or elect a nonspouse joint annuitant
               pursuant to Section 5.3, by filing a written notice with the
               Committee within ninety (90) days prior to his or her Annuity
               Starting Date. Such notice must specify the form of payment
               elected, name the joint annuitant, acknowledge the effect of the
               election, and must be signed by the Participant's spouse. The
               spouse's signature must be notarized or witnessed by a Plan
               representative.

               A married Participant may file a rejection, a joint annuitant
               election notice or revoke any such notice at any time during the
               ninety (90) day election period immediately preceding the Annuity
               Starting Date.

        (b)    Other Participants

               An unmarried Participant shall receive his or her retirement
               benefits in the form of a Whole Life Annuity.

               An unmarried Participant may reject the Whole Life Annuity option
               and elect either a Joint and Survivor Annuity or a Lump Sum
               option by filing a written notice with the Committee within
               ninety days prior to his or her Annuity Starting Date. An
               unmarried Participant may file or revoke such a notice at any
               time during the ninety (90) day period immediately preceding the
               Annuity Starting Date.

5.3     Limitation on Forms of Payment

        A Participant may elect a joint annuitant other than his or her spouse.
        A Participant must elect a form of payment under which payments will be
        completed within the Participant's and Beneficiary's life times or
        within their life expectancies. If a Participant elects a joint
        annuitant other than his or her spouse, the percentage selected by the
        Participant to be payable to the joint annuitant cannot exceed the
        percentage in the table set forth in Q&A A-6 of Section 1.401(a)(9)-2 of
        the proposed Income Tax Regulations, determined according to the age
        difference between the Participant and the joint annuitant.

                                       22
<PAGE>

5.4     Explanation of Forms of Payment

        The Committee shall furnish each Participant with a written explanation
        of the terms and conditions of the forms of payment within a reasonable
        period (at least thirty (30) but not more than ninety (90) days) prior
        to the date Participant's Annuity Starting Date. An election shall be
        made in writing on forms provided by and filed with the Administrative
        Committee.

5.5     Direct Rollover

        (a)    General Rule

               A Participant, surviving spouse Beneficiary, or former spouse
               alternate payee (each referred to as a "distributee") who is
               entitled to or elects a Lump Sum may direct the Administrative
               Committee to pay part or all of the benefit to a trustee or
               custodian of another employer's qualified plan which accepts such
               directed rollovers or an individual retirement account "IRA"
               (other than a Roth IRA as defined in Code Section 408A), subject
               to the following provisions:

               (i)    a distributee may only direct such a rollover if the
                      expected benefit payment during the Plan Year is $200 or
                      more;

               (ii)   a distributee may not request a directed rollover of an
                      amount distributed due to the minimum required
                      distribution provisions under Section 10.6(c);

               (iii)  the rollover of a distribution may only be directed to one
                      (1) qualified plan or IRA;

               (iv)   a distributee may direct the rollover of a portion of the
                      distribution and elect to receive the remaining portion of
                      a distribution only if the rollover amount is at least
                      $500;

               (v)    a spouse Beneficiary or a former spouse alternate payee
                      may direct a rollover under the same terms and conditions
                      as a Participant, except that a spouse Beneficiary may
                      only direct a rollover to an IRA; and

               (vi)   a distributee provides the information or documentation
                      reasonably requested by the Administrative Committee.

        (b)    Notice to Participants

               The Administrative Committee shall furnish each distributee
               eligible for a directed rollover under this Section with a
               written explanation of the directed rollover opportunity and
               related withholding consequences of not choosing a directed
               rollover within a reasonable period (at least thirty (30) but not
               more than

                                       23
<PAGE>

               ninety (90) days) prior to the distributee's Annuity Starting
               Date; provided, however, the distributee may waive in writing the
               thirty (30) day period with respect to a distribution of small
               benefits equal to $3,500 (effective January 1, 2000, $5,000) or
               less by an affirmative election to make or not make a directed
               rollover in writing on forms provided by the Administrative
               Committee. The forms shall indicate that the distributee has a
               right to consider whether to roll over his or her benefit from
               the Plan for at least thirty (30) days.

                                       24
<PAGE>

                                   ARTICLE VI

                          DEATH AND DISABILITY BENEFITS

6.1     Spouse's Death Benefit

        In the event a vested Participant dies before commencing to receive
        retirement benefits or Vested Termination Benefits under the Plan, his
        or her spouse shall receive a pre-retirement death benefit provided they
        were married throughout the one (1) year period ending on the date of
        death. The amount of the spouse's benefit and time of commencement is
        described below. The spouse of a nonvested Participant or a Participant
        who has started to receive benefits, or a spouse who was married to the
        Participant less than one (1) year, is not entitled to this death
        benefit.

        (a)    Death Following Earliest Retirement Date

               If the Participant dies after the Participant's Earliest
               Retirement Date, the spouse's benefit shall be paid monthly from
               the first of the month coinciding with or following the
               Participant's death through the first of the month preceding the
               spouse's death. The benefit shall equal the amount payable to the
               surviving spouse under a fifty percent (50%) Joint and Survivor
               Annuity form of payment if the Participant had commenced
               receiving retirement benefit payments on the day immediately
               preceding the date of the Participant's death, based upon the
               Participant's vested Accrued Benefit at the date of death.

        (b)    Death Prior to Earliest Retirement Date

               If the Participant dies on or prior to the Participant's Earliest
               Retirement Date, the spouse's benefit shall be paid monthly from
               the Participant's Earliest Retirement Date (determined as if the
               Participant had survived, but was not employed after the earlier
               of actual Termination or the date of death) through the first of
               the month preceding the spouse's death. The benefit shall equal
               the amount payable to the surviving spouse under a fifty percent
               (50%) Joint and Survivor Annuity form of payment, calculated as
               if the Participant had survived to the date spouse benefits
               commence, commenced receiving retirement benefit payments on such
               date and died the next day.

               Notwithstanding the foregoing, in the event a Participant dies
               prior to Normal Retirement Date, a spouse entitled to benefits
               under (a) or (b) above, may elect prior to the date benefits
               commence thereunder, to postpone commencement of benefits to the
               first day of any month on or before the Participant's Normal
               Retirement Date determined as if he or she had survived. The
               benefit payable at such delayed commencement date shall be the
               Actuarial Equivalent of the spouse's death benefit payable at the
               terms specified under (a) or (b) above.

                                       25
<PAGE>

               For purposes of this Section 6.1, "Earliest Retirement Date"
               means the earliest date on which a Participant could Terminate
               and receive a distribution.

6.2     Disability Benefits

        A Participant who becomes Disabled shall be deemed to be in Service for
        purposes of vesting and benefit accrual until the earlier of

        (a)    the date of recovery from Disability,

        (b)    an Early Retirement Date or Vested Termination Date elected by
               the Participant, or

        (c)    Normal Retirement Date. For purposes of determining a
               Participant's Accrued Benefit, average Earnings for the twelve
               (12) months preceding the date of Termination are deemed to be in
               effect during Disability.

                                       26
<PAGE>

                                   ARTICLE VII

                                     VESTING

7.1     Vesting

        Each Participant shall have a vested, nonforfeitable right to his or her
        Accrued Benefit multiplied by the appropriate vesting percentage in
        accordance with the following table:

<TABLE>
<CAPTION>
                            Periods of Service           Percent Vested
                            ------------------           --------------
<S>                      <C>                             <C>
                         Less than five (5) years              0%
                          Five (5) years or more              100%
</TABLE>

        In addition, each Participant shall have a one hundred (100%)
        nonforfeitable right to his or her Accrued Benefit on the first day of
        the month preceding his or her Normal Retirement Date, provided he or
        she is an Employee on such date. An Employee who Terminates with 0%
        vested shall be deemed "nonvested."

        A Participant's service earned while employed by JRS Clinical Systems,
        Inc. before it became an Affiliated Company shall be included in the
        Participant's Period of Service for purposes of vesting.

7.2     Termination Prior to Vesting

        (a)    Forfeiture of Service

               If a nonvested Participant Terminates employment, his or her
               Period of Service and Credited Service preceding the Termination
               shall be disregarded, and any Accrued Benefit earned prior to the
               Termination shall be forfeited.

               If a vested Participant Terminates Service and subsequently earns
               additional Periods of Service and\or Credited Service, all
               Periods of Service and Credited Service before and after the
               Termination shall be aggregated.

        (b)    Deemed Cash-Out of Accrued Benefit

               If a nonvested Participant Terminates, the Participant shall be
               deemed to have received a distribution of his or her Accrued
               Benefit upon Termination, and shall no longer be a Participant.
               If the Participant resumes employment with the Employer before
               incurring a five (5) consecutive year Period, his or her Accrued
               Benefit, Period of Service and Credited Service preceding the
               severance shall be reinstated.

                                       27
<PAGE>

7.3     Forfeitures

        Any forfeitures arising under this Plan shall be used only to offset
        future Employer contributions and shall not affect any Participant's
        Accrued Benefit.

7.4     Amendment of Vesting Schedule

        The Employer reserves the right to amend the vesting schedule set forth
        in Section 7.1 at any time pursuant to Section 11.1; however, no such
        amendment shall reduce the vested percentage of a Participant's Accrued
        Benefit, determined as of the date immediately preceding the later of
        the date on which such amendment is adopted or effective, to a
        percentage that is less than the Participant's vested percentage as
        computed under the Plan without regard to the amendment.

        In the event the Employer amends the vesting schedule, each Participant
        having at least a three (3) year Period of Service with the Employer may
        elect to have his or her vested Accrued Benefit computed under the Plan
        without regard to the amendment. The Participant must file his or her
        election with the Administrative Committee within sixty (60) days of the
        latest of:

        (a)    the Employer's adoption of the amendment;

        (b)    the effective date of the amendment; or

        (c)    the Participant's receipt of written notice of the amendment.

        Notwithstanding the above, a Participant is not entitled to the election
        if the Participant's vested percentage determined under the Plan, as
        amended, is at all times at least as great as the Participant's vested
        percentage determined under the Plan without regard to the amendment.
        For purposes of this Section 7.4, an amendment to the vesting schedule
        includes any Plan amendment which directly or indirectly affects the
        vested percentage of a Participant's right to his or her Accrued
        Benefit.

                                       28
<PAGE>

                                  ARTICLE VIII

                             LIMITATIONS ON BENEFITS

8.1     Limitation on Benefits

        (a)    General Rule

               In the event the Plan terminates, the benefit of any Highly
               Compensated Employee (and any Former Highly Compensated Employee)
               shall be limited to a benefit that is nondiscriminatory under
               Code Section 401(a)(4).

        (b)    Limit on Annual Payments

               Annual payments to an Employee in the "Restricted Group" (as
               defined below) are restricted to an amount equal to the payments
               that would be made on behalf of the Employee under a single life
               annuity that is Actuarially Equivalent to the sum of the
               Employee's Accrued Benefit and the Employee's other benefits
               under the Plan (other than a Social Security supplement), plus
               the amount of the payments that the Employee is entitled to
               receive under a Social Security supplement. This restriction will
               not apply if:

               (i)    After payment to an Employee in the Restricted Group of
                      all "Benefits" (as defined below), the value of Plan
                      assets equals or exceeds 110% of the value of current
                      liabilities, as defined in Code Section 412(l)(7),

               (ii)   The value of the Benefits for an Employee in the
                      Restricted Group is less than 1% (one percent) of the
                      value of current liabilities, or

               (iii)  The value of the Benefits for an Employee in the
                      Restricted Group does not exceed the amount described in
                      Code Section 411(a)(11)(A).

        (c)    Definitions

               (i)    The "Restricted Group" consists of the twenty-five
                      highest-paid current Highly Compensated Employees and
                      Former Highly Compensated Employees (as defined in Code
                      Section 414(q)), or all current and Former Highly
                      Compensated Employees, if less than twenty-five (25).

               (ii)   "Benefit" means the Participant's Accrued Benefit, loans
                      in excess of the amounts set forth in Code Section
                      72(p)(2)(A), any periodic income, any withdrawal values
                      payable to a living employee, and any death benefits not
                      provided for by insurance on the Employee's life.

               (iii)  "Highly Compensated Employee" means, effective
                      January 1, 1997, any Employee who, for the preceding Plan
                      Year, had Compensation from the

                                       29
<PAGE>

                      Employer in excess of $80,000 (as adjusted) ($170,000 for
                      the Plan Year commencing January 1, 2001) or for either
                      the current or preceding Plan Year, was a five percent
                      (5%) owner of the Employer.

               (iv)   "Former Highly Compensated Employee" means any Employee
                      who Terminated Service (or was deemed to have Terminated
                      Service) prior to the Plan Year, performs no Service for
                      the Employer during the current Plan Year, and was a
                      Highly Compensated Employee for either the year of
                      Termination or any Plan Year ending on or after the
                      Employee attains age fifty-five (55).

        (d)    Limitations Not Effective

               The limitations contained in this Section shall not restrict the
               annual amount paid to a Participant in the Restricted Group
               provided the Participant agrees to repay an amount necessary for
               the distribution of assets upon Plan termination to satisfy Code
               Section 401(a)(4). Such Participant must agree to repay amounts
               paid to him or her to the extent they exceed the amount he or she
               would have received if the restrictions under this Section had
               been applied. The agreement to repay must be secured by deposit
               in escrow of property having a market value of one hundred
               twenty-five percent (125%) of the amount subject to repayment. If
               the value of the property falls below one hundred ten percent
               (110%) of the repayment amount, the Participant must deposit
               additional property to again satisfy the one hundred twenty-five
               percent (125%) requirement. Alternatively, the agreement to repay
               may be secured or collateralized by posting a bond or letter of
               credit equal to at least one hundred percent (100%) of the
               repayment amount. Such bond must be furnished by an insurance
               company or bonding company or other surety approved by the U.S.
               Department of Treasury as an acceptable surety for federal bonds.

               Any such repayment agreement shall be terminated and any property
               in escrow shall be returned and any bond or letter of credit may
               be canceled in the event one (1) of the three (3) conditions set
               forth in Section 8.1(b) is satisfied or the Plan terminates and
               benefits received by the Participant are nondiscriminatory in
               accordance with Code Section 401(a)(4).

        (e)    Regulatory Authority

               This Section 8.1 is intended to comply with Treasury Regulation
               Section 1.401(a)(4)-5(b), and shall be superseded to the extent
               any provision of such regulation in final form conflicts with the
               limitations stated herein.

                                       30
<PAGE>

        (f)    Collectively Bargained Plan Exception

               This Section 8.1 shall not apply to the Plan (or any portion of
               the Plan) if it automatically satisfies Code Section 410(b) under
               Treasury Regulation Section 1.410(b)-2(b)(7) because it benefits
               collectively bargained employees.

8.2     Maximum Annual Benefit Payable Under the Plan

        For purposes of this Section 8.2, the Employer and any Affiliated
        Companies shall be considered a single employer, to the extent required
        by the Code.

        (a)    Primary Rule

               Notwithstanding any other Plan provision to the contrary, the
               annual Employer provided benefit payable to or on behalf of a
               Participant under the Plan (after any adjustments required under
               the Plan to reflect commencement of benefits other than at Normal
               Retirement Date, an optional form of payment or death benefit
               coverage) after 1982 shall not exceed the lesser of:

               (i)    $90,000 (adjusted in accordance with this Section 8.2); or

               (ii)   the Participant's average annual Compensation from the
                      Employer for the consecutive calendar years (not in excess
                      of three such years) during which he or she was an active
                      Participant in the Plan and for which such average is
                      highest.

               Notwithstanding the above, an Employer-provided benefit shall not
               exceed such limitation if (A) the Participant's benefit payable
               during a Plan Year in any form elected under this and all other
               defined benefit plans maintained by the Employer does not exceed
               $1,000 multiplied by the Participant's year Periods of Service
               including fractions thereof (not less than one (1) and not to
               exceed ten (10)) with the Employer and (B) the Participant has
               never participated in a defined contribution plan, and is not
               entitled to a welfare benefit that is subject to Code Section
               415.

        (b)    Cost-of-Living Adjustment

               The $90,000 limit prescribed above shall be automatically
               adjusted for cost-of-living increases, to the maximum permissible
               dollar limitation determined by the Commissioner of Internal
               Revenue. The dollar amount applicable in computing the benefit
               payable to any Participant shall be the dollar amount in effect
               for the calendar year in which the benefit commences. For 2001,
               the limit is $140,000.

                                       31
<PAGE>

        (c)    Adjustment for Early or Late Retirement

               (i)    Commencement Before Social Security Retirement Age, But On
                      or After Age 62

                      For purposes of Sections 8.2 and 8.3 and, if the
                      Participant's benefit commences prior to Social Security
                      Retirement Age, but on or after age sixty-two (62), the
                      limit prescribed in Section 8.2(a)(i) shall be adjusted as
                      follows:

                      (A)    If the Participant's Social Security Retirement Age
                             is sixty-five (65), the dollar limitation for
                             benefits commencing on or after age sixty-two (62)
                             is determined by reducing the limit by 5/9 of one
                             percent (1%) for each month by which benefits
                             commence before the month in which the Participant
                             attains age sixty-five (65);

                      (B)    If the Participant's Social Security Retirement Age
                             is greater than sixty-five (65), the dollar
                             limitation for benefits commencing on or after age
                             sixty-two (62) is determined by reducing the limit
                             by 5/9 of one percent (1%) for each of the first
                             thirty-six (36) months and 5/12 of one percent (1%)
                             for each of the additional months (up to
                             twenty-four (24) months) by which benefits commence
                             before the month in which the Participant attains
                             Social Security Retirement Age.

               (ii)   Commencement Prior to Age 62

                      For purposes of Sections 8.2 and 8.3, if the Participant's
                      benefit commences prior to age sixty-two (62), the limit
                      prescribed in Section 8.2(a)(i) shall be an amount that is
                      the Actuarial Equivalent of the limit for Participants who
                      are age sixty-two (62), determined in accordance with (i)
                      above, reduced for each month by which benefits commence
                      before age sixty-two (62). This amount shall be the lesser
                      of (A) the amount computed using the implied early
                      retirement factor, and (B) the amount computed using a
                      five percent (5%) interest rate and the applicable
                      mortality table in Section 1.2(a), for Plan Years
                      commencing before January 1, 1999 and Section 1.2(c), for
                      Plan Years commencing on or after January 1, 1999. The
                      "implied early retirement factor" is the ratio of:

                      (A)    the early retirement reduction factor determined
                             under Section 4.5 at the Participant's early
                             retirement age, to

                      (B)    the early retirement reduction factor determined in
                             Section 4.5, if the Participant terminated at early
                             retirement age, but deferred commencement of
                             benefits to age sixty-two (62).

                                       32
<PAGE>

               (iii)  Commencement After Social Security Retirement Age

                      For purposes of Sections 8.2 and 8.3, if the Participant's
                      benefit commences after Social Security Retirement Age,
                      the limit prescribed in Section 8.2(a)(i) shall be an
                      amount that is the Actuarial Equivalent of the limit that
                      applies if benefits commence at the Participant's Social
                      Security Retirement Age. This amount shall be the lesser
                      of the amount computed using the interest rate for
                      calculating Deferred Retirement Benefits, and the amount
                      computed using a five percent (5%) interest rate.

        (d)    Annual Benefit

               Notwithstanding the foregoing, if the annual benefit to be paid
               to a Participant under the Plan is not in the form of a Whole
               Life Annuity or the Statutory Joint and Survivor Annuity Option,
               the benefit considered to be payable to a Participant under the
               Plan for purposes of Sections 8.2 and 8.3 shall be Actuarially
               adjusted to the extent required under Code Section 415(b)(2).

        (e)    Actuarial Adjustment

               Any Actuarial adjustments under Section 8.2(d) shall be as
               follows:

               (i)    For Plan Years Beginning Before January 1, 1995

                      For Plan Years beginning before January 1, 1995, the
                      Actuarial adjustment shall be computed using the interest
                      rate specified in the Plan for adjusting benefits in the
                      same form of payment or five percent (5%), whichever
                      results in a greater benefit.

               (ii)   For Plan Years Beginning On or After January 1, 1995

                      Except as provided below in Subsection (iii), for Plan
                      Years beginning on or after January 1, 1995, the Actuarial
                      adjustment shall be computed using the interest rate and
                      mortality table specified in the Plan for adjusting
                      benefits in the same form, or five percent (5%) and the
                      mortality table set forth in Section 1.2(a) for Plan Years
                      commencing prior to January 1, 1999 and Section 1.2(c) for
                      Plan Years commencing on or after January 1, 1999,
                      whichever results in a greater benefit.

               (iii)  For Payment Forms Other Than Nondecreasing Annuity

                      For Plan Years beginning on or after January 1, 1995, in
                      determining the Actuarially Equivalent straight life
                      annuity for a benefit form other than a nondecreasing
                      annuity payable for a period of not less than the
                      Participant's life (or the surviving spouse's life in the
                      case of a qualified preretirement survivor death benefit),
                      or decreases during the Participant's

                                       33
<PAGE>

                      life as a result of the death of a joint annuitant (if the
                      reduction is not below fifty percent (50%) of the benefit
                      payable before the joint annuitant's death) or as a result
                      of the cessation or reduction of Social Security
                      supplements or qualified disability payments, the interest
                      rate will the interest rate set forth in Section 1.2(b)
                      (for Plan Years that commence prior to January 1, 1999 and
                      Section 1.2(c) for Plan Years that commence on or after
                      January 1, 1999.

        (f)    Special Provisions Regarding Participants With Fewer Than Ten
               (10) Years of Participation or Service

                      In the case of any Participant who participated in the
                      Plan for fewer than ten years, the maximum dollar benefit
                      otherwise applicable under Section 8.2(a)(i) shall be
                      multiplied by a fraction whose numerator is the
                      Participant's years of participation in the Plan
                      (including fractions thereof, but not less than one (1))
                      and whose denominator is ten (10).

                      In the case of any Participant who has fewer than ten
                      years of Credited Service, the maximum benefit otherwise
                      applicable under Sections 8.2(a)(ii) and 8.3 shall be
                      multiplied by a fraction whose numerator is the
                      Participant's years of Credited Service with the Employer
                      (including fractions thereof, but not less than one (1))
                      and whose denominator is ten (10).

        (g)    Transition Rule

               (i)    Tax Reform Act of 1986

                      The limitations of Section 8.2(a)(i)shall not reduce a
                      Participant's annual benefit to less than his or her
                      Accrued Benefit as of December 31, 1986, disregarding any
                      change in the terms of the Plan or Predecessor Plan and
                      any cost-of-living adjustments after May 5, 1986.

               (ii)   Retirement Protection Act of 1994 ("RPA '94")

                      The limitations of Section 8.2(a)(i) shall not reduce a
                      Participant's annual benefit to less than his or her "RPA
                      '94 old law benefit." A Participant's "RPA '94 old law
                      benefit" is the Participant's Accrued Benefit as of
                      December 31, 1998. In determining the amount of
                      Participant's RPA '94 old law benefit, the following shall
                      be disregarded:

                      (A)  any Plan amendment increasing benefits adopted on or
                           after January 1, 1999; and

                      (B)  any cost of living adjustments that become effective
                           after such date.

                                       34
<PAGE>

        (h)    Aggregation With Other Defined Benefit Plans

               If a Participant also participates in any other defined benefit
               pension plan maintained by the Employer, the provisions of
               Section 8.2 and 8.3 shall be applied on an aggregate basis to the
               benefits payable under this Plan and each such other plan. Any
               reduction in the aggregate benefits payable under this Plan and
               any such other plan due to the application of this Section shall
               be made on a pro rata basis.

8.3     Additional Limitation Relating to Defined Contribution Plans

        (a)    Primary Rule

               Effective for Plan Years commencing prior to January 1, 2000,
               Participants who participate in this Plan and a defined
               contribution plan maintained by the Employer, the sum of (i) and
               (ii) below for any calendar year may not exceed 1.0, as
               determined by the Committee.

               (i)    The defined benefit plan fraction for any year is equal to
                      the quotient of (A) divided by (B) below expressed as a
                      fraction:

                      (A)    The projected annual benefit (determined by
                             projecting service, but not Earnings, to normal
                             retirement age) of the Participant under the Plan
                             determined as of the close of the year.

                      (B)    The lesser of: (a) 1.25 multiplied by the
                             limitation determined under Section 8.2(a)(i) in
                             effect for such year, or (b) 1.4 multiplied by the
                             limitation determined under Section 8.2(a)(ii)
                             (generally one hundred percent (100%) of the
                             Participant's average annual Compensation).

               (ii)   The defined contribution plan fraction for any year is
                      equal to the quotient of (A) divided by (B) below
                      expressed as a fraction:

                      (A)    The sum of the "annual additions" to the
                             Participant's accounts for the current year, as of
                             the close of the year, and for all prior years.

                      (B)    The sum of the lesser of the following amounts for
                             such year and for each prior year of service with
                             the Employer (regardless of whether a plan was in
                             existence during those years): (a) 1.25 multiplied
                             by the dollar limitation in effect for defined
                             contribution plans under Code Section 415 for such
                             year, or (b) 1.4 multiplied by twenty five percent
                             (25%) of a Participant's Compensation for such
                             year.

                                       35
<PAGE>

        (b)    Remedy

               If such sum exceeds one (1.0), the benefit under this defined
               benefit Plan shall be reduced to the extent necessary to satisfy
               the limitations of this Section.

                                       36
<PAGE>

                                   ARTICLE IX

                              TOP HEAVY PROVISIONS

9.1     Scope

        Notwithstanding any Plan provision to the contrary, for any Plan Year in
        which the Plan is Top Heavy within the meaning of Code Section 416(g),
        the provisions of this Article IX shall govern to the extent they
        conflict with or specify additional requirements to the Plan provisions
        governing Plan Years which are not Top Heavy.

9.2     Top Heavy Status

        (a)    Top Heavy

               This Plan shall be "Top Heavy" if, as of the Determination Date,
               (i) the sum of the Aggregate Accounts of Key Employees; and/or
               (ii) the Present Value of Accrued Benefits of Key Employees under
               this Plan and any plan of an Aggregation Group, exceeds sixty
               percent (60%) of the Aggregate Accounts or the Present Value of
               Accrued Benefits of all Participants under this Plan and any plan
               of an Aggregation Group.

               The Present Value of Accrued Benefits and/or Aggregate Account
               balance of a Participant who was previously a Key Employee but is
               no longer a Key Employee (or his or her Beneficiary), shall not
               be taken into account for purposes of determining Top Heavy
               status. Further, a Participant's Present Value of Accrued
               Benefits and/or Aggregate Account balance shall not be taken into
               account if he or she has not performed Services for the
               Affiliated Companies during the five (5) year period ending on
               the Determination Date.

        (b)    Super Top Heavy

               This Plan shall be "Super Top Heavy" if, as of the Determination
               Date: (i) the sum of the Aggregate Accounts of Key Employees;
               and/or (ii) the Present Value of Accrued Benefits of Key
               Employees under this Plan and any plan of an Aggregation Group,
               exceeds ninety percent (90%) of the Aggregate Accounts or the
               Present Value of Accrued Benefits of all Participants under this
               Plan and any plan of an Aggregation Group.

        (c)    Determination Date

               Whether the Plan is Top Heavy for any Plan Year shall be
               determined as of the Determination Date. "Determination Date"
               means (i) the last day of the preceding Plan Year, or (ii) in the
               case of the first Plan Year, the last day of such Plan Year.

                                       37
<PAGE>

        (d)    Valuation Date

               "Valuation Date" means, for purposes of determining Top
               Heaviness, the Determination Date.

        (e)    Aggregate Account

               "Aggregate Account" means, with respect to a Participant, his or
               her adjusted account balance in a defined contribution plan, as
               determined under the top heavy provisions of such plan.

        (f)    Present Value of Accrued Benefits

               "Present Value of Accrued Benefits" means the sum of:

               (i)    the Actuarial Equivalent present value of the accrued
                      normal retirement benefit under the Plan as of the
                      Valuation Date; and

               (ii)   distributions prior to the Valuation Date, made during the
                      Plan Year that contains the Determination Date and the
                      four (4) preceding Plan Years. Unrelated rollovers or
                      transfers from this plan shall be considered
                      distributions. A related rollover or transfer from this
                      Plan shall not be considered a distribution.

               An unrelated rollover or transfer is one which is both initiated
               by the Employee and made between plans of different employers. A
               related rollover or transfer is one which is either not initiated
               by the Employee or made between plans of the same employer.

        (g)    Key Employee

               "Key Employee" means an Employee or former Employee (and his or
               her Beneficiaries) who, at any time during the Plan Year
               containing the Determination Date or any of the four (4)
               preceding Plan Years, is included in one (1) of the following
               categories as within the meaning of Code Section 416(i) and
               regulations thereunder:

               (i)    an officer of the Employer whose annual aggregate
                      Compensation from the Affiliated Companies exceeds fifty
                      percent (50%) of the dollar limitation under Code Section
                      415(c)(1)(A) ($67,500 for the Plan Year ending in 2000),
                      provided that no more than fifty (50) Employees shall be
                      considered officers, or if less, the greater of ten
                      percent (10%) of the Employees or three (3),

                                       38
<PAGE>

               (ii)   one of the ten (10) Employees owning the largest interest
                      in the Employer who owns more than a 0.5% interest of the
                      Employer, and whose annual aggregate Compensation from the
                      Affiliated Companies exceeds the dollar limitation under
                      Code Section 415(c)(1)(A) ($30,000 for the Plan Year
                      ending in 2000);

               (iii)  an Employee who owns more than five percent (5%) of the
                      Employer; or

               (iv)   an Employee who owns more than one percent (1%) of the
                      Employer with annual aggregate Compensation from the
                      Affiliated Companies that exceeds $150,000.

        (h)    Aggregation Group

               "Aggregation Group" means the group of plans that must be
               considered as a single plan for purposes of determining whether
               the plans within the group are Top Heavy ("Required Aggregation
               Group"), or the group of plans that may be aggregated for
               purposes of Top Heavy testing ("Permissive Aggregation Group").
               The Determination Date for each plan must fall within the same
               calendar year in order to aggregate the plans.

               (i)    The Required Aggregation Group includes each plan of the
                      Affiliated Companies in which a Key Employee is a
                      participant in the Plan Year containing the Determination
                      Date or any of the four (4) preceding Plan Years, and each
                      other plan of the Affiliated Companies which, during this
                      period, enables any plan in which a Key Employee
                      participates to meet the minimum participation standards
                      or nondiscriminatory contribution requirements of Code
                      Sections 401(a)(4) and 410.

               (ii)   A Permissive Aggregation Group may include any plan
                      sponsored by an Affiliated Company, provided the group as
                      a whole continues to satisfy the minimum participation
                      standards and nondiscriminatory contribution requirements
                      of Code Sections 401(a)(4) and 410.

               Each plan belonging to a Required Aggregation Group shall be
               deemed Top Heavy or non-Top Heavy in accordance with the group's
               status. In a Permissive Aggregation Group that is determined Top
               Heavy only those plans that are required to be aggregated shall
               be Top Heavy. In a Permissive Aggregation Group that is not Top
               Heavy, no plan in the group shall be Top Heavy.

9.3     Minimum Benefit

        (a)    General Rule

               For any Top Heavy Plan Year, a non-Key Employee who completes a
               one year Period of Service shall have an Accrued Benefit at least
               equal to the minimum

                                       39
<PAGE>

               benefit described herein. The minimum Accrued Benefit at any
               point in time equals the lesser of:

               (i)    two percent (2%) multiplied by Top Heavy year Periods of
                      Service; or

               (ii)   twenty percent (20%),

               multiplied by such Participant's "average Compensation." "Average
               Compensation" means a Participant's average Compensation for the
               five (5) consecutive years when such Participant had the highest
               aggregate Compensation from the Employer. However, Compensation
               received for non-Top Heavy Plan Years shall be disregarded. The
               benefit described herein is expressed as an annual benefit in the
               form of a single life annuity (with no ancillary benefits),
               commencing at normal retirement age.

               A non-Key Employee shall not be denied this minimum benefit
               because he or she was not employed on a specified date, failed to
               make any mandatory Employee contribution, or failed to earn a
               specified amount of Compensation.

        (b)    Special Two Plan Rule

               Where this Plan and a defined contribution plan belong to an
               Aggregation Group that is determined Top Heavy, the Employer
               shall not be required to provide the minimum benefit under (a)
               above on behalf of any non-Key Participant who also participates
               in the defined contribution plan if the Employer contributions
               and forfeitures under the defined contribution plan equal five
               percent (5%) of each non-Key Participant's Compensation.

9.4     Benefit Limitation

        For any Top Heavy Plan Year commencing prior to January 1, 2000 in which
        the Employer does not make the extra minimum allocation provided below,
        1.0 shall replace the 1.25 factor found in the denominators of the
        defined benefit and defined contribution plan fractions for purposes of
        calculating the combined limitation on benefits under a defined benefit
        and defined contribution plan pursuant to Code Section 415(e) (see
        Section 8.3).

        If this Plan is Top Heavy, but is not Super Top Heavy, the above
        referenced fractions shall remain unchanged provided the Employer
        provides an extra minimum Accrued Benefit for each non-Key Employee. The
        extra benefit (in addition to the minimum benefit set forth in Section
        9.3) shall equal the lesser of:

        (a)    one percent (1%) multiplied by Top Heavy year Periods of Service;
               or

        (b)    ten percent (10%),

                                       40
<PAGE>

        multiplied by such Participant's "average Compensation", as defined in
        Section 9.3.

9.5     Vesting

        (a)    Top Heavy Schedule

               For any Top Heavy Plan Year, each Participant who completes an
               Hour of Service in such year shall become vested and have a
               nonforfeitable right to retirement benefits he or she has earned
               under the Plan in accordance with the following table:

<TABLE>
<CAPTION>
                          Periods of Service        Vesting Percentage
                          ------------------        ------------------
<S>                       <C>                       <C>
                           Less than 2 Years                0%
                                2 Years                    20%
                                3 Years                    40%
                                4 Years                    60%
                                5 Years                   100%
</TABLE>

               Provided, however, that a Participant's vesting percentage shall
               not be less than the percentage determined under the table in
               Section 7.1.

        (b)    Return to Non-Top Heavy Status

               If the Plan becomes Top Heavy and ceases to be Top Heavy in any
               subsequent Plan Year, the vesting schedule shall automatically
               revert to the vesting schedule in effect before the Plan became
               Top Heavy. Such reversion shall be treated as a Plan amendment
               pursuant to the terms of the Plan, and shall not cause a
               reduction of any Participant's nonforfeitable interest in the
               Plan on the date of such amendment.

               A Participant with three or more year Periods of Service with the
               Employer as of the end of the election period, may elect to
               remain covered by the Top Heavy vesting schedule. The
               Participant's election period shall commence on the adoption date
               of the amendment and shall end sixty (60) days after the latest
               of:

               (i)    the adoption date of the amendment;

               (ii)   the effective date of the amendment; or

               (iii)  the date the Participant receives written notice of the
                      amendment from the Committee.

                                       41
<PAGE>

9.6     Collectively Bargained Employees

        The provisions of Sections 9.3 and 9.5 shall not apply to any
        Participant included in a unit of Employees covered by an agreement that
        the Secretary of Labor finds to be a collective bargaining agreement
        between Employee representatives and one (1) or more employers, if there
        is evidence that retirement benefits were the subject of good faith
        bargaining.

                                       42
<PAGE>

                                    ARTICLE X

                           ADMINISTRATION OF THE PLAN

10.1    Plan Administrator

        The Plan Administrator and named fiduciary shall be the Employer which
        shall appoint the Committee composed of one (1) or more persons which
        shall carry out the general administration of the Plan. Every member of
        the Committee shall be deemed a fiduciary. No Committee member who is an
        Employee shall receive compensation with respect to his or her service
        on the Committee. Any member of the Committee may resign by delivering
        written resignation to the Board and to the Committee. The Board may
        remove or replace any member of the Committee at any time.

10.2    Organization and Procedures

        The Employer shall designate a chairman from the members of the
        Committee. The Committee shall appoint a secretary, who may or may not
        be a member of the Committee. The secretary shall have the primary
        responsibility for keeping a record of all meetings and acts of the
        Committee and shall have custody of all documents, the preservation of
        which shall be necessary or convenient to the efficient functioning of
        the Committee. The chairman of the Committee shall be the agent of the
        Plan for service of legal process. All reports required by law. may be
        signed by the chairman or another member of the Committee designated by
        the Committee on behalf of all members of the Committee.

        The Committee shall act by a majority of its members in office and may
        adopt such by-laws and regulations as it deems desirable for the conduct
        of its affairs.

10.3    Duties and Authority of the Committee

        (a)    Administrative Duties

               The Committee shall administer the Plan in a nondiscriminatory
               manner for the exclusive benefit of Participants and their
               Beneficiaries. The Committee shall perform all such duties as are
               necessary to supervise the administration of the Plan and to
               control its operation in accordance with the terms thereof,
               including, but not limited to, the following:

               (i)    Make and enforce such rules and regulations as it shall
                      deem necessary or proper for the efficient administration
                      of the Plan;

               (ii)   Interpret the provisions of the Plan and determine any
                      question arising under the Plan, or in connection with the
                      administration or operation thereof;

                                       43
<PAGE>

               (iii)  Make all determinations affecting the eligibility of any
                      Employee to be or become a Participant;

               (iv)   Determine eligibility for and amount of retirement
                      benefits for any Participant, Beneficiary or alternate
                      payee pursuant to a domestic relations order (including
                      determining the qualified status of a domestic relations
                      order);

               (v)    Authorize and direct the Trustee with respect to all
                      disbursements of benefits under the Plan;

               (vi)   Employ and engage such persons, counsel and agents and
                      obtain such administrative, clerical, medical, legal,
                      audit and actuarial services as it may deem necessary in
                      carrying out the provision of the Plan;

               (vii)  Delegate and allocate specific responsibilities and duties
                      imposed by the Plan to one (1) or more Employees, officers
                      or such other persons as the Committee deems appropriate.

        (b)    Investment Authority

               The Plan Administrator or the Committee shall establish an
               investment policy consistent with the purposes of the Plan and
               the requirements of applicable law, as appropriate from time to
               time. The Committee shall have responsibility and authority with
               respect to the management, acquisition, disposition or investment
               of Plan assets to the extent such responsibility and authority is
               not delegated to an Investment Manager or Trustee.

        (c)    General Authority

               The Committee shall have all powers necessary or appropriate to
               carry out its duties, including the discretionary authority to
               interpret the provisions of the Plan and the facts and
               circumstances of claims for benefits. Any interpretation or
               construction of or action by the Committee with respect to the
               Plan and its administration shall be conclusive and binding upon
               any and all parties and persons affected hereby, subject to the
               exclusive appeal procedure set forth in Section 10.7.

10.4    Expenses

        All reasonable expenses which are necessary to operate and administer
        the Plan may be deducted from the Trust Fund or, at the election of the
        Employer, paid directly by the Employer.

                                       44
<PAGE>

10.5    Bonding and Insurance

        To the extent required by law, every Committee member, every fiduciary
        of the Plan and every person handling Plan funds shall be bonded. The
        Committee shall take such steps as are necessary to assure compliance
        with applicable bonding requirements. The Committee may apply for and
        obtain fiduciary liability insurance insuring the Plan against damages
        by reason of breach of fiduciary responsibility at the Plan's expense
        and insuring each fiduciary against liability to the extent permissible
        by law at the Employer's expense.

10.6    Commencement of Benefits

        (a)    Conditions of Payment

               Benefit payments under the Plan shall not be payable prior to the
               fulfillment of the following conditions:

               (i)    The Committee has been furnished with such applications,
                      proofs of birth or death, address, form of benefit
                      election, spousal consent if required, and other
                      information the Committee deems necessary;

               (ii)   The Participant has Terminated employment with the
                      Employer, reached his or her Required Beginning Date, or
                      died; and

               (iii)  The Participant or Beneficiary is eligible to receive
                      benefits under the Plan as determined by the Committee.

               The Committee may rely on all such information so furnished it,
               including the Participant's current mailing address.

               If the information required in this Section is not available, the
               amount of payment will not be ascertainable. In such event, the
               commencement of payments shall be delayed until no more than
               sixty (60) days after the date the amount of such payment is
               ascertainable.

        (b)    Commencement of Payment

               Unless a Participant elects otherwise, the payment of benefits
               shall commence no later than sixty (60) days after the end of the
               Plan Year in which the latest of the following occurs:

               (i)    the Participant reaches Normal Retirement Date;

               (ii)   the tenth anniversary of the year in which the Participant
                      commenced participation in the Plan; or

                                       45
<PAGE>

               (iii)  the Participant Terminates with the Employer,

               provided that payments shall not commence later than the
               Participant's Required Beginning Date.

        (c)    Required Beginning Date

               (i)    General

                      A Participant's Required Beginning Date is the April 1
                      following the calendar year in which the Participant
                      reaches age seventy and one-half (70 1/2). The amount of
                      any payments required following the Required Beginning
                      Date shall at least satisfy the minimum required
                      distribution amount under Code Section 401(a)(9)(A)(ii)
                      and related regulations as in effect on December 31, 1996.
                      In addition, notwithstanding any Plan provision to the
                      contrary, all distributions, including distributions to
                      Beneficiaries, will be made in accordance with Code
                      Section 401(a)(9) and the regulations under Code Section
                      401(a)(9), including Section 1.401(a)(9)-2 of the proposed
                      Income Tax Regulations.

               (ii)   On or After January 1, 2001

                      Notwithstanding the above, the Required Beginning Date for
                      a Participant who attains seventy and one-half (70 1/2) on
                      or after January 1, 2001 (other than a five percent (5%)
                      owner of the Employer) is April 1 of the year following
                      the year in which the Participant retires or attains age
                      seventy and one half (70 1/2), whichever is later. The
                      amount of any payments required following the Required
                      Beginning Date for such a Participant shall be Actuarially
                      adjusted to reflect the period after April 1 of the year
                      following the year in which the Participant attained age
                      seventy and one-half (70 1/2) in which the Participant was
                      not receiving benefits under the Plan.

        (d)    Form of Payment

               In no event shall payments in a form other than the automatic
               form described in Section 5.2 commence prior to the Participant's
               Normal Retirement Date if the present value of the Participant's
               Accrued Benefit exceeds $3,500 (effective January 1, 2000,
               $5,000) pursuant to Section 10.8(c) without the written consent
               of the Participant and the spouse, if any. Spousal consent must
               acknowledge the effect of such election and be notarized or
               witnessed by a Plan representative.

        (e)    Direction to Pay

               The Administrative Committee shall direct the Trustee to make
               all payments under the Plan.

                                       46
<PAGE>

10.7    Appeal Procedure

        (a)    Submission of Claim

               A claim for benefit payment shall be considered filed when an
               application form is submitted to the Committee.

        (b)    Notice of Denial

               Any time a claim for benefits is wholly or partially denied, the
               Participant or Beneficiary (hereinafter "Claimant") shall be
               given written notice of such action within ninety (90) days after
               the claim is filed, unless special circumstances require an
               extension of time for processing. (If there is an extension, the
               Claimant shall be notified of the extension and the reason for
               the extension within the initial ninety (90) day period. The
               extension shall not exceed one hundred eighty (180) days after
               the claim is filed.) Such notice will indicate the reason for
               denial, the pertinent provisions of the Plan on which the denial
               is based, an explanation of the claims appeal procedure set forth
               herein, and a description of any additional material or
               information necessary to perfect the claim and an explanation of
               why such material or information is necessary.

        (c)    Right to Request Review

               Any person who has had a claim for benefits denied by the
               Committee, who disputes the amount of benefit payment determined
               by the Committee, or who is otherwise adversely affected by
               action of the Committee, shall have the right to request review
               by the Committee. Such request must be in writing, and must be
               made within sixty (60) days after such person is advised of the
               Committee's action. If written request for review is not made
               within such sixty (60) day period, the Claimant shall forfeit his
               or her right to review. The Claimant or a duly authorized
               representative of the Claimant may review all pertinent documents
               and submit issues and comments in writing.

        (d)    Review of Claim

               The Committee shall then review the claim. It may hold a hearing
               if it deems it necessary and shall issue a written decision
               reaffirming, modifying or setting aside its former action within
               sixty (60) days after receipt of the written request for review,
               or one hundred twenty (120) days if special circumstances, such
               as a hearing, require an extension. The Claimant shall be
               notified in writing of any such extension within sixty (60) days
               following the request for review. A copy of the decision shall be
               furnished to the Claimant. The decision shall set forth its
               reasons and pertinent Plan provisions on which it is based. The
               decision shall be final and binding upon the Claimant and the
               Committee and all other persons involved.

                                       47
<PAGE>

10.8    Plan Administration - Miscellaneous

        (a)    Limitations on Assignments

               Benefits under the Plan may not be assigned, sold, transferred,
               or encumbered, and any attempt to do so shall be void, except a
               benefit may be rolled over pursuant to Section 5.5 or offset
               pursuant to Section 12.2. The interest of a Participant in
               benefits under the Plan shall not be subject to debts or
               liabilities of any kind and shall not be subject to attachment,
               garnishment or other legal process, except as provided in Section
               10.9 relating to Domestic Relations Orders, or otherwise
               permitted by law.

        (b)    Masculine and Feminine, Singular and Plural

               Whenever used herein, pronouns shall include the opposite gender,
               and the singular shall include the plural and the plural shall
               include the singular whenever the context shall plainly so
               require.

        (c)    Small Benefits

               In cases where the Actuarially Equivalent present value of a
               vested and payable benefit has never exceeded the maximum
               permissible amount under the Code which may be distributed
               without the consent of a Participant or his or her spouse (in
               2000, this amount was $5,000), the Committee shall direct such
               present value be paid in a Lump Sum distribution as soon as
               practical following Termination or death without Participant or
               Beneficiary consent. Each Participant or Beneficiary who will
               receive a distribution pursuant to this Section shall receive a
               directed rollover notice pursuant to Section 5.5(b). If no
               rollover election is made, the distribution shall be made to the
               Participant or Beneficiary and it shall be subject to applicable
               income tax withholding.

        (d)    No Additional Rights

               No person shall have any rights in or to the Trust Fund, or any
               part thereof, or under the Plan, except as, and only to the
               extent, expressly provided for in the Plan. Neither the
               establishment of the Plan, the accrual of benefits under the Plan
               nor any action of the Employer or the Committee shall be held or
               construed to confer upon any person any right to be continued as
               an Employee, or, upon dismissal, any right or interest in the
               Trust Fund other than as herein provided. The Employer expressly
               reserves the right to discharge any Employee at any time.

                                       48
<PAGE>

        (e)    Governing Law

               This Plan shall be construed in accordance with applicable
               federal law and the laws of the State of Washington, wherein
               venue shall lie for any dispute arising hereunder.

        (f)    Disclosure to Participants

               Each Participant shall be advised of the general provisions of
               the Plan and, upon written request addressed to the Committee,
               shall be furnished any information requested regarding the
               Participant's status, rights and privileges under the Plan as may
               be required by law.

        (g)    Income Tax Withholding Requirements

               Any retirement benefit payment made under the Plan shall be
               subject to any applicable income tax withholding requirements.
               For this purpose, the Committee shall provide the Trustee with
               any information the Trustee needs to satisfy such withholding
               obligations and with any other information that may be required
               by regulations promulgated under the Code.

        (h)    Severability

               If any provision of this Plan shall be held illegal or invalid
               for any reason, such determination shall not affect the remaining
               provisions of this Plan which shall be construed as if said
               illegal or invalid provision had never been included.

        (i)    Facility of Payment

               In the event any benefit under this Plan shall be payable to a
               person who is under legal disability or is in any way
               incapacitated so as to be unable to manage his or her financial
               affairs, the Committee may direct payment of such benefit to a
               duly appointed guardian, committee or other legal representative
               of such person, or in the absence of a guardian or legal
               representative, to a custodian for such person under a Uniform
               Gifts to Minors Act or to any relative of such person by blood or
               marriage, for such person's benefit. Any payment made in good
               faith pursuant to this provision shall fully discharge the
               Employer and the Plan of any liability to the extent of such
               payment.

        (j)    Correction of Errors

               Any Employer contribution to the Trust Fund made under a mistake
               of fact (or investment proceeds of such contribution if a lesser
               amount) shall be returned to the Employer within one (1) year
               after payment of the contribution.

                                       49
<PAGE>

               In the event an incorrect amount is paid to a Participant or
               Beneficiary, any remaining payments may be adjusted to correct
               the error. The Committee may take such other action it deems
               necessary and equitable to correct any such error.

        (k)    Military Leave

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

        (l)    Missing Persons

               In the event a distribution is required to commence under Section
               10.6 and the Participant or Beneficiary cannot be located, the
               Participant's benefit shall be forfeited on the last day of the
               Plan Year following the Plan Year in which distribution was
               supposed to commence. Such forfeited amount shall be used to pay
               Plan expenses.

               If the affected Participant or Beneficiary later contacts the
               Employer, his or her benefit shall be reinstated and distributed
               as soon as practical. Such reinstated amount shall not be used to
               calculated a Participant's limit on annual benefits set forth in
               Section 8.1.

               Prior to forfeiting any benefit, the Employer shall attempt to
               contact the Participant or Beneficiary by return receipt mail at
               his or her last known address according to the Employer's
               records, and by the letter forwarding services offered through
               the Internal Revenue Service, the Social Security Administration,
               or such other means as the Administrative Committee deems
               appropriate.

10.9    Domestic Relations Orders

        Notwithstanding any Plan provisions to the contrary, benefits under the
        Plan may be paid to someone other than the Participant, Beneficiary or
        joint annuitant, pursuant to a Qualified Domestic Relations Order, in
        accordance with Code Section 414(p). A Qualified Domestic Relations
        Order is a judgment, decree, or order ("Order") (including approval of a
        property settlement agreement) that:

        (a)    relates to the provision of child support, alimony payments or
               marital property rights to a spouse, former spouse, child or
               other dependent of a Participant;

        (b)    is made pursuant to a state domestic relations law (including a
               community property law);

        (c)    creates or recognizes the existence of an alternate payee's right
               to, or assigns to an alternate payee the right to, receive all or
               a portion of the benefits payable to a Participant under the
               Plan;

                                       50
<PAGE>

        (d)    specifies the name and last known address of the Participant and
               each alternate payee;

        (e)    specifies the amount or method of determining the amount of
               benefit payable to an alternate payee;

        (f)    specifies the number of payments or period during which payments
               are to be made;

        (g)    names each plan to which the Order applies;

        (h)    does not require any form, type or amount of benefit not
               otherwise provided under the Plan; and

        (i)    does not conflict with a prior Qualified Domestic Relations Order
               that meets the requirements of this Section.

        Payments to an alternate payee pursuant to a Qualified Domestic
        Relations Order may commence on the Participant's earliest retirement
        date, as defined in Code Section 414(p)(4)(B), regardless of whether the
        Participant continues working after that date, and may be made in any of
        the payment options described in Article V, other than a Joint and
        Survivor Annuity with the alternate payee's spouse.

        The Committee shall determine whether an Order meets the requirements of
        this Section within a reasonable period after receiving an Order. The
        Committee shall notify the Participant and any alternate payee that an
        Order has been received. Any amounts due the alternate payee under the
        Order, which in the absence of the Order, would be paid to the
        Participant or Beneficiary, shall be held during the period while the
        Order's qualified status is being determined, in a separate account
        under the Plan. If within eighteen (18) months after such separate
        account is established the Order has not been determined to be a
        Qualified Domestic Relations Order, the amount in the separate account
        shall be distributed to the individual who would have been entitled to
        such amount if there had been no Order.

10.10   Plan Qualification

        Any modification or amendment of the Plan may be made retroactive, as
        necessary or appropriate, to establish and maintain a "qualified plan"
        pursuant to Code Section 401, and ERISA and regulations thereunder and
        the exempt status of the Trust Fund under Code Section 501.

10.11   Deductible Contribution

        Notwithstanding anything herein to the contrary, any contribution by the
        Employer to the Trust Fund is conditioned upon the deductibility of the
        contribution by the Employer

                                       51
<PAGE>

        under the Code and, to the extent any such deduction is disallowed, the
        Employer may within one (1) year following a final determination of the
        disallowance, demand repayment of such disallowed contribution and the
        Trustee shall return such contribution less any losses attributable
        thereto to the Employer within one (1) year following the disallowance.

10.12   Payment of Benefits Through Purchase of Annuity Contract

        In lieu of paying benefits directly from the Trust Fund to a Participant
        or his Beneficiary, the Trustee may purchase, with Trust Fund assets, an
        individual annuity contract from an insurance company which, as far as
        possible, provides benefits equal to (or Actuarially Equivalent to)
        those provided in the Plan for such Participant or Beneficiary, but
        provides no optional form of retirement income or benefit which would
        not be permitted under the Plan, whereupon the liability of the Trust
        Fund and of the Plan will cease and terminate with respect to such
        benefits that are so purchased and for which the premiums are duly paid.
        Such an individual annuity contract may be purchased by the Trustee on a
        single-premium basis or on the basis of annual premiums payable over a
        period of years and may be purchased at any time on or after the
        Participant's Vested Termination Date, Retirement Date or death to
        provide the benefits due under the Plan to the Participant or
        Beneficiary on or after the date of such purchase.

        Any annuity contract distributed by the Trustee to a Participant or
        Beneficiary under the provisions of the Plan shall bear on the face
        thereof the designation "NOT TRANSFERABLE", and such contract shall
        contain a provision to the effect that the contract may not be sold,
        assigned, discounted or pledged as collateral for a loan or as security
        for the performance of an obligation or for any other purpose to any
        person other than the issuer thereof.

                                       52
<PAGE>

                                   ARTICLE XI

                            AMENDMENT AND TERMINATION

11.1    Amendment-General

        It is the Employer's intention that the Plan will continue indefinitely;
        however, the Employer, by action of the Board's Compensation Committee,
        shall have the right to amend, terminate, or partially terminate this
        Plan at any time subject to any advance notice or other requirements of
        ERISA and the Code.

        In addition, the Committee shall have the right to make amendments to
        the Plan that are determined by the Committee to be administrative in
        nature (including, but not limited to, Plan distribution provisions, and
        all provisions concerning investment of plan assets), or that are deemed
        by the Committee to be appropriate or desirable to comply with legal
        requirements.

        Any amendment or termination shall be made in writing, adopted by the
        Compensation Committee or Committee, as applicable, and executed by one
        (1) or more duly authorized officers of the Employer.

11.2    Amendment - Consolidation, Merger, or Transfer

        A special rule applies if the Plan merges or consolidates with another
        plan or transfers assets or liabilities to another plan.

        (a)    In those cases, the terms of the merger, consolidation or
               transfer must require that in the event that this Plan or the
               other plan terminates immediately after the merger, consolidation
               or transfer, each Participant would receive an "accrued benefit"
               which is no less than the "accrued benefit" he or she would have
               received if this Plan had terminated immediately before the
               merger, consolidation or transfer.

        (b)    For purposes of this Section, the term "accrued benefit" has the
               meaning given that term under Code Section 411(a)(7).

        (c)    The determination of what "accrued benefit" would be payable to a
               Participant immediately before a merger, consolidation or
               transfer will be determined on the assumption that benefits
               payable under the Plan upon termination at that time will be
               payable solely from the Plan's assets at that time.

        (d)    No surplus will be allocated by virtue of this Section
               (either alone or in combination with any other provision
               governing the Plan). For purposes of this Section, "surplus"
               means any amount of Plan assets beyond what is necessary to

                                       53
<PAGE>

               pay "accrued benefits" as they existed immediately before a
               merger, consolidation or transfer.

        (e)    In no event shall this Section (either alone or in combination
               with any other provision governing the Plan) require the
               Affiliated Companies to make any additional contributions to the
               Plan.

11.3    Termination of the Plan

        The termination of the Plan shall not cause or permit any part of the
        Trust Fund to be diverted to purposes other than for the exclusive
        benefit of the Participants, or cause or permit any portion of the Trust
        Fund to revert to or become the property of the Employer at any time
        prior to the satisfaction of all liabilities with respect to the
        Participants.

        Upon termination of this Plan, the Committee shall continue to act for
        the purpose of complying with the preceding paragraph and shall have all
        power necessary or convenient to the winding up and dissolution of the
        Plan as herein provided. While so acting, the Committee shall be in the
        same status and position with respect to other persons as if the Plan
        remained in existence.

11.4    Allocation of the Trust Fund on Termination of Plan

        (a)    Complete Termination

               In the event of a complete Plan termination, the right of each
               Participant to benefits accrued to the date of such termination
               that would be vested under the provisions of the Plan in the
               absence of such termination shall continue to be vested and
               nonforfeitable; and the right of each Participant to any other
               benefits accrued to the date of termination shall be fully vested
               and nonforfeitable to the extent then funded under the priority
               rules set forth in ERISA Section 4044.

               In any event, a Participant or a Beneficiary shall have recourse
               only against Plan assets for the payment of benefits thereunder,
               subject to any applicable guarantee provisions of Title IV of
               ERISA. The Committee shall direct the Trustee to allocate Trust
               assets to those affected Participants to the extent and in the
               order of preference set forth in ERISA Section 4044. The assets
               so allocated shall be distributed, as determined by the
               Committee, either wholly or in part by purchase of
               nontransferable annuity contracts or lump-sum payments. If Trust
               Fund assets as of the date of Plan termination exceed the amounts
               required under the priority rules set forth in ERISA Section
               4044, such excess shall, after all liabilities of the Plan have
               been satisfied, revert to the Employer to the extent permitted by
               applicable law.

                                       54
<PAGE>

        (b)    Partial Termination

               If at any time the Plan is terminated with respect to any group
               of Participants under such circumstances as to constitute a
               partial Plan termination within the meaning of Code Section
               411(d)(3), each affected Participant's right to benefits that
               have accrued to the date of partial termination that would be
               vested under the provisions of the Plan in the absence of such
               termination shall continue to be so vested; and the right of each
               affected Participant to any other benefits accrued to the date of
               such termination shall be vested to the extent assets would be
               allocable to such benefits under the priority rules set forth in
               Code Section 4044 in the event of a complete Plan termination. In
               any event, affected Participants shall have recourse only against
               Plan assets for payment of benefits thereunder, subject to any
               applicable guarantee provisions of Title IV of ERISA. Subject to
               the foregoing, the vested benefits of such Participants shall be
               payable as though such termination had not occurred; provided,
               however, that the Committee, in its discretion, subject to any
               necessary governmental approval, may direct that the amounts held
               in the Trust Fund that are allocable to the Participants as to
               whom such termination occurred be segregated by the Trustee as a
               separate plan. The assets thus allocated to such separate plan
               shall be applied for the benefit of such Participants in the
               manner described in the preceding paragraph.

        (c)    Merged Plan Assets

               For a period of five (5) years after the date the Plan is
               combined in a merger with one (1) or more other defined benefit
               plans, assets shall be allocated upon Plan termination according
               to a special schedule in accordance with Treasury Regulations
               1.414(l)-1(e) through (k) to prevent any Participant from
               receiving smaller benefits on a termination basis as a result of
               the merger.

                                       55
<PAGE>

                                   ARTICLE XII

                                     FUNDING

12.1    Contributions to the Trust

        As a part of this Plan the Employer shall maintain a Trust. From time to
        time, the Employer shall make such contributions to the Trust as the
        Committee determines, with the advice of its actuary, are required to
        maintain the Plan on a sound actuarial basis.

12.2    Trust Fund for Exclusive Benefit of Participants

        The Trust is for the exclusive benefit of Participants. Except as
        provided in Sections 10.8 (Correction of Errors), 10.9 (Domestic
        Relations Orders), 10.11 (Deductible Contributions) and below, no
        portion of the Trust shall be diverted to purposes other than this or
        revert to or become the property of the Employer at any time prior to
        the satisfaction of all liabilities with respect to the Participants.
        Notwithstanding the above, effective for judgments, orders, and decrees
        issued and settlement agreements entered into, on or after August 4,
        1997, a Participant's Plan benefits may be offset by an amount that the
        Participant is ordered to, or required to, pay to the Plan, in
        accordance with Code Section 401(a)(13).

12.3    Trustee

        As a part of this Plan, the Employer has entered into a trust agreement
        with a Trustee. The Employer has the power and duty to appoint the
        Trustee and it shall have the power to remove the Trustee and appoint
        successors at any time. As a condition to exercising its power to remove
        any Trustee hereunder, the Employer must first enter into an agreement
        with a successor Trustee. The Committee may delegate the authority to
        direct the investment of all or a portion of the Trust Fund to the
        Trustee.

12.4    Investment Manager

        The Employer has the power to appoint, remove or change from time to
        time an Investment Manager to direct the investment of all or a portion
        of the Trust Fund held by the Trustee. For purposes of this Section,
        "Investment Manager" shall mean any fiduciary (other than the Trustee)
        who:

        (a)    has the power to manage, acquire, or dispose of any asset of the
               Plan;

        (b)    is either:

               (i)    registered as an investment adviser under the Investment
                      Advisers Act of 1940; or

                                       56
<PAGE>

               (ii)   a bank; or

               (iii)  an insurance company qualified under the laws of more than
                      one state to perform the services described in
                      subparagraph (a); and

        (c)    has acknowledged in writing that he, she or it is a fiduciary
               with respect to the plan.

                                       57
<PAGE>

                                  ARTICLE XIII

                                   FIDUCIARIES

13.1    Limitation of Liability of the Employer and Others

        No Participant shall have any claim against the Employer, or the
        Committee, or against their directors, officers, members, agents or
        representatives, for any benefits under the Plan, and such benefits
        shall be payable solely from the Trust; nor, to the extent permitted by
        law, shall the Employer, the Committee or their directors, officers,
        members, agents or representatives incur any liability to any person for
        any action taken or suffered or omitted to be taken by them under the
        Plan in good faith.

13.2    Indemnification of Fiduciaries

        In order to facilitate the recruitment of competent fiduciaries, the
        Employer adopting this Plan agrees to provide the indemnification as
        described herein. This provision shall apply to Employees who are
        considered Plan fiduciaries, including, without limitation, Committee
        members, any agent of the Committee, or any other officers, or directors
        of the Employer or Employees. Notwithstanding the preceding, this
        provision shall not apply and indemnification will not be provided for
        any Trustee or Investment Manager appointed as provided in this Plan.

13.3    Scope of Indemnification

        The Employer agrees to indemnify an Employee fiduciary as described
        above for all acts taken in good faith in carrying out his or her
        responsibilities under the terms of this Plan or other responsibilities
        imposed upon such fiduciary by ERISA. This indemnification for all acts
        is intentionally broad but shall not provide indemnification for
        embezzlement or diversion of Plan assets for the benefit of the Employee
        fiduciary. The Employer agrees to indemnify Employee fiduciaries
        described herein for all expenses of defending an action by a
        Participant, Beneficiary or government entity, including all legal fees
        for counsel selected with the consent of the Employer and other costs of
        such defense. The Employer will also reimburse an Employee fiduciary for
        any monetary recovery in any court or arbitration proceeding. In
        addition, if the claim is settled out of court with the concurrence of
        the Employer, the Employer will indemnify an Employee fiduciary for any
        monetary liability under said settlement. The Employer shall have the
        right, but not the obligation, to conduct the defense of such persons in
        any proceeding to which this Section 13.3 applies. The Employer may
        satisfy its obligations under this Section 13.3 in whole or in part
        through the purchase of a policy or policies of insurance providing
        equivalent protection.

                                       58
<PAGE>

The Spacelabs Medical, Inc. Retirement Plan is adopted by Spacelabs Medical,
Inc.

IN WITNESS WHEREOF, the Employer has caused this Plan to be duly executed on
this ____________ day of _______________________, 2001.

                                            SPACELABS MEDICAL, INC.

---------------------------------           ------------------------------------
Witness                                     Authorized Officer

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

                                       59
<PAGE>

                                   APPENDIX A

                             PARTICIPATING EMPLOYERS

1.  Spacelabs Medical, Inc. (DE)

2.  Spacelabs Medical, Inc. (CA)

3.  Vita-stat Medical Services, Inc.

4.  Medical Data, Inc.

5.  Spacelabs Medical Products, Ltd.

6.  LifeClinic.com

                                       60

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00035-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00035-of-00352.parquet"}]]