Document:

<PAGE>

                                                                  EXHIBIT 10.119

                              EMPLOYMENT AGREEMENT

        AGREEMENT dated as of January 1, 2003 by and between I.F.S. of NJ, Inc.,
a New Jersey corporation, with its principal offices located at 5100 Park Road,
Benicia, California 94510 (the "Company"), and JACK B. HOOD, an individual
residing at 389 Gallagher Drive, Benicia, California 94510 ("Executive").

                                    RECITALS:

        WHEREAS, the Company desires to employ Executive and Executive is
desirous of and wishes to enter into such an employment arrangement, on the
terms and conditions hereinafter set forth.

        NOW, THEREFORE, it is agreed as follows:

1.   DEFINITIONS

                As used in this Agreement, the following terms shall have the
meanings set forth below:

        1.1     "Affiliate" shall mean a corporation which, directly or
indirectly, controls, is controlled by or is under common control with the
Company, and for purposes hereof, "control" shall mean the ownership of 20% or
more of the Voting Stock of the corporation in question.

        1.2     "Basic Salary" shall have the meaning assigned to that term in
Section 5.1 of this Agreement.

        1.3     "Board" shall mean the Board of Directors of the Company as duly
constituted from time to time.

        1.4     "Business" shall mean the fund raising business to be conducted
by the Company or any Subsidiary or Affiliate of any thereof, directly or
indirectly.

        1.5     "Cause" shall mean any of the following:

                (a) If Executive is convicted of (i) fraud, (ii) embezzlement,
or (iii) any other crime involving moral turpitude,

                (b) The commission by Executive of a material breach of any of
the provisions of this Agreement, on his part to be performed (including
material breach of the representation and warranty of Section 8); or

<PAGE>

                (c) If Executive declines to follow any significant instruction
formally directed by the CEO and formally communicated to Executive, and if
Executive adheres to such persistent refusal or neglect to follow such
instructions or policy; or

                (d) If Executive breaches his duty of loyalty to the Company
according to the laws of the State of California pursuant to California
Corporations Code Section 310.

                For purposes of this subparagraph, no act, or failure to act, on
Executive's part shall be considered "willful" unless done, or omitted to be
done, by him not in good faith and without reasonable belief that his action or
omission was in the best interest of the Company or a Subsidiary. The
determination of whether Cause exists for purposes of Section 7.4 or a
Disability exists for purposes of Section 7.2 shall be made by the CEO without
Executive's participation. For purposes of this subparagraph (b) through (d),
Executive will be given written notice of the specific factual and legal basis
of the Company's decision for determining that Cause exists. Executive shall
have thirty (30) days to cure the allegation of wrongdoing.

        1.6     "Code" shall mean the Internal Revenue Code of 1986, as amended,
and the rules, regulations and interpretations issued thereunder.

        1.7     "Commencement Date" shall be January 1, 2003.

        1.8     "Confidential Information" shall be interpreted according to
Uniform Trade Secrets Act, California Civil Code, Section 3426.

        1.9     "Disability" shall mean the inability of Executive to perform
Executive's Duties for the Company, if employed by the Company or a Subsidiary,
pursuant to the terms of this Agreement and the by-laws of the Company as
hereinafter provided, because of physical or mental disability, where such
disability shall have existed for a period of more than 90 consecutive days or
an aggregate of 120 days in any 365 day period. The existence of a Disability
means that Executive's mental and/or physical condition substantially interferes
with Executive's performance of his Duties for the Company and/or its
Subsidiaries as specified in this Agreement. The fact of whether or not a
Disability exists hereunder shall be determined by appropriate medical experts
selected by the Board without Executive's participation as a director.
Notwithstanding anything to the contrary, should the Company provide a
disability insurance policy to Executive pursuant to his employment with
Company, then the terms and conditions of the disability policy shall control
the definition of when Executive is "disabled" within the meaning of this
Section 1.9.

        1.10    "Duties" shall mean that Executive shall perform such duties as
the Company may reasonably direct, that are reasonably consistent, in the
Company's reasonable judgment, with Executive's duties as in effect on January
1, 2003.

        1.11    "Employment Year" shall mean each twelve-month period, or part
thereof, during which Executive is employed hereunder, commencing on the
Commencement Date and on the same day of the subsequent calendar year.

                                                                               2

<PAGE>

        1.12    "Initial Term Date" shall have the meaning assigned to that term
in Section 3 of this Agreement.

        1.13    "Person" shall mean any individual, sole proprietorship,
partnership, joint venture, trust, unincorporated organization, association,
corporation, limited liability company, institution, public benefit corporation,
entity or government (whether federal, state, county, city, municipal or
otherwise, including without limitation any instrumentality, division, agency,
body or department thereof).

        1.14    "Restricted Period" shall have the meaning assigned to that term
in Section 10 of this Agreement.

        1.15    "Service Area" shall mean every state of the United States and
any foreign country where the Company offers its services.

        1.16    "Subsidiary" shall mean a corporation of which more than 50% of
the Voting Stock is owned, directly or indirectly, by the Company.

        1.17    "Term" shall mean the term of employment of Executive under this
Agreement.

        1.18    "Term Date" shall mean the Initial Term Date, or any date upon
which this Agreement shall terminate pursuant to Section 7 hereof.

        1.19    "Voting Stock" shall mean capital stock of a corporation which
gives the holder the right to vote in the election of directors for such
corporation in the ordinary course of business and not as the result of, or
contingent upon, the happening of any event.

        Wherever from the context it appears appropriate, each word or phrase
stated in either the singular or the plural shall include the singular and the
plural, and each pronoun stated in the masculine, feminine or neuter gender
shall include the masculine, feminine and neuter.

2.   EMPLOYMENT AND DUTIES OF EXECUTIVE

        2.1     Employment; Title; Duties. The Company hereby employs Executive,
and Executive hereby accepts appointment, as Vice President Finance, Treasurer
and Chief Financial Officer of the Company, which duty shall be performed in
Benicia, Solano County, California. The duties of Executive shall be to perform
those services set forth on Exhibit A attached hereto and incorporated herein,
to pursue the objectives of the Business, to perform generally those
responsibilities assigned to him by the CEO, and to render services as are
necessary and desirable to protect and to advance the best interests of the
Company and any Subsidiary (collectively, the "Duties"), acting, in all
instances, under the supervision of the CEO and in accordance with the policies
set by the Board. Without further compensation, Executive agrees to serve as a
director the Company.

                                                                               3

<PAGE>

        2.2     Performance of Duties. Executive shall devote such time as is
reasonably necessary to perform the Duties as an executive of the Company and
for the performance of such other executive duties as are assigned to him from
time-to-time by the CEO. During the Term, Executive: (i) shall comply with all
laws, statutes, ordinances, rules and regulations relating to the Business, and
(ii) shall not engage in or become employed, directly or indirectly, in a
business which competes with the Business of the Company and any Subsidiary,
without the prior written consent of the CEO, nor shall he act as a consultant
to or provide any services to, whether on a remunerative basis or otherwise, the
commercial or professional business of any other Person which competes with the
Business.

3.   TERM OF EMPLOYMENT

        The employment of Executive pursuant to this Agreement shall commence as
of the Commencement Date and shall end on December 31, 2005 (the "Initial Term
Date"), unless sooner terminated pursuant to Section 7. This contract shall
automatically extend for a one year period beyond December 31, 2005 or any one
year extension thereafter, unless notification of not to extend is granted by
either party at least 90 days before December 31, 2005 or any one year extension
thereafter. If intention not to renew is given, severance will be provided
executive in accordance with Section 7.5.

4.   COMPENSATION AND BENEFITS

        The Company shall pay the Executive, as compensation for all of the
services to be rendered by him hereunder during the Term, and in consideration
of the various restrictions imposed upon Executive during the Term and the
Restricted Period, and otherwise under this Agreement, the Basic Salary and
other benefits as provided, for and determined pursuant to Sections 5 and 6,
inclusive, of this Agreement; provided, however, that no compensation shall be
paid to the Executive under this Agreement for any period subsequent to the
termination of employment of the Executive for any reason whatsoever, except as
provided in Section 7.

5.   BASIC SALARY

        5.1     Basic Salary. The Company shall pay Executive, as compensation
for all of the services to be rendered by him hereunder during each Employment
Year, a salary as determined by Company from time to time, provided that
Executive's base salary as in effect on January 1, 2003 shall not be reduced.
Said salary is payable in substantially equal bi-monthly payments, less such
deductions or amounts as are required to be deducted or withheld by applicable
laws or regulations, deductions for employee contributions to welfare benefits
provided by the Company to Executive and such other deductions or amounts, if
any, as are authorized by Executive. The Basic Salary shall be prorated for the
month in which employment by the Company commences or terminates, and for any
Employment Year which is less than twelve (12) months in duration. The Basic
Salary will be reviewed annually by the Board and may be increased from
time-to-time by the Board (without Executive's participation as a director).

        5.2     Additional Basic Salary. The Basic Salary payable to Executive
under this Agreement shall be subject to increase by an annual inflation
adjustment tied to the San
                                                                               4

<PAGE>

Francisco-Oakland Consumer Price Index of Urban Wage Earners and Clerical
Workers (the "index") but in no event less that three percent (3%) adjusted on
each anniversary date of this Agreement. If the index for December of any year
beginning the initial calendar year following this Agreement (the "current
index") exceeds the index for the month in which this Agreement is dated (the
"base index"), the Company shall pay to Executive as an inflation adjustment the
amount by which the product of the Basic Salary for the given year and the
fraction whose numerator is the current index of that year and whose denominator
is the base index, exceeds the Basic Salary, in accordance with the following
formula:

        Inflation Adjustment = (Basic Salary for Given Year X Current Index /
Basic Index) - Basic Salary

        In no event shall the inflation adjustment under this provision be less
than three (3%) percent of the Basic Salary of the given year. This inflation
adjustment shall be effective January 1 of each year this Agreement is in
effect.

        In addition to the inflation adjustment set forth above, Executive may
receive such annual increases in Basic Salary as may be determined by the Board.
For purposes of Basic Salary increases, Executive's performance shall be
reviewed each January by the CEO and Compensation Committee of the Board of
Directors. Any Basic Salary increase approved by the Board shall be effective
January 1, following the annual review.

        Under no circumstances shall Executive's Basic Salary be decreased for
any reason.

        5.3     Bonus. In addition to the compensation set forth in this Section
5, Executive shall be considered for a cash bonus at the sole discretion of the
Company based upon Company performance standards including but not limited to
gross revenue, operating profits, and other goals and objectives accomplished by
Executive.

6.   ADDITIONAL BENEFITS AND REIMBURSEMENT FOR EXPENSES

        6.1     Additional Benefits. The Company shall provide the following
additional benefits to Executive during the Term:

                (i)     vacation with pay in each Employment Year in accordance
with the prevailing vacation policy of the Company. Executive shall also be
entitled to all holiday privileges as defined by Company policy;

                (ii)    participation in the Company defined contribution
pension plan, 401(k) plan and life, medical and disability insurance plans
currently maintained by the Company for Executive and his dependents, but only
to the extent Executive is eligible for participation under the provisions of
such plans;

                (iii)   business credit card for business use;

                                                                               5

<PAGE>

                (iv)    Car allowance prorated for partial months, payable on
the first day of each month;

                (v)     Life insurance on the life of Executive in accordance
with the prevailing life insurance policy of the Company. Company agrees to make
that insurance policy payable to the beneficiary designated by Executive.

                (vi)    Disability insurance for Executive in accordance with
prevailing disability insurance policy of the Company.

                (vii)   Such other benefits as the Board shall lawfully adopt
and approve for Executive.

        6.2     Reimbursement for Expenses. The Company shall pay or reimburse
Executive for all reasonable expenses actually incurred or paid by him during
the Term in the performance of his services under this Agreement, including but
not limited to business telephone expenses, upon presentation of such bills,
expense statements, vouchers or such other supporting information as the CEO may
reasonably require. In the event the Company requires Executive to travel on
business during the Term, Executive shall be reimbursed for any travel expenses
in accordance with this Section 6.2.

        6.3     Indemnification of Losses of Executive. The Company shall, to
the maximum extent permitted by law, and the Articles and Bylaws of the Company,
indemnify and hold Executive harmless for any acts or decisions made in good
faith while performing services for the Company. These services include, but are
not limited to, acts as Vice President/CFO in the course and scope of employment
with customers, vendors, employees, and any other persons associated or
affiliated with the Company. To the same extent, the Company will pay, and
subject to any legal limitations, advance all expenses, including reasonable
attorneys' fees and costs of court-approved settlements, actually and
necessarily incurred by Executive in connection with the defense of any action,
suit, claim or proceeding and in connection with any appeal, which has been
brought against Executive by reason of his service as an employee or agent of
the Company.

        The Company shall use its best efforts to obtain insurance coverage,
including but not limited to Director's and Officer's Liability Insurance and
Employment Practice Liability Insurance for Executive (provided it may be
obtained at a reasonable cost) under any liability insurance policy or policies
now in force or hereafter obtained during the term of this Agreement that cover
other officers of the Company having comparable or lesser status and
responsibility.

                                                                               6

<PAGE>

7.   TERMINATION OF EMPLOYMENT

        7.1     Death. If Executive dies during the Term, his employment under
this Agreement shall automatically terminate on the date of his death and no
further compensation shall be due hereunder to Executive or Executive's estate,
except to the extent required by law or to the extent payments are accrued and
due to Executive and which have not yet been paid.

        7.2     Disability. If, during the Term, Executive has a Disability, the
Company may, at any time after Executive has a Disability, terminate Executive's
employment by written notice to him. The date on which the Company sends written
notice of Termination under this Section 7.2 shall be the Term Date hereunder.
In the event that Executive's employment is terminated as a result of a
Disability, Executive shall cease to receive any further compensation hereunder,
except to the extent required by law or to the extent payments are accrued and
due to Executive and which have not yet been paid.

        7.3     Voluntary Termination. The Agreement may be terminated by
Executive at any time without cause upon thirty-(30) days' prior written notice
to the Company.

        7.4     Termination for Cause. The Company may terminate Executive's
employment hereunder for Cause at any time by written notice given to Executive
by the CEO. The date on which the Company sends written notice of termination
under this Section 7.4 shall be the Term Date hereunder. If Executive's
employment is terminated for Cause, he shall be entitled to receive only the
portion of his Basic Salary accrued to the Term Date and not theretofore paid to
him and reimbursement for any expenses properly incurred by Executive and
supported by appropriate vouchers, which expenses have been incurred prior to
the Term Date and not theretofore reimbursed. Except as set forth in the
immediately preceding sentence and as otherwise required by law, all of
Executive's rights to compensation hereunder shall be terminated, in the event
of termination for Cause, as of the Term Date.

        7.5     Termination without Cause. If the Company terminates Executive's
employment hereunder without Cause, Executive shall be entitled to receive, in
lieu of any other compensation hereunder, a lump sum cash payment equal to one
times the then current Basic Salary, plus continued benefit coverage consistent
with coverage provided at the time of termination in accordance with paragraph
6.1, for six months from date of termination. In addition, the Company shall
reimburse Executive for any expenses properly incurred by Executive and
supported by proper vouchers, which expenses have been incurred prior to the
date of such termination and not theretofore reimbursed and benefits otherwise
required to be provided by law.

        7.6     Effect of Merger, Transfer of Assets, or Dissolution.

                (a) This Agreement shall not be terminated by a voluntary or
involuntary dissolution of the Company resulting from either a merger or
consolidation in which the Company is not the consolidated or surviving
corporation, or a transfer of all or substantially all of the assets of the
Company.

                                                                               7

<PAGE>

                (b) In the event of any such merger or consolidation or transfer
of assets, Executive's rights, benefits, and obligations hereunder shall be
assigned to the surviving or resulting corporation or the transferee of the
Company's assets.

                (c) Should any individual or entity succeed the Company as
controlling member, owner, Executive may elect not to have this Agreement
assigned to said successor.

                (d) Executive shall have the right to have this Agreement
terminated due to any of the following conditions: (i) Executive is required to
relocate from his principal place of business in Benicia, Solano County,
California; (ii) Executive's reporting relationship is materially changed; or,
(iii) Executive's Duties are materially changed. In such case, at Executive's
election, this Agreement shall be considered terminated and the Company shall
pay Executive in accordance with paragraph 7.5 herein.

                (e) Should Executive elect not to have this Agreement assigned,
the Agreement shall be considered terminated and the Company shall pay Executive
in accordance with paragraph 7.5 herein.

8.   REPRESENTATION AND WARRANTY BY EXECUTIVE

        Executive hereby represents and warrants to the Company, the same being
part of the essence of this Agreement that, as of the Commencement Date, he is
not a party to any agreement, contract or understanding, and that no facts or
circumstances exist, which would in any way restrict or prohibit him in any
material way form undertaking or performing any of his obligations under this
Agreement. The foregoing representation and warranty shall remain in effect
throughout the Term.

9.   CONFIDENTIAL INFORMATION AND PROPRIETARY INTERESTS

        9.1     Acknowledgment of Confidentiality. Executive understands and
acknowledges that he may obtain Confidential Information during the course of
his employment by the Company. Executive further acknowledges that the services
to be rendered by him are of a special, unique and extraordinary character and
that, in connection with such services, he will have access to Confidential
Information vital to the Business. Accordingly, Executive agrees that he shall
not, either during the Term or at any time during the Restricted Period, (i) use
or disclose any such Confidential Information outside the Company and any
Subsidiaries and Affiliates; (ii) publish any works, speeches or articles with
respect thereto; or (iii) except as required in the proper performance of his
services hereunder, remove or aid in the removal of any Confidential Information
or any property or material relating thereto from the premises of the Company or
an Subsidiary or Affiliate.

        The foregoing confidentiality provisions shall cease to be applicable to
any Confidential Information which becomes generally available to the public
(except by reason of or as a consequence of a breach by Executive of his
obligations under this Section 9).

                                                                               8

<PAGE>

        In the event Executive is required by law or a court order to disclose
any such Confidential Information, he shall promptly notify the Company of such
requirement and provide the Company with a copy of any court order or of any law
which in his opinion requires such disclosure and, if the Company so elects, to
the extent that it is legally able, permit the Company an adequate opportunity,
at its own expense, to contest such law or court order.

        9.2     Delivery of Material. Unless authorized in writing to the
contrary, Executive shall promptly, and without charge, deliver to the Company
on the termination of his employment hereunder, or at any other time the Company
may so request, all memoranda, notes, records, reports, manuals, computer disks,
videotapes, drawings, blueprints and other documents (and all copies thereof)
relating to the Business, and all property associated therewith, which he may
then possess or have under his control.

        9.3.    Confidential Information.

                (a) The parties acknowledge and agree that during the term of
this Agreement and in the course of the discharge of his duties hereunder,
Executive shall have access to and become acquainted with information concerning
the operation processes of the Company, including without limitation, market
strategies, financial, personnel, sales, scientific, and other information that
is owned by the Company and regularly used in the operation of the Company's
business, and that such information constitutes the Company's trade secrets as
defined in paragraph 1.8.

                (b) Executive specifically agrees that he shall not misuse,
misappropriate, or disclose any such trade secrets, directly or indirectly, to
any other person or use them in any way, either during the term of this
Agreement or at any other time thereafter, except as is required in the course
of his employment hereunder.

                (c) Executive acknowledges and agrees that the sale or
unauthorized use or disclosure of any of the Company's trade secrets obtained by
Executive during the course of his employment under this Agreement, including
information concerning the Company's current or any future and proposed work,
services, or products, the facts that any such work, services, or product are
planned, under consideration, or in production, as well as any descriptions
thereof, constitute unfair competition. Executive promises and agrees not to
engage in any unfair competition with the Company, either during the term of
this Agreement or at any other time thereafter.

                (d) Executive further agrees that all files, records, documents,
drawings, specifications, equipment, and similar items relating to the Company's
business, whether prepared by Executive or others, are and shall remain
exclusively the property of the Company.

10.  NON-COMPETITION PROVISIONS

        Executive agrees that he will not during the Term and, for a period of
one year following the Term Date (the "Restricted Period"), directly or
indirectly, individually or on behalf of any Person:

                                                                               9

<PAGE>

        (i)     Within the Service Area, upon receipt of consideration, take any
action or engage, or participate in or within or associated with a Person that
is engaged or becomes engaged, in a business or activity which is similar to or
competitive with the Business as presently conducted and as said Business may
evolve in the ordinary course during the Restricted Period. For purposes of this
Section 10, the terms "business or activity which is similar to or competitive
with" shall mean the marketing, promotion and selling of product-based fund
raising programs to schools and other organizations.

        (ii)    Retain as an executive, consultant or otherwise, or hire or
offer employment to, any person whom the Company, and Subsidiary or any
Affiliate engages as an executive, consultant or otherwise, where such
engagement by the Company, any Subsidiary or Affiliate related to the Business
or any business of the Company, and Subsidiary or any Affiliate similar to the
Business.

11.  DISPUTES AND REMEDIES

        11.1    Waiver of Jury Trial. EXECUTIVE AND THE COMPANY HEREBY WAIVE THE
RIGHT TO A TRIAL BY JURY IN THE EVENT OF ANY DISPUTE WHICH ARISES UNDER THIS
AGREEMENT.

        11.2    Injunctive Relief. If Executive commits a breach, or threatens
to commit a breach, of any of the provisions of Sections 9 or 10, the Company
shall have the following rights and remedies (each of which shall be independent
of the other, and shall be severally enforceable, and all of which shall be in
addition to, and not in lieu of, any other rights and remedies available to the
Company at law or in equity):

                (i)     the right and remedy to have the provisions of this
Agreement specifically enforced by any court having equity jurisdiction, it
being acknowledged by Executive that any such breach or threatened breach will
or may cause irreparable injury to the Company and that money damages will or
may not provide an adequate remedy to the Company; and

                (ii)    the right and remedy to require Executive to account for
and pay over to the Company all compensation, profits, money, increments, things
of value or other benefits, derived or received by Executive as the result of
any acts or transactions constituting a breach of any of the provisions of
Sections 9 or 10 of this Agreement, and Executive hereby agrees to account for
and pay over all such compensation, profits, money, increments, things of value
or other benefits to the Company.

        11.3    Partial Enforceability. If any provision contained in Sections 9
or 10, or any part thereof, is construed to be invalid or unenforceable, the
same shall not affect the remainder of Executive's agreements, covenants and
undertakings, or the other restrictions which he has accepted, in Sections 9 or
10, and the remaining such agreements, covenants, undertakings and restrictions
shall be given the fullest possible effect, without regard to the invalid parts.

        11.4    Adjustment of Restrictions. Despite the prior provisions of
this Section 11, if any covenant or agreement contained in Sections 9 or 10, or
any part thereof, is held by any court of

                                                                              10

<PAGE>

competent jurisdiction to be unenforceable because of the duration of such
provision or the geographic area covered thereby, the court making such
determination shall have the power to reduce the duration or geographic area of
such provisions and, in its reduced form, such provision shall be enforceable.

        11.5    Attorneys Fees and Expenses. In the event that any action, suit
or other proceeding at law or in equity is brought to enforce the provisions of
this Agreement, or to obtain money damages for the breach thereof, and such
action results in the award of a judgment for money damages or in the granting
of any injuction in favor of the Company, then all reasonable expenses,
including but not limited to, reasonable attorneys' fees and disbursements
(including those incurred on appeal) of the Company in such action, suit or
other proceeding shall (on demand of the Company) forthwith be paid by
Executive. If such action results in a judgment in favor of Executive, then all
reasonable expenses, including but not limited to, reasonable attorneys' fees
and disbursements (including those incurred on appeal) of Executive in such
action, suit, costs and attorneys fees of enforcing any judgment or other
proceeding shall (on demand of Executive) forthwith be paid by the Company.

12.  SURVIVAL

        The provisions of Sections 7, 8, 9, 10, and 11 and this Section 12 shall
survive termination of this Agreement and remain enforceable according to their
terms.

13.  SEVERABILITY

        The invalidity or unenforceability of any provision of this Agreement
shall in no way affect the validity or enforceability of any other provisions
hereof.

14.  NOTICES

        All notices, demands and requests required or permitted to be given
under the provisions of this Agreement shall be deemed duly given if made in
writing and delivered personally or mailed by postage prepaid certified or
registered mail, return receipt requested, accompanied by a second copy sent by
ordinary mail, which notices shall be addressed as follows:

        If to the Company:

        IFS of N.J., Inc.
        c/o  Mr. James M. Cascino, CEO
        5100 Park Road
        Benicia, CA  94510

        If to Executive:

        Jack B. Hood
        389 Gallagher Drive
        Benicia, CA  94510

                                                                              11

<PAGE>

        By notifying the other parties in writing, given as aforesaid, any party
may from time-to-time change its address or the name of any person to whose
attention notice is to be given, or may add another person to whose attention
notice is to be given, in connection with notice to any party.

15.  ASSIGNMENT AND SUCCESSORS

        Neither this Agreement nor any of his rights or duties hereunder may be
assigned or delegated by Executive. This Agreement is not assignable by the
Company without the consent of Executive, except to any successor in interest
which takes over all or substantially all of the business of the Company, as it
is conducted at the time of such assignment. Any corporation into or with which
the Company is merged or consolidated or which takes over all or substantially
all of the business of the Company shall be deemed to be a successor of the
Company for purposes hereof. This Agreement shall be binding upon and, except as
aforesaid, shall inure to the benefit of the parties and their respective
successors and permitted assigns.

16.  ENTIRE AGREEMENT, WAIVER AND OTHER

        16.1    Integration. This Agreement contains the entire agreement of the
parties hereto on its subject matter and supersedes all previous agreements
between the parties hereto, written or oral, express or implied, covering the
subject matter hereof. No representations, inducements, promises or agreement,
oral or otherwise, not embodied herein, shall be of any force or effect.

        16.2    No Waiver. No waiver or modification of any of the provisions of
this Agreement shall be valid unless in writing and signed by or on behalf of
the party granting such waiver or modification. No waiver by any party of any
breach or default hereunder shall be deemed a waiver of any repetition of such
breach or default or shall be deemed a waiver of any other breach or default,
nor shall it in any way affect any of the other terms or conditions of this
Agreement or the enforceability thereof. No failure of the Company to exercise
any power given it hereunder or to insist upon strict compliance by Executive
with any obligation hereunder, and no customer or practice at variance with the
terms hereof, shall constitute a waiver of the right of the Company to demand
strict compliance with the terms hereof.

        Executive shall not have the right to sign any waiver or modification of
any provisions of this Agreement on behalf of the Company, nor shall any action
taken by Executive reduce his obligations under this Agreement.

        This Agreement may not be supplemented or rescinded except by instrument
in writing signed by all of the parties hereto after the date hereof. Neither
this Agreement nor any of the rights of any of the parties hereunder may be
terminated except as provided herein. No waiver of any provision of this
Agreement or any amendment of this Agreement shall be binding upon the Company
unless approved by the Board.

                                                                              12

<PAGE>

17.  GOVERNING LAW

        This Agreement shall be governed by and construed, and the rights and
obligations of the parties hereto enforced, in accordance with the laws of the
State of California.

18.  HEADINGS

        The Section and Subsection headings contained herein are for reference
purposes only and shall not in any way affect the meaning or interpretation of
this Agreement.

19.  REPLACEMENT OF PRIOR AGREEMENTS

        This Agreement replaces all previous written or oral employment
agreements between IFS and Executive all of which are hereby terminated without
any further liability of the Company, or Executive.

20.  CORPORATE AUTHORITY

        The execution, delivery, and performance of this Agreement have been
duly authorized by all necessary corporate action on the party of the Company.

        IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first written above, to be effective as of the Commencement Date.

                               IFS of N.J., Inc.

                           By: /s/ JAMES M. CASCINO
                               ---------------------------
                               Name:  James M. Cascino
                               Title: CEO

                               /s/ JACK B. HOOD
                               ---------------------------
                               Jack B. Hood

                                                                              13

<PAGE>

                                    EXHIBIT A

        The principal duty of Executive as Vice President and Chief Financial
Officer of the Company shall be to perform the services set forth below:

        (1)     Assist in development and implementation of a strategic plan for
                the Company.

        (2)     Develop annual budgets for the Corporation.

        (3)     Establish proper controls, procedures and safeguards to ensure
                proper financial reporting and safeguarding of company assets.

        (4)     Supervise and manage the financial and reporting operations of
                the Company.

                                                                              14<PAGE>

                                                                    Exhibit 10.7

                            AMENDMENT AND RESTATEMENT

                                     OF THE

                      ROTECH HEALTHCARE INC. EMPLOYEES PLAN

               Amendment and Restatement Effective January 1, 2003

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<S>                     <C>
Article I               Definitions

Article II              Participation

Article III             Contributions

Article IV              Trust Fund

Article V               Members' Accounts

Article VI              Retirement and Death Benefits

Article VII             Vesting and Separation Benefits

Article VIII            Plan Administrator, Committee and Trustee

Article IX              Amendment of the Plan

Article X               Termination of Plan

Article XI              Miscellaneous Provisions

Article XII             Top-Heavy Provisions
</TABLE>

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                         <C>
ARTICLE I           Definitions.............................................. 2
   Section 1.01        Affiliated Entity..................................... 2
   Section 1.02        Annual Compensation................................... 2
   Section 1.03        Beneficiary........................................... 2
   Section 1.04        Board................................................. 2
   Section 1.05        Code.................................................. 2
   Section 1.06        Committee............................................. 3
   Section 1.07        Company............................................... 3
   Section 1.08        Company Stock......................................... 3
   Section 1.09        Deferred Retirement Date.............................. 3
   Section 1.10        Direct Rollover....................................... 3
   Section 1.11        Distributee........................................... 3
   Section 1.12        Effective Date ....................................... 3
   Section 1.13        Eligible Employee..................................... 3
   Section 1.14        Eligible Rollover Distribution........................ 3
   Section 1.15        Eligible Retirement Plan.............................. 3
   Section 1.16        Employee.............................................. 4
   Section 1.17        Employer.............................................. 4
   Section 1.18        Employer Contributions................................ 4
   Section 1.19        Employment Commencement Date.......................... 4
   Section 1.20        Entry Date............................................ 4
   Section 1.21        ERISA................................................. 4
   Section 1.22        Exchange Act.......................................... 4
   Section 1.23        Hour of Service....................................... 4
   Section 1.24        Individual Account.................................... 5
   Section 1.25        Leased Employee....................................... 5
   Section 1.26        Member................................................ 5
   Section 1.27        Named Fiduciary....................................... 5
   Section 1.28        Normal Retirement Date................................ 5
   Section 1.29        Person................................................ 5
   Section 1.30        Plan ................................................. 5
   Section 1.31        Plan Administrator.................................... 5
   Section 1.32        Plan Year............................................. 6
   Section 1.33        Plans................................................. 6
   Section 1.34        Separation from Service............................... 6
   Section 1.35        Spousal Consent....................................... 6
   Section 1.36        Spouse................................................ 6
   Section 1.37        Trust Agreement....................................... 6
   Section 1.38        Trustee............................................... 6
   Section 1.39        Trust Fund............................................ 6
   Section 1.40        Valuation Date........................................ 6
   Section 1.41        USERRA................................................ 6

ARTICLE II          Participation............................................ 7
   Section 2.01        Eligibility........................................... 7
</TABLE>

                                        i

<PAGE>

<TABLE>
<S>                                                                            <C>
   Section 2.02      Reemployed Member.........................................  7
   Section 2.03      Enrollment................................................  7

ARTICLE III       Contributions................................................  8
   Section 3.01      Employer Contributions....................................  8
   Section 3.02      Allocations...............................................  8
   Section 3.03      Maximum Annual Additions..................................  8
   Section 3.04      USERRA....................................................  9

ARTICLE IV        Trust Fund................................................... 10
   Section 4.01      General................................................... 10

ARTICLE V         Members' Accounts ........................................... 11
   Section 5.01      Individual Accounts....................................... 11
   Section 5.02      Valuation................................................. 11
   Section 5.03      Termination of Participation in Trust Fund................ 11

ARTICLE VI        Retirement and Death Benefits................................ 12
   Section 6.01      Normal Retirement......................................... 12
   Section 6.02      Retirement After Normal Retirement Date................... 12
   Section 6.03      Death of Member........................................... 12
   Section 6.04      Time for Payment of Benefits and Valuation................ 12
   Section 6.05      Plan Benefits Paid in Cash ............................... 12
   Section 6.06      Designation of Beneficiary................................ 12
   Section 6.07      Incapacity................................................ 13
   Section 6.08      Spendthrift Provision..................................... 13
   Section 6.09      Proof of Claim............................................ 14
   Section 6.10      De Minimis Benefits....................................... 14

ARTICLE VII       Vesting and Separation Benefits.............................. 15
   Section 7.01      Vesting .................................................. 15
   Section 7.02      Manner of Payment......................................... 15
   Section 7.03      Direct Rollover Transfer to Another Qualified Plan or
                     IRA ...................................................... 15

ARTICLE VIII      Plan Administrator, Committee and Trustee.................... 16
   Section 8.01      Duties and Powers of the Plan Administrator............... 16
   Section 8.02      Duties and Powers of the Committee........................ 16
   Section 8.03      Trustee................................................... 16
   Section 8.04      Administrative Expenses................................... 17
   Section 8.05      Self Interest............................................. 17
   Section 8.06      Records................................................... 17
   Section 8.07      Reports................................................... 17
   Section 8.08      Liability................................................. 17
   Section 8.09      Claims and Claims Review.................................. 17

ARTICLE IX        Amendment of the Plan........................................ 19
   Section 9.01      General................................................... 19

ARTICLE X         Termination of Plan.......................................... 20
   Section 10.01     General................................................... 20
   Section 10.02     Termination............................................... 20
</TABLE>

                                       ii

<PAGE>

<TABLE>
<S>                                                                              <C>
   Section 10.03     Termination of Employer Participation......................  20
   Section 10.04     Distribution of Trust Fund.................................  20

ARTICLE XI        Miscellaneous Provisions......................................  21
   Section 11.01     Construction...............................................  21
   Section 11.02     Limitation of Rights.......................................  21
   Section 11.03     Limitation of Liability....................................  21
   Section 11.04     Mergers and Consolidations of Plans or Transfers of
                     Assets ....................................................  21
   Section 11.05     Return of Contributions....................................  21
   Section 11.06     Gender and Number .........................................  21
   Section 11.07     Acceptance by Plan of Eligible Rollover Distributions .....  21

ARTICLE XII       Top-Heavy Provisions..........................................  22
   Section 12.01     General....................................................  22
   Section 12.02     Applicable Definitions.....................................  22
   Section 12.03     Applicability..............................................  23
   Section 12.04     Minimum Allocation.........................................  24
</TABLE>

                                       iii

<PAGE>

                      ROTECH HEALTHCARE INC. EMPLOYEES PLAN

                 Amended and Restated Effective January 1, 2003

                              W I T N E S S E T H:

     WHEREAS, effective March 26, 2002, Rotech Healthcare Inc. (the "Company")
established the Rotech Medical Corporation Employees Plan (the "Plan"), a profit
sharing plan intended to be qualified under Section 401(a) of the Internal
Revenue Code of 1986, as amended (the "Code"); and

     WHEREAS, the Plan was adopted to hold qualifying employer securities as
described in Section 407(d)(5) of ERISA and to be considered an eligible
individual account plan as described in Section 407(d)(3) of ERISA; and

     WHEREAS, the Plan was established in connection with the acquisition of the
business of Rotech Medical Corporation pursuant to the Second Amended Joint Plan
of Reorganization of Rotech Medical Corporation and Its Subsidiaries Under
Chapter 11 of the Bankruptcy Code, as confirmed by the Bankruptcy Court for the
District of Delaware on February 13, 2002 (the "Bankruptcy Plan"); and

     WHEREAS, pursuant to the Bankruptcy Plan and in connection with the
acquisition of the business of Rotech Medical Corporation, the Company
immediately and irrevocably contributed 250,000 shares of Series A Convertible
Preferred Stock of the Company to the Plan; and

     WHEREAS, Section 9.01 of the Plan provides that the Board of Directors of
the Company (the "Board") may amend the Plan at any time and from time to time;
and

     WHEREAS, the Plan was amended during December, 2002, for compliance with
the applicable requirements of the Economic Growth and Tax Relief Reconciliation
Act of 2001; and

     WHEREAS, the Board now desires to amend the Plan effective January 1, 2003,
to provide for full and immediate vesting and to change the name of the Plan to
the "Rotech Healthcare Inc. Employees Plan;"

     NOW, THEREFORE, the Board hereby adopts the Plan as follows:

<PAGE>

                                    ARTICLE I
                                   Definitions

     When used herein, the following terms shall have the following meanings
unless the context clearly indicates otherwise:

     Section 1.01 Affiliated Entity - An entity, regardless of whether or not
such entity has adopted the Plan, within the controlled or affiliated service
group of an Employer, as determined by Sections 414 (b), (c), (m) and (o) of the
Code and, solely for purposes of Section 3.03, as determined under the rules set
forth in Section 415 (h) of the Code.

     Section 1.02 Annual Compensation - The total of cash compensation including
bonuses and overtime paid to a Member by an Employer during the Plan Year
(regardless of when earned) while a Member of the Plan, and reported on the
Member's Form W-2 for income tax purposes plus all amounts not includable as
gross income by reason of Section 402 (a) (8) of the Code for deferrals made
under Section 401 (k) of the Code and all amounts not includable as gross income
under Section 125 of Section 134(f) of the Code, but excluding commissions,
reimbursement for expenses and Employer contributions paid under this Plan or
any qualified deferred compensation plan or any welfare plan, except as provided
above. In any Plan Year in which a Member was not a Member of the Plan at the
beginning of the year, his Annual Compensation shall be deemed to be
remuneration as determined above for that portion of the Plan Year during which
he is a Member.

     Notwithstanding the above, the Annual Compensation of each Member taken
into account under the Plan shall not exceed the two hundred thousand dollar
($200,000) limit under Section 401(a)(17)(A) of the Code, as such amount shall
from time to time be adjusted by the Secretary of the Treasury for increases in
the cost-of-living in accordance with Section 401(a)(17)(B) of the Code (the
"401(a)(17) Limit"). If Annual Compensation shall be determined over a period
that contains less than 12 calendar months, the annual limit on Annual
Compensation shall be an amount equal to the 401(a)(17) Limit for the calendar
year in which the period begins multiplied by the ratio obtained by dividing the
number of full months in the period by 12. Annual Compensation shall not include
earnings from an Employer during any period when an Employee was not a Member.
For the first Plan Year of a Member's participation in the Plan only, (i) if the
Member's Entry Date is January 1 of such Plan Year, such Member's Annual
Compensation shall be limited under the Plan to the full amount of the
401(a)(17) Limit, and (ii) if the Member's Entry Date is July 1 of such Plan
Year, such Member's Annual Compensation shall be limited under the Plan to
one-half of the amount of the 401(a)(17) limit. The cost-of-living adjustment in
effect for a calendar year shall apply to Annual Compensation for the
determination period that begins with or within such calendar year.

     Section 1.03 Beneficiary - The person designated to receive payments in the
event of the death of a Member, as more fully set forth in Section 6.06 hereof.

     Section 1.04 Board - The board of directors of the Company.

     Section 1.05 Code - The Internal Revenue Code of 1986, as amended from time
to time.

                                        2

<PAGE>

     Section 1.06  Committee - The Committee appointed by the Board to
administer the Plan.

     Section 1.07  Company - Rotech Healthcare Inc., a Delaware corporation, and
any successor in interest.

     Section 1.08  Company Stock - Shares of common or preferred stock of the
Company.

     Section 1.09  Deferred Retirement Date - The first day of the month
following a Member's Separation from Service on or after the attainment of the
Member's Normal Retirement Date.

     Section 1.10  Direct Rollover - A payment by the Plan to the Eligible
Retirement Plan specified by the Distributee.

     Section 1.11  Distributee - A Member, the Member's surviving Spouse and the
Member's Spouse or former Spouse who is the alternate payee under a qualified
domestic relations order as defined in Section 414(p) of the Code.

     Section 1.12  Effective Date - The Effective Date of the Plan shall be
March 26, 2002. The Effective Date of this Amendment and Restatement of the Plan
shall be January 1, 2003.

     Section 1.13  Eligible Employee - Any Employee other than (i) any Employee
who is covered by a collective bargaining agreement between employee
representatives and any Employer which does not specifically provide for
participation of the represented Employees in the Plan or (ii) a Leased
Employee.

     Section 1.14  Eligible Rollover Distribution - Any distribution of all or
any portion of the balance of a qualified pension plan (within the meaning of
Section 3(2) of ERISA) 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 (10) years or more; any
distribution to the extent such distribution is required under Section 401(a)(9)
of the Code; and the portion of any distribution that is not includable in gross
income (determined without regard to the exclusion for net unrealized
appreciation with respect to Company Stock).

     Section 1.15  Eligible Retirement Plan - An individual retirement account
described in Section 408(a) of the Code, an individual retirement annuity
described in Section 408(b) of the Code, an annuity plan described in Section
403(a) of the Code or a qualified trust described in Section 401(a) of the Code,
in each case which accepts the Distributee's Eligible Rollover Distribution.
However, in the case of an Eligible Rollover Distribution to the surviving
Spouse, an Eligible Retirement Plan is an individual retirement account or
individual retirement annuity. An Eligible Retirement Plan is also an annuity
contract described in Section 403(b) of the Code and an eligible plan under
Section 457(b) of the Code which is maintained by a state, political subdivision
of a state, or any agency or instrumentality of a state or political subdivision
of a state and which agrees to separately account for amounts transferred
thereto from this Plan. The definition of "Eligible Retirement Plan" shall also
apply in the case of a distribution to a

                                        3

<PAGE>

surviving Spouse, or to a Spouse or former Spouse who is the alternate payee
under a qualified domestic relations order, as defined in Section 414(p) of the
Code.

     Section 1.16 Employee - Any person who performs services for an Employer as
an employee including, to the extent required therein, "leased employees" within
the meaning of Section 414(n)(2) of the Code. Notwithstanding the foregoing, the
term "Employee" shall not include leased employees covered by a plan described
in Section 414(n)(5)(B) of the Code, if leased employees constitute less than
20% of the Company's non-highly compensated workforce within the meaning of
Section 414(n)(5)(C)(ii) of the Code.

     Section 1.17 Employer - The Company, and each subsidiary, or affiliate of
the Company, that shall elect to join the Plan with the approval of the Board.

     Section 1.18 Employer Contributions - The contributions made to the Plan by
or on behalf of an Employer pursuant to Section 3.01 hereof.

     Section 1.19 Employment Commencement Date - The later of the date that an
Employee (i) completes his first Hour of Service for an Employer or Affiliated
Entity, on or after the Effective Date or (ii) completes his first Hour of
Service for an Employer or Affiliated Entity following a Separation from Service
after the Effective Date, provided such person is not employed or reemployed by
an Employer or Affiliated Entity within twelve (12) months of his Separation
from Service.

     Section 1.20 Entry Date - The Effective Date and each January 1 and July 1.

     Section 1.21 ERISA - The Employee Retirement Income Security Act of 1974,
as amended from time to time.

     Section 1.22 Exchange Act - The Securities Exchange Act of 1934, as amended
from time to time.

     Section 1.23 Hour of Service - Each hour for which an Employee is directly
or indirectly paid, or entitled to payment, by an Employer for the performance
of duties during the applicable computation period; these hours shall be
credited to the Employee for the computation period or periods in which the
duties were performed.

     "Hour of Service" shall also mean each hour for which back pay,
irrespective of mitigation of damages, or vacation, holiday, illness, incapacity
(including disability), jury duty, military duty, leave of absence, retroactive
or layoff pay has been either awarded or agreed to be paid by an Employer to an
Employee for a period of time during which no duties are performed (irrespective
of whether the employment relationship has terminated). These hours shall be
determined in accordance with the rules set forth in Department of Labor
Regulations Section 2530.200b-2(b) and shall be credited to the Employee for the
computation period or periods to which the award or agreement pertains rather
than the computation period in which the award, agreement or payment is made, as
determined under rules set forth in Department of Labor Regulations Section
2530.200b-2(c). However, no more than five hundred one (501) Hours of Service
shall be credited pursuant to this paragraph for any single continuous period
described in this paragraph during which no duties are performed.

                                        4

<PAGE>

     The crediting of an Hour of Service shall be made with reference to a
particular period under either of the preceding paragraphs, but not both.

     An Employee shall receive credit for forty (40) Hours of Service per week
if (i) the Employee did not receive credit for Hours of Service pursuant to the
foregoing, (ii) it is before the Employee's Normal Retirement Date, and (iii)
the Employee is absent from work because of:

     (a)  service in the Armed Forces of the United States; or

     (b)  an authorized leave of absence for sickness, vacation or sabbatical,
          granted in writing and for a period not in excess of two (2) years, or
          a temporary layoff for less than twelve (12) months. Such leaves of
          absence shall be authorized in a uniform and nondiscriminatory manner.

     Notwithstanding anything contained herein to the contrary, an Employee
shall receive no credit for Hours of Service pursuant to the preceding
paragraph, unless the Employee returns to the employ of an Employer within
ninety (90) days following the termination of the relevant period described in
the preceding paragraph or within any longer period prescribed by law or granted
by the Plan Administrator.

     Notwithstanding anything else contained herein to the contrary, (i) an
Employee shall be credited with Hours of Service, if such credit is required by
any Federal law, and (ii) the term "Employer" for the purposes of this
definition shall include Affiliated Entities.

     Section 1.24 Individual Account - A Member's accrued benefits account as
defined in Section 5.01 hereof.

     Section 1.25 Leased Employee - A person described in Section 414(n)(2) of
the Code and any other person providing services to the Company or an Affiliated
Entity who is not treated by the Company or an Affiliated Entity as an employee
for federal employment tax purposes.

     Section 1.26 Member - A person who (i) is an Eligible Employee and
commenced participation in the Plan in accordance with Article II hereof or (ii)
participated in the Plan in accordance with Article II hereof and has a credit
balance in his Individual Account.

     Section 1.27 Named Fiduciary - The Plan Administrator.

     Section 1.28 Normal Retirement Date - The time a person attains age 65.

     Section 1.29 Person - As set forth in Section 13(d) and 14(d) of the
Exchange Act.

     Section 1.30 Plan - This Rotech Healthcare Inc. Employees Plan, as it may
be amended from time to time.

     Section 1.31 Plan Administrator - The Company.

                                        5

<PAGE>

     Section 1.32 Plan Year - The period from the Effective Date to December 31,
2002 and thereafter the calendar year commencing with January 1, 2003.

     Section 1.33 Plans - All plans of Employers and Affiliated Entities
qualified under Part I, Subchapter D, chapter 1 of Subtitle A of the Code,
including any simplified employee pension plan as defined in Section 408(k) of
the Code.

     Section 1.34 Separation from Service - The earliest of (i) the date a
person quits, retires or is discharged from service with all Employers and
Affiliated Entities, (ii) the date a person dies or (iii) the date following a
one-year period during which a person is absent from service with all Employers
and Affiliated Entities for any other reason.

     Section 1.35 Spousal Consent - Written and notarized consent by a Member's
Spouse waiving the right to a death benefit otherwise payable to the Spouse
under the Plan, which includes acknowledgment by the Spouse of the effect of
such waiver.

     Section 1.36 Spouse - The person recognized by the state in which the
Member is domiciled as the Member's legal spouse. A Member shall, in the Plan
Administrator's sole discretion, be deemed not to have a Spouse if the Member or
a Beneficiary establishes to the satisfaction of the Plan Administrator that the
person recognized by such state as the Member's legal spouse cannot be located.
The Plan Administrator shall be entitled to rely upon a representation of a
Member that the Member has no Spouse.

     Section 1.37 Trust Agreement - The Agreement or Agreements with the Trustee
or Trustees referred to in Section 4.01 hereof.

     Section 1.38 Trustee - The Trustee or Trustees designated pursuant to the
Trust Agreement.

     Section 1.39 Trust Fund - The assets of the Trust held by the Trustee under
the Trust Agreement.

     Section 1.40 Valuation Date - The last business day of the month of
December and any other date or dates selected by the Plan Administrator with the
consent of the Trustee.

     Section 1.41 USERRA - The Uniformed Services Employment and Reemployment
Rights Act of 1994, as amended from time to time.

                                        6

<PAGE>

                                   ARTICLE II
                                 Participation

     Section 2.01 Eligibility - Each Eligible Employee on the Effective Date
shall become a Member of the Plan on the Effective Date. Thereafter, on each
Entry Date, each Eligible Employee who is not a Member shall become a Member.

     Section 2.02 Reemployed Member - Any Eligible Employee who is or was a
Member and who is newly employed or reemployed by an Employer shall be eligible
to participate in the Plan on the date of said employment or reemployment to the
same extent he was previously eligible to participate.

     Section 2.03 Enrollment - After receiving such information as the Plan
Administrator deems necessary from any Employer prior to each Entry Date, the
Plan Administrator shall promptly determine the Eligible Employees and shall
promptly notify each such Eligible Employee in writing of the existence of the
Plan and of its basic provisions.

                                        7

<PAGE>

                                   ARTICLE III
                                  Contributions

     Section 3.01 Employer Contributions - The contribution, if any, by an
Employer to the Trust for each Plan Year shall be the amount fixed by each
Employer or otherwise made by the Company on behalf of each Employer. Such
contribution amount may be recorded in terms of a dollar amount, a percentage of
income for the Plan Year, a percentage of compensation paid or accrued to
Members for the Plan Year, in shares of Company Stock or any combination
thereof. If an Employer determines to make a contribution for any Plan Year (or
a contribution is made on behalf of an Employer), such contribution shall not
exceed twenty-five percent (25%) of the compensation (as defined in Section
404(a)(3) of the Code) paid or accrued to all Members of the Plan who are
Employees of such Employer in respect of said taxable year plus allowable credit
and contribution carryovers, as provided in Section 404(a)(3) of the Code.

     Section 3.02 Allocations - The contributions of an Employer with respect to
a Plan Year made pursuant to Section 3.01 shall be allocated to the Individual
Account of Members (i) who are Eligible Employees of the Employer on the last
day of the Plan Year for which such contribution is made or (ii) who are among
the Members that were Eligible Employees of the Employer during the Plan Year
(a) who retired pursuant to Sections 6.01 or 6.02 or (b) who died during the
Plan Year. Contributions made by or on behalf of an Employer shall be allocated
to each such Member's Individual Account in the ratio to which each such
Member's Annual Compensation bears to the Annual Compensation of all such
Members for such Plan Year.

     Section 3.03 Maximum Annual Additions - The maximum "annual addition", as
hereinafter defined, for any Member shall be the lesser of $40,000 or
one-hundred percent (100%) of the Member's compensation. For purposes of this
Section 3.03, the term "compensation" shall include the total of a Member's
wages, salary and other remuneration for personal services received during the
Plan Year from the Employer and Affiliated Entities, including amounts deferred
pursuant to Section 401(k) or Section 125 of the Code.

     The "annual addition" for a Member shall be the sum of (i) Employer and
Affiliated Entities' contributions for such Member for the Plan Year (including
deferrals under Section 401(k) of the Code) to defined contribution plans and
(ii) forfeitures allocated to the account of such Member and resulting from
forfeiture provisions of defined contribution plans, if any. If the annual
addition for a Member exceeds the limitations set forth above, reductions shall
be made first to other defined contribution plans before a reduction is made
with respect to allocations under the Plan.

     In the event of a miscalculation of a Member's total Annual Compensation
for a Plan Year, which would result in the maximum permitted annual additions
being exceeded, the excess shall be allocated to a suspense account for the
benefit of the Member whose allocation would otherwise exceed the limits set
forth herein. Such suspense account shall not be valued pursuant to Article V
and no gains and losses of the Trust Fund shall be allocated to such suspense
account. The suspense account on behalf of a Member shall be allocated to the
Individual Account of the Member on the next succeeding Valuation Date, to the
extent that an allocation would otherwise be made pursuant to Section 3.02;
provided the limitations of this Section 3.03 shall not be exceeded.
Notwithstanding anything contained herein or in the Trust Agreement to

                                        8

<PAGE>

the contrary, if the Plan is or is regarded as terminated, amounts held in such
suspense account shall be allocated to the Individual Accounts of Members on the
date of termination according to the allocation provisions of Section 3.02.

     In the event that the Secretary of the Treasury, or his delegate, shall
adjust or has adjusted the $40,000 limits imposed herein to reflect
cost-of-living increases, such limits shall be increased automatically hereunder
effective as of the first day of the Plan Year during which any such adjustment
takes effect, to the same extent as provided in any announcement issued by the
Secretary of the Treasury or his delegate of an adjustment of such limits.

     For the purpose of Section 415 of the Code and this Section, calculations
shall be based on the limitation year. For all purposes, the limitation year
shall be the Plan Year.

     Section 3.04 USERRA - Notwithstanding any provisions of the Plan to the
contrary, benefit and service credit with respect to qualified military service
shall be provided in accordance with Section 414(u) of the Code.

                                        9

<PAGE>

                                   ARTICLE IV
                                   Trust Fund

     Section 4.01 General - The benefits in this Plan shall be provided by the
Trust Fund, which shall consist of Employer Contributions and all investments
made therewith and all proceeds thereof and all earnings and profits thereon,
less payments made therefrom. The Trust Fund shall be held in accordance with
the Plan and the Trust Agreement entered into between the Company and the
Trustee. The Trust Agreement may from time to time be amended in the manner
provided therein.

                                       10

<PAGE>

                                   ARTICLE V
                                Members' Accounts

     Section 5.01 Individual Accounts - The Plan Administrator shall establish
and cause to be maintained an Individual Account for each Member which shall
consist of:

     (i)  the Employer Contributions allocable to the Member; and

     (ii) the Member's allocable share of the income and expenses and realized
          and unrealized gains and losses of the Trust Fund.

The Individual Account is solely a bookkeeping account and shall represent a
Member's undivided interest in the Trust Fund.

     Section 5.02 Valuation - As of each Valuation Date, the Trustee shall
determine and report to the Plan Administrator the fair market value of the
assets of the Trust Fund and the income and expenses and realized and unrealized
gains and losses of the Trust Fund for the period from the last Valuation Date
to the current Valuation Date. The Trustee shall allocate such amount among the
respective Individual Accounts of the Members (excluding Employees who first
became Members during the Plan Year in which the Valuation Date falls) in
proportion to their respective account balances.

     Section 5.03 Termination of Participation in Trust Fund - After the
Valuation Date as of which the benefits of a Member are fully paid pursuant to
the provisions of Article VI, VII or X, such Member's Individual Account shall
be closed. Thereafter, neither the Member nor any person claiming under or
through him shall participate or have any interest in the Trust Fund.

                                       11

<PAGE>

                                   ARTICLE VI
                          Retirement and Death Benefits

     Section 6.01 Normal Retirement - Each Member who has a Separation from
Service on attainment of his Normal Retirement Date shall be entitled to a lump
sum retirement benefit which can be provided from the Member's Individual
Account.

     Section 6.02 Retirement After Normal Retirement Date - A Member may
postpone retirement and continue in an Employer's employ and participate in the
Plan after his Normal Retirement Date. In such event, the commencement of the
payment of a Member's retirement benefit shall be deferred until the Member's
Deferred Retirement Date. Upon the Member's Deferred Retirement Date, the Member
shall receive a retirement benefit as if the Member were then retiring pursuant
to Section 6.01 hereof.

     Section 6.03 Death of Member - If a Member dies before such Member's
Individual Account is distributed under the Plan, a death benefit shall be
payable to the Member's Beneficiary of the Member's Individual Account. The Plan
Administrator may require that any Beneficiary that is not the Member's Spouse
submit information as is needed to verify that the Member had no Spouse at the
time of his death or that there was a Spousal Consent to the designation of such
Beneficiary. All distributions hereunder of a Member's Individual Account shall
be made as soon as practicable following the Member's death and shall be based
on the value of the deceased Member's Individual Account determined as of the
Valuation Date coinciding with or immediately following his date of death or the
Valuation Date immediately preceding commencement of payment of benefits.

     Section 6.04 Time for Payment of Benefits and Valuation - Notwithstanding
anything herein to the contrary, unless a Member elects otherwise, in writing,
specifying the benefit and time payment is to begin, the payment of benefits
pursuant to this Article VI to each Member shall begin not later than the later
of sixty (60) days after the close of the Plan Year in which falls (i) the
Member's Normal Retirement Date or (ii) the date the Member incurs a Separation
from Service after the Member's Normal Retirement Date (unless payment is
delayed for administrative reasons). Benefits to a Member who is a 5% owner
shall commence on the April 1 following the end of the calendar year in which
the Member attains age 70 1/2.

     The amount of any benefit payable under the Plan shall be based upon the
value of a Member's Individual Account at the Valuation Date coinciding with or
immediately preceding the commencement of payment of benefits.

     Section 6.05 Plan Benefits Paid in Cash - Notwithstanding anything in the
Plan to the contrary, including, without limitation, the provisions of Articles
VI, VII and X, all Plan benefit payments to Members shall be made in cash and
not in shares of Series A Convertible Preferred Stock of the Company.

     Section 6.06 Designation of Beneficiary - At any time, and from time to
time, each Member shall have the unrestricted right to designate a Beneficiary
or change a Beneficiary to whom payments of any undistributed amount of his
Individual Account shall be made in the event of the Member's death.
Notwithstanding the preceding sentence, a Member shall be

                                       12

<PAGE>

deemed to have designated his Spouse as sole Beneficiary of the Member's
Individual Account, unless the Member obtains Spousal Consent to name another
person as Beneficiary. Each such designation shall be evidenced by a written
instrument signed by the Member and be on file with the Plan Administrator
before his death. If the designated Beneficiary survives the Member, but dies
prior to receiving the full amount of the Member's Individual Account,
distribution of the amount shall be made to any successor Beneficiary previously
designated by the Member. If any Member shall fail to designate a successor
Beneficiary, the successor Beneficiary shall be deemed to be the Beneficiary's
estate. If there is no living Beneficiary or successor Beneficiary at the time
of a Member's death, the Beneficiary shall be deemed to be the Member's estate.

     Section 6.07 Incapacity - If any person to whom a benefit is payable
hereunder is an infant or if the Plan Administrator determines that any person
to whom such benefit is payable is incompetent by reason of physical or mental
disability, the Plan Administrator may cause the payments becoming due to such
person to be made to another for his benefit without responsibility of the Plan
or the Trustee to see to the application of such payment. Payment made pursuant
to this Section 6.06 shall, as to such payment, operate as a complete discharge
of the Trust Fund, the Trustee and the Plan Administrator.

     Section 6.08 Spendthrift Provision - No benefit payable under the Plan
shall, except as otherwise specifically provided by law, be subject in any
manner to anticipation, alienation, garnishment, sale, transfer, assignment,
pledge, encumbrance or discharge, and any attempt so to anticipate, alienate,
sell, transfer, assign, pledge, encumber or charge such benefit shall be void;
nor shall any benefit be in any manner liable for or subject to the debts,
contracts, liabilities, engagements or torts of the person entitled thereto.

     Notwithstanding the foregoing, the Trustee is specifically authorized to
comply with any "domestic relations order" which the Plan Administrator
determines to be a "qualified domestic relations order." For this purpose, a
"domestic relations order" shall mean any judgment, decree or order (including
approval of a property settlement agreement) within the meaning of Section
414(p) of the Code which relates to the provision of child support, alimony
payment, or marital property rights to a Spouse, former Spouse, child or other
dependent of a Member, and is made pursuant to a State domestic relations law
(including a community property law) and a "qualified domestic relations order"
shall mean a domestic relations order within the meaning of Section 414(p) of
the Code which the Plan Administrator, in its sole discretion and applying
uniform rules, determines to meet the following requirements:

     (i)  such order assigns to a Member's Spouse, former Spouse, child or other
          dependent of the Member, or creates or recognizes the existence of, a
          right to receive all or a portion of, the Member's benefits payable
          under the Plan (hereinafter referred to as the "alternate payee");

     (ii) such order clearly specifies (1) the name and last known mailing
          address (if any) of the Member and the name and mailing address of
          each alternate payee, (2) the amount or percentage of the Member's
          benefits to be paid by the Plan to each such alternate payee, or the
          manner in which such amount or percentage is to be determined, (3) the
          number of payments or the period to which such order applies, and (4)
          that the order applies to the Plan; and

                                       13

<PAGE>

     (iii) such order does not (1) require the Plan to provide any type or form
           of benefits, or any option, not otherwise provided under the Plan,
           (2) require the Plan to provide increased benefits (determined on the
           basis of actuarial value), and (3) require the payment of benefits to
           an alternate payee which are required to be paid to another alternate
           payee under another order previously determined to be a qualified
           domestic relations order.

     Upon the Plan Administrator's receipt of a domestic relations order, it
shall promptly notify the Member and any alternate payee of the receipt of such
order and the Plan's procedures for determining whether such order is a
qualified domestic relations order. The determination by the Plan Administrator
of whether a domestic relations order is a qualified domestic relations order
shall be made pursuant to written procedures adopted by the Plan Administrator.
During any period in which the issue of whether a domestic relations order is a
qualified domestic relations order is being determined, the Plan Administrator
shall separately account for the amounts which would have been payable to the
alternate payee ("segregated amounts") during such period if the order had been
determined to be a qualified domestic relations order. If within eighteen (18)
months of the date on which the first payment would be required to be made under
the domestic relations order it is determined that the order is not a qualified
domestic relations order, or the issue as to whether such order is a qualified
domestic relations order is not resolved, then the Plan Administrator shall
cause the segregated amounts (plus any interest thereon) to be paid to the
Member or his Beneficiary if payment would have otherwise been made absent such
order. Any determination thereafter that an order is a qualified domestic
relations order shall be applied prospectively only.

     Section 6.09 Proof of Claim - The Plan Administrator may require such proof
of death and such evidence of the right of any person to receive payment of a
deceased Member's interest in the Trust Fund as the Plan Administrator may deem
reasonable.

     Section 6.10 De Minimis Benefits - Notwithstanding anything contained
herein to the contrary, in the event the benefit a Member or Beneficiary is
entitled to under the provisions of this Article VI does not exceed, and has
never exceeded at the time of any prior distribution, $100, the Plan
Administrator shall distribute such benefit in a lump sum as soon as practicable
after a Member's Separation from Service, in lieu of any other benefits
hereunder, provided that such payment occurs prior to the participant's annuity
starting date, and such Member or Beneficiary shall then have no further
interest in the Plan with respect to the Member's employment prior to his
Separation from Service. For purposes of this Section 6.10, the value of a
Member's benefit entitlement under the Plan shall be determined without regard
to that portion of the Member's benefit that is attributable to rollover
contributions (and earnings allocable thereto) within the meaning of Sections
402(c), 403(a)(4), 403(b)(8), 408(d)(3)(A)(ii) and 457(e)(16) of the Code.

                                       14

<PAGE>

                                  ARTICLE VII
                         Vesting and Separation Benefits

     Section 7.01 Vesting - The interest of each Member in the balance to the
credit of his Individual Account shall at all times be immediately and fully
vested.

     Section 7.02 Manner of Payment - A Member who has a Separation from Service
prior to attaining his Normal Retirement Date, other than by reason of death,
shall be entitled to the pay out of his Individual Account upon such Member's
attainment of Normal Retirement Date, in accordance with the provisions of
Article VI. Members who have a Separation from Service prior to the attainment
of their Normal Retirement Date, other than by reason of death, and whose
Individual Account does not exceed, and has never exceeded at the time of any
prior distribution, $100, shall have their Individual Account distributed in a
lump sum, as soon as practicable after the later of the Valuation Date following
the Member's Separation from Service or the Valuation Date following the fifth
anniversary of the Effective Date of the Plan. Such Member (or such Member's
Beneficiary) shall then have no further interest in the plan with respect to the
Member's employment prior to his Separation from Service.

     Section 7.03 Direct Rollover Transfer to Another Qualified Plan or IRA -
Pursuant to Section 401(a)(31) of the Code, under rules established by the Plan
Administrator, a Distributee may elect to have any, portion of an Eligible
Rollover Distribution paid directly to an Eligible Retirement Plan as a Direct
Rollover.

                                       15

<PAGE>

                                  ARTICLE VIII
                    Plan Administrator, Committee and Trustee

     Section 8.01 Duties and Powers of the Plan Administrator - The Plan
Administrator shall have all powers necessary to discharge its duties, including
but not limited to, the power to interpret or construe the Plan, to establish
uniform and nondiscriminatory rules for the administration of the Plan, to
determine all questions of eligibility, status and rights of Employees, Members
and their Beneficiaries and others hereunder, and to decide any dispute arising
hereunder, to the extent discretion on such issue is not delegated to the
Committee under the Plan. The Plan Administrator shall have such powers with
respect to the administration of the Trust Fund as may be conferred upon it by
the Trust Agreement. In exercising any discretion allowed by the Plan, the Plan
Administrator shall have sole, absolute and final discretionary authority which
shall be final and binding on Members and all other parties, to the maximum
extent allowed by law.

     The Plan Administrator may adopt such rules and regulations as it deems
desirable for the conduct of its affairs. It may delegate to any agent, any
duties and powers as it deems appropriate.

     Section 8.02 Duties and Powers of the Committee - The Board shall select
not less than three (3) persons to serve on the Committee. Members of the
Committee may be officers, directors, employees of an Employer or others and
shall hold office at the pleasure of the Board and shall serve without
compensation. Any member of the Committee may resign by giving notice thereof to
the Company and to the Committee and such resignation shall become effective at
delivery or at any later date specified therein. A vacancy in the Committee
shall be filled by the Board. The Committee shall have all the powers necessary
to discharge its duties with respect to resolving disputes under the Plan, to
the maximum extent permitted by law.

     The Committee may adopt such rules and regulations as it deems desirable
for the conduct of its affairs and may appoint one of its own members as
Chairman and one as Secretary and may appoint one or more agents, who need not
be members of the Committee. It may delegate to any agent such duties and
powers, both ministerial and discretionary, as it deems appropriate excepting
only that any dispute shall be determined by the Committee. A majority of the
Committee then in office shall constitute a quorum for the transaction of
business. Any determination of the Committee shall be made by a majority of the
quorum or by unanimous approval of its members, if there are only two members in
office at the time.

     Section 8.03 Trustee - The Board will appoint the Trustee, and thereafter,
subject to the provisions of the Trust Agreement, may at any time terminate the
appointment of a Trustee and make a substitute appointment immediately
thereafter. The Trustee or Trustees appointed by the Board shall serve on such
terms as to remuneration and otherwise as shall from time to time be agreed
between the Company and such Trustee. Notwithstanding anything to the contrary
in the Plan, the Trustee shall have such powers and duties in relation to the
investment and change of investments of all or any part of the assets of the
Trust Fund as provided in the Trust Agreement.

                                       16

<PAGE>

     Neither the Committee nor the Plan Administrator shall have any fiduciary
liability for the acts or omissions of such Trustee or be under an obligation to
invest or otherwise manage that portion of the Trust Fund which is subject to
the management of such Trustee.

     Section 8.04 Administrative Expenses - Any administrative expenses with
respect to the Plan and any expenses of the Committee or the Plan Administrator
relating to administration of the Plan shall be paid out of the Trust Fund to
the extent not paid by the Company or an Employer.

     Section 8.05 Self Interest - No member of the Committee shall have any
right to vote or decide upon any matter relating solely to himself or solely to
any of his rights or benefits under the Plan.

     Section 8.06 Records - The Plan Administrator may retain a recordkeeper
which may be the Trustee to keep or cause to be kept such records and data as
may be necessary for the administration of the Plan and to determine the amount
of all benefits payable hereunder.

     Section 8.07 Reports - The Plan Administrator shall cause to be prepared
annually those reports showing the financial condition of the Trust Fund in
reasonable summary and giving a brief account of the operations of the Plan for
the past Plan Year and reflecting any further information which each Employer
may require or which may be required by law. Such reports shall be submitted to
each Employer and copies filed in the office of the Plan Administrator. The Plan
Administrator shall make available to each Member for examination at reasonable
times during business hours such of its records as pertain to that Member.

     Section 8.08 Liability - The members of the Committee, the Plan
Administrator (and its agents) and each Employer shall be entitled to rely upon
all valuations, certificates, and reports furnished by the Trustee or by
accountants or consultants selected by the Committee or Plan Administrator and
approved by the Company, and upon all opinions given by any legal counsel
selected by the Plan Administrator or the Committee and approved by the Company,
or selected by the Company and the members of the Committee and each Employer
shall be fully protected with respect to any action taken or suffered by their
having relied in good faith upon such Trustee, accountants, consultants or
counsel and all action so taken or suffered shall be conclusive upon each of
them and upon all Members and their Beneficiaries and all other persons.

     The Company and each Employer shall indemnify members of the Committee, any
individual (noncorporate) Trustee and any of their agents as well as agents of
the Plan Administrator acting in behalf of the Plan against any and all
liabilities or expenses to which they may be subjected by reason of any act or
failure to act which constitutes a breach of fiduciary responsibility under
ERISA or otherwise, except that due to a person's own gross negligence or
willful misconduct.

     Section 8.09 Claims and Claims Review - Claims for benefits under the Plan
shall be filed with the Plan Administrator. Written notice of the disposition of
a claim shall be furnished to the claimant within ninety (90) days after the
claim is filed. If the claim is denied, the reasons for the denial shall be
specifically set forth in writing, pertinent provisions of the Plan shall be

                                       17

<PAGE>

cited, including an explanation of the Plan's claims review procedure, and, if
the claim is perfectible, an explanation as to how the claimant can perfect the
claim shall be provided.

     If a claimant whose claim has been denied wishes further consideration of
his claim, he may request the Committee to review his claim in a written
statement of the claimant's position filed with the Committee no later than
sixty (60) days after receipt of the written notification provided for in the
previous paragraph. The Committee shall fully and fairly review the matter and
shall promptly advise the claimant, in writing, of its decision within the next
sixty (60) days. Due to special circumstances, if no advice has been given
within the first sixty (60) days, and notice of the need for additional time has
been furnished within such period, said review and advice may be made within the
following sixty (60) days.

                                       18

<PAGE>

                                   ARTICLE IX
                              Amendment of the Plan

     Section 9.01 General - The Board may amend the Plan at any time and from
time to time. Except where necessary to qualify the Plan or to maintain the
qualification of the Plan under the Code, no amendment shall reduce any then
accrued or vested interests of a Member nor shall it reduce any "accrued
benefit" of a Member as such term is given meaning under Section 411(d)(6) of
the Code and the regulations thereunder.

     No part of the Trust Fund, other than such part as may be required to pay
taxes, administration expenses and fees, or as otherwise permitted under ERISA
or the Code, shall by reason of any amendment or otherwise be used or diverted
to purposes other than for the exclusive benefit of Members and Beneficiaries.

                                       19

<PAGE>

                                   ARTICLE X
                               Termination of Plan

     Section 10.01 General - While the Plan is intended to be permanent, the
Company may terminate or partially terminate the Plan at any time, or any
Employer may withdraw from participation in the Plan. Written notice of such
termination, setting forth the date thereof, shall be given to both the Trustee
and the Plan Administrator.

     Section 10.02 Termination - Upon a termination or partial termination of
the Plan, whether in writing or in operation, or upon a complete discontinuance
of contributions thereunder, (i) no further contributions shall be made under
the Plan for any affected Member, (ii) all of the provisions of the Plan shall
remain in full force other than the provisions for contributions, and (iii) the
amount in each affected Member's Individual Account shall be nonforfeitable.

     Section 10.03 Termination of Employer Participation - (a) Any Employer,
with the consent of the Company or its delegate may terminate its participation
in the Plan by giving the Plan Administrator prior written notice specifying a
termination date which shall be the last day of a month at least sixty (60) days
subsequent to the date such notice is received by the Plan Administrator. The
Company may terminate any Employer's participation in the Plan as of any
termination date specified by the Company, for the failure of the Employer to
make contributions or to comply with any provision of the Plan.

     (b) Upon the termination of participation in the Plan as to any Employer,
such Employer shall not make any further contributions under the Plan and no
amount shall thereafter be payable under the Plan to or in respect of any
Members then employed by such Employer, except as provided in this Section
10.03. To the maximum extent permitted by law, any rights of Members no longer
employed by such Employer and of former Members and their Beneficiaries and
surviving Spouses under the Plan shall be unaffected by such termination of
participation and any transfers, distributions or other dispositions of the
assets of the Plan as provided in Section 11.04 shall constitute a complete
discharge of all liabilities under the Plan with respect to such Employer
participation in the Plan and any Member then employed by such Employer.

     Section 10.04 Distribution of Trust Fund - Upon termination of the Plan,
the Company, in its sole discretion, may elect to terminate the Trust Agreement.
In such event, each Member's Individual Account shall be paid to such Member (or
Beneficiary of a deceased Member) in a lump sum, as soon as practicable after
applicable regulatory approvals. Any unallocated shares of Company Stock then
held by the Plan shall be allocated to the Individual Accounts of all Members
immediately prior to such termination pursuant to the provisions of Section
3.02.

                                       20

<PAGE>

                                   ARTICLE XI
                            Miscellaneous Provisions

     Section 11.01 Construction - All questions pertaining to the construction,
regulation, validity and effect of the provisions of the Plan shall be
determined in accordance with the laws of the State of Florida, except as may be
pre-empted by ERISA or other federal law.

     Section 11.02 Limitation of Rights - The adoption and maintenance of the
Plan shall not be deemed to constitute a contract between any Employer and any
Employee or Member, and nothing herein contained shall be deemed to give to any
Employee or Member the right to be retained in the employ of any Employer or to
interfere with the right of any Employer to discharge any Employee or Member at
any time.

     Section 11.03 Limitation of Liability - All benefits payable under the Plan
shall be paid or provided for solely from the Trust Fund and each Employer
assumes no liability or responsibility therefor.

     Section 11.04 Mergers and Consolidations of Plans or Transfers of Assets -
The Company may direct the merger or consolidation of the Plan or the transfer
of all or a portion of the assets of the Plan to another plan. Further, an
Employer withdrawing from the Plan may request the transfer of assets of the
Plan allocable to Members who are its Employees to another plan. In the case of
any merger or consolidation of the Plan with, or in the case of any transfer of
assets or liabilities of the Plan to, any other plan, each Member shall (if such
plan is then terminated) be entitled in accordance with Section 414(1) of the
Code to receive a benefit immediately after the merger, consolidation or
transfer which is equal to or greater than the benefit he would have been
entitled to receive immediately before the merger, consolidation or transfer (if
the Plan had then terminated).

     Section 11.05 Return of Contributions - Any contribution made by an
Employer under a mistake of fact may be returned to the Employer by the Trustee
within one year after the payment of the contribution and the Individual Account
of any Member affected shall be adjusted accordingly. If and to the extent a
deduction under Section 404 of the Code for an Employer contribution is
disallowed, the contribution shall be returned to the Employer by the Trustee
within one year after the disallowance of the deduction, and the Individual
Account of any Member affected shall be adjusted accordingly.

     Section 11.06 Gender and Number - All references herein to the masculine
shall be read in the masculine or feminine and all references herein to the
singular shall be read in the singular or plural, unless the context shall
otherwise require.

     Section 11.07 Acceptance by Plan of Eligible Rollover Distributions - The
Plan will accept Member rollover contributions and/or direct rollovers of
distributions made from Eligible Retirement Plans, and such amounts shall, to
the extent required by applicable law, be accounted for separately under the
Plan.

                                       21

<PAGE>

                                  ARTICLE XII
                              Top-Heavy Provisions

       Section 12.01 General - Notwithstanding any other provision of this Plan
to the contrary, this Article XII shall apply to any Plan Year, if the Plan is
deemed to be a Top-Heavy Plan, as hereinafter defined, for such Plan Year.

       Section 12.02 Applicable Definitions - The defined terms used in this
Article XII not otherwise defined in Article I hereof shall have the following
meanings:

               (a)   "Determination Date" means the last day of the preceding
Plan Year, if any; otherwise the last day of the Plan Year.

               (b)   "Determination Period" means the Plan Year ending on the
Determination Date.

               (c)   For purposes of this Article XII, the term "Employee" will
not include individuals who have not performed an Hour of Service during the
Determination Period.

               (d)   "Key Employee" means an Employee, a former Employee, or the
Beneficiary of an Employee or a former Employee who, at anytime during the
Determination Period was:

                     (i)   an officer of an Employer having Annual Compensation
                           greater than fifty percent (50%) of the amount in
                           effect under Section 415(b)(1)(A) of the Code for any
                           such Plan Year, provided that not more than fifty
                           (50) Employees or, if less, the greater of three (3)
                           Employees or ten percent (10%) of the Employees shall
                           be considered as officers for purposes of this
                           subparagraph;

                     (ii)  a five percent (5%) owner (within the meaning of
                           Section 416(i) of the Code) of the Employer;

                     (iii) a one percent (1%) owner (within the meaning of
                           Section 416(i) of the Code) of the Employer having an
                           annual compensation (within the meaning of Treasury
                           Regulation Section 1.415-2(d)) from the Employer of
                           more than $150,000. A non-Key Employee is any
                           Employee who is not a Key Employee.

       The determination of who is a Key Employee shall be made in accordance
with Section 416(i) of the Code and the applicable regulations and other
guidance of general applicability issued thereunder.

               (e)   "Required Aggregation Group" means:

                     (i)   Each stock bonus, pension, or profit-sharing plan of
                           the Employer and/or Affiliated Entity (whether or not
                           terminated) in which a Key Employee participates at
                           any time during the Determination Period and which is
                           intended to qualify under Section 401 (a) of the
                           Code.

                                       22

<PAGE>

                     (ii)  Each other stock bonus, pension or profit-sharing
                           plan of an Employer and/or Affiliated Entity which
                           enables any plan in which a Key Employee participates
                           to meet the requirements of Section 401(a)(4) or
                           Section 410 of the Code.

               (f)   "Permissive Aggregation Group" means a Required Aggregation
Group or, at the election of the Employer, a Required Aggregation Group plus one
or more plans of the Employer and/or Affiliated Entity (whether or not
terminated) which are not part of the Required Aggregation Group but which
together with the Required Aggregation Group satisfy the requirements of
Sections 401(a)(4) and 410 of the Code.

               (g)   "Accrued Benefit Value" means with respect to each Employee
with an accrued benefit during the Determination Period the sum of:

       Actuarial assumptions approved by the Plan Administrator, in accordance
with Treasury Department regulations, shall be utilized in determining present
values.

               (h)   "Account Value" means the sum of:

                     (i)   the aggregate balance of the account(s) of an
                           Employee under the plan(s) as of the Valuation Date;

                     (ii)  any contributions allocated to such account(s) after
                           the Valuation Date and on or before the Determination
                           Date; and

                     (iii) the aggregate distributions made with respect to such
                           account(s) during the Determination Period and not
                           reflected in the value of the account(s) as of the
                           most recent Valuation Date under (i) above.

       The determination of Accrued Benefit Value and Account Value shall be
made in accordance with Treasury Department regulations.

               (i)   "Valuation Date" means the valuation date of the applicable
plan within the twelve (12) month period ending on the Determination Date.

       Section 12.03 Applicability - The Plan shall be a "Top-Heavy Plan" if, as
of the Determination Date, (a) the Account Values of Key Employees exceed sixty
percent (60%) of the Account Values of all Employees and Key Employees (but
excluding for all purposes the Account Values of former Key Employees) under the
Plan, or (b) the Plan is part of a Permissive Aggregation Group and the
Permissive Aggregation Group is a Top-Heavy Group.

       In determining whether this Plan is a Top-Heavy Plan, all Employers and
Affiliated Entities shall be treated as a single Employer and all plans that are
part of the Required Aggregation Group shall be treated as a single plan. Solely
for purposes of determining whether this Plan is a "Top-Heavy Plan," the Accrued
Benefit Values and the Account Values of any Employee who has performed no
services for any Employer maintaining the Plan at any time during the Plan Year
ending on the Determination Date shall be disregarded.

                                       23

<PAGE>

       The Plan shall be part of a "Top-Heavy Group" if, as of the Determination
Date, the sum of:

       (a)  the Accrued Benefit Values of Key Employees under all defined
            benefit plans included in the Required Aggregation Group, and

       (b)  the Account Values of Key Employees under all defined contribution
            plans included in the Required Aggregation Group, exceeds sixty
            percent (60%) of the sum of:

               (i)  the Accrued Benefit Values of all Employees under such
                    defined benefit plans included in the Required Aggregation
                    Group, and

               (ii) the Account Values of all Employees under such defined
                    contribution plans included in the Required Aggregation
                    Group, excluding for all purposes the Accrued Benefit Values
                    and Account Values of former Key Employees.

       Notwithstanding the foregoing provisions of this Section 12.03, the Plan
shall not be considered a Top-Heavy Plan for any Plan Year in which it is part
of a Required Aggregation Group or Permissive Aggregation Group which is not a
Top-Heavy Group.

       The Accrued Benefit Values of Key Employees and the Account Values of Key
Employees as of the Determination Date shall be increased by the distributions
made with respect to the Employee under the Plan and any plan aggregated with
the Plan under Section 416(g)(2) of the Code during the 1-year period ending on
the Determination Date. The immediately preceding sentence shall also apply to
distributions under a terminated plan which, had it not been terminated, would
have been aggregated with the Plan under Section 416(g)(2)(A)(i) of the Code. In
the case of a distribution made for a reason other than separation from service,
death or disability, this provision shall be applied by substituting `5-year
period' for `1-year period'. The accrued benefits and accounts of any individual
who has not performed services for an Employer during the 1-year period ending
on the Determination Date shall not be taken into account.

       Section 12.04 Minimum Allocation - If the Plan is a Top-Heavy Plan in a
Plan Year, the Employer shall contribute on behalf of each Member who is not a
Key Employee for such Plan Year to the extent not otherwise contributed by the
Employer for such Plan Year on behalf of the Member to any other qualified plan
maintained by the Employer, the lesser of (a) three percent (3%) or (b) the
highest percentage of Employer contributions (including salary deferral
contributions by the Employer pursuant to Section 401 (k) of the Code) allocable
to a Key Employee for such Plan Year of each such Member's compensation up to a
maximum of $160,000 for such Plan Year within the meaning of Treas. Reg. (S)
1.415-2(d). The determination of the highest percentage of Employer
Contributions allocable to a Key Employee for a Plan Year shall be made for each
such Key Employee by dividing the contributions made on behalf of each Key
Employee by his Annual Compensation. Contributions made pursuant to this Section
12.04 to Members who are not Key Employees shall be allocated to the Individual
Accounts of Members who are Employees on the last day of the Plan Year. In the
event a

                                       24

<PAGE>

Member otherwise entitled to a minimum allocation hereunder is also a
participant in a defined benefit qualified plan that is determined to be a
Top-Heavy Plan for the Plan Year, such Member shall not receive a minimum
allocation hereunder.

                                       25

<PAGE>

       IN WITNESS WHEREOF, this instrument has been executed as of the day and
year first above written.

                                   ROTECH HEALTHCARE INC.

                                   By: /s/ Janet L. Ziomek
                                       -----------------------------------
                                   By: Janet L. Ziomek
                                   Title: Chief Financial Officer and Treasurer

                                       26

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00049-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00049-of-00352.parquet"}]]