Document:

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                          ONE LIBERTY PROPERTIES, INC.
                                  PENSION PLAN
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                                TABLE OF CONTENTS

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                                                          ARTICLE I
                                                         DEFINITIONS

                                                         ARTICLE II
                                                       ADMINISTRATION

2.1 POWERS AND RESPONSIBILITIES OF THE EMPLOYER...........................................................................12
2.2 DESIGNATION OF ADMINISTRATIVE AUTHORITY...............................................................................13
2.3 POWERS AND DUTIES OF THE ADMINISTRATOR................................................................................13
2.4 RECORDS AND REPORTS...................................................................................................14
2.5 APPOINTMENT OF ADVISERS...............................................................................................15
2.6 PAYMENT OF EXPENSES...................................................................................................15
2.7 CLAIMS PROCEDURE......................................................................................................15
2.8 CLAIMS REVIEW PROCEDURE...............................................................................................15

                                                         ARTICLE III
                                                         ELIGIBILITY

3.1 CONDITIONS OF ELIGIBILITY.............................................................................................16
3.2 EFFECTIVE DATE OF PARTICIPATION.......................................................................................16
3.3 DETERMINATION OF ELIGIBILITY..........................................................................................16
3.4 TERMINATION OF ELIGIBILITY............................................................................................16
3.5 OMISSION OF ELIGIBLE EMPLOYEE.........................................................................................17
3.6 INCLUSION OF INELIGIBLE EMPLOYEE......................................................................................17
3.7 ELECTION NOT TO PARTICIPATE...........................................................................................17

                                                         ARTICLE IV
                                                 CONTRIBUTION AND ALLOCATION

4.1 FORMULA FOR DETERMINING EMPLOYER CONTRIBUTION.........................................................................17
4.2 TIME OF PAYMENT OF EMPLOYER CONTRIBUTION..............................................................................18
4.3 ACCOUNTING AND ALLOCATIONS............................................................................................18
4.4 MAXIMUM ANNUAL ADDITIONS..............................................................................................20
4.5 ADJUSTMENT FOR EXCESSIVE ANNUAL ADDITIONS.............................................................................22
4.6 TRANSFERS FROM QUALIFIED PLANS........................................................................................22
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                                                          ARTICLE V
                                                         VALUATIONS

5.1 VALUATION OF THE TRUST FUND...........................................................................................24
5.2 METHOD OF VALUATION...................................................................................................24

                                                         ARTICLE VI
                                         DETERMINATION AND DISTRIBUTION OF BENEFITS

6.1 DETERMINATION OF BENEFITS UPON RETIREMENT.............................................................................25
6.2 DETERMINATION OF BENEFITS UPON DEATH..................................................................................25
6.3 DETERMINATION OF BENEFITS IN EVENT OF DISABILITY......................................................................26
6.4 DETERMINATION OF BENEFITS UPON TERMINATION............................................................................26
6.5 DISTRIBUTION OF BENEFITS..............................................................................................29
6.6 DISTRIBUTION OF BENEFITS UPON DEATH...................................................................................33
6.7 TIME OF SEGREGATION OR DISTRIBUTION...................................................................................37
6.8 DISTRIBUTION FOR MINOR BENEFICIARY....................................................................................37
6.9 LOCATION OF PARTICIPANT OR BENEFICIARY UNKNOWN........................................................................37
6.10 QUALIFIED DOMESTIC RELATIONS ORDER DISTRIBUTION......................................................................37
6.11 DIRECT ROLLOVER......................................................................................................37

                                                         ARTICLE VII
                                          AMENDMENT, TERMINATION, MERGERS AND LOANS

7.1 AMENDMENT.............................................................................................................38
7.2 TERMINATION...........................................................................................................39
7.3 MERGER OR CONSOLIDATION...............................................................................................39
7.4 LOANS TO PARTICIPANTS.................................................................................................40

                                                        ARTICLE VIII
                                                          TOP HEAVY

8.1 TOP HEAVY PLAN REQUIREMENTS...........................................................................................41
8.2 DETERMINATION OF TOP HEAVY STATUS.....................................................................................41

                                                         ARTICLE IX
                                                        MISCELLANEOUS

9.1 PARTICIPANT'S RIGHTS..................................................................................................44
9.2 ALIENATION............................................................................................................45
9.3 CONSTRUCTION OF PLAN..................................................................................................45
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9.4 GENDER AND NUMBER.....................................................................................................45
9.5 LEGAL ACTION..........................................................................................................46
9.6 PROHIBITION AGAINST DIVERSION OF FUNDS................................................................................46
9.7 BONDING...............................................................................................................46
9.8 EMPLOYER'S AND TRUSTEE'S PROTECTIVE CLAUSE............................................................................47
9.9 INSURER'S PROTECTIVE CLAUSE...........................................................................................47
9.10 RECEIPT AND RELEASE FOR PAYMENTS.....................................................................................47
9.11 ACTION BY THE EMPLOYER...............................................................................................47
9.12 NAMED FIDUCIARIES AND ALLOCATION OF RESPONSIBILITY...................................................................47
9.13 HEADINGS.............................................................................................................48
9.14 APPROVAL BY INTERNAL REVENUE SERVICE.................................................................................48
9.15 UNIFORMITY...........................................................................................................49
9.16 WAIVER OF FUNDING....................................................................................................49

                                                          ARTICLE X
                                                   PARTICIPATING EMPLOYERS

10.1 ADOPTION BY OTHER EMPLOYERS..........................................................................................50
10.2 REQUIREMENTS OF PARTICIPATING EMPLOYERS..............................................................................50
10.3 DESIGNATION OF AGENT.................................................................................................51
10.4 EMPLOYEE TRANSFERS...................................................................................................51
10.5 PARTICIPATING EMPLOYER CONTRIBUTION..................................................................................51
10.6 AMENDMENT............................................................................................................51
10.7 DISCONTINUANCE OF PARTICIPATION......................................................................................51
10.8 ADMINISTRATOR'S AUTHORITY............................................................................................52
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                          ONE LIBERTY PROPERTIES, INC.
                                  PENSION PLAN

                  THIS PLAN, hereby adopted this __________ day of
______________________________, by One Liberty Properties, Inc. (herein referred
to as the "Employer").

                              W I T N E S S E T H:

                  WHEREAS, the Employer desires to recognize the contribution
made to its successful operation by its employees and to reward such
contribution by means of a Money Purchase Pension Plan for those employees who
shall qualify as Participants hereunder;

                  NOW, THEREFORE, effective January 1, 1 999, (hereinafter
called the "Effective Date"), the Employer hereby establishes a Money Purchase
Pension Plan (the "Plan") for the exclusive benefit of the Participants and
their Beneficiaries, on the following terms:

                                    ARTICLE I
                                   DEFINITIONS

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

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

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

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

         1.5 "Anniversary Date" means December 31st.

         1.6 "Annuity Starting Date" means, with respect to any Participant, the
first day of the first period for which an amount is paid as an annuity or any
other form.

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

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

         1.9 "Compensation" with respect to any Participant means such
Participant's wages as defined in Code Section 3401(a) and all other payments of
compensation by the Employer (in the course of the Employer's trade or business)
for a Plan Year for which the Employer is required to furnish the Participant a
written statement under Code Sections 6041(d), 6051(a)(3) and 6052. Compensation
must be determined without regard to any rules under Code Section 3401(a) that
limit the remuneration included in wages based on the nature or location of the
employment or the services performed (such as the exception for agricultural
labor in Code Section 3401(a)(2)).

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

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

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

                  Compensation in excess of $150,000 shall be disregarded. Such
amount shall be adjusted for increases in the cost of living in accordance with
Code Section 401(a)(17), except that the dollar increase in effect on January 1
of any calendar year shall be effective for the Plan Year beginning with or
within such calendar year. For any short Plan Year the Compensation limit shall
be an amount equal to the Compensation limit for the calendar year in which the
Plan Year begins multiplied by the ratio obtained by dividing the number of full
months in the short Plan Year by twelve (12). In applying this limitation, the
family group of a Highly Compensated Participant who is subject to the Family
Member aggregation rules of Code Section 414(q)(6) as in effect prior to the
Small Business Job Protection Act of 1996 because such Participant is either a
"five percent owner" of the Employer or one of the ten (10) Highly Compensated
Employees paid the greatest "415 Compensation" during the year, shall be treated
as a single Participant, except that for this purpose Family Members shall
include only the affected Participant's spouse and any lineal descendants who
have not attained age nineteen (19) before the close of the year. If, as a
result of the application of such rules the adjusted limitation is exceeded,
then the limitation shall be prorated among the affected Family Members in
proportion to each such Family Member's Compensation prior to the application of
this limitation, or the limitation shall be adjusted in accordance with any
other method permitted by Regulation.

                  If, as a result of such rules, the maximum "annual addition"
limit of Section 4.4(a) would be exceeded for one or more of the affected Family
Members, the prorated Compensation of all affected Family Members shall be
adjusted to avoid or reduce any excess. The prorated Compensation of any
affected Family Member whose allocation would exceed the limit shall be adjusted
downward to the level needed to provide an allocation equal to such limit. The
prorated Compensation of affected Family Members not affected by

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such limit shall then be adjusted upward on a pro rata basis not to exceed each
such affected Family Member's Compensation as determined prior to application of
the Family Member rule. The resulting allocation shall not exceed such
individual's maximum "annual addition" limit. If, after these adjustments, an
"excess amount" still results, such "excess amount" shall be disposed of in the
manner described in Section 4.5(a) pro rata among all affected Family Members.

                  For purposes of this Section, if the Plan is a plan described
in Code Section 413(c) or 414(f) (a plan maintained by more than one Employer),
the limitation applies separately with respect to the Compensation of any
Participant from each Employer maintaining the Plan.

         1.10 "Contract" or "Policy" means any life insurance policy, retirement
income or annuity policy or annuity contract (group or individual) issued
pursuant to the terms of the Plan.

         1.11 "Early Retirement Date." This Plan does not provide for a
retirement date prior to Normal Retirement Date.

         1.12 "Eligible Employee" means any Employee.

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

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

         1.13 "Employee" means any person who is employed by the Employer or
Affiliated Employer. Employee shall include Leased Employees within the meaning
of Code Sections 414(n)(2) and 414(o)(2) unless such Leased Employees are
covered by a plan described in Code Section 414(n)(5) and such Leased Employees
do not constitute more than 20% of the recipient's non-highly compensated work
force.

         1.14 "Employer" means One Liberty Properties, Inc. and any successor
which shall maintain this Plan; and any predecessor which has maintained this
Plan. The Employer is a corporation, with principal offices in the State of New
York. In addition, where appropriate, the term Employer shall include any
Participating Employer (as defined in Section 10.1) which shall adopt this Plan.

         1.15 "Family Member" means, with respect to an affected Participant,
such Participant's spouse and such Participant's lineal descendants and
ascendants and their spouses, all as described in Code Section 414(q)(6)(B) as
in effect prior to the Small Business Job Protection Act of 1996.

         1.16 "Fiduciary" means any person who (a) exercises any discretionary
authority or discretionary control respecting management of the Plan or
exercises any authority or control respecting management or disposition of its
assets, (b) renders investment advice

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for a fee or other compensation, direct or indirect, with respect to any monies
or other property of the Plan or has any authority or responsibility to do so,
or (c) has any discretionary authority or discretionary responsibility in the
administration of the Plan, including, but not limited to, the Trustee, the
Employer and its representative body, and the Administrator.

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

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

                           (a) the distribution of the entire Vested portion of
                  a Terminated Participant's Account, or

                           (b) the last day of the Plan Year in which the
                  Participant incurs five (5) consecutive 1-Year Breaks in
                  Service.

                  Furthermore, for purposes of paragraph (a) above, in the case
of a Terminated Participant whose Vested benefit is zero, such Terminated
Participant shall be deemed to have received a distribution of his Vested
benefit upon his termination of employment. Restoration of such amounts shall
occur pursuant to Section 6.4(e)(2). In addition, the term Forfeiture shall also
include amounts deemed to be Forfeitures pursuant to any other provision of this
Plan.

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

         1.20 "415 Compensation" with respect to any Participant means such
Participant's wages as defined in Code Section 3401(a) and all other payments of
compensation by the Employer (in the course of the Employer's trade or business)
for a Plan Year for which the Employer is required to furnish the Participant a
written statement under Code Sections 6041(d), 6051(a)(3) and 6052. "415
Compensation" must be determined without regard to any rules under Code Section
3401(a) that limit the remuneration included in wages based on the nature or
location of the employment or the services performed (such as the exception for
agricultural labor in Code Section 3401(a)(2)).

         1.21 "Highly Compensated Employee" means an Employee described in Code
Section 414(q) and the Regulations thereunder, and generally means an Employee
who performed services for the Employer during the "determination year" and is
in one or more of the following groups:

                           (a) Employees who at any time during the
                  "determination year" or "look-back year" were "five percent
                  owners" as defined in Section 1.27(c).

                           (b) Employees who received "415 Compensation" during
                  the "look-back year" from the Employer in excess of $75,000.

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                           (c) Employees who received "415 Compensation" during
                  the "look-back year" from the Employer in excess of $50,000
                  and were in the Top Paid Group of Employees for the Plan Year.

                           (d) Employees who during the "look-back year" were
                  officers of the Employer (as that term is defined within the
                  meaning of the Regulations under Code Section 416) and
                  received "415 Compensation" during the "look-back year" from
                  the Employer greater than 50 percent of the limit in effect
                  under Code Section 415(b)(1)(A) for any such Plan Year. The
                  number of officers shall be limited to the lesser of (i) 50
                  employees; or (ii) the greater of 3 employees or 10 percent of
                  all employees. For the purpose of determining the number of
                  officers, Employees described in Sections
                  1.46(a),1.46(b),1.46(c) and 1.46(d) shall be excluded, but
                  such Employees shall still be considered for the purpose of
                  identifying the particular Employees who are officers. If the
                  Employer does not have at least one officer whose annual "415
                  Compensation" is in excess of 50 percent of the Code Section
                  415(b)(1)(A) limit, then the highest paid officer of the
                  Employer will be treated as a Highly Compensated Employee.

                           (e) Employees who are in the group consisting of the
                  100 Employees paid the greatest "415 Compensation" during the
                  "determination year" and are also described in (b), (c) or (d)
                  above when these paragraphs are modified to substitute
                  "determination year" for "look-back year."

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

                  If an Employee is, during a "determination year" or "look-back
year", a Family Member of either a "five percent owner" (whether active or
former) or a Highly Compensated Employee who is one of the 10 most Highly
Compensated Employees ranked on the basis of "415 Compensation" paid by the
Employer during such year, then the Family Member and the "five percent owner"
or top-ten Highly Compensated Employee shall be aggregated. In such case, the
Family Member and "five percent owner" or top-ten Highly Compensated Employee
shall be treated as a single Employee receiving "415 Compensation" and Plan
contributions or benefits equal to the sum of such "415 Compensation" and
contributions or benefits of the Family Member and "five percent owner" or
top-ten Highly Compensated Employee.

                  For purposes of this Section, the determination of "415
Compensation" shall be made by including amounts which are contributed by the
Employer pursuant to a salary reduction agreement and which are not includible
in the gross income of the Participant under Code Sections 125, 402(e)(3),
402(h)(1)(B), 403(b) or 457(b), and Employee contributions described in Code
Section 414(h)(2) that are treated as Employer contributions. Additionally, the
dollar threshold amounts specified in (b) and (c) above shall be adjusted at
such time and in such manner as is provided in Regulations. In the case of such
an adjustment, the dollar limits which shall be applied are those for the
calendar year in which the "determination year" or "look-back year" begins.

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

         1.22 "Highly Compensated Former Employee" means a former Employee who
had a separation year prior to the "determination year" and was a Highly
Compensated Employee in the year of separation from service or in any
"determination year" after attaining age 55. Notwithstanding the foregoing, an
Employee who separated from service prior to 1987 will be treated as a Highly
Compensated Former Employee only if during the separation year (or year
preceding the separation year) or any year after the Employee attains age 55 (or
the last year ending before the Employee's 55th birthday), the Employee either
received "415 Compensation" in excess of $50,000 or was a "five percent owner."
For purposes of this Section, "determination year," "415 Compensation" and "five
percent owner" shall be determined in accordance with Section 1.21. Highly
Compensated Former Employees shall be treated as Highly Compensated Employees.
The method set forth in this Section for determining who is a "Highly
Compensated Former Employee" shall be applied on a uniform and consistent basis
for all purposes for which the Code Section 414(q) definition is applicable.

         1.23 "Highly Compensated Participant" means any Highly Compensated
Employee who is eligible to participate in the Plan.

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

                  Notwithstanding the above, (i) no more than 501 Hours of
Service are required to be credited to an Employee on account of any single
continuous period during which the Employee performs no duties (whether or not
such period occurs in a single

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

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

                  Notwithstanding the foregoing, a Participant shall be credited
with 190 Hours of Service for each month in which an Employee is paid or
entitled to payment for at least one Hour of Service.

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

         1.25 "Income" means the income or losses allocable to Excess Deferred
Compensation or Excess Contributions which amount shall be allocated in the same
manner as income or losses are allocated pursuant to Section 4.3(e).

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

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

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

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

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

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

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

         1.28 "Late Retirement Date" means the first day of the month coinciding
with or next following a Participant's actual Retirement Date after having
reached his Normal Retirement Date.

         1.29 "Leased Employee" means any person (other than an Employee of the
recipient) who pursuant to an agreement between the recipient and any other
person ("leasing organization") has performed services for the recipient (or for
the recipient and related persons determined in accordance with Code Section
414(n)(6)) on a substantially full time basis for a period of at least one year,
and such services are of a type historically performed by employees in the
business field of the recipient employer. Contributions or benefits provided a
Leased Employee by the leasing organization which are attributable to services
performed for the recipient employer shall be treated as provided by the
recipient employer. A Leased Employee shall not be considered an Employee of the
recipient:

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

                           (1) a non-integrated employer contribution rate of at
                           least 10% of compensation, as defined in Code Section
                           415(c)(3), but including amounts which are
                           contributed by the Employer pursuant to a salary
                           reduction agreement and which are not includible in
                           the gross income of the Participant under Code
                           Sections 125, 402(e)(3), 402(h)(1)(B), 403(b) or
                           457(b), and Employee contributions described in Code
                           Section 414(h)(2) that are treated as Employer
                           contributions.

                           (2) immediate participation; and

                           (3) full and immediate vesting; and

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

         1.30 "Non-Highly Compensated Participant" means any Participant who is
neither a Highly Compensated Employee nor a Family Member.

         1.31 "Non-Key Employee" means any Employee or former Employee (and his
Beneficiaries) who is not a Key Employee.

         1.32 "Normal Retirement Age" means the Participant's sixty-fifth (65th)
birthday. A Participant shall become fully vested in his Participant's Account
upon attaining his Normal Retirement Age.

         1.33 "Normal Retirement Date" means the first day of the month
coinciding with or next following the Participant's Normal Retirement Age.

         1.34 "1-Year Break in Service" means the applicable computation period
during which an Employee has not completed more than 500 Hours of Service with
the Employer. Further, solely for the purpose of determining whether a
Participant has incurred a 1-Year Break in Service, Hours of Service shall be
recognized for "authorized leaves of absence" and "maternity and paternity
leaves of absence." Years of Service and 1-Year Breaks in Service shall be
measured on the same computation period.

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

                  A "maternity or paternity leave of absence" means, for Plan
Years beginning after December 31, 1984, an absence from work for any period by
reason of the Employee's pregnancy, birth of the Employee's child, placement of
a child with the Employee in connection with the adoption of such child, or any
absence for the purpose of caring for such child for a period immediately
following such birth or placement. For this purpose, Hours of Service shall be
credited for the computation period in which the absence from work begins, only
if credit therefore is necessary to prevent the Employee from incurring a 1-Year
Break in Service, or, in any other case, in the immediately following

                                       9
<PAGE>
computation period. The Hours of Service credited for a "maternity or paternity
leave of absence" shall be those which would normally have been credited but for
such absence, or, in any case in which the Administrator is unable to determine
such hours normally credited, eight (8) Hours of Service per day. The total
Hours of Service required to be credited for a "maternity or paternity leave of
absence" shall not exceed 501.

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

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

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

         1.38 "Pre-Retirement Survivor Annuity" means a death benefit which is
an immediate annuity for the life of the Participant's spouse the payments under
which must be equal to the amount of benefit which can be purchased with 50% of
the accounts of a Participant.

                  A proportionate share of each of the Participant's accounts
shall be used to provide the Pre-Retirement Survivor Annuity.

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

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

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

         1.42 "Super Top Heavy Plan" means a plan described in Section 8.2(b).

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

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

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

         1.46 "Top Paid Group" means the top 20 percent of Employees who
performed services for the Employer during the applicable year, ranked according
to the amount of "415 Compensation" (determined for this purpose in accordance
with Section 1.21) received from the Employer during such year. All Affiliated
Employers shall be taken into account as a single employer, and Leased Employees
within the meaning of Code Sections 414(n)(2) and 414(o)(2) shall be considered
Employees unless such Leased Employees are covered

                                       10
<PAGE>
by a plan described in Code Section 414(n)(5) and are not covered in any
qualified plan maintained by the Employer. Employees who are non-resident aliens
and who received no earned income (within the meaning of Code Section 911(d)(2))
from the Employer constituting United States source income within the meaning of
Code Section 861(a)(3) shall not be treated as Employees. Additionally, for the
purpose of determining the number of active Employees in any year, the following
additional Employees shall also be excluded; however, such Employees shall still
be considered for the purpose of identifying the particular Employees in the Top
Paid Group:

                           (a) Employees with less than six (6) months of
                  service;

                           (b) Employees who normally work less than 17 1/2
                  hours per week;

                           (c) Employees who normally work less than six (6)
                  months during a year; and

                           (d) Employees who have not yet attained age 21.

                  In addition, if 90 percent or more of the Employees of the
Employer are covered under agreements the Secretary of Labor finds to be
collective bargaining agreements between Employee representatives and the
Employer, and the Plan covers only Employees who are not covered under such
agreements, then Employees covered by such agreements shall be excluded from
both the total number of active Employees as well as from the identification of
particular Employees in the Top Paid Group.

                  The foregoing exclusions set forth in this Section shall be
applied on a uniform and consistent basis for all purposes for which the Code
Section 414(q) definition is applicable.

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

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

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

         1.50 "USERRA" means the Uniformed Services Employment and Reemployment
Rights Act of 1994. 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).

         1.51 "Valuation Date" means the Anniversary Date and such other date or
dates deemed necessary by the Administrator. The Valuation Date may include any
day during the Plan Year that the Trustee, any transfer agent appointed by the
Trustee or the Employer and any stock exchange used by such agent are open for
business.

                                       11
<PAGE>
         1.52 "Vested" means the nonforfeitable portion of any account
maintained on behalf of a Participant.

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

                  For vesting purposes, the computation periods shall be the
Plan Year, including periods prior to the Effective Date of the Plan.

                  The computation period shall be the Plan Year if not otherwise
set forth herein.

                  Notwithstanding the foregoing, for any short Plan Year, the
determination of whether an Employee has completed a Year of Service shall be
made in accordance with Department of Labor regulation 2530.203-2(c). However,
in determining whether an Employee has completed a Year of Service for benefit
accrual purposes in the short Plan Year, the number of the Hours of Service
required shall be proportionately reduced based on the number of full months in
the short Plan Year.

                  Years of Service with any Affiliated Employer shall be
recognized.

                                   ARTICLE II
                                 ADMINISTRATION

2.1 POWERS AND RESPONSIBILITIES OF THE EMPLOYER

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

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

                                       12
<PAGE>
                           (c) The Employer shall establish a "funding policy
                  and method," i.e., it shall determine whether the Plan has a
                  short run need for liquidity (e.g., to pay benefits) or
                  whether liquidity is a long run goal and investment growth
                  (and stability of same) is a more current need, or shall
                  appoint a qualified person to do so. The Employer or its
                  delegate shall communicate such needs and goals to the
                  Trustee, who shall coordinate such Plan needs with its
                  investment policy. The communication of such a "funding policy
                  and method" shall not, however, constitute a directive to the
                  Trustee as to investment of the Trust Funds. Such "funding
                  policy and method" shall be consistent with the objectives of
                  this Plan and with the requirements of Title I of the Act.

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

2.2 DESIGNATION OF ADMINISTRATIVE AUTHORITY

                  The Employer shall be the Administrator. The Employer may
appoint any person, including, but not limited to, the Employees of the
Employer, to perform the duties of the Administrator. Any person so appointed
shall signify his acceptance by filing written acceptance with the Employer.
Upon the resignation or removal of any individual performing the duties of the
Administrator, the Employer may designate a successor.

2.3 POWERS AND DUTIES OF THE ADMINISTRATOR

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

                                       13
<PAGE>
                  The Administrator shall be charged with the duties of the
general administration of the Plan, including, but not limited to, the
following:

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

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

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

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

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

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

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

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

                           (i) to prepare and distribute to Employees a
                  procedure for notifying Participants and Beneficiaries of
                  their rights to elect joint and survivor annuities and
                  Pre-Retirement Survivor Annuities as required by the Act and
                  regulations thereunder;

                           (j) to assist any Participant regarding his rights,
                  benefits, or elections available under the Plan.

2.4 RECORDS AND REPORTS

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

                                       14
<PAGE>
2.5 APPOINTMENT OF ADVISERS

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

2.6 PAYMENT OF EXPENSES

                  All expenses of administration may be paid out of the Trust
Fund unless paid by the Employer. Such expenses shall include any expenses
incident to the functioning of the Administrator, or any person or persons
retained or appointed by any Named Fiduciary incident to the exercise of their
duties under the Plan, including, but not limited to, fees of accountants,
counsel, Investment Managers, and other specialists and their agents, and other
costs of administering the Plan. Until paid, the expenses shall constitute a
liability of the Trust Fund.

2.7 CLAIMS PROCEDURE

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

2.8 CLAIMS REVIEW PROCEDURE

                  Any Employee, former Employee, or Beneficiary of either, who
has been denied a benefit by a decision of the Administrator pursuant to Section
2.7 shall be entitled to request the Administrator to give further consideration
to his claim by filing with the Administrator (on a form which may be obtained
from the Administrator) a request for a hearing. Such request, together with a
written statement of the reasons why the claimant believes his claim should be
allowed, shall be filed with the Administrator no later than 60 days after
receipt of the written notification provided for in Section 2.7. The
Administrator shall then conduct a hearing within the next 60 days, at which the
claimant may be represented by an attorney or any other representative of his
choosing and at which the claimant shall have an opportunity to submit written
and oral evidence and arguments in support of his claim. At the hearing (or
prior thereto upon 5 business days written notice to the Administrator) the
claimant or his representative shall have an opportunity to review all documents
in the possession of the Administrator which are pertinent to the claim at issue
and its disallowance. Either the claimant or the Administrator may cause a court
reporter to attend the hearing and record the proceedings. In such event, a
complete written transcript of the proceedings shall be furnished to both
parties by the court reporter. The full expense of any such court reporter and
such transcripts shall be borne by the party causing the court

                                       15
<PAGE>
reporter to attend the hearing. A final decision as to the allowance of the
claim shall be made by the Administrator within 60 days of receipt of the appeal
(unless there has been an extension of 60 days due to special circumstances,
provided the delay and the special circumstances occasioning it are communicated
to the claimant within the 60 day period). Such communication shall be written
in a manner calculated to be understood by the claimant and shall include
specific reasons for the decision and specific references to the pertinent Plan
provisions on which the decision is based.

                                   ARTICLE III
                                   ELIGIBILITY

3.1 CONDITIONS OF ELIGIBILITY

                  Any Eligible Employee who has completed six (6) months of
service and has attained age 21 shall be eligible to participate hereunder as of
the date he has satisfied such requirements.

                  For purposes of this Section, an Eligible Employee will be
deemed to have completed six (6) months of service if he is in the employ of the
Employer at any time six (6) months after his employment commencement date.
Employment commencement date shall be the first day that he is entitled to be
credited with an Hour of Service for the performance of duty.

3.2 EFFECTIVE DATE OF PARTICIPATION

                  An Eligible Employee shall become a Participant effective as
of the last day of the Plan Year in which such Employee met the eligibility
requirements of Section 3.1, provided said Employee was still employed as of
such date (or if not employed on such date, as of the date of rehire if a 1-Year
Break in Service has not occurred).

                  In the event an Employee who is not a member of an eligible
class of Employees becomes a member of an eligible class, such Employee will
participate immediately if such Employee has satisfied the minimum age and
service requirements and would have otherwise previously become a Participant.

3.3 DETERMINATION OF ELIGIBILITY

                  The Administrator shall determine the eligibility of each
Employee for participation in the Plan based upon information furnished by the
Employer. Such determination shall be conclusive and binding upon all persons,
as long as the same is made pursuant to the Plan and the Act. Such determination
shall be subject to review per Section 2.8.

3.4 TERMINATION OF ELIGIBILITY

                           (a) In the event a Participant shall go from a
                  classification of an Eligible Employee to an ineligible
                  Employee, such Former Participant shall continue to vest in
                  his interest in the Plan for each Year of Service completed
                  while a noneligible Employee, until such time as his
                  Participant's Account shall

                                       16
<PAGE>
                  be forfeited or distributed pursuant to the terms of the Plan.
                  Additionally, his interest in the Plan shall continue to share
                  in the earnings of the Trust Fund.

                           (b) In the event a Participant is no longer a member
                  of an eligible class of Employees and becomes ineligible to
                  participate, such Employee will participate immediately upon
                  returning to an eligible class of Employees.

3.5 OMISSION OF ELIGIBLE EMPLOYEE

                  If, in any Plan Year, any Employee who should be included as a
Participant in the Plan is erroneously omitted and discovery of such omission is
not made until after a contribution by his Employer for the year has been made,
the Employer shall make a subsequent contribution with respect to the omitted
Employee in the amount which the said Employer would have contributed with
respect to him had he not been omitted. Such contribution shall be made
regardless of whether or not it is deductible in whole or in part in any taxable
year under applicable provisions of the Code.

3.6 INCLUSION OF INELIGIBLE EMPLOYEE

                  If, in any Plan Year, any person who should not have been
included as a Participant in the Plan is erroneously included and discovery of
such incorrect inclusion is not made until after a contribution for the year has
been made, the Employer shall not be entitled to recover the contribution made
with respect to the ineligible person regardless of whether or not a deduction
is allowable with respect to such contribution. In such event, the amount
contributed with respect to the ineligible person shall constitute a Forfeiture
for the Plan Year in which the discovery is made.

3.7 ELECTION NOT TO PARTICIPATE

                  An Employee may, subject to the approval of the Employer,
elect voluntarily not to participate in the Plan. The election not to
participate must be communicated to the Employer, in writing, at least thirty
(30) days before the beginning of a Plan Year.

                                   ARTICLE IV
                           CONTRIBUTION AND ALLOCATION

4.1 FORMULA FOR DETERMINING EMPLOYER CONTRIBUTION

                           (a) The Employer shall make contributions over such
                  period of years as the Employer may determine on the following
                  basis. On behalf of each Participant eligible to share in
                  allocations, for each year of his participation in this Plan,
                  the Employer shall contribute 15% of his annual Compensation.

                           (b) Should the Employer, for any reason, fail to make
                  a contribution for any year or should the Employer fail to
                  make a contribution as provided for herein, then such
                  deficiency shall be made up in subsequent years pursuant to
                  Section 9.16.

                                       17
<PAGE>
                           (c) The Employer shall not contribute on behalf of
                  any Participant who is not entitled to share in the allocation
                  of the Employer contribution as provided in Section 4.3(d)
                  unless otherwise required pursuant to Section 4.3(g).

4.2 TIME OF PAYMENT OF EMPLOYER CONTRIBUTION

         The Employer shall generally pay to the Trustee its contribution to the
Plan for each Plan Year within the time prescribed by law, including extensions
of time, for the filing of the Employer federal income tax return for the Fiscal
Year.

4.3 ACCOUNTING AND ALLOCATIONS

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

                           (b) The Employer shall provide the Administrator with
                  all information required by the Administrator to make a proper
                  allocation of the Employer contributions for each Plan Year.
                  Within a reasonable period of time after the date of receipt
                  by the Administrator of such information, the Administrator
                  shall allocate such contribution to each Participant's Account
                  in accordance with Section 4.1.

                           (c) As of each Anniversary Date any amounts which
                  became Forfeitures since the last Anniversary Date shall first
                  be made available to reinstate previously forfeited account
                  balances of Former Participants, if any, in accordance with
                  Section 6.4(e)(2). The remaining Forfeitures, if any, shall be
                  allocated among the Participant's Account in the same
                  proportion that each such Participant's Compensation for the
                  year bears to the total Compensation of all Participant's for
                  the year. Provided, however, that in the event the allocation
                  of Forfeitures provided herein shall cause the "annual
                  addition" (as defined in Section 4.4) to any Participant's
                  Account to exceed the amount allowable by the Code, the excess
                  shall be reallocated in accordance with Section 4.5.

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

                           (1) Only Participants who have completed a Year of
                           Service during the Plan Year shall be eligible to
                           share in the allocation of contributions and
                           Forfeitures for that Plan Year.

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

                                       18
<PAGE>
                           (e) As of each Valuation Date, before the current
                  valuation period allocation of Employer contributions and
                  Forfeitures, any earnings or losses (net appreciation or net
                  depreciation) of the Trust Fund shall be allocated in the same
                  proportion that each Participant's and Former Participant's
                  nonsegregated accounts bear to the total of all Participants'
                  and Former Participants' nonsegregated accounts as of such
                  date.

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

                           (f) Minimum Allocations Required for Top Heavy Plan
                  Years: Notwithstanding the foregoing, for any Top Heavy Plan
                  Year, the sum of the Employer contributions and Forfeitures
                  allocated to the Participant's Account of each Employee shall
                  be equal to at least three percent (3%) of such Employee's
                  "415 Compensation" (reduced by contributions and forfeitures,
                  if any, allocated to each Employee in any defined contribution
                  plan included with this plan in a Required Aggregation Group).
                  However, if (1) the sum of the Employer contributions and
                  Forfeitures allocated to the Participant's Account of each Key
                  Employee for such Top Heavy Plan Year is less than three
                  percent (3%) of each Key Employee's "415 Compensation" and (2)
                  this Plan is not required to be included in an Aggregation
                  Group to enable a defined benefit plan to meet the
                  requirements of Code Section 401(a)(4) or 410, the sum of the
                  Employer contributions and Forfeitures allocated to the
                  Participant's Account of each Employee shall be equal to the
                  largest percentage allocated to the Participant's Account of
                  any Key Employee.

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

                           (h) For the purposes of this Section, "415
                  Compensation" shall be limited to $150,000. Such amount shall
                  be adjusted for increases in the cost of living in accordance
                  with Code Section 401(a)(17), except that the dollar increase
                  in effect on January 1 of any calendar year shall be effective
                  for the Plan Year beginning with or within such calendar year.
                  For any short Plan Year the "415 Compensation" limit shall be
                  an amount equal to the "415 Compensation" limit for the
                  calendar year in which the Plan Year begins multiplied by the
                  ratio obtained by dividing the number of full months in the
                  short Plan Year by twelve (12).

                           (i) If a Former Participant is reemployed after five
                  (5) consecutive 1-Year Breaks in Service, then separate
                  accounts shall be maintained as follows:

                                       19
<PAGE>
                           (1) one account for nonforfeitable benefits
                           attributable to pre-break service; and

                           (2) one account representing his status in the Plan
                           attributable to post-break service.

4.4 MAXIMUM ANNUAL ADDITIONS

                           (a) Notwithstanding the foregoing, the maximum
                  "annual additions" credited to a Participant's accounts for
                  any "limitation year" shall equal the lesser of: (1) $30,000
                  adjusted annually as provided in Code Section 415(d) pursuant
                  to the Regulations, or (2) twenty-five percent (25%) of the
                  Participant's "415 Compensation" for such "limitation year."
                  For any short "limitation year," the dollar limitation in (1)
                  above shall be reduced by a fraction, the numerator of which
                  is the number of full months in the short "limitation year"
                  and the denominator of which is twelve (12).

                           (b) For purposes of applying the limitations of Code
                  Section 415, "annual additions" means the sum credited to a
                  Participant's accounts for any "limitation year" of (1)
                  Employer contributions, (2) Employee contributions, (3)
                  forfeitures, (4) amounts allocated, after March 31, 1984, to
                  an individual medical account, as defined in Code Section
                  415(l)(2) which is part of a pension or annuity plan
                  maintained by the Employer and (5) amounts derived from
                  contributions paid or accrued after December 31, 1985, in
                  taxable years ending after such date, which are attributable
                  to post-retirement medical benefits allocated to the separate
                  account of a key employee (as defined in Code Section
                  419A(d)(3)) under a welfare benefit plan (as defined in Code
                  Section 419(e)) maintained by the Employer. Except, however,
                  the "415 Compensation" percentage limitation referred to in
                  paragraph (a)(2) above shall not apply to: (1) any
                  contribution for medical benefits (within the meaning of Code
                  Section 419A(f)(2)) after separation from service which is
                  otherwise treated as an "annual addition," or (2) any amount
                  otherwise treated as an "annual addition" under Code Section
                  415(l)(1).

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

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

                                       20
<PAGE>
                           (e) For the purpose of this Section, all qualified
                  defined contribution plans (whether terminated or not) ever
                  maintained by the Employer shall be treated as one defined
                  contribution plan.

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

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

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

                           (2) If a Participant participates in both a defined
                           contribution plan subject to Code Section 412 and a
                           defined contribution plan not subject to Code Section
                           412 maintained by the Employer which have the same
                           Anniversary Date, "annual additions" will be credited
                           to the Participant's accounts under the defined
                           contribution plan subject to Code Section 412 prior
                           to crediting "annual additions" to the Participant's
                           accounts under the defined contribution plan not
                           subject to Code Section 412.

                           (3) If a Participant participates in more than one
                           defined contribution plan subject to Code Section 412
                           maintained by the Employer which has the same
                           Anniversary Date, the maximum "annual additions"
                           under this Plan shall equal the product of (A) the
                           maximum "annual additions" for the "limitation year"
                           minus any "annual additions" previously credited
                           under subparagraphs (1) or (2) above, multiplied by
                           (B) a fraction (i) the numerator of which is the
                           "annual additions" which would be credited to such
                           Participant's accounts under this Plan without regard
                           to the limitations of Code Section 415 and (ii) the
                           denominator of which is such "annual additions" for
                           all plans described in this subparagraph.

                           (i) Notwithstanding anything contained in this
                  Section to the contrary, the limitations, adjustments and
                  other requirements prescribed in this Section shall at all
                  times comply with the provisions of Code Section 415 and the
                  Regulations thereunder, the terms of which are specifically
                  incorporated herein by reference.

                                       21
<PAGE>
4.5 ADJUSTMENT FOR EXCESSIVE ANNUAL ADDITIONS

                           (a) If, as a result of the allocation of Forfeitures,
                  a reasonable error in estimating a Participant's Compensation,
                  a reasonable error in determining the amount of elective
                  deferrals (within the meaning of Code Section 402(g)(3)) that
                  may be made with respect to any Participant under the limits
                  of Section 4.4 or other facts and circumstances to which
                  Regulation 1.415-6(b)(6) shall be applicable, the "annual
                  additions" under this Plan would cause the maximum "annual
                  additions" to be exceeded for any Participant, the
                  Administrator shall (1) distribute any elective deferrals
                  (within the meaning of Code Section 402(g)(3)) or return any
                  Employee contributions (whether voluntary or mandatory), and
                  for the distribution of gains attributable to those elective
                  deferrals and Employee contributions, to the extent that the
                  distribution or return would reduce the "excess amount" in the
                  Participant's accounts (2) hold any "excess amount" remaining
                  after the return of any elective deferrals or voluntary
                  Employee contributions in a "Section 415 suspense account" (3)
                  allocate and reallocate the "Section 415 suspense account" in
                  the next "limitation year" (and succeeding "limitation years"
                  if necessary) to all Participants in the Plan before any
                  Employer or Employee contributions which would constitute
                  "annual additions" are made to the Plan for such "limitation
                  year" (4) reduce Employer contributions to the Plan for such
                  "limitation year" by the amount of the "Section 415 suspense
                  account" allocated and reallocated during such "limitation
                  year."

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

                           (c) For purposes of this Section, "Section 415
                  suspense account" shall mean an unallocated account equal to
                  the sum of "excess amounts" for all Participants in the Plan
                  during the "limitation year." The "Section 415 suspense
                  account" shall not share in any earnings or losses of the
                  Trust Fund.

                           (d) The Plan may not distribute or return "excess
                  amounts," other than elective deferrals (within the meaning of
                  Code Section 402(g)(3)) or Employee contributions (whether
                  voluntary or mandatory) and gains attributable to such
                  elective deferrals and Employee contributions, to Participants
                  or Former Participants.

4.6 TRANSFERS FROM QUALIFIED PLANS

                           (a) With the consent of the Administrator, amounts
                  may be transferred from other qualified plans by Participants,
                  provided that the trust from which such funds are transferred
                  permits the transfer to be made and the transfer will not
                  jeopardize the tax exempt status of the Plan or Trust or
                  create adverse tax consequences for the Employer. The amounts
                  transferred

                                       22
<PAGE>
                  shall be set up in a separate account herein referred to as a
                  "Participant's Rollover Account." Such account shall be fully
                  Vested at all times and shall not be subject to Forfeiture for
                  any reason.

                           (b) Amounts in a Participant's Rollover Account shall
                  be held by the Trustee pursuant to the provisions of this Plan
                  and may not be withdrawn by, or distributed to the
                  Participant, in whole or in part, except as provided in
                  paragraphs (c) and (d) of this Section.

                           (c) Except as permitted by Regulations (including
                  Regulation 1.411(d)-4), amounts attributable to elective
                  contributions (as defined in Regulation 1.401(k)-1(g)(3)),
                  including amounts treated as elective contributions, which are
                  transferred from another qualified plan in a plan-to-plan
                  transfer shall be subject to the distribution limitations
                  provided for in Regulation 1.401(k)-1(d). However, the
                  foregoing shall not otherwise permit any distributions from
                  this Plan by reason of a Participant's hardship.

                           (d) At Normal Retirement Date, or such other date
                  when the Participant or his Beneficiary shall be entitled to
                  receive benefits, the fair market value of the Participant's
                  Rollover Account shall be used to provide additional benefits
                  to the Participant or his Beneficiary. Additionally, the
                  Administrator, at the election of the Participant, shall
                  direct the Trustee to distribute all or a portion of the
                  amount credited to the Participant's Rollover Account (other
                  than any direct or indirect transfers as that term is defined
                  and interpreted under Code Section 401(a)(11) and the
                  Regulations thereunder) from a defined benefit plan, money
                  purchase plan (including a target benefit plan), stock bonus
                  or profit sharing plan. Any distributions of amounts held in a
                  Participant's Rollover Account shall be made in a manner which
                  is consistent with and satisfies the provisions of Section
                  6.5, including, but not limited to, all notice and consent
                  requirements of Code Sections 417 and 411(a)(11) and the
                  Regulations thereunder. Furthermore, such amounts shall be
                  considered as part of a Participant's benefit in determining
                  whether an involuntary cash-out of benefits without
                  Participant consent may be made.

                           (e) The Administrator may direct that employee
                  transfers made after a Valuation Date be segregated into a
                  separate account for each Participant in a federally insured
                  savings account, certificate of deposit in a bank or savings
                  and loan association, money market certificate, or other short
                  term debt security acceptable to the Trustee until such time
                  as the allocations pursuant to this Plan have been made, at
                  which time they may remain segregated or be invested as part
                  of the general Trust Fund, to be determined by the
                  Administrator.

                           (f) For purposes of this Section, the term "qualified
                  plan" shall mean any tax qualified plan under Code Section
                  401(a). The term "amounts transferred from other qualified
                  plans" shall mean: (i) amounts transferred to this Plan
                  directly from another qualified plan; (ii) distributions from
                  another qualified plan which are eligible rollover
                  distributions and which are either transferred by the Employee
                  to this Plan within sixty (60) days following his receipt
                  thereof or are transferred pursuant to a direct rollover;
                  (iii) amounts

                                       23
<PAGE>
                  transferred to this Plan from a conduit individual retirement
                  account provided that the conduit individual retirement
                  account has no assets other than assets which (A) were
                  previously distributed to the Employee by another qualified
                  plan as a lump-sum distribution (B) were eligible for tax-free
                  rollover to a qualified plan and (C) were deposited in such
                  conduit individual retirement account within sixty (60) days
                  of receipt thereof and other than earnings on said assets; and
                  (iv) amounts distributed to the Employee from a conduit
                  individual retirement account meeting the requirements of
                  clause (iii) above, and transferred by the Employee to this
                  Plan within sixty (60) days of his receipt thereof from such
                  conduit individual retirement account.

                           (g) Prior to accepting any transfers to which this
                  Section applies, the Administrator may require the Employee to
                  establish that the amounts to be transferred to this Plan meet
                  the requirements of this Section and may also require the
                  Employee to provide an opinion of counsel satisfactory to the
                  Employer that the amounts to be transferred meet the
                  requirements of this Section.

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

                                    ARTICLE V
                                   VALUATIONS

5.1 VALUATION OF THE TRUST FUND

                  The Administrator shall direct the Trustee, as of each
Valuation Date, to determine the net worth of the assets comprising the Trust
Fund as it exists on the Valuation Date. In determining such net worth, the
Trustee shall value the assets comprising the Trust Fund at their fair market
value as of the Valuation Date and shall deduct all expenses for which the
Trustee has not yet obtained reimbursement from the Employer or the Trust Fund.

5.2 METHOD OF VALUATION

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

                                       24
<PAGE>
                                   ARTICLE VI
                   DETERMINATION AND DISTRIBUTION OF BENEFITS

6.1 DETERMINATION OF BENEFITS UPON RETIREMENT

                  Every Participant may terminate his employment with the
Employer and retire for the purposes hereof on his Normal Retirement Date.
However, a Participant may postpone the termination of his employment with the
Employer to a later date, in which event the participation of such Participant
in the Plan, including the right to receive allocations pursuant to Section 4.3,
shall continue until his Late Retirement Date. Upon a Participant's Retirement
Date or attainment of his Normal Retirement Date without termination of
employment with the Employer, or as soon thereafter as is practicable, the
Trustee shall distribute, at the election of the Participant, all amounts
credited to such Participant's Account in accordance with Section 6.5.

6.2 DETERMINATION OF BENEFITS UPON DEATH

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

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

                           (c) Any security interest held by the Plan by reason
                  of an outstanding loan to the Participant or Former
                  Participant shall be taken into account in determining the
                  amount of the Pre-Retirement Survivor Annuity.

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

                           (e) Unless otherwise elected in the manner prescribed
                  in Section 6.6, the Participant's spouse shall receive a death
                  benefit equal to the Pre-Retirement Survivor Annuity. The
                  Participant may designate a Beneficiary other than his spouse
                  to receive that portion of his death benefit which is not
                  payable as a Pre-Retirement Survivor Annuity. The Participant
                  may also designate a Beneficiary other than his spouse to
                  receive the Pre-Retirement Survivor Annuity but only if:

                           (1) the Participant and his spouse have validly
                           waived the Pre-Retirement Survivor Annuity in the
                           manner prescribed in

                                       25
<PAGE>
                           Section 6.6, and the spouse has waived his or her
                           right to be the Participant's Beneficiary, or

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

                           (3)      the Participant has no spouse, or

                           (4)      the spouse cannot be located.

                                    In such event, the designation of a
                  Beneficiary shall be made on a form satisfactory to the
                  Administrator. A Participant may at any time revoke his
                  designation of a Beneficiary or change his Beneficiary by
                  filing written notice of such revocation or change with the
                  Administrator. However, the Participant's spouse must again
                  consent in writing to any change in Beneficiary of that
                  portion of the death benefit that would otherwise be paid as a
                  Pre-Retirement Survivor Annuity unless the original consent
                  acknowledged that the spouse had the right to limit consent
                  only to a specific Beneficiary and that the spouse voluntarily
                  elected to relinquish such right. The Participant may, at any
                  time, designate a Beneficiary to receive death benefits that
                  are in excess of the Pre-Retirement Survivor Annuity. In the
                  event no valid designation of Beneficiary exists at the time
                  of the Participant's death, the death benefit shall be payable
                  to his estate.

6.3 DETERMINATION OF BENEFITS IN EVENT OF DISABILITY

                  In the event of a Participant's Total and Permanent Disability
prior to his Retirement Date or other termination of his employment, all amounts
credited to such Participant's Account shall become fully Vested. In the event
of a Participant's Total and Permanent Disability, the Trustee, in accordance
with the provisions of Sections 6.5 and 6.7, shall distribute to such
Participant all amounts credited to such Participant's Account as though he had
retired.

6.4 DETERMINATION OF BENEFITS UPON TERMINATION

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

                                    Distribution of the funds due to a
                  Terminated Participant shall be made on the occurrence of an
                  event which would result in the distribution had the
                  Terminated Participant remained in the employ of the Employer
                  (upon the Participant's death, Total and Permanent Disability
                  or Normal Retirement). However, at the election of the
                  Participant, the Administrator shall direct the Trustee to
                  cause the entire Vested portion of the Terminated
                  Participant's Account to be payable to such Terminated
                  Participant on or after the Anniversary Date coinciding with
                  or next following termination of

                                       26
<PAGE>
                  employment. Any distribution under this paragraph shall be
                  made in a manner which is consistent with and satisfies the
                  provisions of Section 6.5, including, but not limited to, all
                  notice and consent requirements of Code Sections 417 and
                  411(a)(11) and the Regulations thereunder.

                                    For purposes of this Section 6.4, if the
                  value of a Terminated Participant's Vested benefit is zero,
                  the Terminated Participant shall be deemed to have received a
                  distribution of such Vested benefit.

                           (b) The Vested portion of any Participant's Account
                  shall be a percentage of the total amount credited to his
                  Participant's Account determined on the basis of the
                  Participant's number of Years of Service according to the
                  following schedule:

                                      Vesting Schedule

<Table>
<Caption>
                  Years of Service                        Percentage
<S>                                                       <C>
                    Less than 2                                  0 %
                         2                                      20 %
                         3                                      40 %
                         4                                      60 %
                         5                                      80 %
                         6                                     100 %
</Table>
                           (c) Notwithstanding the vesting schedule above, upon
                  any full or partial termination of the Plan, all amounts
                  credited to the account of any affected Participant shall
                  become 100% Vested and shall not thereafter be subject to
                  Forfeiture.

                           (d) The computation of a Participant's nonforfeitable
                  percentage of his interest in the Plan shall not be reduced as
                  the result of any direct or indirect amendment to this Plan.
                  For this purpose, the Plan shall be treated as having been
                  amended if the Plan provides for an automatic change in
                  vesting due to a change in top heavy status. In the event that
                  the Plan is amended to change or modify any vesting schedule,
                  a Participant with at least three (3) Years of Service as of
                  the expiration date of the election period may elect to have
                  his nonforfeitable percentage computed under the Plan without
                  regard to such amendment. If a Participant fails to make such
                  election, then such Participant shall be subject to the new
                  vesting schedule. The Participant's election period shall
                  commence on the adoption date of the amendment and shall end
                  60 days after the latest of:

                           (1) the adoption date of the amendment,

                           (2) the effective date of the amendment, or

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

                                       27
<PAGE>
                           (e)(1) If any Former Participant shall be reemployed
                  by the Employer before a 1-Year Break in Service occurs, he
                  shall continue to participate in the Plan in the same manner
                  as if such termination had not occurred.

                           (2) If any Former Participant shall be reemployed by
                           the Employer before five (5) consecutive 1-Year
                           Breaks in Service, and such Former Participant had
                           received, or was deemed to have received, a
                           distribution of his entire Vested interest prior to
                           his reemployment, his forfeited account shall be
                           reinstated only if he repays the full amount
                           distributed to him before the earlier of five (5)
                           years after the first date on which the Participant
                           is subsequently reemployed by the Employer or the
                           close of the first period of five (5) consecutive
                           1-Year Breaks in Service commencing after the
                           distribution, or in the event of a deemed
                           distribution, upon the reemployment of such Former
                           Participant. In the event the Former Participant does
                           repay the full amount distributed to him, or in the
                           event of a deemed distribution, the undistributed
                           portion of the Participant's Account must be restored
                           in full, unadjusted by any gains or losses occurring
                           subsequent to the Valuation Date coinciding with or
                           preceding his termination. The source for such
                           reinstatement shall first be any Forfeitures
                           occurring during the year. If such source is
                           insufficient, then the Employer shall contribute an
                           amount which is sufficient to restore any such
                           forfeited Accounts.

                           (3) If any Former Participant is reemployed after a
                           1-Year Break in Service has occurred, Years of
                           Service shall include Years of Service prior to his
                           1-Year Break in Service subject to the following
                           rules:

                                    (i) If a Former Participant has a 1-Year
                                    Break in Service, his pre-break and
                                    post-break service shall be used for
                                    computing Years of Service for eligibility
                                    and for vesting purposes only after he has
                                    been employed for one (1) Year of Service
                                    following the date of his reemployment with
                                    the Employer;

                                    (ii) Any Former Participant who under the
                                    Plan does not have a nonforfeitable right to
                                    any interest in the Plan resulting from
                                    Employer contributions shall lose credits
                                    otherwise allowable under (i) above if his
                                    consecutive 1-Year Breaks in Service equal
                                    or exceed the greater of (A) five (5) or (B)
                                    the aggregate number of his pre-break Years
                                    of Service;

                                    (iii) After five (5) consecutive 1-Year
                                    Breaks in Service, a Former Participant's
                                    Vested Account balance attributable to
                                    pre-break service shall not be increased as
                                    a result of post-break service;

                                    (iv) If a Former Participant is reemployed
                                    by the Employer, he shall participate in the
                                    Plan immediately on his date of
                                    reemployment;

                                       28
<PAGE>
                                    (v) If a Former Participant (a 1-Year Break
                                    in Service previously occurred, but
                                    employment had not terminated) is credited
                                    with an Hour of Service after the first
                                    eligibility computation period in which he
                                    incurs a 1-Year Break in Service, he shall
                                    participate in the Plan immediately.

6.5 DISTRIBUTION OF BENEFITS

                           (a)(1) Unless otherwise elected as provided below, a
                  Participant who is married on the Annuity Starting Date and
                  who does not die before the Annuity Starting Date shall
                  receive the value of all of his benefits in the form of a
                  joint and survivor annuity. The joint and survivor annuity is
                  an annuity that commences immediately and shall be equal in
                  value to a single life annuity. Such joint and survivor
                  benefits following the Participant's death shall continue to
                  the spouse during the spouse's lifetime at a rate equal to 50%
                  of the rate at which such benefits were payable to the
                  Participant. This joint and 50% survivor annuity shall be
                  considered the designated qualified joint and survivor annuity
                  and automatic form of payment for the purposes of this Plan.
                  However, the Participant may elect to receive a smaller
                  annuity benefit with continuation of payments to the spouse at
                  a rate of seventy-five percent (75%) or one hundred percent
                  (100%) of the rate payable to a Participant during his
                  lifetime, which alternative joint and survivor annuity shall
                  be equal in value to the automatic joint and 50% survivor
                  annuity. An unmarried Participant shall receive the value of
                  his benefit in the form of a life annuity. Such unmarried
                  Participant, however, may elect in writing to waive the life
                  annuity. The election must comply with the provisions of this
                  Section as if it were an election to waive the joint and
                  survivor annuity by a married Participant, but without the
                  spousal consent requirement. The Participant may elect to have
                  any annuity provided for in this Section distributed upon the
                  attainment of the "earliest retirement age" under the Plan.
                  The "earliest retirement age" is the earliest date on which,
                  under the Plan, the Participant could elect to receive
                  retirement benefits.

                           (2) Any election to waive the joint and survivor
                           annuity must be made by the Participant in writing
                           during the election period and be consented to by the
                           Participant's spouse. If the spouse is legally
                           incompetent to give consent, the spouse's legal
                           guardian, even if such guardian is the Participant,
                           may give consent. Such election shall designate a
                           Beneficiary (or a form of benefits) that may not be
                           changed without spousal consent (unless the consent
                           of the spouse expressly permits designations by the
                           Participant without the requirement of further
                           consent by the spouse). Such spouse's consent shall
                           be irrevocable and must acknowledge the effect of
                           such election and be witnessed by a Plan
                           representative or a notary public. Such consent shall
                           not be required if it is established to the
                           satisfaction of the Administrator that the required
                           consent cannot be obtained because there is no
                           spouse, the spouse cannot be located, or other
                           circumstances that may be prescribed by Regulations.
                           The election made by the Participant and consented to
                           by his spouse may be revoked by the Participant in
                           writing without the consent of the spouse at any time
                           during the election period.

                                       29
<PAGE>
                           The number of revocations shall not be limited. Any
                           new election must comply with the requirements of
                           this paragraph. A former spouse's waiver shall not be
                           binding on a new spouse.

                           (3) The election period to waive the joint and
                           survivor annuity shall be the 90 day period ending on
                           the Annuity Starting Date.

                           (4) With regard to the election, the Administrator
                           shall provide to the Participant no less than 30 days
                           and no more than 90 days before the Annuity Starting
                           Date a written explanation of:

                                    (i) the terms and conditions of the joint
                                    and survivor annuity,

                                    (ii) the Participant's right to make, and
                                    the effect of, an election to waive the
                                    joint and survivor annuity,

                                    (iii) the right of the Participant's spouse
                                    to consent to any election to waive the
                                    joint and survivor annuity, and

                                    (iv) the right of the Participant to revoke
                                    such election, and the effect of such
                                    revocation.

                           (5) Any distribution provided for in this Section 6.5
                           may commence less than 30 days after the notice
                           required by Code Section 417(a)(3) is given, provided
                           that:

                                    (i) the Administrator clearly informs the
                                    Participant that the Participant has a right
                                    to a period of 30 days after receiving the
                                    notice to consider whether to waive the
                                    joint and survivor annuity and consent to a
                                    form of distribution other than a joint and
                                    survivor annuity,

                                    (ii) the Participant is permitted to revoke
                                    an affirmative distribution election at
                                    least until the Annuity Starting Date, or,
                                    if later, at any time prior to the
                                    expiration of the 7-day period that begins
                                    the day after the explanation of the joint
                                    and survivor annuity is provided to the
                                    Participant,

                                    (iii) the Annuity Starting Date is after the
                                    date that the explanation of the joint and
                                    survivor annuity is provided to the
                                    Participant. However, the Annuity Starting
                                    Date may be before the date that any
                                    affirmative distribution election is made by
                                    the Participant and before the date that the
                                    distribution is permitted to commence under
                                    (iv) below, and

                                    (iv) distribution in accordance with the
                                    affirmative election does not commence
                                    before the expiration of the 7-day period
                                    that begins the day after the explanation of
                                    the joint and survivor annuity is provided
                                    to the Participant.

                                       30
<PAGE>
                           (b) In the event a married Participant duly elects
                  pursuant to paragraph (a)(2) above not to receive his benefit
                  in the form of a joint and survivor annuity, or if such
                  Participant is not married, in the form of a life annuity, the
                  Administrator, pursuant to the election of the Participant,
                  shall direct the Trustee to distribute to a Participant or his
                  Beneficiary any amount to which he is entitled under the Plan
                  in one or more of the following methods:

                           (1) One lump-sum payment in cash or in property.

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

                           (3) Purchase of or providing an annuity. However,
                           such annuity may not be in any form that will provide
                           for payments over a period extending beyond either
                           the life of the Participant (or the lives of the
                           Participant and his designated Beneficiary) or the
                           life expectancy of the Participant (or the life
                           expectancy of the Participant and his designated
                           Beneficiary).

                           (c) The present value of a Participant's joint and
                  survivor annuity derived from Employer and Employee
                  contributions may not be paid without his written consent.
                  Further, the spouse of a Participant must consent in writing
                  to any immediate distribution if the value of the
                  Participant's benefit exceeds, or has ever exceeded, $3,500 at
                  the time of any prior distribution. Any written consent
                  required by this Section 6.5(c) must be obtained not more than
                  90 days before commencement of the distribution and shall be
                  made in a manner consistent with Section 6.5(a)(2).

                           (d) Any distribution to a Participant who has a
                  benefit which exceeds, or has ever exceeded, $3,500 at the
                  time of any prior distribution shall require such
                  Participant's consent pursuant to this Section 6.5(d) if such
                  distribution commences prior to the later of his Normal
                  Retirement Age or age 62. With regard to this required
                  consent:

                           (1) No consent shall be valid unless the Participant
                           has received a general description of the material
                           features and an explanation of the relative values of
                           the optional forms of benefit available under the
                           Plan that would satisfy the notice requirements of
                           Code Section 417.

                                       31
<PAGE>
                           (2) The Participant must be informed of his right to
                           defer receipt of the distribution. If a Participant
                           fails to consent, it shall be deemed an election to
                           defer the commencement of payment of any benefit.
                           However, any election to defer the receipt of
                           benefits shall not apply with respect to
                           distributions which are required under Section
                           6.5(e).

                           (3) Notice of the rights specified under this
                           paragraph shall be provided no less than 30 days and
                           no more than 90 days before the Annuity Starting
                           Date.

                           (4) Consent of the Participant to the distribution
                           must not be made before the Participant receives the
                           notice and must not be made more than 90 days before
                           the Annuity Starting Date.

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

                           Any such distribution may commence less than 30 days,
                  subject to Section 6.5(a)(5), after the notice required under
                  Regulation 1.411(a)-11(c) is given, provided that: (1) the
                  Administrator clearly informs the Participant that the
                  Participant has a right to a period of at least 30 days after
                  receiving the notice to consider the decision of whether or
                  not to elect a distribution (and, if applicable, a particular
                  distribution option), and (2) the Participant, after receiving
                  the notice, affirmatively elects a distribution.

                           (e) Notwithstanding any provision in the Plan to the
                  contrary, the distribution of a Participant's benefits,
                  whether under the Plan or through the purchase of an annuity
                  contract, shall be made in accordance with the following
                  requirements and shall otherwise comply with Code Section
                  401(a)(9) and the Regulations thereunder (including Regulation
                  1.401(a)(9)-2), the provisions of which are incorporated
                  herein by reference:

                           (1) A Participant's benefits shall be distributed or
                           must begin to be distributed to him not later than
                           April 1st of the calendar year following the later of
                           (i) the calendar year in which the Participant
                           attains age 70 1/2 or (ii) the calendar year in which
                           the Participant retires, provided, however, that this
                           clause (ii) shall not apply in the case of a
                           Participant who is a "five (5) percent owner" at any
                           time during the five (5) Plan Year period ending in
                           the calendar year in which he attains age 70-1/2 or,
                           in the case of a Participant who becomes a "five (5)
                           percent owner" during any subsequent Plan Year,
                           clause (ii) shall no longer apply and the required
                           beginning date shall be the April-1st of the calendar
                           year following the calendar year in which such
                           subsequent Plan Year ends. Such distributions shall
                           be equal to or greater than any required
                           distribution. Notwithstanding the foregoing, clause
                           (ii) above shall not apply to any Participant unless
                           the Participant had attained age 70 1/2 before
                           January 1, 1988 and was not a "five (5) percent
                           owner" at any time during the Plan Year ending with
                           or within the calendar year in which the Participant
                           attained age 66 1/2 or any subsequent Plan Year.

                                       32
<PAGE>
                           Alternatively, distributions to a Participant must
                           begin no later than the applicable April 1st as
                           determined under the preceding paragraph and must be
                           made over the life of the Participant (or the lives
                           of the Participant and the Participant's designated
                           Beneficiary) or the life expectancy of the
                           Participant (or the life expectancies of the
                           Participant and his designated Beneficiary) in
                           accordance with Regulations.

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

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

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

                           (h) If a distribution is made at a time when a
                  Participant is not fully Vested in his Participant's Account
                  and the Participant may increase the Vested percentage in such
                  account:

                           (1) a separate account shall be established for the
                           Participant's interest in the Plan as of the time of
                           the distribution; and

                           (2) at any relevant time, the Participant's Vested
                           portion of the separate account shall be equal to an
                           amount ("X") determined by the formula:

                           X equals P(AB plus (R x D)) - (R x D)

                           For purposes of applying the formula: P is the Vested
                           percentage at the relevant time, AB is the account
                           balance at the relevant time, D is the amount of
                           distribution, and R is the ratio of the account
                           balance at the relevant time to the account balance
                           after distribution.

6.6 DISTRIBUTION OF BENEFITS UPON DEATH

                           (a) Unless otherwise elected as provided below, a
                  Vested Participant who dies before the Annuity Starting Date
                  and who has a surviving spouse shall have the Pre-Retirement
                  Survivor Annuity paid to his surviving spouse. The
                  Participant's spouse may direct that payment of the
                  Pre-Retirement Survivor Annuity commence within a reasonable
                  period after the Participant's death. If the spouse does not
                  so direct, payment of such benefit will commence at the time
                  the Participant would have attained the

                                       33
<PAGE>
                  later of his Normal Retirement Age or age 62. However, the
                  spouse may elect a later commencement date. Any distribution
                  to the Participant's spouse shall be subject to the rules
                  specified in Section 6.6(g).

                           (b) Any election to waive the Pre-Retirement Survivor
                  Annuity before the Participant's death must be made by the
                  Participant in writing during the election period and shall
                  require the spouse's irrevocable consent in the same manner
                  provided for in Section 6.5(a)(2). Further, the spouse's
                  consent must acknowledge the specific nonspouse Beneficiary.
                  Notwithstanding the foregoing, the nonspouse Beneficiary need
                  not be acknowledged, provided the consent of the spouse
                  acknowledges that the spouse has the right to limit consent
                  only to a specific Beneficiary and that the spouse voluntarily
                  elects to relinquish such right.

                           (c) The election period to waive the Pre-Retirement
                  Survivor Annuity shall begin on the first day of the Plan Year
                  in which the Participant attains age 35 and end on the date of
                  the Participant's death. An earlier waiver (with spousal
                  consent) may be made provided a written explanation of the
                  Pre-Retirement Survivor Annuity is given to the Participant
                  and such waiver becomes invalid at the beginning of the Plan
                  Year in which the Participant turns age 35. In the event a
                  Vested Participant separates from service prior to the
                  beginning of the election period, the election period shall
                  begin on the date of such separation from service.

                           (d) With regard to the election, the Administrator
                  shall provide each Participant within the applicable period,
                  with respect to such Participant (and consistent with
                  Regulations), a written explanation of the Pre-Retirement
                  Survivor Annuity containing comparable information to that
                  required pursuant to Section 6.5(a)(4). For the purposes of
                  this paragraph, the term "applicable period" means, with
                  respect to a Participant, whichever of the following periods
                  ends last:

                           (1) The period beginning with the first day of the
                           Plan Year in which the Participant attains age 32 and
                           ending with the close of the Plan Year preceding the
                           Plan Year in which the Participant attains age 35;

                           (2) A reasonable period after the individual becomes
                           a Participant;

                           (3) A reasonable period ending after the Plan no
                           longer fully subsidizes the cost of the
                           Pre-Retirement Survivor Annuity with respect to the
                           Participant;

                           (4) A reasonable period ending after Code Section
                           401(a)(11) applies to the Participant; or

                           (5) A reasonable period after separation from service
                           in the case of a Participant who separates before
                           attaining age 35. For this purpose, the Administrator
                           must provide the explanation beginning one year
                           before the separation from service and ending one
                           year after such separation. If

                                       34
<PAGE>
                           such a Participant thereafter returns to employment
                           with the Employer, the applicable period for such
                           Participant shall be redetermined.

                                    For purposes of applying this Section
                  6.6(d), a reasonable period ending after the enumerated events
                  described in paragraphs (2), (3) and (4) is the end of the two
                  year period beginning one year prior to the date the
                  applicable event occurs, and ending one year after that date.

                           (e) An immediate distribution of the present value of
                  the Pre-Retirement Survivor Annuity derived from Employer and
                  Employee contributions may be made to the surviving spouse,
                  provided such surviving spouse consents in writing to such
                  distribution. Any written consent required under this
                  paragraph must be obtained not more than 90 days before
                  commencement of the distribution and shall be made in a manner
                  consistent with Section 6.5(a)(2).

                           (f)(1) To the extent the death benefit is not paid in
                  the form of a Pre-Retirement Survivor Annuity, it shall be
                  paid to the Participant's Beneficiary by either of the
                  following methods, as elected by the Participant (or if no
                  election has been made prior to the Participant's death, by
                  his Beneficiary), subject to the rules specified in Section
                  6.6(g):

                                    (i) One lump-sum payment in cash or in
                                    property.

                                    (ii) Payment in monthly, quarterly,
                                    semi-annual, or annual cash installments
                                    over a period to be determined by the
                                    Participant or his Beneficiary. After
                                    periodic installments commence, the
                                    Beneficiary shall have the right to direct
                                    the Trustee to reduce the period over which
                                    such periodic installments shall be made,
                                    and the Trustee shall adjust the cash amount
                                    of such periodic installments accordingly.

                           (2) In the event the death benefit payable pursuant
                           to Section 6.2 is payable in installments, then, upon
                           the death of the Participant, the Administrator may
                           direct the Trustee to segregate the death benefit
                           into a separate account, and the Trustee shall invest
                           such segregated account separately, and the funds
                           accumulated in such account shall be used for the
                           payment of the installments.

                           (g) Notwithstanding any provision in the Plan to the
                  contrary, distributions upon the death of a Participant shall
                  be made in accordance with the following requirements and
                  shall otherwise comply with Code Section 401(a)(9) and the
                  Regulations thereunder. If the death benefit is paid in the
                  form of a Pre-Retirement Survivor Annuity, then distributions
                  to the Participant's surviving spouse must commence on or
                  before the later of: (1) December 31st of the calendar year
                  immediately following the calendar year in which the
                  Participant died; or (2) December 31st of the calendar year in
                  which the Participant would have attained age 70 1/2. If it is
                  determined pursuant to Regulations that the distribution of a
                  Participant's interest has begun and the Participant dies
                  before his entire interest has been distributed

                                       35
<PAGE>
                  to him, the remaining portion of such interest shall be
                  distributed at least as rapidly as under the method of
                  distribution selected pursuant to Section 6.5 as of his date
                  of death. If a Participant dies before he has begun to receive
                  any distributions of his interest under the Plan or before
                  distributions are deemed to have begun pursuant to Regulations
                  (and distributions are not to be made in the form of a
                  Pre-Retirement Survivor Annuity), then his death benefit shall
                  be distributed to his Beneficiaries by December 31st of the
                  calendar year in which the fifth anniversary of his date of
                  death occurs.

                                    However, the 5-year distribution requirement
                  of the preceding paragraph shall not apply to any portion of
                  the deceased Participant's interest which is payable to or for
                  the benefit of a designated Beneficiary. In such event, such
                  portion may, at the election of the Participant (or the
                  Participant's designated Beneficiary), be distributed over the
                  life of such designated Beneficiary (or over a period not
                  extending beyond the life expectancy of such designated
                  Beneficiary) provided such distribution begins not later than
                  December 31st of the calendar year immediately following the
                  calendar year in which the Participant died. However, in the
                  event the Participant's spouse (determined as of the date of
                  the Participant's death) is his Beneficiary, the requirement
                  that distributions commence within one year of a Participant's
                  death shall not apply. In lieu thereof, distributions must
                  commence on or before the later of: (1) December 31st of the
                  calendar year immediately following the calendar year in which
                  the Participant died; or (2) December 31st of the calendar
                  year in which the Participant would have attained age 70 1/2.
                  If the surviving spouse dies before distributions to such
                  spouse begin, then the 5-year distribution requirement of this
                  Section shall apply as if the spouse was the Participant.

                           (h) For purposes of Section 6.6(g), the election by a
                  designated Beneficiary to be excepted from the 5-year
                  distribution requirement must be made no later than December
                  31st of the calendar year following the calendar year of the
                  Participant's death. Except, however, with respect to a
                  designated Beneficiary who is the Participant's surviving
                  spouse, the election must be made by the earlier of: (1)
                  December 31st of the calendar year immediately following the
                  calendar year in which the Participant died or, if later, the
                  calendar year in which the Participant would have attained age
                  70 1/2; or (2) December 31st of the calendar year which
                  contains the fifth anniversary of the date of the
                  Participant's death. An election by a designated Beneficiary
                  must be in writing and shall be irrevocable as of the last day
                  of the election period stated herein. In the absence of an
                  election by the Participant or a designated Beneficiary, the
                  5-year distribution requirement shall apply.

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

                                       36
<PAGE>
6.7 TIME OF SEGREGATION OR DISTRIBUTION

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

6.8 DISTRIBUTION FOR MINOR BENEFICIARY

                  In the event a distribution is to be made to a minor, then the
Administrator may direct that such distribution be paid to the legal guardian,
or if none, to a parent of such Beneficiary or a responsible adult with whom the
Beneficiary maintains his residence, or to the custodian for such Beneficiary
under the Uniform Gift to Minors Act or Gift to Minors Act, if such is permitted
by the laws of the state in which said Beneficiary resides. Such a payment to
the legal guardian, custodian or parent of a minor Beneficiary shall fully
discharge the Trustee, Employer, and Plan from further liability on account
thereof.

6.9 LOCATION OF PARTICIPANT OR BENEFICIARY UNKNOWN

                  In the event that all, or any portion, of the distribution
payable to a Participant or his Beneficiary hereunder shall, at the later of the
Participant's attainment of age 62 or his Normal Retirement Age, remain unpaid
solely by reason of the inability of the Administrator, after sending a
registered letter, return receipt requested, to the last known address, and
after further diligent effort, to ascertain the whereabouts of such Participant
or his Beneficiary, the amount so distributable shall be treated as a Forfeiture
pursuant to the Plan. In the event a Participant or Beneficiary is located
subsequent to his benefit being reallocated, such benefit shall be restored
unadjusted for earnings or losses.

6.10 QUALIFIED DOMESTIC RELATIONS ORDER DISTRIBUTION

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

6.11 DIRECT ROLLOVER

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

                                       37
<PAGE>
                  $500 paid directly to an eligible retirement plan specified by
                  the distributee in a direct rollover.

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

                           (1) An eligible rollover distribution is any
                           distribution of all or any portion of the balance to
                           the credit of the distributee, except that an
                           eligible rollover distribution does not include: any
                           distribution that is one of a series of substantially
                           equal periodic payments (not less frequently than
                           annually) made for the life (or life expectancy) of
                           the distributee or the joint lives (or joint life
                           expectancies) of the distributee and the
                           distributee's designated beneficiary, or for a
                           specified period of ten years or more; any
                           distribution to the extent such distribution is
                           required under Code Section 401(a)(9); the portion of
                           any other distribution that is not includible in
                           gross income (determined without regard to the
                           exclusion for net unrealized appreciation with
                           respect to employer securities); and any other
                           distribution that is reasonably expected to total
                           less than $200 during a year.

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

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

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

                                   ARTICLE VII
                    AMENDMENT, TERMINATION, MERGERS AND LOANS

7.1 AMENDMENT

                           (a) The Employer shall have the right at any time to
                  amend the Plan, subject to the limitations of this Section.
                  However, any amendment which affects the rights, duties or
                  responsibilities of the Trustee and Administrator, other than
                  an amendment to remove the Trustee or Administrator, may only
                  be made with the Trustee's and Administrator's written
                  consent. Any such amendment shall become effective as provided

                                       38
<PAGE>
                  therein upon its execution. The Trustee shall not be required
                  to execute any such amendment unless the Trust provisions
                  contained herein are a part of the Plan and the amendment
                  affects the duties of the Trustee hereunder.

                           (b) No amendment to the Plan shall be effective if it
                  authorizes or permits any part of the Trust Fund (other than
                  such part as is required to pay taxes and administration
                  expenses) to be used for or diverted to any purpose other than
                  for the exclusive benefit of the Participants or their
                  Beneficiaries or estates; or causes any reduction in the
                  amount credited to the account of any Participant; or causes
                  or permits any portion of the Trust Fund to revert to or
                  become property of the Employer.

                           (c) Except as permitted by Regulations, no Plan
                  amendment or transaction having the effect of a Plan amendment
                  (such as a merger, plan transfer or similar transaction) shall
                  be effective to the extent it eliminates or reduces any
                  "Section 411(d)(6) protected benefit" or adds or modifies
                  conditions relating to "Section 411(d)(6) protected benefits"
                  the result of which is a further restriction on such benefit
                  unless such protected benefits are preserved with respect to
                  benefits accrued as of the later of the adoption date or
                  effective date of the amendment. "Section 411(d)(6) protected
                  benefits" are benefits described in Code Section 411(d)(6)(A),
                  early retirement benefits and retirement-type subsidies, and
                  optional forms of benefit.

7.2 TERMINATION

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

                           (b) Upon the full termination of the Plan, the
                  Employer shall direct the distribution of the assets of the
                  Trust Fund to Participants in a manner which is consistent
                  with and satisfies the provisions of Section 6.5.
                  Distributions to a Participant shall be made in cash or in
                  property or through the purchase of irrevocable
                  nontransferable deferred commitments from an insurer. Except
                  as permitted by Regulations, the termination of the Plan shall
                  not result in the reduction of "Section 411(d)(6) protected
                  benefits" in accordance with Section 7.1(c).

7.3 MERGER OR CONSOLIDATION

                  This Plan may be merged or consolidated with, or its assets
and/or liabilities may be transferred to any other plan and trust only if the
benefits which would be received by a Participant of this Plan, in the event of
a termination of the plan immediately after such transfer, merger or
consolidation, are at least equal to the benefits the Participant would have
received if the Plan had terminated immediately before the transfer, merger or

                                       39
<PAGE>
consolidation, and such transfer, merger or consolidation does not otherwise
result in the elimination or reduction of any "Section 411(d)(6) protected
benefits" in accordance with Section 7.1(c).

7.4 LOANS TO PARTICIPANTS

                           (a) The Trustee may, in the Trustee's discretion,
                  make loans to Participants and Beneficiaries under the
                  following circumstances: (1) loans shall be made available to
                  all Participants and Beneficiaries on a reasonably equivalent
                  basis; (2) loans shall not be made available to Highly
                  Compensated Employees in an amount greater than the amount
                  made available to other Participants and Beneficiaries; (3)
                  loans shall bear a reasonable rate of interest; (4) loans
                  shall be adequately secured; and (5) shall provide for
                  repayment over a reasonable period of time.

                           (b) Loans made pursuant to this Section (when added
                  to the outstanding balance of all other loans made by the Plan
                  to the Participant) shall be limited to the lesser of:

                           (1) $50,000 reduced by the excess (if any) of the
                           highest outstanding balance of loans from the Plan to
                           the Participant during the one year period ending on
                           the day before the date on which such loan is made,
                           over the outstanding balance of loans from the Plan
                           to the Participant on the date on which such loan was
                           made, or

                           (2) one-half (1/2) of the present value of the
                           non-forfeitable accrued benefit of the Participant
                           under the Plan.

                                    For purposes of this limit, all plans of the
                           Employer shall be considered one plan.

                           (c) Loans shall provide for level amortization with
                  payments to be made not less frequently than quarterly over a
                  period not to exceed five (5) years. However, loans used to
                  acquire any dwelling unit which, within a reasonable time, is
                  to be used (determined at the time the loan is made) as a
                  principal residence of the Participant shall provide for
                  periodic repayment over a reasonable period of time that may
                  exceed five (5) years. For this purpose, a principal residence
                  has the same meaning as a principal residence under Code
                  Section 1034. Loan repayments will be suspended under this
                  Plan as permitted under Code Section 414(u)(4).

                           (d) Any loan made pursuant to this Section where the
                  Vested interest of the Participant is used to secure such loan
                  shall require the written consent of the Participant's spouse
                  in a manner consistent with Section 6.5(a)(1). Such written
                  consent must be obtained within the 90-day period prior to the
                  date the loan is made. However, no spousal consent shall be
                  required under this paragraph if the total accrued benefit
                  subject to the security is not in excess of $3,500.

                                       40
<PAGE>
                           (e) Any loans granted or renewed shall be made
                  pursuant to a Participant loan program. Such loan program
                  shall be established in writing and must include, but need not
                  be limited to, the following:

                           (1) the identity of the person or positions
                           authorized to administer the Participant loan
                           program;

                           (2) a procedure for applying for loans;

                           (3) the basis on which loans will be approved or
                           denied;

                           (4) limitations, if any, on the types and amounts of
                           loans offered;

                           (5) the procedure under the program for determining a
                           reasonable rate of interest;

                           (6) the types of collateral which may secure a
                           Participant loan; and

                           (7) the events constituting default and the steps
                           that will be taken to preserve Plan assets.

                                    Such Participant loan program shall be
                  contained in a separate written document which, when properly
                  executed, is hereby incorporated by reference and made a part
                  of the Plan. Furthermore, such Participant loan program may be
                  modified or amended in writing from time to time without the
                  necessity of amending this Section.

                                  ARTICLE VIII
                                    TOP HEAVY

8.1 TOP HEAVY PLAN REQUIREMENTS

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

8.2 DETERMINATION OF TOP HEAVY STATUS

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

                                    If any Participant is a Non-Key Employee for
                  any Plan Year, but such Participant was a Key Employee for any
                  prior Plan Year, such Participant's Present Value of Accrued
                  Benefit and/or Aggregate Account

                                       41
<PAGE>
                  balance shall not be taken into account for purposes of
                  determining whether this Plan is a Top Heavy or Super Top
                  Heavy Plan (or whether any Aggregation Group which includes
                  this Plan is a Top Heavy Group). In addition, if a Participant
                  or Former Participant has not performed any services for any
                  Employer maintaining the Plan at any time during the five year
                  period ending on the Determination Date, any accrued benefit
                  for such Participant or Former Participant shall not be taken
                  into account for the purposes of determining whether this Plan
                  is a Top Heavy or Super Top Heavy Plan.

                           (b) This Plan shall be a Super Top Heavy Plan for any
                  Plan Year in which, as of the Determination Date, (1) the
                  Present Value of Accrued Benefits of Key Employees and (2) the
                  sum of the Aggregate Accounts of Key Employees under this Plan
                  and all plans of an Aggregation Group, exceeds ninety percent
                  (90%) of the Present Value of Accrued Benefits and the
                  Aggregate Accounts of all Key and Non-Key Employees under this
                  Plan and all plans of an Aggregation Group.

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

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

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

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

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

                           (5) with respect to unrelated rollovers and
                           plan-to-plan transfers (ones which are both initiated
                           by the Employee and made from a plan

                                       42
<PAGE>
                           maintained by one employer to a plan maintained by
                           another employer), if this Plan provides the
                           rollovers or plan-to-plan transfers, it shall always
                           consider such rollovers or plan-to-plan transfers as
                           a distribution for the purposes of this Section. If
                           this Plan is the plan accepting such rollovers or
                           plan-to-plan transfers, it shall not consider such
                           rollovers or plan-to-plan transfers as part of the
                           Participant's Aggregate Account balance.

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

                           (7) For the purposes of determining whether two
                           employers are to be treated as the same employer in
                           (5) and (6) above, all employers aggregated under
                           Code Section 414(b), (c), (m) and (o) are treated as
                           the same employer.

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

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

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

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

                           In the case of a Permissive Aggregation Group, only a
                           plan that is part of the Required Aggregation Group
                           will be considered a Top Heavy Plan if the Permissive
                           Aggregation Group is a Top Heavy Group. No

                                       43
<PAGE>
                           plan in the Permissive Aggregation Group will be
                           considered a Top Heavy Plan if the Permissive
                           Aggregation Group is not a Top Heavy Group.

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

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

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

                           (f) Present Value of Accrued Benefit: In the case of
                  a defined benefit plan, the Present Value of Accrued Benefit
                  for a Participant other than a Key Employee, shall be as
                  determined using the single accrual method used for all plans
                  of the Employer and Affiliated Employers, or if no such single
                  method exists, using a method which results in benefits
                  accruing not more rapidly than the slowest accrual rate
                  permitted under Code Section 411(b)(1)(C). The determination
                  of the Present Value of Accrued Benefit shall be determined as
                  of the most recent Valuation Date that falls within or ends
                  with the 12-month period ending on the Determination Date
                  except as provided in Code Section 416 and the Regulations
                  thereunder for the first and second plan years of a defined
                  benefit plan.

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

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

                           (2) the Aggregate Accounts of Key Employees under all
                           defined contribution plans included in the group,

                                    exceeds sixty percent (60%) of a similar sum
                           determined for all Participants.

                                   ARTICLE IX
                                  MISCELLANEOUS

9.1 PARTICIPANT'S RIGHTS

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

                                       44
<PAGE>
regardless of the effect which such discharge shall have upon him as a
Participant of this Plan.

9.2 ALIENATION

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

                           (b) This provision shall not apply to the extent a
                  Participant or Beneficiary is indebted to the Plan, as a
                  result of a loan from the Plan. At the time a distribution is
                  to be made to or for a Participant's or Beneficiary's benefit,
                  such proportion of the amount distributed as shall equal such
                  loan indebtedness shall be paid by the Trustee to the Trustee
                  or the Administrator, at the direction of the Administrator,
                  to apply against or discharge such loan indebtedness. Prior to
                  making a payment, however, the Participant or Beneficiary must
                  be given written notice by the Administrator that such loan
                  indebtedness is to be so paid in whole or part from his
                  Participant's Account. If the Participant or Beneficiary does
                  not agree that the loan indebtedness is a valid claim against
                  his Vested Participant's Account, he shall be entitled to a
                  review of the validity of the claim in accordance with
                  procedures provided in Sections 2.7 and 2.8.

                           (c) This provision shall not apply to a "qualified
                  domestic relations order" defined in Code Section 414(p), and
                  those other domestic relations orders permitted to be so
                  treated by the Administrator under the provisions of the
                  Retirement Equity Act of 1984. The Administrator shall
                  establish a written procedure to determine the qualified
                  status of domestic relations orders and to administer
                  distributions under such qualified orders. Further, to the
                  extent provided under a "qualified domestic relations order,"
                  a former spouse of a Participant shall be treated as the
                  spouse or surviving spouse for all purposes under the Plan.

9.3 CONSTRUCTION OF PLAN

                  This Plan shall be construed and enforced according to the Act
and the laws of the State of New York, other than its laws respecting choice of
law, to the extent not preempted by the Act.

9.4 GENDER AND NUMBER

                  Wherever any words are used herein in the masculine, feminine
or neuter gender, they shall be construed as though they were also used in
another gender in all

                                       45
<PAGE>
cases where they would so apply, and whenever any words are used herein in the
singular or plural form, they shall be construed as though they were also used
in the other form in all cases where they would so apply.

9.5 LEGAL ACTION

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

9.6 PROHIBITION AGAINST DIVERSION OF FUNDS

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

                           (b) In the event the Employer shall make an excessive
                  contribution under a mistake of fact pursuant to Act Section
                  403(c)(2)(A), the Employer may demand repayment of such
                  excessive contribution at any time within one (1) year
                  following the time of payment and the Trustees shall return
                  such amount to the Employer within the one (1) year period.
                  Earnings of the Plan attributable to the excess contributions
                  may not be returned to the Employer but any losses
                  attributable thereto must reduce the amount so returned.

9.7 BONDING

                  Every Fiduciary, except a bank or an insurance company, unless
exempted by the Act and regulations thereunder, shall be bonded in an amount not
less than 10% of the amount of the funds such Fiduciary handles; provided,
however, that the minimum bond shall be $1,000 and the maximum bond, $500,000.
The amount of funds handled shall be determined at the beginning of each Plan
Year by the amount of funds handled by such person, group, or class to be
covered and their predecessors, if any, during the preceding Plan Year, or if
there is no preceding Plan Year, then by the amount of the funds to be handled
during the then current year. The bond shall provide protection to the Plan
against any loss by reason of acts of fraud or dishonesty by the Fiduciary alone
or in connivance with others. The surety shall be a corporate surety company (as
such term is used in Act Section 412(a)(2)), and the bond shall be in a form
approved by the Secretary of Labor. Notwithstanding anything in the Plan to the
contrary, the cost of such bonds shall be an expense of and may, at the election
of the Administrator, be paid from the Trust Fund or by the Employer.

                                       46
<PAGE>
9.8 EMPLOYER'S AND TRUSTEE'S PROTECTIVE CLAUSE

                  Neither the Employer, the Administrator, nor the Trustee, nor
their successors shall be responsible for the validity of any Contract issued
hereunder or for the failure on the part of the insurer to make payments
provided by any such Contract, or for the action of any person which may delay
payment or render a Contract null and void or unenforceable in whole or in part.

9.9 INSURER'S PROTECTIVE CLAUSE

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

9.10 RECEIPT AND RELEASE FOR PAYMENTS

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

9.11 ACTION BY THE EMPLOYER

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

9.12 NAMED FIDUCIARIES AND ALLOCATION OF RESPONSIBILITY

                  The "named Fiduciaries" of this Plan are (1) the Employer, (2)
the Administrator and (3) the Trustee. The named Fiduciaries shall have only
those specific powers, duties, responsibilities, and obligations as are
specifically given them under the Plan or as accepted by or assigned to them
pursuant to any procedure provided under the Plan, including but not limited to
any agreement allocating or delegating their responsibilities, the terms of
which are incorporated herein by reference. In general, unless otherwise
indicated herein or pursuant to such agreements, the Employer shall have the
duties specified in Article II hereof, as the same may be allocated or delegated
thereunder, including but not limited to the responsibility for making the
contributions provided for under Section 4.1; and shall have the authority to
appoint and remove the Trustee and the Administrator; to formulate the Plan's
"funding policy and method"; and to amend or terminate, in whole or in part, the
Plan. The Administrator shall have the responsibility for the administration of
the Plan, including but not limited to the items specified in Article II of

                                       47
<PAGE>
the Plan, as the same may be allocated or delegated thereunder. The Trustee
shall have the responsibility of management and control of the assets held under
the Trust, except to the extent directed pursuant to Article II or with respect
to those assets, the management of which has been assigned to an Investment
Manager, who shall be solely responsible for the management of the assets
assigned to it, all as specifically provided in the Plan and any agreement with
the Trustee. Each named Fiduciary warrants that any directions given,
information furnished, or action taken by it shall be in accordance with the
provisions of the Plan, authorizing or providing for such direction, information
or action. Furthermore, each named Fiduciary may rely upon any such direction,
information or action of another named Fiduciary as being proper under the Plan,
and is not required under the Plan to inquire into the propriety of any such
direction, information or action. It is intended under the Plan that each named
Fiduciary shall be responsible for the proper exercise of its own powers,
duties, responsibilities and obligations under the Plan as specified or
allocated herein. No named Fiduciary shall guarantee the Trust Fund in any
manner against investment loss or depreciation in asset value. Any person or
group may serve in more than one Fiduciary capacity. In the furtherance of their
responsibilities hereunder, the "named Fiduciaries" shall be empowered to
interpret the Plan and Trust and to resolve ambiguities, inconsistencies and
omissions, which findings shall be binding, final and conclusive.

9.13 HEADINGS

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

9.14 APPROVAL BY INTERNAL REVENUE SERVICE

                           (a) Notwithstanding anything herein to the contrary,
                  contributions to this Plan are conditioned upon the initial
                  qualification of the Plan under Code Section 401. If the Plan
                  receives an adverse determination with respect to its initial
                  qualification, then the Plan may return such contributions to
                  the Employer within one year after such determination,
                  provided the application for the determination is made by the
                  time prescribed by law for filing the Employer's return for
                  the taxable year in which the Plan was adopted, or such later
                  date as the Secretary of the Treasury may prescribe.

                           (b) Notwithstanding any provisions to the contrary,
                  except Sections 3.5 and 3.6, any contribution by the Employer
                  to the Trust Fund is conditioned upon the deductibility of the
                  contribution by the Employer under the Code and, to the extent
                  any such deduction is disallowed, the Employer may, within one
                  (1) year following the disallowance of the deduction, demand
                  repayment of such disallowed contribution and the Trustee
                  shall return such contribution within one (1) year following
                  the disallowance. Earnings of the Plan attributable to the
                  excess contribution may not be returned to the Employer, but
                  any losses attributable thereto must reduce the amount so
                  returned.

9.15 UNIFORMITY

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

                                       48
<PAGE>
9.16 WAIVER OF FUNDING

                           (a) In the event that the minimum funding requirement
                  for a particular Plan Year has been waived in whole or in
                  part, then, an Adjusted Account Balance shall be established
                  for each Participant which shall reflect the Account balance
                  the Participant would have had, had the waived amount been
                  contributed. The Adjusted Account Balance shall remain in
                  effect until such time as the value of the Participant's
                  Account equals the value of the Participant's Adjusted Account
                  Balance:

                           (1) The excess of the value of each Participant's
                           Adjusted Account Balance over the value of the
                           Participant's Account balance will be credited with
                           earnings equal to 150 percent of the Federal mid-term
                           rate (as in effect under Code Section 1274 for the
                           first month of such Plan Year).

                           (2) The waiver payment to be made by the Employer in
                           the year after the waiver is granted shall at least
                           equal the amount necessary to amortize over 5 years,
                           at the appropriate interest rate, the excess of the
                           sum of the Adjusted Account Balances over the total
                           value of the Trust Fund attributable to Employer
                           contributions. In the next year, the excess for such
                           subsequent year, if any, is amortized over 4 years.
                           In each succeeding year the amortization period is
                           reduced by one year. The Employer may, however, make
                           such larger payments at any time as the Employer
                           shall deem appropriate.

                           (3) An unallocated Waiver Suspense Account shall be
                           created, to which shall be made all payments designed
                           to reduce the waived deficiency. If at the time of a
                           distribution, the nonforfeitable portion of a
                           Participant's Adjusted Account Balance exceeds that
                           Participant's actual Account balance, that
                           Participant will receive the larger amount to the
                           extent that there are then funds in the unallocated
                           Waiver Suspense Account to cover the excess. If at
                           any time, a Participant may not be able to receive a
                           total distribution of the entire nonforfeitable
                           portion of his Adjusted Account Balance, such
                           Participant would receive subsequent distributions
                           derived from future waiver payments.

                           (b) When the total value of the Trust Fund equals the
                  sum of the Adjusted Account Balances, the Waiver Suspense
                  Account shall be allocated to the affected Participants so
                  that each Participant's actual Account balance equals that
                  Participant's Adjusted Account Balance.

                                       49
<PAGE>
                                    ARTICLE X
                             PARTICIPATING EMPLOYERS

10.1 ADOPTION BY OTHER EMPLOYERS

                  Notwithstanding anything herein to the contrary, with the
consent of the Employer and Trustee, any other corporation or entity, whether an
affiliate or subsidiary or not, may adopt this Plan and all of the provisions
hereof, and participate herein and be known as a Participating Employer, by a
properly executed document evidencing said intent and will of such Participating
Employer.

10.2 REQUIREMENTS OF PARTICIPATING EMPLOYERS

                           (a) Each such Participating Employer shall be
                  required to use the same Trustee as provided in this Plan.

                           (b) The Trustee may, but shall not be required to,
                  commingle, hold and invest as one Trust Fund all contributions
                  made by Participating Employers, as well as all increments
                  thereof. However, the assets of the Plan shall, on an ongoing
                  basis, be available to pay benefits to all Participants and
                  Beneficiaries under the Plan without regard to the Employer or
                  Participating Employer who contributed such assets.

                           (c) The transfer of any Participant from or to an
                  Employer participating in this Plan, whether he be an Employee
                  of the Employer or a Participating Employer, shall not affect
                  such Participant's rights under the Plan, and all amounts
                  credited to such Participant's Account as well as his
                  accumulated service time with the transferor or predecessor,
                  and his length of participation in the Plan, shall continue to
                  his credit.

                           (d) All rights and values forfeited by termination of
                  employment shall inure only to the benefit of the Participants
                  of the Employer or Participating Employer by which the
                  forfeiting Participant was employed, except if the Forfeiture
                  is for an Employee whose Employer is an Affiliated Employer,
                  then said Forfeiture shall be allocated to the Participants
                  employed by the Employer or Participating Employers who are
                  Affiliated Employers. Should an Employee of one ("First")
                  Employer be transferred to an associated ("Second") Employer
                  which is an Affiliated Employer, such transfer shall not cause
                  his account balance (generated while an Employee of "First"
                  Employer) in any manner, or by any amount to be forfeited.
                  Such Employee's Participant Account balance for all purposes
                  of the Plan, including length of service, shall be considered
                  as though he had always been employed by the "Second" Employer
                  and as such had received contributions, forfeitures, earnings
                  or losses, and appreciation or depreciation in value of assets
                  totaling the amount so transferred.

                           (e) Any expenses of the Trust which are to be paid by
                  the Employer or borne by the Trust Fund shall be paid by each
                  Participating Employer in the same proportion that the total
                  amount standing to the credit

                                       50
<PAGE>
                  of all Participants employed by such Employer bears to the
                  total standing to the credit of all Participants.

10.3 DESIGNATION OF AGENT

                  Each Participating Employer shall be deemed to be a party to
this Plan; provided, however, that with respect to all of its relations with the
Trustee and Administrator for the purpose of this Plan, each Participating
Employer shall be deemed to have designated irrevocably the Employer as its
agent. Unless the context of the Plan clearly indicates the contrary, the word
"Employer" shall be deemed to include each Participating Employer as related to
its adoption of the Plan.

10.4 EMPLOYEE TRANSFERS

                  It is anticipated that an Employee may be transferred between
Participating Employers, and in the event of any such transfer, the Employee
involved shall carry with him his accumulated service and eligibility. No such
transfer shall effect a termination of employment hereunder, and the
Participating Employer to which the Employee is transferred shall thereupon
become obligated hereunder with respect to such Employee in the same manner as
was the Participating Employer from whom the Employee was transferred.

10.5 PARTICIPATING EMPLOYER CONTRIBUTION

                  Any contribution subject to allocation during each Plan Year
shall be allocated only among those Participants of the Employer or
Participating Employer making the contribution, except if the contribution is
made by an Affiliated Employer, in which event such contribution shall be
allocated among all Participants of all Participating Employers who are
Affiliated Employers in accordance with the provisions of this Plan. On the
basis of the information furnished by the Administrator, the Trustee shall keep
separate books and records concerning the affairs of each Participating Employer
hereunder and as to the accounts and credits of the Employees of each
Participating Employer. The Trustee may, but need not, register Contracts so as
to evidence that a particular Participating Employer is the interested Employer
hereunder, but in the event of an Employee transfer from one Participating
Employer to another, the employing Employer shall immediately notify the Trustee
thereof.

10.6 AMENDMENT

                  Amendment of this Plan by the Employer at any time when there
shall be a Participating Employer hereunder shall only be by the written action
of each and every Participating Employer and with the consent of the Trustee
where such consent is necessary in accordance with the terms of this Plan.

10.7 DISCONTINUANCE OF PARTICIPATION

                  Any Participating Employer shall be permitted to discontinue
or revoke its participation in the Plan. At the time of any such discontinuance
or revocation, satisfactory evidence thereof and of any applicable conditions
imposed shall be delivered to the Trustee. The Trustee shall thereafter
transfer, deliver and assign Contracts and other Trust

                                       51
<PAGE>
Fund assets allocable to the Participants of such Participating Employer to such
new Trustee as shall have been designated by such Participating Employer, in the
event that it has established a separate pension plan for its Employees,
provided however, that no such transfer shall be made if the result is the
elimination or reduction of any "Section 411(d)(6) protected benefits" in
accordance with Section 7.1(c). If no successor is designated, the Trustee shall
retain such assets for the Employees of said Participating Employer pursuant to
the provisions of the Trust. In no such event shall any part of the corpus or
income of the Trust as it relates to such Participating Employer be used for or
diverted to purposes other than for the exclusive benefit of the Employees of
such Participating Employer.

10.8 ADMINISTRATOR'S AUTHORITY

                  The Administrator shall have authority to make any and all
necessary rules or regulations, binding upon all Participating Employers and all
Participants, to effectuate the purpose of this Article.

                                       52
<PAGE>
                  IN WITNESS WHEREOF, this Plan has been executed the day and
year first above written.

                                             One Liberty Properties, Inc.

                                             By /s/
                                               -------------------------------
                                                 EMPLOYER

                                       53<PAGE>
                                                                    Exhibit 10.8

                                                                  Execution Copy

                                      LEASE

                    DATED: As of July 8, 1988
                    LANDLORD: WESTINGHOUSE CREDIT CORPORATION
                    TENANT: ALLOY RODS CORPORATION
                    PREMISES: Hanover, Pennsylvania
<PAGE>
                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
Section                                                                        Page
-------                                                                        ----
<S>       <C>                                                                  <C>
 1.       DEMISE; TITLE; CONDITION                                               1
 2.       TERM                                                                   2
 3.       RENT                                                                   2
 4.       USE                                                                    3
 5.       NET LEASE; NONTERMINABILITY                                            3
 6.       TAXES AND OTHER CHARGES; LAW AND AGREEMENTS                            4
 7A.      LEASEHOLD MORTGAGES                                                    6
 7B.      LIENS                                                                 10
 8.       INDEMNIFICATION; FEES AND EXPENSES                                    10
 9.       HAZARDOUS WASTE                                                       11
10.       MAINTENANCE AND REPAIR                                                12
11.       ALTERATIONS AND ADDITIONS AND CONSTRUCTION
            OF NEW BUILDINGS BY TENANT                                          13
12.       CONDEMNATION AND CASUALTY                                             17
13.       INSURANCE                                                             21
14.       FINANCIAL COVENANTS AND CERTIFICATES                                  23
15.       OPTION TO PURCHASE LEASED PROPERTY                                    24
16.       PURCHASE PROCEDURE                                                    25
17.       INVESTMENT CREDIT                                                     26
18.       QUIET ENJOYMENT                                                       26
19.       SURVIVAL                                                              27
20.       ASSIGNMENT AND SUBLETTING                                             27
21.       ADVANCES BY LANDLORD; LATE PAYMENTS                                   28
</TABLE>

                                      -i-
<PAGE>
         LEASE dated as of July 8, 1988, between WESTINGHOUSE CREDIT CORPORATION
("Landlord"), a Delaware corporation having an office at One Oxford Centre, 301
Grant Street, Pittsburgh, Pennsylvania 15219, and ALLOY RODS CORPORATION
("Tenant"), a Delaware corporation having an office at Wilson Avenue, Hanover,
Pennsylvania 17331.

         Landlord and Tenant agree as follows (capitalized terms not otherwise
         defined when they first appear are defined in Article 30 hereof):

         1. DEMISE; TITLE; CONDITION

         In consideration of the agreements and provisions of this Lease
hereinafter stipulated to be observed and performed by Tenant, Landlord hereby
demises and lets to Tenant, and Tenant hereby leases from Landlord, subject to
the terms and conditions hereinafter set forth, for the term described in
Article 2 hereof, the parcels of land described in Schedule A annexed hereto
(together with all buildings and improvements located thereon and all easements
and appurtenances thereto, individually the "Parcel"; collectively, the "Leased
Property").

         The Leased Property is demised and let in its present condition without
representation or warranty by Landlord, subject to (a) the rights of any parties
in possession thereof, (b) the state of the title thereto existing at the time
Landlord acquired title to the Leased Property, (c) any state of facts which an
accurate survey or physical inspection might show, (d) all applicable laws,
rules, regulations, ordinances and restrictions now in effect, and (e) any
violations of such laws, rules, regulations, ordinances and restrictions which
may exist at the commencement of the Term of this Lease. Tenant has examined the
Leased Property, and Landlord's title thereto, and has found the same to be
satisfactory.

         Landlord has not made an inspection of the Leased Property and makes no
representation or warranty, express or implied, with respect to same or the
location, use description, design, merchantability, fitness for use for a
particular purpose, condition or durability thereof, or as to quality of the
material or workmanship therein; and all risks incidental to the Leased Property
shall be borne by Tenant. In the event of any defect or deficiency of any nature
in the Leased Property or any fixture or other item constituting a portion
thereof, whether patent or latent, neither Landlord nor Landlord's mortgagee
shall have any responsibility or liability with respect thereto. THE PROVISIONS
OF THIS PARAGRAPH HAVE BEEN NEGOTIATED AND ARE INTENDED TO BE A COMPLETE
EXCLUSION AND NEGATION BY LANDLORD OF, AND LANDLORD DOES HEREBY DISCLAIM ANY AND
ALL WARRANTIES BY LANDLORD EXPRESS OR IMPLIED, WITH RESPECT

                                      -1-
<PAGE>
TO THE LEASED PROPERTY OR ANY FIXTURE OR OTHER ITEM CONSTITUTING A PORTION
THEREOF, WHETHER ARISING PURSUANT TO THE UNIFORM COMMERCIAL CODE OR ANY OTHER
LAW NOW OR HEREAFTER IN EFFECT OR OTHERWISE.

         This Lease is and shall be superior to all mortgages, which now or
hereafter affect the Leased Property, and to all renewals, modifications,
consolidations, replacements, and extensions thereof. This clause shall be
self-operative and no further instrument of superiority shall be required.

         2. TERM

         (a) Subject to the provisions hereof, Tenant shall have and hold the
Leased Property for a term which shall begin on the Commencement Date set forth
in Schedule B annexed hereto, and end on the Termination Date set forth in
Schedule B annexed hereto (the "Basic Term"), unless sooner terminated or
extended as hereinafter provided.

         (b) Tenant may elect to extend the Term of this Lease for two
additional successive terms of five (5) years each as set forth on Schedule B
annexed hereto ("Extended Terms"). Tenant shall exercise its option to extend
the Term for the first five year renewal term (the "First Extended Term") by
giving notice of such election to Landlord not less than one (1) year prior to
the expiration of the Basic Term. Tenant shall exercise its option to extend the
Term for the second five year renewal term (the "Second Extended Term") by
giving notice of such election to Landlord not less than one (1) year prior to
the expiration of the First Extended Term. Each notice of election to extend
given in accordance with the provisions of this Article 2 shall automatically
extend the Term of this Lease for one Extended Term without further writing.
However, either party, upon request of the other, will execute and acknowledge,
in form suitable for recording, an instrument confirming any such extension.

         3. RENT

         (a) Tenant shall pay to Landlord, in lawful money of the United States,
the rent provided for in Schedule B annexed hereto ("Basic Rent") by wire
transfer of immediately available funds to an account designated by Landlord.
Basic Rent shall be payable by Tenant in installments in the amounts set forth
in Schedule B and shall be due and payable on the dates ("Installment Payment
Dates") set forth in Schedule B. If any Installment Payment Date falls on a day
which is not a Business Day, Basic Rent shall be due and payable on the next
succeeding Business Day without interest or penalty if paid on such Business
Day.

                                      -2-
<PAGE>
         (b) All amounts which Tenant is required to pay or discharge pursuant
to this Lease in addition to Basic Rent (including any amount payable as the
purchase price for the Leased Property pursuant to any provision hereof and any
amount payable as liquidated damages pursuant to paragraph (c) of Article 22
hereof) together with any interest or penalty which may be added for late
payment thereof, shall constitute additional rent hereunder ("Additional Rent").
In the event of any failure by Tenant to pay or discharge any such amount, or in
the event of any failure by Tenant to pay any amount payable as the purchase
price for the Leased Property pursuant to any provision hereof or as liquidated
damages pursuant to paragraph (c of Article 22 hereof, Landlord shall have all
rights, powers and remedies provided for herein or by law or otherwise in the
case of nonpayment of Basic Rent. Tenant may pay Additional Rent directly to the
person entitled thereto.

         (c) In the event that this Lease terminates with respect to one parcel,
but not the entire Leased Property, under the provisions of section (c) of
Article 12 of this Lease, Basic Rent shall be reduced in a manner so as to
preserve Landlord's Yield (as defined in Article 30 hereof).

         4. USE

         Tenant may use each of the parcels comprising the Leased Property as an
office, lab or manufacturing facility.

         5. NET LEASE; NONTERMINABILITY

         (a) This Lease is a "net lease" and Tenant shall pay all Basic Rent,
Additional Rent, and all other payments hereunder required to be made by Tenant
without notice, demand, counterclaim, set-off, deduction, or defense, and
without abatement, suspension, deferment, diminution or reduction, free from any
charges, assessments, impositions, expenses or deductions of any and every kind
or nature whatsoever. All costs, expenses and obligations of every kind and
nature whatsoever relating to the Leased Property and the appurtenances thereto
and the use and occupancy thereof which may arise or become due during or with
respect to the period constituting the term hereof shall be paid by Tenant, and
Landlord shall be indemnified and saved harmless by Tenant from and against the
same. Tenant assumes the sole responsibility for the condition, use, operation,
maintenance, underletting and management of the Leased Property, and Tenant
shall indemnify and hold Landlord harmless from and against any and all
liability, costs, damages, losses and claims (including reasonable attorneys'
fees) in respect thereof, and Landlord shall have no responsibility in respect
thereof and shall have no liability for damage to the property of Tenant or any
subtenant of Tenant on any account or

                                      -3-
<PAGE>
for any reason whatsoever. Without limiting the generality of the foregoing,
during the Term of this Lease Tenant shall perform all of the obligations of the
sublandlord under any subleases affecting all or any part of the Leased Property
which Tenant may hereafter enter into as sublandlord.

         (b) Except as otherwise expressly provided in paragraph (c) of Article
12 and clause (ii) of paragraph (b) of Article 22 hereof, this Lease shall not
terminate, nor shall Tenant have any right to terminate this Lease or to be
released or discharged from any obligations or liabilities hereunder for any
reason, including without limitation, any damage to or destruction of the Leased
Property; any restriction, deprivation (including eviction) or prevention of, or
any interference with, any use or the occupancy of the Leased Property (whether
due to any defect in or failure of Landlord's title to the Leased Property or
otherwise); any condemnation, requisition or other taking or sale of the use,
occupancy or title to the Leased Property; any action, omission or breach on the
part of Landlord under this Lease or under any other agreement between Landlord
and Tenant; the inadequacy or failure of the description of the Leased Property
to demise and let to Tenant the property intended to be leased hereby; Tenant's
acquisition of ownership of the Leased Property or any sale or other disposition
of the Leased Property; the impossibility or illegality of performance by
Landlord or Tenant or both; any action of any court, administrative agency or
other governmental authority; or any other cause, whether similar or dissimilar
to the foregoing, any present or future law notwithstanding.

         (c) Tenant will remain obligated under this Lease in accordance with
its terms, and will not take any action to terminate (except in accordance with
the provisions of paragraph (c) of Article 12), rescind or avoid this Lease for
any reason, notwithstanding any bankruptcy, insolvency, reorganization,
liquidation, dissolution or other proceeding affecting Landlord or any assignee
of Landlord, or any action with respect to this Lease which may be taken by any
receiver, trustee or liquidator or by any court. Tenant waives all rights at any
time conferred by statute or otherwise to quit, terminate or surrender this
Lease or the Leased Property, or to any abatement or deferment of any amount
payable by Tenant hereunder, or for damage, loss or expense suffered by Tenant
on account of any cause referred to in this Article 5 or otherwise.

         6. TAXES AND OTHER CHARGES; LAW AND AGREEMENTS

         (a) Tenant shall pay and discharge, on or before the last day upon
which the same may be paid without interest or penalty, all taxes, including any
transaction privilege tax based upon or measured by gross rentals or receipts
from the Leased Property, assessments, levies, fees, water and sewer

                                      -4-
<PAGE>
rents and other governmental and similar charges, general and special, ordinary
or extraordinary, and any interest and penalties thereon, which are levied or
assessed during the Term of this Lease (including all of the taxes, assessments,
fees, water and sewer rents and other governmental charges for the year in which
this Lease is executed which are now a lien but not yet delinquent) against (i)
Landlord and which relate to Landlord's ownership of the Leased Property, the
use and occupancy of the Leased Property or the transactions contemplated by
this Lease, (ii) Landlord's mortgagee and which relate to Landlord's mortgagee's
interest in the Leased Property, the use and occupancy of the Leased Property or
the transactions contemplated by this Lease, (iii) the Leased Property or the
interest of Tenant or Landlord therein, (iv) Basic Rent, Additional Rent or any
other amount payable by Tenant hereunder, (v) this Lease or the interest of
Tenant or Landlord hereunder, (vi) the use, occupancy, construction, repair or
rebuilding of the Leased Property or any portion thereof, or (vii) gross
receipts from the Leased Property. If any tax or assessment levied or assessed
against the Leased Property may legally be paid in installments, Tenant shall
have the option to pay such tax or assessment in installments. Nothing in this
Lease shall require payment by Tenant of any franchise, estate, inheritance,
succession, transfer, net income or profits taxes of Landlord, unless such tax
is in lieu of or a substitute for any other tax or assessment upon or with
respect to the Leased Property, which, if such other tax or assessment were in
effect, would be payable by Tenant hereunder. Tenant shall furnish to Landlord,
within sixty (60) days of the final due date of such tax or assessment for each
of the Parcels, proof of the payment of any such tax, assessment, fee, rent or
charge which is payable by Tenant. Such taxes, assessments, fees, water and
sewer rents and other governmental charges shall be apportioned between Landlord
and Tenant as of the date on which this Lease terminates or expires.

         (b) Tenant shall pay all charges for utility, communication and other
services rendered or used during the Term of this Lease on or about the Leased
Property, whether or not payment therefor shall become due after the Term of
this Lease.

         (c) Tenant shall at all times during the Term of this Lease, at
Tenant's own cost and expense, perform and comply with all laws, rules, orders,
ordinances, regulations and requirements now or hereafter enacted or
promulgated, of every government and municipality having jurisdiction over the
Leased Property and of any agency thereof, relating to the Leased Property, or
the improvements thereon, or the facilities or equipment thereon or therein, or
the streets, sidewalks, vaults, vault spaces, curbs and gutters adjoining the
Leased Property, or the appurtenances to the Leased Property, or the franchises

                                      -5-
<PAGE>
and privileges connected therewith, whether or not such laws, rules, orders,
ordinances, regulations or requirements so involved shall necessitate structural
changes, improvements, interference with use and enjoyment of the Leased
Property, replacements or repairs, extraordinary as well as ordinary, and Tenant
shall so perform and comply, whether or not such laws, rules, orders,
ordinances, regulations or requirements shall now exist or shall hereafter be
enacted or promulgated, and whether or not such laws, rules, orders, ordinances,
regulations or requirements can be said to be within the present contemplation
of the parties hereto.

         (d) Tenant shall have the right to contest, by appropriate legal
proceedings, any tax, charge, levy, assessment, lien or other encumbrance,
and/or any law, rule, order, ordinance, regulation or other governmental
requirement affecting the Leased Property, and to postpone payment of or
compliance with the same during the pendency of such contest, provided that (i)
Tenant shall immediately furnish a bond, deposit (to be deposited in an
interest-bearing account) or such similar security as Landlord or Landlord's
mortgagee may reasonably require in an amount sufficient to assure such payment
and/or compliance in full; (ii) Tenant shall not postpone the payment of any
such tax, charge, levy, assessment, lien or other encumbrance for such length of
time as shall permit the Leased Property, or any lien thereon created by such
item being contested, to be sold by federal, state, county or municipal
authority for the non-payment thereof; and (iii) Tenant shall not postpone
compliance with any such law, rule, order, ordinance, regulation or other
governmental requirement if Landlord will thereby be subject to civil liability
or criminal prosecution, or if any municipal or other governmental authority
shall commence a process according to applicable law to carry out any work to
comply with the same or to foreclose or sell any lien affecting all or part of
the Leased Property which shall have arisen by reason of such postponement or
failure of compliance.

         (e) Tenant will pay and discharge, and indemnify and reimburse Landlord
for its payment or discharge of, all taxes and other charges required to be paid
and discharged by Landlord under any mortgage of Landlord's interest in the
Leased Property.

         7A. LEASEHOLD MORTGAGES

         (a) Tenant may not grant a mortgage of its leasehold interest
hereunder, except that Landlord will permit Tenant to grant to Pittsburgh
National Bank (hereinafter referred to as "Leasehold Mortgagee") one leasehold
mortgage encumbering Tenant's leasehold estate hereunder (the "PNB Leasehold
Mortgage") on terms and conditions reasonably satisfactory to Landlord. If
Tenant shall mortgage its leasehold interest

                                      -6-
<PAGE>
hereunder to Leasehold Mortgagee, and if Leasehold Mortgagee shall forward to
Landlord an executed counterpart of the PNB Leasehold Mortgage in force proper
for record, then, until the time, if any, that the PNB Leasehold Mortgage shall
be satisfied of record or Leasehold Mortgagee shall give to Landlord written
notice that the PNB Leasehold Mortgage has been satisfied:

         (i) No action or agreement hereafter taken or entered into by Tenant to
cancel, surrender, or modify this Lease shall be binding upon Leasehold
Mortgagee or affect the lien of the PNB Leasehold Mortgage, without the prior
written consent of Leasehold Mortgagee.

         (ii) If Landlord shall give any notice of default (hereinafter referred
to as a "Notice") to Tenant pursuant to Article 22 and 23 hereof, Landlord shall
at the same time give a copy of each such Notice to Leasehold Mortgagee at the
address theretofore designated by Leasehold Mortgagee. Such copies of Notices
shall be sent by registered or certified mail, and shall be deemed given at
the time such copy is deposited in a United States Post Office with postage
charges prepaid, enclosed in a securely sealed envelope addressed to Leasehold
Mortgagee. No Notice given by Landlord to Tenant shall be binding upon or affect
Leasehold Mortgagee unless a copy of said Notice shall be given to Leasehold
Mortgagee pursuant to this subdivision (ii). In the case of an assignment of the
PNB Leasehold Mortgage or change in address of Leasehold Mortgagee, said
assignee or Leasehold Mortgagee, by written notice to Landlord, may change the
address to which such copies of Notices are to be sent. Landlord shall not be
bound to recognize any assignment of the PNB Leasehold Mortgage unless and until
Landlord shall be given written notice of such assignment and the name and
address of the assignee, and thereafter such assignee shall be deemed to be
"Leasehold Mortgagee" under this Article 7A. If the PNB Leasehold Mortgage is
held by more than one person, corporation or other entity, no provision of this
Lease requiring Landlord to give a Notice or copy of a Notice to Leasehold
Mortgagee shall be binding upon Landlord unless and until all of said holders
shall designate in writing one of their number to receive all such Notices and
copies of Notices and shall have given to Landlord an original executed
counterpart of such designation in form proper for record.

         (iii) Subject to subdivision (iv) of this Article 7A, Leasehold
Mortgagee shall have the right to perform any term, covenant, condition or
agreement and to remedy any default by Tenant hereunder, and Landlord shall
accept such performance by Leasehold Mortgagee with the same force and effect as
if furnished by Tenant; provided, however, that Leasehold Mortgagee shall not
thereby or hereby be subrogated to the rights of Landlord.

                                      -7-
<PAGE>
         (iv) If Tenant shall fail to make any payment of Basic Rent, Additional
Rent or other sums due hereunder when due (a "Payment Default"), and provided
that Landlord shall give notice of such default to Tenant, then Landlord shall
also give notice of such default to Leasehold Mortgagee, as set forth above, and
Leasehold Mortgagee shall have thirty (30) days after the date of such notice to
cure such Payment Default, provided, however, that Leasehold Mortgagee shall not
be permitted to cure any such Payment Default if it shall have previously cured
six (6) consecutive or eight (8) total such Payment Defaults, unless Leasehold
Mortgagee has initiated a foreclosure proceeding with respect to the PNB
Leasehold Mortgage.

         (v) In the case of a default by Tenant in the performance or observance
of any term, covenant, condition or agreement on Tenant's part to be performed
under this Lease, other than a Payment Default, and provided that Landlord shall
have given notice of such default to Tenant, then Landlord shall also give
notice of such default to Leasehold Mortgagee, as set forth above, and if such
default is of such a nature that the same cannot practicably be cured by
Leasehold Mortgagee without taking possession of the Leased Property, or if such
default is of such a nature that the same in not susceptible of being cured by
Leasehold. Mortgagee, then Landlord shall not serve a notice of election to
terminate this Lease pursuant to Article 22 hereof, or otherwise terminate the
leasehold estate of Tenant hereunder by reason of such default, if and so long
as:

                  (1) in the case of a default which cannot practicably be cured
         by Leasehold Mortgagee without taking possession of the Leased
         Property, Leasehold Mortgagee shall deliver to Landlord, prior to the
         date which is thirty (30) days after the date on which Landlord shall
         otherwise be entitled to give notice of election to terminate this
         Lease, a written instrument wherein Leasehold Mortgagee gives to
         Landlord its unconditional, undertaking that it will cure such default
         and that, if this Lease thereafter is terminated prior to the curing of
         such default, Leasehold Mortgagee shall pay to Landlord the cost of
         curing such default, if Leasehold Mortgagee be other than a life
         insurance company, bank or trust company having a net worth in excess
         of $25,000,000 such undertaking shall be accompanied by security,
         reasonably satisfactory to Landlord, sufficient to insure payment of
         the cost of curing of such default, and thereafter- Leasehold Mortgagee
         shall proceed diligently to obtain possession of the Leased Property as
         mortgagee (including possession by a receiver), and, upon obtaining
         such possession, shall proceed

                                      -8-
<PAGE>
         diligently to cure such default in accordance with the guaranty set
         forth in this clause 1; and

                  (2) in the case of a default which is not susceptible of being
         cured by Leasehold Mortgagee, Leasehold Mortgagee shall institute
         foreclosure proceedings and diligently prosecute the same to completion
         (unless in the meantime Leasehold Mortgagee shall acquire Tenant's
         estate hereunder, either in its own name or through a nominee, by
         assignment in lieu of foreclosure).

         Leasehold Mortgagee shall not be required to continue to proceed to
obtain possession, or to continue in possession as mortgagee, of the Leased
Property pursuant to clause (1) above, or to continue to prosecute foreclosure
proceedings pursuant to clause (2) above, if and when such default shall be
cured. Nothing herein shall preclude Landlord from exercising any of its rights
or remedies with respect to any other default by Tenant during any period of
such forbearance, but in such event Leasehold Mortgagee shall have all of the
rights and protections hereinabove provided for. If Leasehold Mortgagee, or its
nominee, or a purchaser at a foreclosure sale, shall acquire title to Tenant's
leasehold estate hereunder, and shall cure all defaults of Tenant hereunder
which are susceptible of being cured by Leasehold Mortgagee, or by said
purchaser, as the case may be, then the defaults of Tenant or of any prior
holder of Tenant's leasehold estate hereunder which are not susceptible of being
cured by Leasehold Mortgagee (or by said purchaser) shall no longer be deemed to
be defaults hereunder.

         (vi) During any period that Landlord is forebearing from exercising its
right to terminate the Lease as herein provided for the benefit of the Leasehold
Mortgagee (or earlier if a bankruptcy, insolvency, reorganization, receivership,
moratorium or similar proceeding is voluntarily or involuntarily instituted by
or against Tenant), Landlord and Leasehold Mortgagee shall consult with one
another to determine (a) what action to take to maximize the value of (i) the
equipment, fixtures, inventory and other tangible assets in which Leasehold
Mortgagee has a security interest (the "PNB Collateral"), and (ii) the Leased
Property, and (b) the appropriate division of any proceeds resulting from the
sale of the Leased Property and/or the PNB Collateral. Notwithstanding the
foregoing, Landlord, Tenant and Leasehold Mortgagee acknowledge and agree that
no duty is imposed hereby on Landlord or Leasehold Mortgagee to agree to any
joint disposition of the Leased Property or the PUB Collateral and that any
agreement that ultimately may be reached in connection with the disposition of
the Leased Property and/or the PNB Collateral is for the sole benefit of
Landlord and Leasehold Mortgagee. Neither Landlord

                                      -9-
<PAGE>
nor Leasehold Mortgagee shall have any liability to Tenant for failure to agree
upon a joint disposition of the Leased Property or the PNB Collateral.

         In the event that Leasehold Mortgagee shall acquire the interest of
Tenant pursuant to a foreclosure of the PNB Leasehold Mortgage (or by assignment
of Lease consented to be Landlord in lieu of foreclosure), Leasehold Mortgagee
shall promptly undertake to obtain an assignee of its interest in the Lease,
which assignee must (i) agree to pay as rent hereunder the greater of (a) the
then fair market rent 'for industrially zoned property of like size and
condition in the County of York, Commonwealth of Pennsylvania and (b) the rent
set forth on Schedule B hereto, (ii) have a financial strength acceptable to
Landlord, and (iii) be otherwise acceptable to Landlord. Landlord shall have the
right (but not the obligations) to participate in the selection of any such
assignee.

         7B. LIENS

         Except for a lien permitted pursuant to Article 7A hereof, Tenant will
promptly, but no later than 30 days after the filing thereof, remove and
discharge of record, by bond or otherwise, any charge, lien, security interest
or encumbrance upon the Leased Property, which arises for any reason, including
ail liens which arise out of the possession, use, occupancy, construction,
repair or rebuilding of the Leased Property or by reason of labor or materials
furnished or claimed to have been furnished to Tenant for the Leased Property.
Nothing contained in this Lease shall be construed as constituting the consent
or request of Landlord, express or implied, to or for the performance by any
contractor, laborer, materialman, or vendor of any labor or services or for the
furnishing of any materials for any construction, alteration, addition, repair
or demolition of or to the Leased Property or any part thereof. Notice is hereby
given that Landlord will not be liable for any labor, services or materials
furnished or to be furnished to Tenant, or to anyone holding an interest in the
Leased Property or any part thereof through or under Tenant, and that no
mechanic's or other liens for any such labor, services or materials shall attach
to or affect the interest of Landlord in and to the Leased Property. In the
event of the failure of Tenant to discharge any charge, lien, security interest
or encumbrance as aforesaid, Landlord or Landlord's mortgagee may discharge such
items by payment or bond or both, and Tenant will repay to Landlord or
Landlord's mortgagee as the case may be, upon demand, any and all amounts paid
therefor, or by reason of any liability on such bond, and also any and all
incidental expenses, including reasonable attorneys' fees, incurred by Landlord
or Landlord's mortgagee, as the case may be, in connection therewith.

                                      -10-
<PAGE>
         8. INDEMNIFICATION; FEES AND EXPENSES

         Tenant shall pay, and shall protect, defend, indemnify and hold
Landlord and Landlord's mortgagee harmless from and against all liabilities,
losses, damages, costs, expenses (including reasonable attorneys' fees and
expenses), claims, demands or judgments of any nature arising or alleged to
arise from or in connection with the following events: (i) any injury to, or the
death of, any person or any damage to or loss of property on the Leased Property
or growing out of or directly or indirectly connected with, or alleged to grow
out of or be directly or indirectly connected with, the ownership, use, nonuse,
occupancy, construction, repair or rebuilding of the Leased Property or
adjoining property, or resulting, or alleged to result, from the condition of
any thereof, other than any injury, death, damage or loss arising out of
Landlord's willful misconduct or gross negligence; (ii) violation, or alleged
violation, by Tenant of any provision of this Lease whether or not such
violation or alleged violation results in a violation of any provision of any
mortgage affecting Landlord's interest in the Leased Property, or of any law,
rule, regulation, ordinance or restriction as of the date hereof or hereafter in
effect and affecting the Leased Property, or of any lease or other agreement
relating to the Leased Property as of the date hereof or hereafter in effect to
which Tenant is a party or by which Tenant is bound, or of any agreement of
which Tenant has actual or constructive notice as of the date hereof, and which
is in effect as of the date hereof, affecting the Leased Property or the
ownership, use, nonuse, occupancy, construction, repair or rebuilding thereof or
of adjoining property; (iii) any tax (other than income taxes), assessment,
charge or levy assessed against Landlord or Landlord's mortgagee relating to the
Leased Property; (iv) any contest permitted by paragraph (d) of Article 6; or
(v) Tenant's failure to pay any Additional Rent or purchase price for the Leased
Property pursuant to any provision hereof or liquidated damages pursuant to
paragraph (c) of Article 22 hereof in accordance with the terms and provisions
hereof.

         9. HAZARDOUS WASTE

         Tenant warrants and represents to Landlord and Landlord's mortgagee
that (a) to the best of Tenant's knowledge, the Leased Property complies with
all existing federal, state and local environmental laws, rules and regulations
("Environmental Laws"), (b) except for violations referred to in that certain
letter agreement dated February 24, 1986 between

                                      -11-
<PAGE>
the Commonwealth of Pennsylvania Department of Environment Resources Bureau of
Waste Management and Tenant, neither Tenant, nor to the best of Tenant's
knowledge, any prior owner of the Leased Property has used the Leased Property
in violation of any Environmental Laws, (c) except for violations referred to in
that certain letter agreement dated February 24, 1986 between the Commonwealth
of Pennsylvania Department of Environment Resources Bureau of Waste Management
and Tenant, no proceedings have been commenced, or orders of violation,
non-compliance or notice received, concerning any alleged violation of
Environmental Laws relating to the Leased Property, (d) except as disclosed in
that certain preliminary environmental evaluation and facility evaluation dated
May, 1988 prepared for Westinghouse Credit Corporation by S&ME Environmental
Services (the "Environmental Report"), to the best of Tenant's knowledge, the
Leased Property is free of hazardous waste, asbestos, contaminants, oil,
radioactive or other materials ("Hazardous Waste"), (e) except as disclosed in
the Environmental Report, Tenant has not used and, to the best of Tenant's
knowledge, the Leased Property has not been used to generate, manufacture,
refine, produce, store, handle, transfer, process or transport any Hazardous
Waste, (f) except as disclosed in the Environmental Report, Tenant shall not use
and shall prohibit the use of the Leased Property for the generation,
manufacture, refinement, production, storage, handling, transfer, processing or
transportation of Hazardous Waste, and (g) except as disclosed in the
Environmental Report, Tenant shall not permit any Hazardous Waste to be brought
onto the Leased Property, or if so brought or found or located thereon, shall
cause the same to be immediately removed in full compliance with all applicable
laws, ordinances, rules, codes or regulations, and Tenant's obligation to so
remove shall survive the Term of this Lease.

         Tenant agrees to indemnify and hold harmless Landlord and each and all
of Landlord's shareholders, officers, directors, employees, attorneys and agents
and Landlord's mortgagee (collectively called the "Indemnitees") from and
against any and all losses, liability, suits, obligations, fines, damages,
judgments, penalties, claims, charges, costs and expenses (including, without
limitation, all fees and disbursements of counsel and consultants), which may be
suffered or incurred by, or asserted against, an Indemnitee and which arises
directly or indirectly out of or in connection with a violation of this Article
9.

         The warranties and obligations of Tenant and the rights and remedies of
Landlord and each Indemnitee under this Article 9 are in addition to and not in
limitation of any other

                                      -12-
<PAGE>
warranties, obligations, rights and remedies of Landlord provided in any other
agreement between Landlord and Tenant or otherwise at law or in equity.

         10.  MAINTENANCE AND REPAIR

         Tenant will, at its cost and expense, keep and maintain the Leased
Property in good repair and condition and will make all structural and
non-structural, and ordinary and extraordinary changes, repairs and
replacements, foreseen or unforeseen, which may be required, whether or not
caused by its act or omission, to be made upon or in connection with the
improvements to the Leased Property in order to keep the same in good repair and
condition, including taking or causing to be taken action necessary to maintain
the Leased Property in compliance with any applicable laws or regulations,
including environmental laws or regulations. Landlord shall not be required to
maintain, alter, repair, rebuild or replace any improvements on the Leased
Property or to maintain the Leased Property, and Tenant expressly waives the
right to make repairs at the expense of Landlord pursuant to any law at any
time in effect.

         11. ALTERATIONS AND ADDITIONS AND
             CONSTRUCTION OF NEW BUILDINGS BY TENANT

         (a) If Tenant complies with the requirements of paragraph (a) of this
Article 11, Tenant may, at its own cost and expense, make additions or
improvements to or alterations of the buildings and improvements now or
hereafter erected on the Leased Property ("Additional Improvements"), and may
also, at its own cost and expense, construct new buildings and improvements
("New Buildings") on any portion of the Leased Property which is not then
improved with a building or improvement. Notwithstanding the foregoing, Tenant
shall not make (i) any Additional Improvements or construct New Buildings in
violation of the terms of any restriction, easement, condition or covenant or
other matter affecting title to the Leased Property; or (ii) demolish any
building on the Leased Property without the prior written consent of Landlord.
The making of Additional Improvements and the construction of New Buildings
shall be subject to the following conditions:

                  (i) Title to any such Additional Improvements and New
         Buildings (other than Additional Improvements which are removable
         without material damage to the Leased Property and are not operational
         components of the Leased Property) shall immediately vest in Landlord
         and shall be a part of the Leased Property and subject to the terms,
         covenants and conditions of this Lease;

                                      -13-

<PAGE>
          (ii) No Additional Improvements or New Buildings shall be undertaken
     until Tenant shall have procured and paid for, so far as the same may be
     required from time to time, all permits and authorizations of all municipal
     and other governmental authorities having jurisdiction of the Leased
     Property. Landlord shall join in the application for any such permit or
     authorization whenever such joinder is necessary at Tenant's expense.

          (iii) The making of the Additional Improvements and the construction
     of the New Buildings shall be expeditiously completed in a good and
     workmanlike manner and in compliance with all applicable laws, rules,
     regulations, ordinances and covenants and restrictions then in effect;

          (iv) The making of any Additional Improvements involving structural
     changes estimated to have a cost (as defined in paragraph (d) of Article 11
     hereof) in excess of $250,000, and the construction of any New Buildings,
     shall be conducted under the supervision of an architect or engineer
     employed or engaged and paid by Tenant and approved in writing by Landlord;
     and neither shall be undertaken except in accordance with detailed plans
     and specifications and cost estimates prepared by Tenant and approved by
     Landlord. Landlord agrees that it will not unreasonably withhold or delay
     its approval of said architect or engineer, or of said plans and
     specifications and cost estimates;

          (v) In the case of the making of Additional Improvements or the
     construction of New Buildings, in either case having a cost in excess of
     $250,000, or the total or material demolition of an existing building or
     improvement, Tenant shall, prior to the commencement thereof, notify
     Landlord and, upon request of Landlord furnish Landlord with a surety bond
     in such amount and with such surety as shall be satisfactory to Landlord or
     other security satisfactory to Landlord to assure the completion of such
     Additional Improvements or the construction of such New Buildings as the
     case may be;

          (vi) The cost of any Additional Improvements or New Buildings shall be
     paid by Tenant when due so that the Leased Property shall at all times be
     free of liens; for labor and materials supplied or claimed to have been
     supplied to the Leased Property;

          (vii) No Additional Improvements shall, when completed, be of such a
     character as to make any change

                                      -14-

<PAGE>
     in or diminish the character of the then existing buildings or improvements
     erected upon the Leased Property, capable of being operated independently
     of any other buildings or improvements; and, when completed, such buildings
     and improvements shall have a fair market value at least equal to the fair
     market value of the then existing buildings prior to the commencement of
     construction of such Additional Improvements;

          (viii) During the period when any Additional Improvements or New
     Buildings are being made or constructed, Tenant shall maintain the
     following insurance (in addition to the insurance required to be maintained
     by Tenant pursuant to the provisions of Article 13 hereof): (A) completed
     value builders risk insurance for the Leased Property, including all
     building materials thereon, covering loss or damage from fire, lightning,
     extended coverage perils, sprinkler leakage, vandalism, malicious mischief
     and perils insured under a difference in conditions policy in an amount not
     less than the cost, as estimated by Tenant, of the construction of the
     Additional Improvements or New Buildings, as the case may be, and (B)
     worker's compensation insurance covering the full statutory liability as an
     employer of the contractor performing the work of making such Additional
     Improvements or constructing said New Buildings;

          (ix) Upon completion of the making of the Additional Improvements or
     the construction of the New Buildings, if the cost thereof shall be in
     excess of $250,000, Tenant shall furnish Landlord and Landlord's mortgagee
     with (A) a new title insurance policy or an endorsement to the policy or
     policies of title insurance which shall have been issued to Landlord and
     Landlord's mortgagee insuring title to the Leased Property, increasing the
     amount of the liability of the title company or title companies under said
     policy or policies of title insurance by the amount of the cost of such
     Additional Improvements or New Buildings, as the case may be, and (B) all
     Certificates of Occupancy or other certificates required by applicable
     laws;

          (x) In the case of any Additional Improvement constituting or
     including a change in the exterior walls of a building, and in the case of
     the construction of New Buildings, Tenant shall furnish Landlord and
     Landlord's mortgagee with an "as-built" survey showing the location of said
     Additional Improvements or New Buildings, as the case may be,

                                      -15-
<PAGE>
     prepared by a licensed surveyor reasonably acceptable to Landlord,
     certified to Landlord, Landlord's mortgagee, and the title insurance
     company or companies issuing a policy or an endorsement pursuant to clause
     (ix) of paragraph (a) of this Article 11; and

          (xi) The making of Additional Improvements and the construction of New
     Buildings shall not constitute gross income to Landlord for Federal Income
     Tax purposes.

          (b) Tenant may, at its own cost and expense, install or place or
reinstall or replace upon or remove from the Leased Property any trade fixtures,
machinery and equipment. Any such trade fixtures, machinery and equipment shall
not become the property of Landlord (other than replacements of fixtures,
machinery and equipment which are the property of Landlord, which replacement
shall also be the property of Landlord). Replacements of fixtures, machinery and
equipment which are property of the Landlord shall be of at least equal quality
to the replaced fixtures, machinery and equipment when the replaced items were
new.

          (c) If the estimated costs and expenses for construction of Additional
Improvements on the Leased Property exceed $250,000, Tenant may request Landlord
to construct such Additional Improvements for Tenant and to finance such
construction itself or to arrange for the financing of such construction on
terms and conditions which shall be satisfactory to Landlord and Tenant. If
Tenant makes any such request, Landlord and Tenant shall negotiate in good faith
concerning the financing of construction of such Additional Improvements and any
amendment of this Lease appropriate in connection therewith including, but not
limited to, increasing the Basic Rent hereunder to cover said costs, having
regard to then existing economic, financial and market conditions and the terms
and conditions of Tenant's request. Tenant shall pay all costs and expenses
associated with the arrangement of any such financing, provided that Tenant may
request that such costs and expenses be included as part of the cost of such
Additional Improvements to be financed under this paragraph (c) of Article 11.
The parties hereto recognize that such amendment to this Lease, including
increases in Basic Rent adequate to amortize fully any additional indebtedness
incurred by Landlord and to provide a reasonable return (typical of similar
transactions) to Landlord with respect to its additional equity contribution, if
any, must be of such nature as to permit Landlord to sell such notes or other
debt obligations as may be necessary to accomplish such financing. Landlord
agrees to act in good faith as provided above, but Landlord shall incur no
liability by reason of Landlord's inability or failure to arrange for such
financing or

                                      -16-

<PAGE>
to agree with Tenant as to the terms thereof, and this Lease shall continue in
full force and effect notwithstanding such failure.

          (d) For the purposes of this Article 11 the term "cost" shall
include without limitation (i) all costs properly charged or chargeable, in
accordance with generally accepted accounting principles, as capital
expenditures in connection with the making of the Additional Improvements or the
construction of the New Buildings, as the case may be including, without
limitation attorneys', architects' and engineers' fees, interest charges during
construction and the fees and charges for the preparation of the plans and
specifications relating to such Additional Improvements or New Buildings, (ii)
survey charges and title insurance premiums in connection with the issuance of
endorsements or policies, if any, to owner's and mortgagee's title insurance
policies pursuant to the provisions of clause (ix) of paragraph (a) of this
Article 11, (iii) recording charges and any mortgage or transfer or other taxes
(if any), and (iv) accounting, printing, duplicating and other expenses incurred
in connection with the financing referred to in paragraph (c) of this Article
11.

          12. CONDEMNATION AND CASUALTY

          (a) Tenant hereby assigns to Landlord any award, compensation,
insurance proceeds or other payment to which Tenant may become entitled by
reason of its interest in the Leased Property, other than any award,
compensation or insurance payment made to Tenant for interruption of business,
for moving expenses or for any inventory, fixtures, machinery, equipment or
other personal property belonging to Tenant, (hereinafter referred to as
"Tenant's Loss") (i) if the Leased Property, or any portion thereof, is damaged
or destroyed by fire or other casualty or cause, or (ii) by reason of any
condemnation, requisition or other taking or sale of the use, occupancy or title
to the Leased Property or any portion thereof in, by or on account of any actual
or threatened eminent domain proceeding or other action by any governmental
authority or other person having the power of eminent domain. Subject to the
consent of Landlord, which consent shall not be unreasonably withheld, Tenant is
hereby authorized and empowered, at its cost and expense, in the name and behalf
of Landlord, Tenant or otherwise, to appear in any such proceeding or other
action, to negotiate, accept and prosecute any claim for any award,
compensation, insurance proceeds or other payment on account of any such loss,
damage, destruction, condemnation, requisition or other taking or sale, and to
cause any such award, compensation, insurance proceeds or other payment to
be paid to Landlord, except that Tenant shall be entitled to submit a claim for
Tenant's Loss and retain any award applicable thereto. All

                                      -17-
<PAGE>
amounts so paid or payable to Landlord or Tenant shall be retained or paid over
to the party entitled thereto in accordance with the provisions of this Article
12. Tenant shall take all appropriate action in connection with each such
claim, proceeding or other action, and shall pay all costs and expenses in
connection therewith. Notwithstanding the foregoing, Landlord may participate in
all such proceedings in all respects.

          (b) If any one or more of the Parcels or any part thereof shall be
damaged or destroyed by fire or other casualty, and Tenant may not or does not
elect to terminate the Lease with respect to all or a portion of said Parcel(s)
pursuant to paragraph (c) of this Article 12, then Tenant shall give prompt
written notice thereof to Landlord, and shall, at Tenant's own cost and expense
and in conformity with the requirements set forth in paragraph (a) of Article
11 hereof, proceed with reasonable diligence and promptness to carry out any
necessary demolition and to restore, repair, replace, and/or rebuild the
Parcel(s) in order to restore the Parcel(s), as nearly as practicable, to the
condition and fair market value thereof immediately prior to such damage or
destruction.

          Basic and Additional Rent shall not abate hereunder by reason of any
such damage to or destruction of the Leased Property, and Tenant shall continue
to perform and fulfill all of Tenant's obligations, covenants and agreements
hereunder notwithstanding such damage or destruction.

          If the Net Award (as defined in paragraph (c) of this Article 12) does
not exceed $250,000 and provided Tenant is not in default under this Lease, then
the Net Award shall be paid to Tenant to be applied to the repair and rebuilding
work required by this paragraph (b). If the Net Award exceeds $50,000, the
proceeds shall be disbursed in accordance with clauses (i)-(iii) of paragraph
(d) of this Article 12.

          (c) If, at any time during the Term of this Lease all or substantially
all of any one or more of the Parcels shall be condemned or taken in the
exercise of the power of eminent domain by any sovereign, municipality, or other
public or private authority or shall be destroyed by fire or other casualty or,
after any condemnation, taking or casualty of a Parcel(s), if the Parcel(s)
is unsuitable for continued use in Tenant's business, or if any condemnation,
taking or casualty of any portion of the Parcel(s) shall take place during the
last two years of the Basic Term hereof or during the last two years of any
Extended Term, then Tenant may give notice to Landlord of Tenant's intention to
terminate this Lease with respect to such Parcel(s). Substantially all of a
Parcel shall be deemed to have been taken if the remaining portion of the Parcel
shall not be of sufficient size or character to permit the operation by

                                      -18-
<PAGE>
Tenant of its business thereon and therein on an economically feasible basis,
assuming that such remaining portion had been repaired and restored to the
fullest extent possible. If Landlord and Tenant do not agree on whether all or
substantially all of a Parcel shall have been taken or destroyed then their
dispute shall be settled by arbitration in accordance with Article 33 hereof.
Tenant shall give notice to Landlord of Tenant's intention to terminate this
Lease with respect to a Parcel not later than 180 days after the occurrence of
such condemnation or casualty. Tenant's notice to Landlord shall (i) contain a
description of the relevant condemnation, taking or casualty, (ii) specify the
date on which this Lease shall terminate with respect to such Parcel, which
shall be the Installment Payment Date first occurring at least 180 days after
such notice is given (the "Termination Date"), (iii) if such notice of
termination shall be based on a determination by Landlord and Tenant that a
Parcel is no longer suitable for use in Tenant's business as aforesaid, contain
a certification by Tenant that the Board of Directors of Tenant has made such
determination, and that, on or before such Termination Date, Tenant will
discontinue the use of the Parcel in Tenant's ordinary course of business, (iv)
if such Termination Date shall occur during the Basic Term, contain the
irrevocable offer of Tenant to purchase Landlord's interest in the Parcel (and
the Net Award hereinafter referred to), on such Termination Date at the
Termination Value with respect to such Parcel (defined as the amount
corresponding to the applicable Termination Date on Schedule C annexed hereto),
and (v) contain a commitment by Tenant to deposit with a Depository not later
than one year after the date of the condemnation or casualty as security for
payment of the purchase price for the Parcel the applicable Termination Value
with respect to such Parcel less the amount of any insurance proceeds or
condemnation award previously paid with respect to such casualty or taking and
held by Landlord or Landlord's designee pursuant to paragraph (a) of this
Article 12. If Landlord shall reject any such offer to purchase by notice given
to Tenant not later than 10 days prior to such Termination Date, or if such
Termination Date shall occur during an Extended Term, then this Lease shall
terminate on such Termination Date with respect to such Parcel and the Net Award
shall be paid and belong to Landlord. Unless Landlord shall reject such offer to
purchase as provided in the preceding sentence, Landlord shall be conclusively
deemed to have accepted such offer, and on such Termination Date Landlord shall
transfer, and Tenant shall purchase, Landlord's interest in the Parcel (and the
Net Award) in accordance with the provisions of Article 16 hereof. Upon
completion of such purchase, and payment of the Termination Value by Tenant, the
entire award, compensation or other payment, if any, on account of any such
taking or casualty, less any expenses incurred by Landlord in

                                      -19-

<PAGE>
collecting such award, compensation, insurance proceeds or other payment and not
paid (or reimbursed to Landlord) by Tenant pursuant to the last sentence of
paragraph (a) of Article 12, shall be paid and belong to Tenant (such award,
compensation, insurance proceeds or other payment, less such expenses, being
herein called the "Net Award"). The additional amount, if any, deposited by
Tenant pursuant to clause (v) of paragraph (c) of this Article 12 shall be paid
to Tenant on the Termination Date if Tenant is not in default under this Lease.

          (d) If Tenant shall not give, and shall not be required to give,
notice of its intention to terminate this Lease with respect to a Parcel in
accordance with paragraph (c) of this Article 12, then this Lease shall continue
in full force and effect, and Tenant shall, at its own cost and expense and in
conformity with all of the requirements of paragraph (a) of Article 11 hereof,
repair and rebuild the Parcel to the extent necessary to restore the Parcel as
nearly as practicable to the condition and fair market value thereof immediately
prior to such taking. Tenant shall commence such repair and rebuilding promptly
after such taking, and shall thereafter proceed with due diligence to complete
such repair and rebuilding. Provided Tenant is not in default under this
Lease, if the Net Award shall not exceed $250,000 then such Net Award shall be
paid to Tenant to be applied to the repair and rebuilding work required by this
paragraph (d). If the Net Award shall exceed $250,000, or if Tenant is in
default under this Lease, then:

          (i) the full amount thereof shall be paid to a depositary (the
     "Depositary") to be selected as hereinafter provided. The Depositary shall
     be a bank or trust company selected by Landlord which is authorized to do
     business in the state in which the Parcel is located, and which has a net
     worth of $100,000,000 or more. The Depositary shall have no affirmative
     obligation to prosecute a determination of the amount of, or to effect the
     collection of, any insurance proceeds or condemnation award or awards,
     unless the Depositary shall have given an express written undertaking to do
     so. Moneys received by the Depositary pursuant to the provisions of this
     Lease shall not be mingled with the Depositary's own funds and shall be
     held by the Depositary in trust separately for the uses and purposes
     provided in this Lease. The Depositary shall place any moneys held by it
     into an interest bearing account; any interest paid or received by the
     Depositary on the moneys so held in trust shall be added to the moneys so
     held in trust by the Depositary. In disbursing monies pursuant to clause
     (ii) of this paragraph (d), the Depositary may rely

                                      -20-
<PAGE>
     conclusively on the information contained in any notice given to the
     Depositary by Tenant in accordance with the provisions of said clause (ii),
     unless Landlord shall notify the Depositary in writing within five (5) days
     after the giving of any such notice that Landlord intends to dispute such
     information, in which case the disputed amount shall not be disbursed but
     shall continue to be held by the Depositary until such dispute shall have
     been resolved.

          (ii) From time to time, but not more often than once in any 30-day
     period, Tenant may request reimbursement out of the Net Award for the
     actual costs and expenses incurred by Tenant in connection with such repair
     and rebuilding. Such requests shall be made by written notice to the
     Depositary, with a copy to Landlord, setting forth in reasonable detail all
     of such costs and expenses incurred by Tenant. The Depositary shall
     promptly disburse to Tenant out of the Net Award the amount of such costs
     and expenses. If Landlord shall in good faith desire to dispute the
     information contained in any notice given by Tenant pursuant to this clause
     (ii), Landlord shall so notify Tenant and the Depositary in writing within
     five (5) business days after the giving of such notice, specifying the
     amount intended to be disputed and the nature of the dispute.

          (iii) Upon the completion of such repair and rebuilding, any remaining
     Net Award shall be paid to and belong to Landlord, and each payment of
     Basic Rent payable during the remaining Basic Term to occur following the
     payment of such remaining Net Award to Landlord shall be reduced by an
     amount so as to preserve Landlord's Yield; provided that in no event will
     Basic Rent be reduced to an amount which is less than the debt service
     payable with respect to any mortgage of Landlord's interest in the Leased
     Property.

          (e) Notwithstanding any other provision to the contrary contained in
this Article 12, in the event of a temporary condemnation, this Lease shall
remain in full force and effect and Tenant shall be entitled to the Net Award
allowable to such temporary condemnation; except that such portion of the Net
Award allocable to the time period after the expiration or termination of the
Term of this Lease shall be paid to Landlord

                                      -21-
<PAGE>
          13. INSURANCE

          (a) Tenant shall during the term hereof, at its cost and expense,
maintain valid and enforceable insurance of the following character:

               (i) "all risks" insurance covering the Leased Property and all
          replacements and additions thereto, and all building materials,
          equipment, machinery, appliances, furniture, furnishings and other
          property which constitute part of the Leased Property. Coverage shall
          be in an amount not less than the full insurable value on a
          replacement cost basis of the Leased Property. The term "full
          insurable value" as used herein means the actual replacement cost,
          including the costs of debris removal, but excluding the cost of the
          land, the foundation and the footings.

               (ii) comprehensive general public liability insurance on an
          occurrence basis, covering the legal liability of Landlord and Tenant
          against claims for bodily injury, death or property damage, occurring
          on, in or about any of the Parcels and the adjoining land or occurring
          as a result of ownership of facilities located on any of the Parcels
          or as a result of the use of products or materials manufactured,
          processed, constructed or sold, or services rendered, on any of the
          Parcels, in the minimum amount of $5,000,000 with respect to any one
          occurrence, accident or disaster or incidence of negligence. Coverage
          should include "premises/operations", "independent contractors", and
          "blanket contractual" liabilities.

               (iii) such other insurance, in such amounts and against such
          risks, as is customarily maintained by operators of properties
          similar to the Leased Property in the areas where the Parcels are
          located (including, but not limited to, "flood", "earthquake", and
          "boiler and machinery" if such insurance is customarily maintained
          by operators of such similar properties).

          Such insurance shall be written by companies of recognized financial
standing which are rated at least A+XV by national rating organizations and are
legally qualified to issue such insurance, and are reasonably acceptable to
Landlord, and shall name as the insured parties Landlord and Tenant, and
Landlord's mortgagee, if any, as their interests may appear. Such insurance may
provide for such reasonable deductible amounts as are customarily provided for
in insurance maintained by operators of like facilities (but in no event in
excess of

                                      -22-
<PAGE>
$50,000) and may be obtained by Tenant by endorsement on its blanket insurance
policies provided that each such endorsement on the blanket insurance policy
shall provide for a reserved amount thereunder with respect to each of the
Parcels so as to assure that the amount of insurance required by clause (i) of
paragraph (a) of this Article 13 will be available notwithstanding any losses
with respect to other property covered by such blanket policy. Tenant may, at
its cost and expense, prosecute any claim against any insurer or contest any
settlement proposed by any insurer, and Tenant may bring any such prosecution or
contest in the name of Landlord, Tenant or both, and Landlord will join therein
at Tenant's request, provided that Tenant shall indemnify Landlord against any
costs or expenses which Landlord may incur in connection with such prosecution
or contest.

          (b) Insurance claims by reason of damage or destruction to any portion
of the Leased Property shall be adjusted by Tenant, subject to the approval of
Landlord, which approval Landlord agrees not to unreasonably withhold or delay.

          (c) In addition to the foregoing, every insurance policy maintained
pursuant to clause (viii) of paragraph (a) of Article 11 hereof, or paragraph
(a) of this Article 13 shall: (i) name Landlord as an insured; (ii) contain a
standard first mortgage endorsement naming any mortgagee of Landlord's interest
in the Leased Property; (iii) provide that in any instance where the total loss
proceeds payable by reason of a single occurrence shall exceed $50,000, all of
such proceeds shall be paid as provided in paragraph (d) of Article 12 hereof;
(iv) provide that the issuer waives all rights of subrogation against Landlord,
any successor to Landlord's interest in the Leased Property, and any mortgagee
of Landlord's interest in the Leased Property; (v) provide that 30 days advance
written notice of cancellation, modification, termination or lapse of coverage
shall be given to Landlord and any mortgagee of Landlord's interest in the
Leased Property and that such insurance, as to the interest of Landlord and such
mortgagee, shall not be invalidated by any act or neglect of Tenant or any
party, nor by any foreclosure or any other proceedings relating to the Leased
Property, nor by any change in the title ownership of the Leased Property, nor
by use or occupation of the Leased Property for purposes more hazardous than are
permitted by such policy; (vi) be primary and without right or provision of
contribution as to any other insurance carried by Landlord or any other
interested party; and (vii) and otherwise be satisfactory in form, substance,
limits, deductibles, and retentions to Landlord and Landlord's mortgagee.

          (d) Tenant shall not obtain or carry separate insurance concurrent in
form or contributing in the event of

                                      -23-
<PAGE>
loss with that required in this Article 13 to be furnished by Tenant, unless
Landlord and Landlord's mortgagee are included therein as named insureds, with
loss payable as provided in this Lease. Tenant shall immediately notify Landlord
whenever any such separate insurance is obtained and shall deliver to Landlord
and Landlord's mortgagee the policy or policies.

          (e) Tenant shall deliver to Landlord, prior to the execution of this
Lease and 30 days before the expiration date of each policy as evidence of the
renewal of such policies, a complete certified copy of each policy received
pursuant to this Article 13 (including policy jacket, all forms, all
endorsements, declaration pages, etc.) signed by an authorized insurance company
representative.

          (f) Tenant shall comply with all of the terms and conditions of each
insurance policy maintained pursuant to the terms of this Lease.

          14. FINANCIAL STATEMENTS AND CERTIFICATES

          (a) Tenant shall furnish the following statements to Landlord (i) as
soon as practicable, and in any event within 90 days after the end of each
fiscal year of Tenant, audited consolidated and consolidating financial
statements of Tenant, as of the end of and for such year, including a
consolidated and consolidating balance sheet, a consolidated and consolidating
statement of income and a consolidated and consolidating statement of changes in
financial position as of the end of and for such fiscal year; (ii) as soon as
practicable, and in any event not later than fifteen (15) days after the close
of each calendar quarter, an internally prepared consolidated and consolidating
balance sheet of Tenant, a consolidated and consolidating statement of profit
and loss reconciliation and a consolidated and consolidating statement of
changes in financial position for the period from the beginning of the fiscal
year to the date of such statement; (iii) as soon as practicable, and in any
event within 90 days after the end of the calendar year, a copy of Tenant's
Corporate Federal Income Tax Return; and (iv) as soon as practicable, copies of
all such financial statements and reports as Tenant shall send to its
stockholders; the foregoing (i) and (ii) to be in reasonable detail and
satisfactory in scope to Landlord and the foregoing (i) to be certified by a
firm of independent certified public accountants, whose certificate shall be
based upon an examination conducted in accordance with generally accepted
auditing standards and the application of such tests as said accountants deem
necessary in the circumstances.
          Together with each delivery of financial statements required by
subdivision (a) above, Tenant will deliver or cause to be delivered to Landlord
a certificate of Tenant's President,

                                      -24-

<PAGE>
any Vice President, or Treasurer stating to the best of such officer's knowledge
based on reasonable inquiry that there exists no Event of Default, or, if any
such Event of Default exists, specifying the nature thereof, the period of
existence thereof and what action Tenant proposes to take with respect thereto.
Together with each delivery of financial statements required by subdivision (a)
above, Tenant will deliver or cause to be delivered to Landlord a certificate of
said accountants stating that, in making the audit necessary to the
certification of such financial statements, they have obtained no knowledge of
any Event of Default or, if any such Event of Default exists, specifying the
nature and period of existence thereof. Such accountants, however, shall not be
liable to anyone by reason of their failure to obtain knowledge of any such
Event of Default.

          15. OPTION TO PURCHASE LEASED PROPERTY

          (a) If at the time no Event of Default shall have occurred and be
continuing, Tenant shall have the option to purchase all of Landlord's interest
in the Leased Property, which purchase must include both Parcels then subject to
this Lease, on the last day of the Basic Term or the last day of any Extended
Term, at a price determined as set forth below and in accordance with the
provisions of Article 16 of this Lease. Unless exercised, Tenant's options
hereunder shall expire upon the expiration of the Basic Term or exercised
Extended Term or earlier termination of this Lease and shall thereafter be of no
further force and effect.

          (b) Tenant shall have the right to exercise the option to purchase
Landlord's interest in the Leased Property by giving notice of exercise ("Option
Notice") to Landlord (i) at least one (1) year before the expiration of the
Basic Term or (ii) at least one (1) year before the expiration of the applicable
Extended Term.

          (c) The purchase price of Landlord's interest in the Leased Property
shall be the then fair market value of the Leased Property. For purposes of this
Article 15, the fair market value of the Leased Property shall be determined as
encumbered by this Lease. If Landlord and Tenant are unable to agree on the fair
market value of the Leased Property within sixty (60) days after the date of the
Option Notice, then the fair market value shall be determined by appraisal as
provided below.

          (d) Upon failure of Landlord and Tenant to agree on the fair market
value of the Leased Property within the 60-day period provided for above, the
fair market value shall be determined by appraisers selected in the following
manner: on

                                      -25-
<PAGE>
or before the expiration of the 60-day period provided for above, Landlord and
Tenant shall each appoint an appraiser. Within forty-five (45) days after the
appointment, if the two appraisers so appointed are unable to agree, the fair
market value of the Leased Property shall be the average of the amounts
determined by the appraisers, if the greater of such amounts is no more than
110% of the lesser of such amounts. If the greater of such amounts exceeds 110%
of the lesser of such amounts, a determination of the fair market value shall be
made by a third appraiser appointed by the other two appraisers, which
appointment shall be made on or before the expiration of the 45-day period
referred to in the immediately preceding sentence. Such determination shall be
made by the third appraiser within forty-five (45) days after his appointment.
In such event, the fair market value shall be the average of the two closest
appraised amounts. Tenant agrees that it shall bear the costs of all such
appraisals. Landlord shall convey the Leased Property to Tenant or its designee
pursuant to and in compliance with Article 16 of this Lease. All appraisers
shall be M.A.I. appraisers having at least ten (10) years experience appraising
commercial properties in the geographic area where the Leased Property is
located of a nature and type similar to that of the Leased Property.

          16. PURCHASE PROCEDURE

          (a) In the event of the purchase of Landlord's interest in the Leased
Property, or either Parcel, by Tenant pursuant to any provision of this Lease,
the terms and conditions of this Article 16 shall apply.

          (b) On the closing date fixed for the purchase of Landlord's interest
in the Leased Property or either Parcel:

               (i) Tenant shall pay to Landlord, in lawful money of the United
          States, at Landlord's address hereinabove stated or at any other place
          in the United States which Landlord may designate, the purchase price;
          and

               (ii) Landlord shall execute and deliver to Tenant a good and
          sufficient deed, assignment and/or such other instrument or
          instruments as may be appropriate, which shall transfer Landlord's
          interest in the Leased Property or Parcel, subject to (A) any
          encumbrances existing on the Commencement Date hereof, (B) all liens,
          encumbrances, charges, exceptions and restrictions attaching to the
          Leased Property or Parcel after the Commencement Date which shall not
          have been created or caused by Landlord unless consented to by
          Landlord, and (C) all applicable laws, rules,

                                      -26-
<PAGE>
          regulations, ordinances and governmental restrictions then in effect.
          In the case of a purchase of Landlord's interest in the Leased
          Property or Parcel by Tenant pursuant to paragraph (b) of Article 12
          hereof, Landlord shall also pay to Tenant the Net Award, if any.

          (c) Tenant shall pay all charges incident to such transfer, including
but not limited to all transfer taxes, recording fees, attorneys' fees and
expenses, including, but not limited to, Landlord's attorney's fees and
expenses, title insurance premiums and federal, state and local taxes, except
for any net income or profit taxes of Landlord.

          (d) Tenant shall pay to Landlord all Basic Rent and Additional Rent
due and payable on the date Tenant purchases Landlord's interest in the Leased
Property or Parcel.

          17. INVESTMENT CREDIT

          Landlord hereby elects under the provisions of the Internal Revenue
Code of 1986, as amended (the "Code"), to pass through to Tenant all investment
tax credits which may be applied from time to time in respect of the Leased
Property or any part thereof under Section 38 of the Code (or under the
corresponding section of any U.S. income tax law at any time in effect during
the Term of this Lease). Landlord agrees, at Tenant's expense, to execute timely
all documents prepared by Tenant and delivered to Landlord in advance and
required by the Code and regulations issued thereunder to enable Tenant to
obtain such investment tax credits.

          18. QUIET ENJOYMENT

          Upon due performance of the covenants and agreements to be performed
by Tenant under this Lease, Landlord covenants that Tenant shall and may at all
times peaceably and quietly have, hold and enjoy the Leased Property during the
Term of this Lease. Notwithstanding the preceding sentence, Landlord or its
agents may enter into and inspect the Leased Property at any reasonable time,
upon the giving of reasonable notice, if they take precautions not to
unreasonably inconvenience Tenant or any persons occupying the Leased Property
in accordance with this Lease and are accompanied by an employee or other
representative of Tenant at all times during such entry and inspection, or at
any time in the event of an emergency.

          19. SURVIVAL

          In the event of the termination of this Lease as herein provided, the
obligations and liabilities of Tenant, actual or

                                      -27-
<PAGE>
contingent, under this Lease which arose at or prior to such termination shall
survive such termination.

          20. ASSIGNMENT AND SUBLETTING

          (a) Neither this Lease, nor the term and estate hereby granted, nor
any part hereof or thereof, nor the interest of Tenant in any permitted sublease
or the rentals thereunder, shall be assigned, mortgaged, pledged, encumbered, or
transferred by operation of law or otherwise, and neither the Leased Property,
nor any part thereof, shall be encumbered in any manner by reason of any act or
omission on the part of Tenant or anyone claiming under or through Tenant, or
shall be sublet, used or occupied, or permitted to be used or occupied other
than by Tenant except as expressly provided in this Article 20. For the purposes
hereof, the transfer of the stock of Tenant or the sale or disposition of all or
substantially all of the assets of Tenant shall be deemed to be a "transfer"
which is expressly prohibited hereby without the prior written consent of
Landlord. Notwithstanding the foregoing and subject to subparagraphs (b), (c),
(d) and (e) hereof, Tenant may sublet the Leased Property or any portion or
portions thereof, provided that each sublease shall expressly be made subject to
the provisions of this Lease.

          (b) Tenant shall not sublease the Leased Property or a portion thereof
if the effect of such sublease would be to cause the Leased Property or any
portion thereof to be considered as used by a tax-exempt or foreign entity with
the result that some or all of the federal, state or local income tax deductions
which Landlord otherwise would be permitted to report with respect to the Leased
Property or the Lease would be deferred or denied.

          (c) No such sublease shall affect or reduce any obligations of Tenant
or rights of Landlord hereunder, and all obligations of Tenant hereunder shall
continue in full effect as the obligations of a principal and not of a guarantor
or surety, as though no subletting had been made.

          (d) Tenant shall, within 10 days after the execution of any such
sublease, deliver to Landlord a conformed copy thereof (with acknowledgments)
and a conformed copy of any short form lease or memorandum of lease suitable for
recording.

          (e) Except for the lien of a mortgage permitted pursuant to Article 7A
hereof, Tenant shall not mortgage this lease or the Term of this Lease, nor
shall Tenant mortgage or pledge the interest of Tenant in and to any sublease of
the Leased Property or any portion thereof or the rental payable

                                      -28-
<PAGE>
thereunder. Any such mortgage or pledge and any sublease not permitted by this
Article 20, shall be void.

          (g) Subject to Article 15 of this Lease, Landlord may syndicate,
assign, convey or otherwise transfer its estate, right, title and interest
hereunder or in the Leased Property, and upon execution and delivery of any such
assignment, conveyance or other transfer, Landlord shall be released from its
obligations hereunder; provided, however, that if any such assignment is made as
collateral security, the execution and delivery thereof shall not impair or
diminish any obligations of Landlord hereunder. Any such assignment, conveyance
or other transfer shall be subject to this Lease. Landlord shall, within 30 days
after the execution of any such instrument of mortgage, assignment, conveyance
or transfer, deliver written notice thereof to Tenant. Any failure of Landlord
so to deliver a notice of such instrument shall not however, in any way impair
or affect the validity thereof. Notwithstanding the foregoing, provided that
Tenant is not in default of any of its obligations hereunder, Landlord shall not
sell, convey, or otherwise transfer its state, right, title and interest in this
Lease or the Leased Property to Teledyne, Inc., Lincoln Electric or Hobart
Brothers.

          21. ADVANCES BY LANDLORD; LATE PAYMENTS

          If Tenant shall fail to make or perform any payment or act required by
this Lease, then, upon fifteen (15) days' notice to Tenant (or upon shorter
notice, or with no notice at all, to the extent necessary to meet an emergency
or a governmental or municipal time limitation or to prevent an event of default
under any mortgage affecting the Leased Property) Landlord or Landlord's
mortgagee as the case may be may at its option make such payment or perform such
act for the account of Tenant, and Landlord shall not thereby be deemed to have
waived any default or released Tenant from any obligation hereunder. All amounts
so paid by Landlord or Landlord's mortgagee, as the case may be, and all
incidental costs and expenses (including attorneys' fees and expenses) incurred
in connection with such payment or performance, together with interest at the
annual rate equal to the greater of (i) fourteen (14%) percent, and (ii) three
(3%) percent above the "Base Rate" as announced from time to time in New York,
New York by Citibank, N.A. (or at the highest rate not prohibited by applicable
law, whichever is less) (the "Overdue Rate") from the date of the making of such
payment or of the incurring of such costs and expenses, shall be paid by Tenant
to Landlord, or Landlord's mortgagee, as the case may be, on demand.

          If Tenant shall fail to make any payment of Basic or Additional Rent
or purchase price for the Leased Property pursuant to any provision hereof or as
liquidated damages,

                                      -29-
<PAGE>
pursuant to paragraph (c) of Article 22 hereof in the amount and on the date
provided for herein, Tenant shall be liable for interest on such late payment at
the Overdue Rate from the date such payment was due to the date such payment was
received.

                  22.      CONDITIONAL LIMITATIONS; EVENTS OF
                           DEFAULT AND REMEDIES

                  (a) Any of the following occurrences or acts shall constitute
an "Event of Default" under this Lease:

                  (i) if Tenant shall default in making payment when due of any
         installment of Basic Rent or Additional Rent, and such default shall
         continue for five (5) days after the same is due; or

                  (ii) if Tenant shall default in the due observance or
         performance of any covenant, agreement or obligation contained in this
         Lease, or if there shall be a material misrepresentation by Tenant
         (which misrepresentation is hereinafter referred to as a "default") in
         any covenant, representation or warranty contained in this Lease, the
         Agreement of Sale and Purchase (the "Agreement of Sale and Purchase")
         dated as of even date hereof between Landlord and Tenant, any of the
         Closing Documents (as defined in the Agreement of Sale and Purchase) or
         any other documents necessary to or in connection with the transactions
         contemplated thereby) other than as set forth in clause (i) of this
         paragraph (a), and if such default shall continue for 30 days after
         Landlord shall have given to Tenant notice specifying such default and
         demanding that the same be cured (or, if by reason of the nature
         thereof such default cannot be cured by the payment of money and cannot
         with due diligence be wholly cured within such period of 30 days, if
         Tenant shall fail to proceed promptly to cure the same and thereafter
         prosecute the curing of such default with all due diligence, or if
         Tenant shall fail to advise Landlord from time to time, promptly after
         Landlord's request therefore, as to any action which Tenant is taking
         to cure such default and as to the progress with respect to such cure,
         it being intended in connection with a default not susceptible of being
         wholly cured with due diligence within such period that the time within
         which to cure the same shall be extended for such period up to 90 days
         as may be necessary to complete the curing of same with all due
         diligence, subject to delays as a result of force majeure) (for
         purposes of this subparagraph (ii), a

                                      -30-
<PAGE>
delay shall be deemed to be a result of force majeure if it results from: an act
of God; an act of war; an act of public enemies; any casualty or condemnation
(as such terms are defined in this Lease); all applicable present or future
laws, ordinances, codes, rules, orders or regulations or compliance therewith;
requests or directives of any public authority or compliance therewith; strikes,
lockouts, stoppages or restraint of labor; riot or civil commotion; shortages of
material; or other causes outside of the reasonable control of Tenant, whether
similar or dissimilar to the foregoing, provided, however, that Tenant notifies
Landlord of any such event in writing immediately after Tenant acquires
knowledge thereof); or

                  (iii) if Tenant, or any corporation succeeding to Tenant by
         merger, consolidation or acquisition of all or substantially all of its
         assets, shall file a petition in bankruptcy or for reorganization or
         for an arrangement pursuant to the Bankruptcy Act, or shall be
         adjudicated a bankrupt or become insolvent or shall make an assignment
         for the benefit of its creditors, or shall admit in writing its
         inability to pay its debts generally as they become due, or shall be
         dissolved, or shall suspend payment of its obligations, or shall take
         any corporate action in furtherance of any of the foregoing; or

                  (iv) if a petition or answer shall be filed proposing the
         adjudication of Tenant or any corporation succeeding to Tenant by
         merger, consolidation or acquisition of all or substantially all of its
         assets as a bankrupt or its reorganization pursuant to the Bankruptcy
         Act, and (A) Tenant or its successor corporation shall consent to the
         filing thereof, or (B) such petition or answer shall not be discharged
         or denied within sixty (60) days after the filing thereof; or

                  (v) if a receiver, trustee or liquidator (or other similar
         official) shall be appointed for or take possession or charge of Tenant
         or any corporation succeeding to Tenant by merger, consolidation or
         acquisition of all or substantially all of its assets, or of all or
         substantially all of the business or assets of Tenant or its successor
         corporation or of Tenant's or its successor corporation's estate or
         interest in the Leased Property, and shall not be discharged within
         sixty (60) days thereafter or if Tenant or its successor corporation
         shall consent to or acquiesce in such appointment; or

                                      -31-
<PAGE>
                  (vi) if the estate or interest of Tenant in the Leased
         Property or any sublease thereof shall be levied upon or attached in
         any proceeding and such process shall not be vacated or discharged
         within sixty (60y days after such levy or attachment, unless Tenant
         shall be contesting such levy or attachment in accordance with the
         requirements of paragraph (d) of Article 6 hereof; or

                  (vii) if Tenant shall be in default in the payment or
         performance of any obligation, beyond any applicable grace period,
         under any agreement or instrument to which Tenant is a party relating
         to the payment or guaranty of any obligation, note or other evidence of
         indebtedness, or loan agreement, in excess of $100,000 (each of the
         foregoing is hereinafter individually referred to as an
         "Indebtedness"), or any other event shall occur, if the effect of such
         failure or other event is to accelerate, or permit the holder of such
         Indebtedness or any other person to accelerate the maturity of such
         Indebtedness, or any such Indebtedness shall be required to be prepaid
         (other than by a regularly scheduled required payment) in whole or in
         part prior to its stated maturity; or

                  (viii) if Tenant fails to pay Landlord the purchase price of
         the Leased Property pursuant to Articles 12, 15 and 16 of this Lease;
         or

                  (ix) if Tenant fails to maintain the required insurance
         coverage as set forth in Article 13 hereof; or

                  (x) if Tenant transfers the Leased Property except as provided
         in Article 15 hereof.

                  (b) This Lease and the term and estate hereby granted are
subject to the limitation that whenever an Event of Default shall have occurred
and be continuing, Landlord may, at Landlord's option, elect to (i) re-enter the
Leased Property, without notice, and remove all persons and property therefrom,
either by summary proceedings or by any suitable action or proceeding at law, or
otherwise, without being liable to indictment, prosecution or damages therefor,
and may have, hold and enjoy the Leased Property, together with the
appurtenances thereto and the improvements thereon; and/or (ii) terminate this
Lease at any time by giving ten (10) days' notice in writing to Tenant, electing
to terminate this Lease, and the Term of this Lease shall expire by limitation
at the expiration of said last mentioned ten (l0) days' notice as fully and
completely as if

                                      -32-

<PAGE>
said date were the date herein originally fixed for the expiration of the term
hereby granted, and Tenant shall thereupon quit and peacefully surrender the
Leased Property to Landlord, without any payment therefor by Landlord, and
Landlord, upon the expiration of said last mentioned ten (10) days' notice, or
at any time thereafter, may re-enter the Leased Property as provided in the
preceding clause (i).

                  (c) In case of any such re-entry, termination and/or
dispossess by summary proceedings or otherwise as provided in the immediately
preceding paragraph, (i) the Basic Rent and Additional Rent shall become due
thereupon and be paid up to the time of such re-entry, dispossess and/or
expiration, together with such expenses, including attorneys' fees, as Landlord
shall incur in connection with such re-entry, termination and/or dispossess by
summary proceedings or otherwise; (ii) Landlord may in good faith relet the
Leased Property or any part or parts thereof, either in the name of Landlord or
otherwise, for a term or terms which may, at Landlord's option, be equal to or
less than or exceed the period which would otherwise have constituted the
balance of the Term of this Lease; (iii) Tenant shall also pay to Landlord all
other damages and expenses which Landlord shall have sustained by reason of the
breach of any provision of this Lease, including without limitation legal
expenses, attorneys' fees, brokerage commissions and expenses incurred in
altering, repairing and putting the Leased Property and any buildings and
improvements thereon in good order and condition and in preparing the same for
reletting, which expenses shall be paid by Tenant as they are incurred by
Landlord; (iv) Tenant shall also pay to Landlord the amount by which the Basic
Rent reserved in this Lease exceeds the net amount, if any, of the rents
collected on account of the leases of the Leased Property for each month of the
period which would otherwise have constituted the Term of this Lease (excluding
unexercised extension options), which amounts shall be paid in quarterly
installments by Tenant on the respective Installment Payment Dates specified
therefor, and any suit brought to collect said amounts for any month or months
shall not prejudice in any way the rights of Landlord to collect the deficiency
in any subsequent period by a similar action or proceeding; and/or (v) at the
option of Landlord exercised at any time, Landlord forthwith shall be entitled
to recover from Tenant as liquidated damages, in addition to any other proper
claims but in lieu of and not in addition to any amount which would thereafter
have become payable under the preceding clause (iv), whichever of the following
sums Landlord shall elect:

                           (A) an amount equal to the Basic Rent and Additional
                  Rent reserved in this Lease and/or covenanted to be paid for
                  the remainder of the Term of

                                      -33-
<PAGE>
                  this Lease (excluding unexercised extension periods),
                  discounted at the rate of six (6%) percent per year to present
                  worth; provided that, if Tenant shall so request, Landlord
                  shall at the time of such payment assign and convey the Leased
                  Property to Tenant, without further consideration, in
                  accordance with the terms and provisions of Article 16 hereof;
                  or

                           (B) an amount equal to the then outstanding principal
                  balance, plus accrued interest and premiums, if any, under any
                  mortgage, if any, affecting Landlord's interest in the Leased
                  Property; or

                           (C) the Termination Value, plus any penalty imposed
                  upon Landlord pursuant to any mortgage affecting Landlord's
                  interest in the Leased Property due to Landlord's prepayment
                  of the debt secured by said mortgage.

Landlord, at Landlord's option, may make such alterations and/or decorations in
the Leased Property as Landlord, in Landlord's sole judgment, considers
advisable and necessary for the purpose of reletting the Leased Property; and
the making of such alterations and/or decorations shall not operate or be
construed to release Tenant from liability hereunder as aforesaid.

                  (d) No receipts of moneys by Landlord from Tenant after a
         termination of this Lease by Landlord shall reinstate, continue or
         extend the Term of this Lease or affect any notice theretofore given to
         Tenant, or operate as a waiver of the right of Landlord to enforce the
         payment of Basic Rent and Additional Rent, and any purchase price to be
         paid by Tenant to Landlord for the purchase of the Leased Property then
         due or thereafter falling due, it being agreed that after the
         commencement of suit for possession of the Leased Property, or after
         final order or judgment for the possession of the Leased Property,
         Landlord may demand, receive and collect any moneys due or thereafter
         falling due without in any manner affecting such suit, order or
         judgment, all such moneys collected being deemed payments on account of
         the use and occupation of the Leased Property or, at the election of
         Landlord, on account of Tenant's liability hereunder. Tenant hereby
         waives any and all rights of redemption provided by any law, statute or
         ordinance now in effect or which may hereafter be enacted. Landlord
         shall have, receive and enjoy as Landlord's sole and absolute property,
         without right or duty to account therefor to Tenant, any and all sums
         collected by Landlord as rent or otherwise upon reletting the Leased
         Property after Landlord shall resume possession thereof as hereinbefore
         provided, including, without limitation upon the

                                      -34-
<PAGE>
         generality of the foregoing, any amounts by which the sum or sums so
         collected shall exceed the continuing liability of Tenant hereunder.

                  (e) The word "re-enter", as used in this Lease, is not and
         shall not be restricted to its technical legal meaning, but is used in
         the broadest sense. No such taking of possession of the Leased Property
         by Landlord shall constitute an election to terminate the Term of this
         Lease unless notice of such intention be given to Tenant or unless such
         termination be decreed by a court having jurisdiction.

                  (f) If an action shall be brought for the enforcement of any
         provision of this Lease, in which it shall be determined that Tenant
         was in default, Tenant shall pay to Landlord all costs and other
         expenses which may become payable as a result thereof, including
         reasonable attorneys' fees and expenses. If Landlord shall, without
         fault on its part, be made a party to any litigation commenced against
         Tenant, Tenant shall pay all costs and reasonable attorneys' fees
         incurred or paid by Landlord in connection with such litigation.

                  (g) No right or remedy herein conferred upon or reserved to
         Landlord is intended to be exclusive of any other right or remedy, and
         every right and remedy shall be cumulative and in addition to any other
         legal or equitable right or remedy given hereunder, or at any time
         existing. The failure of Landlord to insist upon the strict performance
         of any provision or to exercise any option, right, power or remedy
         contained in this Lease shall not be construed as a waiver or a
         relinquishment thereof for the future. Receipt by Landlord of any Basic
         Rent or Additional Rent payable hereunder with knowledge of the breach
         of any provision contained in this Lease shall not constitute a waiver
         of such breach (other than the prior failure to pay such Basic Rent or
         Additional Rent), and no waiver by Landlord of any provision of this
         Lease shall be deemed to have been made unless made under signature of
         an officer of Landlord.

                  23. NOTICES

                  All notices and other instruments given or delivered pursuant
         to this Lease shall be sent by prepaid United States registered or
         certified mail, return receipt requested, and the giving of such notice
         or other communication shall be deemed complete on the actual date of
         receipt by the addressee (as evidenced by the return receipt). Landlord
         and Tenant shall each have the right to specify, from time to time, as
         its address for purposes of this Lease, any address and any addressee,
         in the continental United States, upon giving 15

                                      -35-
<PAGE>
         days' written notice thereof to the other party. The addresses of
         Landlord and Tenant for purposes of this Lease, until notice has been
         given as above provided, shall be as follows:

Landlord:                    Westinghouse Credit Corporation
                             One Oxford Centre
                             301 Grant Street
                             Pittsburgh, Pennsylvania 15219
                             Attn:  Vice President Real Estate
                                    Lease Financing

with a copy to:              Kelley Drye & Warren
                             141 Park Avenue
                             New York, New York 10178
                             Attn:  John A. Garraty, Jr., Esq.

Tenant:                      Alloy Rods Corporation
                             Wilson Avenue
                             Hanover, Pennsylvania 17331
                             Attn:  Chief Executive Officer

with a copy to:              Kirkpatrick & Lockhart
                             1500 Oliver Building
                             Pittsburgh, Pennsylvania 15222
                             Attn:  Edward A. Craig, III

                  24. ESTOPPEL CERTIFICATES

                  Each party hereto agrees that at any time and from time to
time during the term of this Lease, it will promptly, but in no event later than
fifteen (15) days after request by the other party hereto, execute, acknowledge
and deliver to such other party or to any prospective purchaser, assignee or
mortgagee designated by such other party, a certificate stating, to the best of
such party's knowledge, (a) that this Lease is unmodified and in force and
effect (or if there have been modifications, that this Lease is in force and
effect as modified, and identifying the modification agreements); (b) the date
to which rent has been paid; (c) whether or not there is an existing default by
Tenant in the payment of Basic Rent or any other sum of money hereunder, and
whether or not there is any other existing default by either party hereto with
respect to which a notice of default has been served, and, if there is any such
default, specifying the nature and extent thereof; and (d) whether or not there
are any setoffs, defenses or counterclaims against enforcement of the
obligations to be performed hereunder existing in favor of the party executing
such certificate.

                                      -36-
<PAGE>
                  25. NO MERGER

                  There shall be no merger of this Lease or of any leasehold or
subleasehold estate hereby or thereby created with the fee or any other estate
or ownership interest in the Leased Property or any part thereof by reason of
the fact that the same person, firm, corporation or other entity may acquire or
own or hold, directly or indirectly, (a) this Lease or any leasehold or
subleasehold estate created hereby or thereby or any interest in this Lease or
in any such leasehold or subleasehold estate and (b) the fee estate or other
estate or ownership interest in the Leased Property or any part thereof, and
this Lease shall not be terminated for any cause except as expressly provided
herein and any instrument of transfer shall so provide.

                  26. SURRENDER

                  (a) Upon the expiration or earlier termination of the Term of
this Lease, Tenant shall surrender the Leased Property to Landlord in the same
condition and suitable for the same use in which the Leased Property was
originally received from Landlord except as repaired, rebuilt or altered as
required or permitted by this Lease (and/or except for such casualty damage as
Tenant shall not be required to repair or restore hereunder), and except for
ordinary wear and tear. Tenant shall remove from the Leased Property on or prior
to such expiration or earlier termination all property belonging to Tenant
except such property as agreed upon by Landlord and Tenant in writing, which
agreement shall be entered into at least thirty (30) days prior to the
expiration or earlier termination of the Term of this Lease, and shall repair
any damage caused by such removal. Property not so removed shall become the
property of Landlord, which may cause such property to be removed from the
Leased Property and disposed of, but the cost of any such removal and
disposition and of repairing any damage caused by such removal shall be borne by
Tenant.

                  (b) Except for surrender upon the expiration or earlier
termination of the term hereof, no surrender to Landlord of this Lease or of
the Leased Property shall be valid or effective unless agreed to and accepted in
writing by Landlord.

                  27. SEPARABILITY

                  Each provision contained in this Lease shall be separate and
independent and the breach of any such provision by Landlord shall not discharge
or relieve Tenant from its obligation to perform each obligation of this Lease
to be performed by Tenant. If any provision of this Lease or the application
thereof to any person or circumstance shall to any

                                      -37-
<PAGE>
extent be invalid and unenforceable, the remainder of this Lease, or the
application of such provision to persons or circumstances other than those as to
which it is invalid or unenforceable, shall not be affected thereby, and each
provision of this Lease shall be valid and shall be enforceable to the extent
permitted by law.

                  28. BINDING EFFECT; ENTIRE AGREEMENT; MODIFICATIONS

                  All provisions contained in this Lease shall be binding upon,
inure to the benefit of and be enforceable by the respective successors and
permitted assigns of Landlord and Tenant to the same extent as if each such
successor or assign were named as a party hereto. This Lease embodies the entire
agreement between Landlord and Tenant relating to the subject matter hereof and
supersedes all prior agreements and understandings relating to such subject
matter. Neither this Lease nor any provision hereof may be amended, modified,
waived, discharged or terminated orally, but only as expressly provided herein
or by an instrument signed by Landlord and Tenant.

                  29. SIGNS; SHOWING

                  During the one year period preceding the date on which the
Term of this Lease (as the same may be extended from time to time) shall
terminate or fully expire, Landlord may, subject to all applicable governmental
laws, rules and regulations, (a) place signs in reasonable locations on the
Leased Property advertising that the same will be available for rental or
purchase, and (b) show the Leased Property to prospective tenants or purchasers
at such reasonable times during normal business hours as Landlord may select. In
no other event may Landlord place any sign whatsoever on the Leased Property.

                  30. CERTAIN DEFINITIONS

                  As used in this Lease the following terms have the meanings
set forth below:

                  "Bankruptcy Act" shall mean Title 11 of the United States Code
or any other Federal or state bankruptcy, insolvency or similar law, now or
hereafter in effect.

                  "Board of Directors of Tenant" shall mean either the board of
directors of Tenant or an executive committee thereof.

                  "Business Day" shall mean any day except Saturdays, Sundays
and the days observed by the Federal or the Pennsylvania governments as public
holidays.

                                      -38-
<PAGE>
                  "Event of Default" shall have the meaning given that term in
paragraph (a) of Article 21.

                  "Landlord's Yield" means Landlord's after-tax rate of return
and total after-tax cash flow per dollar of equity, on the basis of the same
assumptions originally used by Landlord in computing Landlord's Yield. In the
event that Landlord and Tenant are unable to agree to the amount of any
adjustment of Basic Rent necessary to preserve Landlord's Yield hereunder, the
matter will be submitted for resolution by a nationally recognized firm of
certified public accountants selected by Landlord and reasonably approved by
Tenant.

                  "Parcel(s)" shall have the meaning set forth in Article 1
hereof.

                  "Term of this Lease" shall mean the Basic Term, plus any
Extended Term or Terms which may be effected pursuant to Article 2 hereof.

                  31. NATURE OF LANDLORD'S OBLIGATIONS

                  Anything in this Lease to the contrary notwithstanding, no
recourse or relief shall be had under any rule of law or equity, statute or
constitution or by any enforcement of any assessments or penalties, or otherwise
or based on or in respect of this Lease (whether by breach of any obligation,
monetary or non-monetary), against Landlord (or any officer or partner of
Landlord or any predecessor or successor corporation (or other entity) of
Landlord), it being expressly understood that any obligations of Landlord under
or relating to this Lease are solely obligations payable out of the Leased
Property and are compensable solely therefrom. It is expressly understood that
all such liability is being expressly waived and released as a condition for the
execution of this Lease, and Tenant expressly waives and releases all such
liability as a condition of, and as consideration for, the execution of this
Lease; provided, however, that nothing herein contained is to be taken to
prevent recourse to and enforcement against Tenant of this Lease and of all
liabilities, obligations and undertakings binding upon it and contained herein.

                  32. WAIVER OF TRIAL BY JURY

                  To the extent permitted by law Landlord and Tenant hereby
waive trial by jury in any litigation brought by either of the parties hereto
against the other on any matter arising out of or in any way connected with this
Lease or the Leased Property.

                                      -39-
<PAGE>
                  33. ARBITRATION

                  Any arbitration for which provision is made herein shall be
conducted in accordance with the then prevailing rules of the American
Arbitration Association, or the successor party thereto from time to time in
existence. The fees and expenses of the arbitrator(s) shall be paid by Tenant.
Landlord and Tenant shall each bear their own expenses (including, but not
limited to, attorney's fees and expenses of witnesses) in any arbitration
proceedings. The arbitration proceeding shall be held in the County of
Allegheny, Commonwealth of Pennsylvania.

                  34. GRANTING OF EASEMENTS, ETC.

                  If no Event of Default hereunder has occurred and is
continuing, Landlord will join with Tenant, from time to time at the request of
Tenant (and at Tenant's sole cost and expense), with respect to their interests
in the Leased Property to (i) grant, in the ordinary course of business,
easements, licenses, rights of way and other rights and privileges in the nature
of easements, (ii) release, in the ordinary course of business, existing
easements and appurtenances which benefit the Leased Property, and (iii) execute
and deliver any instrument, in form and substance reasonably acceptable to
Landlord, necessary or appropriate to make or confirm such grants or releases to
any person, with or without consideration, but only if Landlord shall have
received (x) a certificate of an authorized officer of Tenant stating that such
grant or release was granted in the ordinary course of Tenant's business, does
not interfere with and is not detrimental to the conduct of business on the
Leased Property and does not materially impair the usefulness of the Leased
Property or materially impair the fair market value of the Leased Property or
materially impair Landlord's interests in the Leased Property, and (y) a duly
authorized and binding undertaking of Tenant, in form and substance satisfactory
to Landlord, to remain obligated under this Lease and under any instrument
executed by Tenant consenting to the assignment of Landlord's interest in this
Lease as security for indebtedness, as though such easement, license,
right-of-way or other right or privilege has not been granted or released, and
to perform all obligations of the grantor or releasor under such instrument of
grant or release during the Term of this Lease.

                  35. RECORDING

                  Landlord and Tenant will execute, acknowledge, deliver and
cause to be recorded or filed in the manner and place required by any present or
future law this Lease or a memorandum thereof, and all other instruments,
including, without limitation, financing statements, continuation statements and

                                      -40-
<PAGE>
instruments of similar character, which shall be reasonably requested by
Landlord as being necessary or appropriate in order to protect the Landlord's
interest in the Leased Property or to publish notice of or to create, maintain
and protect the lien and security interest intended to be created by any
mortgage upon, and the interest of Landlord's mortgagee in, the Leased Property.
If Tenant shall fail to comply with this paragraph, Landlord shall be and is
hereby irrevocably appointed the agent and attorney in fact of Tenant to comply
therewith, but this sentence shall not prevent any default in the observance of
this Article from constituting an Event of Default.

                  36. MISCELLANEOUS

                  This Lease shall be binding upon and shall inure to the
benefit of and be enforceable by the parties hereto and their respective
successors and assigns. No term or provision hereof may be amended, changed,
waived, discharged or terminated orally, but only by an instrument signed by the
party against whom enforcement thereof is sought. No failure, delay, forbearance
or indulgence on the part of any party in exercising any right, power or
privilege hereunder shall operate as a waiver thereof, or as an acquiescence in
any breach, nor shall any single or partial exercise of any right, power or
remedy hereunder preclude any other or further exercise thereof or the exercise
of any other right, power or privilege. Any provision of this Lease which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction. This Lease and the
rights and obligations in respect hereof shall be governed by, and construed and
interpreted in accordance with, the laws of the Commonwealth of Pennsylvania,
including matters of internal law, conflicts of law, and arbitration. All
headings are for reference only and shall not be considered as part of this
Lease. This Lease may be executed in any number of counterparts, each of which
shall be an original, and such counterparts together shall constitute but one
and the same instrument.

                  The dating of this Lease "as of July 8, 1988" is for
convenience of reference only, and this Lease shall become

                                      -41-
<PAGE>
effective only upon its execution and delivery by Landlord and Tenant.

                  IN WITNESS WHEREOF, Landlord and Tenant hereto have each
caused this Lease to be duly executed and delivered in their respective names
and behalf, as of the day and year first above written.

                                           WESTINGHOUSE CREDIT CORPORATION

                                           By: /s/ James W. Meighan
                                               -----------------------------
                                           Name:  James W. Meighan
                                                  --------------------------
                                           Title: Senior Vice President
                                                  --------------------------

                                           ALLOY RODS CORPORATION

                                           By: /s/ Robert B. Egan
                                               -----------------------------
                                           Name:  Robert B. Egan
                                                  --------------------------
                                           Title: Chief Executive Officer
                                                  --------------------------

                                      -42-

<PAGE>
                                   SCHEDULE A

                                    PARCEL I

     ALL THE FOLLOWING described two (2) tracts of land situate in the Township
of Penn, County of York and Commonwealth of Pennsylvania, more particularly
bounded and described according to a Plan of Survey made by Reed Engineering,
Inc., dated May, 1988, as follows, to wit:
     TRACT A: BEGINNING at a Re-Bar on the eastern legal right-of-way line of
Wilson Avenue (Township Road T-338) (50 feet wide) 25 feet southeastwardly from
the center of the Pennsylvania Railroad; thence parallel with and 25 feet
southeastwardly from the center of said Pennsylvania Railroad, North 57 degrees
43 minutes 21 seconds East, 944.18 feet to a Re-Bar; thence along same by a
curve to the right, having a radius of 10,980.99 feet and a chord of North 59
degrees 04 minutes 02 seconds East, 515.40 feet, an arc distance of 515.45 feet
to a Re-Bar; thence along same, North 60 degrees 24 minutes 43 seconds East,
145.79 feet to a Re-Bar at lands now or formerly of Daniel H. and Sarah M.
Bair; thence along said Bair lands, South 45 degrees 46 minutes 13 seconds
East, 555.01 feet to a Re-Bar on the northern legal right-of-way line Karen
Lane (Township Road T-341); thence along said legal right-of-way line of Karen
Lane, South 26 degrees 23 minutes 50 seconds West, 76.87 feet to a point; thence
along same by a curve to the right, having a radius of 562.51 feet and a chord
of South 41 degrees 52 minutes 39 seconds West, 300.27 feet, an arc distance of
303.96 feet to a Re-Bar; thence along same, South 57 degrees 21 minutes 27
seconds West, 1,364.56 feet to a Re-Bar on the eastern legal right-of-way line
of Wilson Avenue; thence along said eastern legal right-of-way line North 33
degrees 34 minutes 00 seconds West, 689.44 feet to the first mentioned point
and place of BEGINNING.
     TRACT B: BEGINNING from a corner on the southern legal right-of-way line
of 50 feet wide Karen Lane at lands now or formerly of Daniel H. and Sarah M.
Bair; thence along lands of Daniel H. Bair and Sarah M. Bair, South 45 degrees
16 minutes 12 seconds East, 817.81 feet to a corner at a post set in concrete
at lands of Hanover Canning Co.; thence along said Canning Co. lands, South 49
degrees 42 minutes 17 seconds West, 441.62 feet to a point at a concrete
monument; thence South 70 degrees 10 minutes 47 seconds West, 451.96 feet to a
railroad rail; thence South 51 degrees 38 minutes 51 seconds West, 41.52 feet
to an iron pipe at lands now or formerly of Ger-Mar Associates; thence along
said lands of Ger-Mar Associates, North 32 degrees 38 minutes 33 seconds West,
642.38 feet to a Re-Bar on the southern legal right-of-way line of aforesaid
Karen Lane; thence along said legal right-of-way line, North 57 degrees 21
minutes 27

                                      -43-

<PAGE>
seconds East, 374.10 feet to a point; thence along the same by a curve to the
left, having a radius of 612.51 feet and a chord of North 41 degrees 52 minutes
39 seconds East, 326.96 feet, an arc distance of 330.97 feet to a point; thence
North 26 degrees 23 minutes 50 seconds East, 60.30 feet to a corner, the place
of BEGINNING.

                                   PARCEL II

     ALL THE FOLLOWING described tract of land situate in the Township of Penn,
County of York and Commonwealth of Pennsylvania, more particularly bounded and
described according to a Plan of Survey made by Reed Engineering, Inc., dated
May, 1988, as follows, to wit:
     BEGINNING at a Re-Bar on the western legal right-of-way line of Wilson
Avenue (Township Road T-338) (50 feet wide), 25 feet southeastwardly from the
center of the Pennsylvania Railroad; thence along the western legal
right-of-way line of Wilson Avenue, South 33 degrees 34 minutes 00 seconds
East, 689.76 feet to a Re-Bar at line of lands of Ger-Mar Associates; thence
along said Ger-Mar Associates lands, South 57 degrees 21 minutes 27 seconds
West, 545.73 feet to an iron pin in line of land of Doubleday Company; thence
along said lands of Doubleday Company, North 36 degrees 43 minutes 08 seconds
West, 695.15 feet to a Re-Bar 25 feet southeastwardly from the center of the
Pennsylvania Railroad; thence parallel with and 25 feet southeastwardly from
the center of said Pennsylvania Railroad, North 57 degrees 43 minutes 21
seconds East, 584.03 feet to the first mentioned point and place of BEGINNING.

                                      -44-

<PAGE>
                                   SCHEDULE B

                                 I. LEASE TERM

     The Basic Term shall commence on July 8, 1988 and shall terminate on July
8, 2003.

     The Term of the Lease may be extended for up to two (2) consecutive
Extended Terms of five years each, each such Extended Term to commence on the
date immediately following the last day of the previous Extended Term (or the
Basic Term, in the case of the First Extended Term).

                                 II. BASIC RENT

<TABLE>
          Installment Payment Date           Installment Payment
          ------------------------           -------------------
          <S>                                <C>
                        10/8/1988               287286.11
                         1/8/1989               287286.11
                         4/8/1989               287286.11
                         7/8/1989               287286.11
                        10/8/1989               287286.11
                         1/8/1990               287286.11
                         4/8/1990               287286.11
                         7/8/1990               287286.11
                        10/8/1990               287286.11
                         1/8/1991               287286.11
                         4/8/1991               287286.11
                         7/8/1991               287286.11
                        10/8/1991               297705.85
                         1/8/1992               297705.85
                         4/8/1992               297705.85
                         7/8/1992               297705.85
                        10/8/1992               297705.85
                         1/8/1993               297705.85
                         4/8/1993               297705.85
                         7/8/1993               297705.85
                        10/8/1993               297705.85
                         1/8/1994               297705.85
                         4/8/1994               297705.85
                         7/8/1994               297705.85
                        10/8/1994               316228.89
                         1/8/1995               316228.89
                         4/8/1995               316228.89
                         7/8/1995               316228.89
                        10/8/1995               316228.89
</TABLE>

                                      -45-
<PAGE>
<Table>
<S>                              <C>
 1/8/1996                          316228.89
 4/8/1996                          316228.89
 7/8/1996                          316228.89
10/8/1996                          316228.89
 1/8/1997                          316228.89
 4/8/1997                          316228.89
 7/8/1997                          316228.89
10/8/1997                          335765.92
 1/8/1998                          335765.92
 4/8/1998                          335765.92
 7/8/1998                          335765.92
10/8/1998                          335765.92
 1/8/1999                          335765.92
 4/8/1999                          335765.92
 7/8/1999                          335765.92
10/8/1999                          335765.92
 1/8/2000                          335765.92
 4/8/2000                          335765.92
 7/8/2000                          335765.92
10/8/2000                          350355.31
 1/8/2001                          350355.31
 4/8/2001                          350355.31
 7/8/2001                          350355.31
10/8/2001                          350355.31
 1/8/2002                          350355.31
 4/8/2002                          350355.31
 7/8/2002                          350355.31
10/8/2002                          350355.31
 1/8/2003                          350355.31
 4/8/2003                          350355.31
 7/8/2003                          350355.31
</Table>

<Table>
<Caption>

                                Rent Per Quarter
                         (Payable Oct. 8, Jan. 8, Apr. 8)
                             and July 8 of each Year)
                             -----------------------

<S>                                <C>
First Renewal Term                 350,355.31

Second Renewal Term                385,390.84
</Table>

                                     -45-a-

<PAGE>

                                   SCHEDULE C

     The Termination Values for each Parcel shall be the total Termination
Value set forth below multiplied by the following percentages:

<Table>
Parcel                        Percentage
------                        ----------
<S>                           <C>
Office Lab                    28%

Hanover Plant                 72%
</Table>

                              Termination Values
                              ------------------
<Table>
Date                          Termination Value
-------------                 -----------------
<S>                           <C>
8 OCT 1988                    8819235
8 JAN 1989                    8883252
8 APR 1989                    8784790
8 JUL 1989                    8757493
8 OCT 1989                    8748138
8 JAN 1990                    8727457
8 APR 1990                    8704577
8 JUL 1990                    8682951
8 OCT 1990                    8659182
8 JAN 1991                    8534000
8 APR 1991                    8606928
8 JUL 1991                    8580322
8 OCT 1991                    8541496
8 JAN 1992                    8500782
8 APR 1992                    8457385
8 JUL 1992                    8414938
8 OCT 1992                    8369886
8 JAN 1993                    8322988
8 APR 1993                    8273319
8 JUL 1993                    8224483
8 OCT 1993                    8172915
8 JAN 1994                    8119373
8 APR 1994                    8062927
</Table>

                                      -46-

<PAGE>
<Table>
<S>                           <C>
8 JUL 1994                    8007352
8 OCT 1994                    7930458
8 JAN 1995                    7850785
8 APR 1995                    7767527
8 JUL 1995                    7584517
8 OCT 1995                    7598216
8 JAN 1996                    7509127
8 APR 1996                    7416340
8 JUL 1996                    7323726
8 OCT 1996                    7227429
8 JAN 1997                    7128247
8 APR 1997                    7025166
8 JUL 1997                    6922247
8 OCT 1997                    6795965
8 JAN 1998                    6665874
8 APR 1998                    6531111
8 JUL 1998                    6395880
8 OCT 1998                    6256030
8 JAN 1999                    6112411
8 APR 1999                    5963915
8 JUL 1999                    5814695
8 OCT 1999                    5660578
8 JAN 2000                    5502409
8 APR 2000                    5339675
8 JUL 2000                    5174964
8 OCT 2000                    4990018
8 JAN 2001                    4802381
8 APR 2001                    4607352
8 JUL 2001                    4411122
8 OCT 2001                    4288998
8 JAN 2002                    4001851
8 APR 2002                    3788498
8 JUL 2002                    3573288
8 OCT 2002                    3351803
8 JAN 2003                    3124915
8 APR 2003                    2891227
8 JUL 2003                    2640171
</Table>

<PAGE>
                            FIRST AMENDMENT TO LEASE

         THIS FIRST AMENDMENT TO LEASE (this "Amendment") is made and entered
into this 19th day of December, 1989, by and between WESTINGHOUSE CREDIT
CORPORATION, a Delaware corporation ("WCC"), and ALLOY RODS CORPORATION, a
Delaware corporation ("ARC");

                           W I T N E S S E T H, That:

         WHEREAS, WCC, as "landlord," and ARC, as "tenant," entered into that
certain Lease dated as of July 8, 1988 (the "Lease"); and

         WHEREAS, WCC and ARC now desire to amend the Lease in certain respects;

         NOW, THEREFORE, incorporating the foregoing recital of facts and in
consideration of the mutual covenants hereinafter set forth, WCC and ARC,
intending to be legally bound, hereby agree as follows:

         1. Recitals. The foregoing recitals are true and correct and are
incorporated herein.

         2. Lease Amendments. The Lease is hereby amended to provide that,
notwithstanding any other provision thereof to the contrary, from and after the
date hereof:

         2.1. Insurance Deductible. The parenthetical appearing at the bottom of
Page 23 which states "(but in no event in excess of $50,000)" shall be deleted
in its entirety and the following inserted in lieu thereof: "(but in no event in
excess of $150,000)."

         2.2. Delivery of Financial Statements. The provision appearing in
Paragraph 14 (a) clause (ii) which states "as soon as practicable, and in any
event not later than fifteen (15) days after the close of each calendar quarter
.. . ." shall be deleted in its entirety and the following inserted in lieu
thereof: "as soon as practicable, and in any event not later than thirty (30)
days after the close of each calendar quarter . . . ."

         2.3. Additional Reports. The provision appearing in Paragraph 14 (a)
clause (iv) which states "as soon as practicable, copies of all such financial
statements and reports as Tenant shall send to its stockholders;" shall be
deleted in its entirety.

         3. Limitation on Modification. Except as specifically modified herein,
the terms and conditions of the Lease shall remain in full force and effect as
executed. This Amendment is a modification of terms only as set out herein,
leaving in effect all features of the Lease except as specifically or
necessarily modified hereby.
<PAGE>
                                      -2-

         4. Estoppel. ARC hereby acknowledges, warrants, and confirms to WCC
that there exist no defenses, set-offs, or counterclaims to its obligations
under the Lease and that WCC is under no obligation further to amend or modify
the Lease. WCC hereby acknowledges, warrants, and confirms to ARC that there
exist no defenses, setoffs, or counterclaims to its obligations under the Lease
and that to its knowledge ARC is not in default thereunder.

         5. Parties Bound. This Amendment shall inure to the benefit of and be
binding upon the parties hereto and their respective heirs, successors, and
assigns.

         6. Governing Law. All questions with respect to the construction of
this Amendment and the rights and liabilities of the parties hereto shall be
determined in accordance with the applicable provisions of the internal laws of
the Commonwealth of Pennsylvania without regard to the principles of conflicts
of laws.

         7. No Further Amendment. The Lease cannot be further amended except by
an instrument in writing and signed by the party against whom such amendment is
asserted.

IN WITNESS WHEREOF, WCC and ARC have executed this Amendment as of the day and
year first above written.

                                            WCC:

                                            WESTINGHOUSE CREDIT CORPORATION, a
                                            Delaware corporation

                                            By:  /s/
                                                 -------------------------------

                                            ARC:

                                            ALLOY RODS CORPORATION, a Delaware
                                            corporation

                                            By:  /s/ Robert B. Egan
                                                 -------------------------------
<PAGE>

                 ASSIGNMENT OF SELLER'S INTEREST IN LEASES AND ASSUMPTION
                                   AGREEMENT

     THIS ASSIGNMENT OF SELLER'S INTEREST IN LEASES AND ASSUMPTION AGREEMENT
(the "Assignment"), dated as of the 11 day of April, 2000, is made by and
between GRIPHON STEELERS INVESTORS L.P., a Delaware limited partnership
("Assignor"), and OLP HANOVER I, L.L.C., a Pennsylvania limited liability
company ("Assignee").

     WHEREAS, Assignor and Assignee entered into that certain Contract of Sale
dated as of January 28, 2000 (the "Sales Contract") for the purchase and sale
of certain property, consisting of certain real property, as more particularly
described in Exhibit A, (the "Property"), attached hereto and made a part
hereof.

     WHEREAS, Assignor desires to assign, transfer, set over and deliver to
Assignee all of Assignor's right, title and interest in and to the leases as
hereinafter provided; and

     WHEREAS, Assignee desires to assume the duties and obligations of Assignor
with respect to the leases from and after the date hereof.

     NOW, THEREFORE, in accordance with the Sales Contract and in consideration
of the sum of TEN AND NO/100 DOLLARS ($10.00), the receipt and sufficiency of
which are hereby acknowledged, the parties do hereby covenant and agree as
follows and take the following actions:

1.   Assignor does hereby assign, transfer, set over and deliver unto Assignee
     all of the Assignor's right, title and interest in and to the leases,
     tenancies, licenses and other rights of occupancy or use of or for any
     portion of the Property by third parties, including all amendments,
     renewals and extensions thereof, in effect as of the date of this
     Assignment, a schedule of which is attached as Exhibit B (collectively, the
     "Leases"). Assignor shall defend, indemnify and hold harmless Assignee from
     and against any and all loss and claims asserted against or incurred by
     Assignee as a result of any acts or omissions occurring prior to the date
     of this Assignment in connection with the Leases.

2.   EXCEPT AS EXPRESSLY SET FORTH HEREIN AND/OR IN THE SALES CONTRACT AND/OR IN
     THE SELLER'S CERTIFICATE OF EVEN DATE HEREWITH, THE LEASES ARE BEING
     ASSIGNED "AS IS", "WHERE IS", AND "WITH ALL FAULTS" AS OF THE DATE OF THIS
     ASSIGNMENT, WITHOUT ANY REPRESENTATION OR WARRANTY WHATSOEVER AS TO THEIR
     ENFORCEABILITY, STATUS, CONDITION, FITNESS FOR ANY PARTICULAR PURPOSE,
     MERCHANTABILITY OR ANY OTHER WARRANTY, EXPRESSED OR IMPLIED AND ASSIGNEE IS
     HEREBY ACQUIRING THE LEASES BASED SOLELY UPON ASSIGNEE'S OWN INDEPENDENT
     INVESTIGATIONS AND INSPECTIONS AND NOT IN

<PAGE>
     RELIANCE ON ANY INFORMATION PROVIDED BY ASSIGNOR OR ASSIGNOR'S AGENTS OR
     CONTRACTORS. EXCEPT AS EXPRESSLY SET FORTH HEREIN AND/OR IN THE SALES
     CONTRACT AND/OR IN THE SELLER'S CERTIFICATE OF EVEN DATE HEREWITH, ASSIGNOR
     SPECIFICALLY DISCLAIMS ANY WARRANTY, GUARANTY OR REPRESENTATION, ORAL OR
     WRITTEN, PAST OR PRESENT, EXPRESSED OR IMPLIED, CONCERNING THE LEASES OR
     ASSIGNOR'S TITLE THERETO.

3.   Assignee hereby accepts the foregoing assignment of the Leases and hereby
     assumes all duties and obligations of Assignor under the Leases, arising on
     and after the date hereof. Assignee shall defend, indemnify and hold
     harmless Assignor from and against any and all "Claims" asserted against or
     incurred by Assignor as a result of any acts or omissions occurring on or
     after the date of this Assignment in connection with the Leases.

4.   This Assignment shall be (a) binding upon, and inure to the benefit of, the
     parties to this Assignment and their respective heirs, legal
     representatives, successors and assigns and (b) construed in accordance
     with the laws of the jurisdiction in which the Property is located, without
     regard to the application of choice of law principles, except to the extent
     such laws are superseded by federal law.

5.   This Assignment shall be construed in accordance with the laws of the State
     of Pennsylvania and may not be amended except by written agreement executed
     by Assignor and Assignee.

6.   Assignor represents and warrants to Assignee that (a) Assignor is the owner
     of the landlord's interest in the Leases, (b) Assignor has full right and
     title to the Leases and the authority to transfer and convey the Leases and
     (c) the Leases are free and clear of all liens and encumbrances (except the
     Permitted Exceptions, as such term is defined in the Sales Contract).
<PAGE>
     IN WITNESS whereof, this Assignment has been signed, sealed and delivered
by the parties as of the date first above written.

                                ASSIGNOR:
                                --------

                                GRIPHON STEELERS INVESTORS, L.P., a Delaware
                                limited partnership

                                By:  Griphon Steelers, LLC, a Delaware limited
                                     liability company, its General Partner

                                     By:  Barrow Street Capital, LLC, a Delaware
                                          limited liability company, its Sole
                                          Member

                                          By:  Barrow Street Partners, LLC, a
                                               Delaware limited liability
                                               company, its Managing Member

                                               By: /s/   Robert Greenhill
                                                   -----------------------
                                                   Name: Robert Greenhill
                                                   Title: Member

                                ASSIGNEE:
                                --------

                                OLP HANOVER I, L.L.C., a Pennsylvania limited
                                liability company

                                By:  OLP Hanover PA, Inc., a Pennsylvania
                                     corporation, its Member

                                     By:  /s/
                                          ---------------------
                                          Name:
                                          Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00038-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00038-of-00352.parquet"}]]