Document:

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                                                                     EXHIBIT 4.7

                             CYBERGUARD CORPORATION

                             RETIREMENT SAVINGS PLAN

                         Dated July 1, 1996, as amended

WHEREAS, CyberGuard Corporation (formerly known as Harris Computer Systems
Corporation, and hereinafter referred to as the "Employer") heretofore adopted
the Harris Computer Systems Corporation Savings Plan (hereinafter referred to as
the "Plan") for the benefit of its Employees; and

WHEREAS, the Employer reserved the right to amend the Plan; and

WHEREAS, the Employer heretofore amended the Plan from time to time and desires
to further amend the Plan; and

WHEREAS, it is intended that the Plan is to continue to be a qualified plan
under Section 401(a) of the Internal Revenue Code for the exclusive benefit of
the Participants and their Beneficiaries;

NOW, THEREFORE, the Plan is hereby amended by restating the Plan in its entirety
as follows (with the name of the Plan being changed to the "CyberGuard
Corporation Retirement Savings Plan").

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                               TABLE OF CONTENTS

ARTICLE ONE--DEFINITIONS
------------------------

     1.1      Account
     1.2      Administrator
     1.3      Beneficiary
     1.4      Break in Service
     1.5      Code
     1.6      Company Stock
     1.7      Compensation
     1.8      Early Retirement Date
     1.9      Effective Date
     1.10     Employee
     1.11     Employer
     1.12     Employment Date
     1.13     Highly-Compensated Employee
     1.14     Hour of Service
     1.15     Leased Employee
     1.16     Nonhighly-Compensated Employee
     1.17     Normal Retirement Date
     1.18     Participant
     1.19     Plan
     1.20     Plan Year
     1.21     Trust
     1.22     Trustee
     1.23     Valuation Date
     1.24     Year of Service

ARTICLE TWO--SERVICE DEFINITIONS AND RULES
------------------------------------------

     2.1      Year of Service
     2.2      Break in Service
     2.3      Maternity/Paternity Leave of Absence
     2.4      Rule of Parity on Return to Employment
     2.5      Service in Excluded Job Classifications or with Related Companies

ARTICLE THREE--PLAN PARTICIPATION
---------------------------------

     3.1      Participation
     3.2      Re-employment of Former Participant
     3.3      Termination of Eligibility

ARTICLE FOUR--ELECTIVE DEFERRALS, EMPLOYER CONTRIBUTIONS,
                 ROLLOVERS AND TRANSFERS FROM OTHER PLANS
---------------------------------------------------------

     4.1      Elective Deferrals
     4.2      Employer Contributions
     4.3      Rollovers and Transfers of Funds from Other Plans
     4.4      Timing of Contributions
     4.5      Employee Voluntary "After-Tax" Contributions

ARTICLE FIVE--ACCOUNTING RULES
------------------------------

     5.1      Investment of Accounts and Accounting Rules
     5.2      Participants Omitted in Error

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ARTICLE SIX--VESTING, RETIREMENT AND DISABILITY BENEFITS
--------------------------------------------------------

     6.1      Vesting
     6.2      Forfeiture of Nonvested Balance
     6.3      Return to Employment Before Distribution of Vested Account Balance
     6.4      Normal Retirement
     6.5      Disability
     6.6      Early Retirement

ARTICLE SEVEN--MANNER AND TIME OF DISTRIBUTING BENEFITS
-------------------------------------------------------
     7.1      Manner of Payment
     7.2      Time of Commencement of Benefit Payments
     7.3      Furnishing Information
     7.4      Minimum Distribution Rules for Installment Payments
     7.5      Amount of Death Benefit
     7.6      Designation of Beneficiary
     7.7      Distribution of Death Benefits
     7.8      Eligible Rollover Distributions

ARTICLE EIGHT--LOANS AND IN-SERVICE WITHDRAWALS
-----------------------------------------------

     8.1      Loans
     8.2      Hardship Distributions
     8.3      Withdrawals After Age 59-1/2

ARTICLE NINE--ADMINISTRATION OF THE PLAN
----------------------------------------

     9.1      Plan Administration
     9.2      Claims Procedure
     9.3      Trust Agreement

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ARTICLE TEN--SPECIAL COMPLIANCE PROVISIONS
------------------------------------------

    10.1      Distribution of Excess Elective Deferrals
    10.2      Limitations on 401(k) Contributions
    10.3      Nondiscrimination Test for Employer Matching Contributions
    10.4      Limitation on the Multiple Use Alternative

ARTICLE ELEVEN--LIMITATION ON ANNUAL ADDITIONS TO A PARTICIPANT'S
                         ACCOUNT
-----------------------------------------------------------------

    11.1      Rules and Definitions

ARTICLE TWELVE--AMENDMENT AND TERMINATION
-----------------------------------------

    12.1      Amendment
    12.2      Termination of the Plan

ARTICLE THIRTEEN--TOP-HEAVY PROVISIONS
--------------------------------------

    13.1      Applicability
    13.2      Definitions
    13.3      Allocation of Employer Contributions and Forfeitures for a
              Top-Heavy Plan Year
    13.4      Vesting

ARTICLE FOURTEEN--MISCELLANEOUS PROVISIONS
------------------------------------------

    14.1      Plan Does Not Affect Employment
    14.2      Successor to the Employer
    14.3      Repayments to the Employer
    14.4      Benefits not Assignable
    14.5      Merger of Plans
    14.6      Investment Experience not a Forfeiture
    14.7      Voting of Company Stock
    14.8      Distribution to Legally Incapacitated
    14.9      Construction
    14.10     Governing Documents
    14.11     Governing Law
    14.12     Headings
    14.13     Counterparts
    14.14     Location of Participant or Beneficiary Unknown

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                            ARTICLE ONE--DEFINITIONS

For purposes of the Plan, unless the context or an alternative definition
specified within another Article provides otherwise, the following words and
phrases shall have the definitions provided:

1.1 "ACCOUNT" shall mean the individual bookkeeping accounts maintained for a
Participant under the Plan which shall record (a) the Participant's allocations
of Employer contributions and forfeitures, (b) amounts of Compensation deferred
to the Plan pursuant to the Participant's election, (c) any amounts transferred
to this Plan under Section 4.3 from another qualified retirement plan, (d) any
voluntary "after-tax" contributions made pursuant to Section 4.5, and (e) the
allocation of Trust investment experience.

1.2 "ADMINISTRATOR" shall mean the Plan Administrator appointed from time to
time in accordance with the provisions of Article Nine hereof.

1.3 "BENEFICIARY" shall mean any person, trust, organization, or estate entitled
to receive payment under the terms of the Plan upon the death of a Participant.

1.4 "BREAK IN SERVICE" shall mean the twelve (12)-month computation period
specified in Article Two.

1.5 "CODE" shall mean the Internal Revenue Code of 1986, as amended from time to
time.

1.6 "COMPANY STOCK" shall mean shares of common stock of CyberGuard Corporation.

1.7 "COMPENSATION" shall mean the compensation paid to a Participant by the
Employer for the Plan Year, but exclusive of any program of deferred
compensation or additional benefits payable other than in cash and any
compensation received prior to his becoming a Participant in the Plan.
Compensation shall include any amounts deferred under a salary reduction
agreement in accordance with Section 4.1 or under a Code Section 125 plan
maintained by the Employer.

In addition to other applicable limitations set forth in the Plan, and
notwithstanding any other provision of the Plan to the contrary, the annual
Compensation of each Participant taken into account under the Plan shall not
exceed the OBRA `93 annual compensation limit. The OBRA `93 annual compensation
limit is $150,000, as adjusted by the Secretary of the Treasury or his delegate
for increases in the cost of living in accordance with Section 401(a)(17)(B) of
the Code. The cost-of-living adjustment in effect for a calendar year applies to
any period, not exceeding 12 months, over which Compensation is determined
(determination period) beginning in such calendar year. If a determination
period consists of fewer than 12 months, the OBRA `93 annual compensation limit
shall be multiplied by a fraction, the numerator of which is the number of
months in the determination period, and the denominator of which is 12. In
determining the Compensation of a Participant for the purposes of this
limitation, the provisions of Code Section 414(q)(6) shall apply, except to the
extent that such rules shall only include the spouse of the Participant and any
lineal descendants of the Participant who have not attained age nineteen (19)
before the end of the Plan Year. If, as a result of the application of such
rules, the adjusted $150,000 limitation is exceeded, the limitation shall be
prorated among the affected individuals' Compensation determined under this
Section prior to the application of this limitation.

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If Compensation for any prior determination period is taken into account in
determining a Participant's benefits accruing in the current Plan Year, the
Compensation for that prior determination period is subject to the OBRA `93
annual compensation limit in effect for that prior determination period. For
this purpose, for determination periods beginning before the first day of the
first Plan Year beginning on or after January 1, 1994, the OBRA `93 annual
compensation limit is $150,000.

For purposes of determining who is a Highly-Compensated Employee, Compensation
shall mean compensation as defined in Code Section 414(q)(7).

1.8 "EARLY RETIREMENT DATE" shall mean the date a Participant, who is at least
age fifty-five (55), retires from employment with the Employer.

1.9 "EFFECTIVE DATE" The Effective Date of this restated Plan, on and after
which it supersedes the terms of the existing Plan document, is October 1, 1996,
except where the provisions of the Plan shall otherwise specifically provide.
The rights of any Participant who separated from the Employer's Service prior to
this date shall be established under the terms of the Plan and Trust as in
effect at the time of the Participant's separation from Service, unless the
Participant subsequently returns to Service with the Employer. Rights of spouses
and Beneficiaries of such Participants shall also be governed by those
documents.

1.10  "EMPLOYEE" shall mean a common law employee of the Employer.

1.11 "EMPLOYER" shall mean CyberGuard Corporation, and any subsidiary or
affiliate of CyberGuard Corporation which, with the approval of its board of
directors, has adopted the Plan and shall include any successor(s) thereto which
adopt this Plan. If, under state law, the Employer at any time is not governed
by directors but instead by its stockholders, or the Employer is an
unincorporated business and is governed by its owners, reference herein to the
board of directors shall be deemed to refer to the individual(s) empowered to
vote on the Employer's affairs.

1.12 "EMPLOYMENT DATE" shall mean the first date as of which an Employee is
credited with an Hour of Service, provided that, in the case of a Break in
Service, the Employment Date shall be the first date thereafter as of which an
Employee is credited with an Hour of Service.

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1.13 "HIGHLY-COMPENSATED EMPLOYEE" shall mean any Employee of the Employer who:

      (a)     was a five percent (5%) owner of the Employer (as defined in Code
              Section 416(i)(1)) during the "determination year" or "look-back
              year"; or

      (b)     earned more than $100,000 (as increased by cost-of-living
              adjustments) of Compensation from the Employer during the
              "look-back year"; or

      (c)     earned more than $66,000 (as increased by cost-of-living
              adjustments) of Compensation from the Employer during the
              "look-back year" and was in the "Top-Paid Group" of Employees for
              such year (as defined under Code Section 414(q)(4) and the
              regulations promulgated thereunder); or

      (d)     was an officer of the Employer during the "look-back year" and
              received Compensation during the "look-back year" from the
              Employer in excess of fifty percent (50%) of the dollar limitation
              under Section 415(b)(1)(A) of the Code. The number of officers
              shall be limited to the lesser of (i) fifty (50) Employees; or
              (ii) the greater of three (3) Employees or ten percent (10%) of
              all Employees. If the Employer does not have at least one officer
              whose annual Compensation exceeds fifty percent (50%) of the
              dollar limitation under Code Section 415(b)(1)(A), then the
              highest paid officer of the Employer shall be treated as a
              Highly-Compensated Employee.

An Employee who is in the group consisting of the one hundred (100) Employees
paid the greatest Compensation during the "determination year" and also
described in subsections (b), (c) or (d) above when these subsections are
modified to substitute "determination year" for "look-back year", shall be
deemed a Highly-Compensated Employee for the determination year.

An Employee who separated from Service prior to the "determination year" shall
be treated as a Highly-Compensated Employee for the "determination year" if such
Employee was a Highly-Compensated Employee when such Employee separated from
Service, or was a Highly-Compensated Employee at any time after attaining age
fifty-five (55).

For purposes of this Section, the "determination year" shall be the Plan Year
for which a determination is being made as to whether an Employee is a
Highly-Compensated Employee. The "look-back year" shall be the twelve (12) month
period immediately preceding the "determination year". However, if the Employer
shall elect, the "look-back year" shall be the calendar year ending with or
within the Plan Year for which testing for the determination of which Employees
are Highly-Compensated Employees is being performed, and the "determination
year" (if applicable) shall be the period of time, if any, which extends beyond
the "look-back year" and ends on the last day of the Plan Year for which such
testing is being performed (the "lag period"). If the "lag period" is less than
twelve (12) months, the dollar threshold amounts specified in (b), (c) and (d)
above shall be pro-rated based upon the number of months in the "lag period".

If an individual is a member of the "family" (within the meaning of Section
414(q)(6)(B) of the Code) of a five percent (5%) owner or a Highly-Compensated
Employee in the group consisting of the ten (10) Highly-Compensated Employees
paid the greatest Compensation during the "determination and/or look-back year,"
then such individual shall not be considered a separate Employee, and any
Compensation paid to such individual (and any contribution or benefit on behalf
of such individual) shall be treated as if paid to (or on behalf of) the five
percent (5%) owner or such Highly-Compensated Employee.

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1.14  "HOUR OF SERVICE" shall mean:

      (a)     each hour for which an Employee is paid or entitled to payment for
              the performance of duties for the Employer. These hours shall be
              credited to the Employee for the computation period in which the
              duties are performed; and

      (b)     each hour for which an Employee is paid, or entitled to payment,
              by the Employer on account of a period of time during which no
              duties are performed (irrespective of whether the employment
              relationship has terminated) due to vacation, holiday, illness,
              incapacity (including disability), layoff, jury duty, involuntary
              military duty, or leave of absence. No more than five hundred and
              one (501) Hours of Service shall be credited under this subsection
              for any single continuous period during which no duties are
              performed (whether or not such period occurs in a single
              computation period). Hours under this subsection shall be
              calculated and credited pursuant to Section 2530.200b-2(b) and (c)
              of the Department of Labor Regulations which are incorporated
              herein by this reference; and

      (c)     each hour for which back pay, irrespective of mitigation of
              damages, is either awarded or agreed to by the Employer. The same
              Hours of Service shall not be credited both under subsection (a)
              or subsection (b), as the case may be, and under this subsection
              (c). These hours shall be credited to the Employee for the
              computation period or periods to which the award or agreement
              pertains rather than the computation period in which the award,
              agreement, or payment is made.

1.15 "LEASED EMPLOYEE" shall mean any person who, pursuant to an agreement
between the Employer and any other person or organization, has performed
services for the Employer (determined in accordance with Code Section 414(n)(6))
on a substantially full-time basis for a period of at least one (1) year, where
such services are of a type historically performed by employees in the business
field of the Employer. A person shall not be considered a Leased Employee if the
total number of Leased Employees does not exceed twenty percent (20%) of the
Nonhighly-Compensated Employees employed by the Employer, and if any such person
is covered by a money purchase pension plan providing (a) a nonintegrated
employer contribution rate of at least ten percent (10%) of compensation, as
defined in Section 11.1(b)(2) of the Plan but including amounts contributed
pursuant to a salary reduction agreement which are excludable from the
employee's gross income under Code Sections 125, 402(a)(8), 402(h) or 403(b),
(b) immediate participation, and (c) full and immediate vesting.

1.16 "NONHIGHLY-COMPENSATED EMPLOYEE" shall mean an Employee of the Employer who
is not a Highly-Compensated Employee.

1.17 "NORMAL RETIREMENT DATE" shall mean a Participant's fifty-fifth (55th)
birthday.

1.18 "PARTICIPANT" shall mean any Employee who has satisfied the eligibility
requirements of Article Three and who is participating in the Plan.

1.19 "PLAN" shall mean this Plan as set forth herein and as it may be amended
from time to time.

1.20 "PLAN YEAR" shall mean the twelve (12)-consecutive month period beginning
January 1 and ending December 31, with the period beginning October 1, 1996 and
ending December 31, 1996 being a short Plan Year.

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1.21 "TRUST" shall mean the Trust Agreement entered into between the Employer
and the Trustee forming part of this Plan, together with any amendments thereto.
"Trust Fund" shall mean any and all property held by the Trustee pursuant to the
Trust Agreement, together with income therefrom.

1.22 "TRUSTEE" shall mean the Trustee or Trustees appointed by the Employer, and
any successors thereto.

1.23 "VALUATION DATE" shall mean the date or dates established by the
Administrator for the valuation of the assets of the Plan. In no event shall the
assets of the Plan be valued less frequently than once each Plan Year.

1.24 "YEAR OF SERVICE" OR "SERVICE" and the special rules with respect to
crediting Service are in Article Two of the Plan.

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                   ARTICLE TWO--SERVICE DEFINITIONS AND RULES

Service is the period of employment credited under the Plan. Definitions and
special rules related to Service are as follows:

2.1 YEAR OF SERVICE. An Employee shall be credited with a Year of Service for
each twelve (12)-month period commencing on his Employment Date (or
re-employment date) and the twelve (12)-month anniversaries of that date and
ending on the date a Break in Service begins. An Employee shall also receive
credit for any Break in Service of less than twelve (12)-consecutive months.
Fractional periods of a year shall be expressed in terms of days, with three
hundred and sixty-five (365) days being equal to one (1) year.

Any former employee of Concurrent Computer Corporation who transferred
employment directly to the Employer shall be credited with any prior service
with Concurrent Computer Corporation for purposes of determining such Employee's
"Years of Service".

2.2 BREAK IN SERVICE. A Break in Service shall be a continuous period in which
an Employee is not employed by the Employer. Such period shall begin on the date
the Employee retires, quits, is discharged or dies or, if earlier, the twelve
(12)-month anniversary of the date on which the Employee is absent from Service
for any other reason.

2.3 MATERNITY/PATERNITY LEAVE OF ABSENCE. For any individual who is absent from
work for any period by reason of the individual's pregnancy, birth of the
individual's child, placement of a child with the individual in connection with
the individual's adoption of the child, or by reason of the individual's caring
for the child for a period beginning immediately following such birth or
adoption, the twelve (12)-consecutive month period beginning on the first
anniversary of the first date of such absence shall not constitute a Break in
Service.

2.4 RULE OF PARITY ON RETURN TO EMPLOYMENT. An Employee who returns to
employment after a Break in Service shall retain credit for his pre-Break Years
of Service, subject to the following rules:

      (a)     If a Participant incurs five (5) or more consecutive one (1)-year
              Breaks in Service, any Years of Service performed thereafter shall
              not be used to increase the nonforfeitable interest in his Account
              accrued prior to such five (5) or more consecutive one (1)-year
              Breaks in Service.

      (b)     If when a Participant incurred a Break in Service, he had not
              completed sufficient Years of Service to be credited with a vested
              benefit under the schedule set forth in Section 6.1, his pre-Break
              Years of Service shall be disregarded if his consecutive one
              (1)-year Breaks in Service equal or exceed five (5).

2.5 SERVICE IN EXCLUDED JOB CLASSIFICATIONS OR WITH RELATED COMPANIES.

      (a)     SERVICE WHILE A MEMBER OF AN INELIGIBLE CLASSIFICATION OF
              EMPLOYEES. An Employee who is a member of an ineligible
              classification of Employees shall not be eligible to participate
              in the Plan while a member of such ineligible classification.
              However, if any such Employee is transferred to an eligible
              classification, such Employee shall be credited with any prior
              Years of Service completed while a member of such an ineligible
              classification. For this purpose,

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              an Employee shall be considered a member of an ineligible
              classification of Employees for any period during which: (i)
              he is a Leased Employee; or (ii) he is employed in a job
              classification which is excluded from participating in the
              Plan under Section 3.1 below.

      (b)     SERVICE WITH RELATED GROUP MEMBERS. For each Plan Year in which
              the Employer is a member of a "related group", as hereinafter
              defined, all Service of an Employee with any one or more members
              of such related group shall be treated as employment by the
              Employer for purposes of determining the Employee's Years of
              Service. The transfer of employment by any such Employee to
              another member of the related group shall not be deemed to
              constitute a retirement or other termination of employment by the
              Employee for purposes of the Plan, but the Employee shall be
              deemed to have continued in employment with the Employer for
              purposes hereof. For purposes of this subsection (b), "related
              group" shall mean the Employer and all corporations, trades or
              businesses (whether or not incorporated) which constitute a
              controlled group of corporations with the Employer, a group of
              trades or businesses under common control with the Employer, or an
              affiliated service group which includes the Employer, within the
              meaning of Section 414(b), Section 414(c), or Section 414(m),
              respectively, of the Code or any other entity required to be
              aggregated under Code Section 414(o).

      (c)     CONSTRUCTION. This Section is included in the Plan to comply with
              the Code provisions regarding the crediting of Service, and not to
              extend any additional rights to Employees in ineligible
              classifications other than as required by the Code and regulations
              thereunder.

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                        ARTICLE THREE--PLAN PARTICIPATION

3.1 PARTICIPATION. All Employees participating in the Plan prior to the Plan's
restatement shall continue to participate, subject to the terms hereof.

Each other Employee shall become a Participant under the Plan effective as of
the Employee's Employment Date, or as soon as administratively possible
thereafter.

3.2 RE-EMPLOYMENT OF FORMER PARTICIPANT. A Participant whose participation
ceased because of termination of employment with the Employer shall immediately
participate upon his re-employment.

3.3 TERMINATION OF ELIGIBILITY. In the event a Participant is no longer a member
of an eligible class of Employees and he becomes ineligible to participate, such
Employee shall participate immediately upon returning to an eligible class of
Employees.

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            ARTICLE FOUR--ELECTIVE DEFERRALS, EMPLOYER CONTRIBUTIONS,
                    ROLLOVERS AND TRANSFERS FROM OTHER PLANS

4.1  ELECTIVE DEFERRALS.

      (a)     ELECTIONS. A Participant may elect to defer a portion of his
              Compensation for a Plan Year. The amount of a Participant's
              Compensation that is deferred in accordance with the Participant's
              election shall be withheld by the Employer from the Participant's
              Compensation. The amount deferred on behalf of each Participant
              shall be contributed by the Employer to the Plan and allocated to
              the Participant's Account.

      (b)     CHANGES IN ELECTION. A Participant may prospectively elect to
              change or revoke the amount (or percentage) of his elective
              deferrals during the Plan Year by filing a written election with
              the Employer, or via a telephone "voice response" system
              designated by the Administrator, provided that a written
              confirmation is forwarded in response to such oral request.

      (c)     LIMITATIONS ON DEFERRALS. No Participant shall defer an amount
              which exceeds $9,500 (or such amount as adjusted for
              cost-of-living increases under Section 402(g) of the Code) for any
              calendar year ending with or within the Plan Year.

      (d)     ADMINISTRATIVE RULES. All elections made under this Section 4.1,
              including the amount and frequency of deferrals, shall be subject
              to the rules of the Administrator which shall be consistently
              applied and which may be changed from time to time.

4.2 EMPLOYER CONTRIBUTIONS.

      (a)     EMPLOYER MATCHING CONTRIBUTIONS. For each Plan Year, the Employer
              may contribute to the Plan, on behalf of each Participant eligible
              under Section 4.2(b), a discretionary matching contribution equal
              to a percentage (as determined by the Employer's board of
              directors) of the elective deferrals and/or voluntary "after-tax"
              contributions (within the meaning of Section 4.5 below) made by
              each such Participant. The amount, if any, of the Employer
              matching contribution for any Plan Year shall be made at the
              discretion of the board of directors of the Employer. The
              Employer's board of directors may also determine to suspend or
              reduce its contributions under this Section for any Plan Year or
              any portion thereof. Allocations under this Section shall be
              subject to the special rules of Section 13.3 in any Plan Year in
              which the Plan is a Top-Heavy Plan.

      (b)     ELIGIBILITY FOR EMPLOYER MATCHING CONTRIBUTIONS. To be eligible
              for a share of Employer matching contributions, a Participant must
              have made elective deferrals and/or voluntary "after-tax"
              contributions (within the meaning of Section 4.5 below) during the
              period for which such matching contributions are made to the Plan.
              The matching contributions received by any such Participant for
              the Plan Year shall, however, be limited to the extent required to
              comply with the requirements of applicable Federal law.

      (c)     ADDITIONAL EMPLOYER CONTRIBUTIONS. Additional Employer
              contributions may be made at the discretion of the Employer's
              board of directors for any Plan Year, subject to limits for tax
              deductions under the Code and provided that the special allocation
              in Section 13.3 has been satisfied if the Plan is a Top-Heavy
              Plan.

      (d)     ELIGIBILITY FOR ADDITIONAL EMPLOYER CONTRIBUTIONS. To be eligible
              for an allocation of additional Employer contributions under
              Section 4.2(c) for a Plan Year, a Participant must be employed by
              the Employer on the last day of the Plan Year; provided, however,
              that if the Participant's

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              failure to be employed by the Employer on the last day of the Plan
              Year is due to the Participant's being on an authorized leave of
              absence, disability, death or retirement on or after his Early or
              Normal Retirement Date during the Plan Year, such Participant
              ahall nevertheless be entitled to share in the allocation of any
              additional Employer contributions for such Plan Year.

      (e)     ALLOCATION OF ADDITIONAL EMPLOYER CONTRIBUTIONS. Any contribution
              made under Section 4.2(c) shall be allocated among the Accounts of
              eligible Participants in accordance with the ratio that each such
              eligible Participant's Compensation bears to the total
              Compensation of all such eligible Participants for the Plan Year.

4.3 ROLLOVERS AND TRANSFERS OF FUNDS FROM OTHER PLANS. With the approval of the
Administrator, there may be paid to the Trustee amounts which have been held
under other plans qualified under Code Section 401 either (a) maintained by the
Employer which have been discontinued or terminated with respect to any
Employee, or (b) maintained by another employer with respect to which any
Employee has ceased to participate. Any such transfer or rollover may also be
made by means of an Individual Retirement Account qualified under Section 408 of
the Code, where the Individual Retirement Account was used as a conduit from the
former plan. Any amounts so transferred on behalf of any Employee shall be
nonforfeitable and shall be maintained under a separate Plan account, to be paid
in addition to amounts otherwise payable under this Plan. The amount of any such
account shall be equal to the fair market value of such account as adjusted for
income, expenses, gains, losses, and withdrawals attributable thereto.

4.4 TIMING OF CONTRIBUTIONS. Employer contributions shall be made to the Plan no
later than the time prescribed by law for filing the Employer's Federal income
tax return (including extensions) for its taxable year ending with or within the
Plan Year. Elective deferrals under Section 4.1 shall be paid to the Plan as
soon as administratively possible following receipt of such deferrals by the
Plan Administrator.

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4.5 EMPLOYEE VOLUNTARY "AFTER-TAX" CONTRIBUTIONS. A Participant shall be
permitted to make voluntary "after-tax" contributions to the Plan. These
contributions shall be subject to the limitations under Section 10.3 and Section
11.1 and such other administrative rules and procedures as may be established by
the Administrator from time to time.

A Participant shall have a nonforfeitable interest at all times in that portion
of his Account attributable to such after-tax contributions, which shall be
distributed at the same time as other vested benefits would be distributed under
the Plan. However, a Participant may, subject to such minimum withdrawal amounts
and such other administrative rules and procedures as may be established by the
Administrator from time to time, withdraw all or any part of such portion of his
Account upon prior written notice to the Administrator.

                                       11
<PAGE>   16

                         ARTICLE FIVE--ACCOUNTING RULES

5.1 INVESTMENT OF ACCOUNTS AND ACCOUNTING RULES.

      (a)     INVESTMENT FUNDS. The investment of Participants' Accounts shall
              be made in a manner consistent with the provisions of the Trust.
              In this regard, the Trust shall provide for separate funds for the
              directed investment of each Participant's Account; provided,
              however, that a portion (as determined by the Employer's board of
              directors) of any Employer contributions allocated to a
              Participant's Account shall automatically be invested in the
              Company Stock fund, subject to the Participant's right (as set
              forth under Section 5.1(b) below) to direct the investment of that
              portion of his Account after attaining age fifty-five (55). Based
              on the foregoing, it is hereby provided that more than ten percent
              (10%) of the fair market value of the Plan's assets may be
              invested in the Company Stock fund. It is also hereby provided
              that a portion of the Company Stock fund shall be invested in cash
              and cash equivalents for liquidity purposes.

      (b)     PARTICIPANT DIRECTION OF INVESTMENTS. Subject to the foregoing
              provisions of Section 5.1(a), each Participant may direct, in
              writing, how his Account is to be invested among the available
              investment funds in the percentage multiples established by the
              Administrator. In the event a Participant fails to make an
              investment election, with respect to all or any portion of his
              Account which is subject to his investment direction, the Trustee
              shall invest all or such portion of his Account in the investment
              fund to be designated by the Administrator. A Participant may
              change his investment election, with respect to future
              contributions and, if applicable, forfeitures, and/or amounts
              previously accumulated in the Participant's Account, in writing on
              such form as the Administrator shall specify, or via a telephone
              "voice response" system designated by the Administrator, provided
              that a written confirmation is forwarded in response to such oral
              request. Any such change in a Participant's investment election
              shall be effective at such time as may be prescribed by the
              Administrator. If the Plan's recordkeeper or investment manager is
              changed, the Administrator may suspend the Participants'
              investment direction of their Accounts. If Participants' direction
              of investments are suspended, the Administrator shall invest the
              Participants' Accounts in an interest-bearing account until such
              change has been completed.

              Any Participant, upon attaining age fifty-five (55), may, subject
              to such administrative rules and procedures as may be established
              by the Administrator from time to time, elect to transfer all or
              any portion of his Account invested in the Company Stock fund to
              the available investment funds which are subject to his investment
              direction.

      (c)     ALLOCATION OF INVESTMENT EXPERIENCE. As of each Valuation Date,
              the investment fund(s) of the Trust shall be valued at fair market
              value, and the income, loss, appreciation and depreciation
              (realized and unrealized), and any paid expenses of the Trust
              attributable to such fund shall be apportioned among Participants'
              Accounts within the fund based upon the value of each Account
              within the fund as of the preceding Valuation Date.

      (d)     ALLOCATION OF CONTRIBUTIONS. Employer contributions shall be
              allocated to the Account of each eligible Participant as of the
              last day of the period for which the contributions are made.
              Forfeitures which arise in a Plan Year shall be allocated as of
              the last day of such Plan Year. Elective deferrals shall be
              allocated to the Account of each Participant as soon as
              administratively practical following receipt of such contributions
              by the Administrator.

                                       12
<PAGE>   17

      (e)     MANNER AND TIME OF DEBITING DISTRIBUTIONS. For any Participant who
              is entitled to receive a distribution from his Account, such
              distribution shall be made in accordance with the provisions of
              Section 7.2. The amount distributed shall be based upon the fair
              market value of the Participant's vested Account as of the
              Valuation Date preceding the distribution.

5.2 PARTICIPANTS OMITTED IN ERROR. In the event a Participant is not allocated a
share of the Employer contribution and/or forfeitures as a result of an
administrative error in any Plan Year, the Employer may elect to either (a) make
an additional contribution on behalf of such omitted Participant in an
appropriate amount, or (b) deduct the appropriate amount from the next
succeeding Employer contribution and/or forfeitures and allocate such amount to
the Participant's Account prior to making the allocations set forth under
Section 5.1(d).

                                       13
<PAGE>   18

            ARTICLE SIX--VESTING, RETIREMENT AND DISABILITY BENEFITS

6.1 VESTING. A Participant shall at all times have a nonforfeitable (vested)
right to his Account derived from elective deferrals, voluntary "after-tax"
contributions, Employer "fail-safe" contributions under Section 10.2, and any
rollovers or transfers from other plans. Except as otherwise provided with
respect to Normal Retirement, disability, or death, each other Participant shall
have a nonforfeitable (vested) right to a percentage of the value of his Account
derived from Employer matching contributions under Section 4.2(a) and additional
Employer contributions under Section 4.2(c) as follows:

              Years of Service                      Vested Percentage
              ----------------                      -----------------

              LESS THAN 3 YEARS                                 0%
              3 YEARS BUT LESS THAN 4                          30%
              4 YEARS BUT LESS THAN 5                          40%
              5 YEARS BUT LESS THAN 6                          60%
              6 YEARS BUT LESS THAN 7                          80%
              7 YEARS AND THEREAFTER                          100%

Notwithstanding the foregoing provisions of this Section 6.1, any Participant
who terminated employment with the Employer as a result of the Employer's merger
with Concurrent Computer Corporation shall be one hundred percent (100%) vested
in his Account.

6.2 FORFEITURE OF NONVESTED BALANCE. The nonvested portion of a Participant's
Account, as determined in accordance with Section 6.1, shall be forfeited as of
the earlier of (i) the last day of the Plan Year in which the Participant
receives distribution of his vested Account or (ii) the last day of the Plan
Year in which the Participant incurs five (5) consecutive one (1)-year Breaks in
Service. However, no forfeiture shall occur solely as a result of a
Participant's withdrawal of any voluntary after-tax contributions. The amount
forfeited shall be used to reduce future Employer matching contributions under
the Plan.

If the Participant returns to the employment of the Employer prior to incurring
five (5) consecutive one (1)-year Breaks in Service and prior to receiving
distribution of his vested Account, the nonvested portion shall be restored.
However, if the nonvested portion of the Participant's Account was allocated as
a forfeiture as the result of the Participant receiving distribution of his
vested Account balance, the nonvested portion shall be restored if:

      (a)     the Participant resumes employment prior to incurring five (5)
              consecutive one (1)-year Breaks in Service; and

      (b)     the Participant repays to the Plan, as of the earlier of (i) the
              date which is five (5) years after his reemployment date or (ii)
              the date which is the last day of the period in which the
              Participant incurs five (5) consecutive one (1)-year Breaks in
              Service, an amount equal to the total distribution derived from
              Employer contributions under Section 4.2 and, if applicable,
              Section 13.3.

The nonvested amount shall be restored to the Participant's Account, without
interest or adjustment for interim Trust valuation experience, by a special
Employer contribution or from the next succeeding Employer contribution and
forfeitures, as appropriate.

6.3 RETURN TO EMPLOYMENT BEFORE DISTRIBUTION OF VESTED ACCOUNT BALANCE. If
distribution is made to an Employee of less than the Employee's entire vested
Account, and if the Employee returns to Service, a separate record shall be
maintained of said Account balance. The Employee's vested interest at any time
in this separate account shall be an amount equal to the formula

                                       14
<PAGE>   19

P(AB+D)-D, where P is the vested percentage at the relevant time, AB is the
Account balance at the relevant time, and D is the amount of the distribution
made to the Employee.

6.4 NORMAL RETIREMENT. A Participant who is in the employment of the Employer at
his Normal Retirement Date shall have a nonforfeitable interest in one hundred
percent (100%) of his Account, if not otherwise one hundred percent (100%)
vested under the vesting schedule in Section 6.1. A Participant who continues in
employment after his Normal Retirement Date shall continue to participate under
the Plan.

6.5 DISABILITY. If a Participant incurs a "permanent and total disability" while
in the employ of the Employer, the Participant shall have a nonforfeitable
interest in one hundred percent (100%) of his Account, if not otherwise one
hundred percent (100%) vested under the vesting schedule in Section 6.1. Payment
of such Participant's Account balance shall be made at the time and in the
manner specified in Article Seven, following receipt by the Administrator of the
Participant's written distribution request. "Permanent and total disability"
shall mean suffering from a physical or mental condition which, in the opinion
of the Administrator and based upon appropriate medical advice and examination,
will render the Participant unfit to perform the duties of his employment.
Receipt of a Social Security disability award shall be deemed proof of
disability.

6.6 EARLY RETIREMENT. A Participant who separates from Service as of his Early
Retirement Date shall be entitled to receive distribution of his vested Account.
Payment shall commence at the time and in a manner specified in Article Seven
following receipt by the Plan Administrator of the Participant's written
distribution request.

                                       15
<PAGE>   20

             ARTICLE SEVEN--MANNER AND TIME OF DISTRIBUTING BENEFITS

7.1 MANNER OF PAYMENT. The Participant's vested Account shall be distributed to
the Participant (or to the Participant's Beneficiary in the event of the
Participant's death) by any of the following methods, as elected by the
Participant or, when applicable, the Participant's Beneficiary:

      (a)     in a single lump-sum payment; or

      (b)     provided the Participant's vested Account exceeds $3,500, in
              periodic installments (at least annual), subject to the minimum
              distribution rules of Section 7.4.

Notwithstanding the foregoing provisions of this Section 7.1, any distribution
from the Company Stock Fund may, at the election of the Participant (or, in the
event of the Participant's death, his Beneficiary) be distributed, in a lump-sum
payment, in the form of Company Stock (with any fractional shares, together with
the cash and cash equivalent portions of the Company Stock fund, being paid in
cash in accordance with the mode of distribution elected above).

7.2 TIME OF COMMENCEMENT OF BENEFIT PAYMENTS. Distribution of the Participant's
vested Account balance for a Participant who terminates employment on or after
his Normal or Early Retirement Date, or as a result of his "permanent and total
disability", shall be made or commence no later than sixty (60) days following
the close of the Plan Year in which such event occurred, unless the Participant
elects to defer receipt of his vested Account subject to the provisions of this
Section; provided, however, that if the amount required to be distributed cannot
be ascertained by such date, distribution shall be made no later than sixty (60)
days after the earliest date on which such amount can be ascertained; and
provided, further, that if the Participant's vested Account balance exceeds
$3,500, distribution shall not be made or commence prior to such Participant's
Normal Retirement Date, unless the Participant otherwise requests in writing. In
such event, distribution shall commence as soon as administratively practical
following receipt by the Administrator of the Participant's written request.

If a Participant terminates employment for any reason other than Normal or Early
Retirement, disability or death, distribution of his vested Account balance
shall be made or commence no later than sixty (60) days following the close of
the Plan Year in which he incurs a one (1)-year Break in Service. However, if
the vested balance of a Participant's Account exceeds $3,500, distribution shall
not be made or commence prior to such Participant's Normal Retirement Date
unless the Participant otherwise requests in writing.

The failure of a Participant to consent to a distribution while his vested
Account balance is immediately distributable shall be deemed to be an election
to defer commencement of payment of his vested Account balance.

Notwithstanding any provision contained herein to the contrary, a Participant
who is not vested in any portion of his Account balance attributable to Employer
contributions shall be deemed to have received distribution of such portion of
his Account as of the end of the Plan Year in which he incurs a one(1)-year
Break in Service.

A Participant who terminates employment after his Normal Retirement Date may
elect to defer receipt of his Account; provided, however, that in no event shall
the distribution be made or commence later than the April 1st following the end
of the calendar year in which the Participant attains age seventy and one-half
(70-1/2), unless the Participant attained age seventy and one-half (70-1/2) on
or before January 1, 1988 and was not a five percent (5%) owner of the Employer.
For any Participant who attained age seventy and one-half (70-1/2) on or before
January 1, 1988 and was not a five percent (5%) owner, payment must

                                       16
<PAGE>   21

be made or commence by the later of the April 1st following the calendar year of
retirement, or the April 1st following the calendar year in which the
Participant attains age seventy and one-half (70-1/2).

7.3 FURNISHING INFORMATION. Prior to the payment of any benefit under the Plan,
each Participant or Beneficiary may be required to complete such administrative
forms and furnish such proof as may be deemed necessary or appropriate by the
Employer, Administrator, and/or Trustee.

7.4 MINIMUM DISTRIBUTION RULES FOR INSTALLMENT PAYMENTS. If a distribution is
made in installments the following rules shall apply:

      (a)     PAYMENTS TO PARTICIPANT OR TO PARTICIPANT AND SURVIVING SPOUSE.
              Payment shall commence no later than a date provided for in
              Section 7.2. The amount to be distributed each year shall be at
              least equal to the vested balance in the Participant's Account as
              of the preceding Valuation Date multiplied by the following
              fraction: the numerator shall be one (1) and the denominator shall
              be the life expectancy of the Participant (or the joint life
              expectancies of the Participant and the Participant's spouse)
              determined as of the Valuation Date preceding the first payment
              and reduced by one for each succeeding year.

      (b)     PAYMENTS TO PARTICIPANT AND NON-SPOUSE BENEFICIARY. Payment shall
              commence no later than a date provided for in Section 7.2. The
              amount to be distributed each year shall be at least equal to the
              vested balance in the Participant's Account as of the preceding
              Valuation Date multiplied by the following fraction: the numerator
              shall be one (1) and the denominator shall be the joint life
              expectancies of the Participant and the Participant's Beneficiary
              computed as of the Valuation Date preceding the first payment and
              reduced by one (1) for each succeeding year. Payments shall be
              restricted under this option to insure compliance with the minimum
              distribution incidental death benefit requirement of Section
              401(a)(9) of the Code and the regulations promulgated thereunder.

      (c)     PAYMENTS TO BENEFICIARY. Payment shall commence no later than a
              date provided for in Section 7.7. The amount to be distributed
              each year shall be at least equal to the vested balance in the
              Participant's Account as of the preceding Valuation Date
              multiplied by the following fraction: the numerator shall be one
              (1) and the denominator shall be the life expectancy of the
              Participant's Beneficiary computed as of the Valuation Date
              preceding the first payment and reduced by one (1) for each
              succeeding year.

      (d)     RECALCULATION OF LIFE EXPECTANCY. If distribution is to be made
              over the life expectancy of the Participant or, where the
              Participant's spouse is his Beneficiary, the life expectancy of
              the Participant's surviving spouse, or the joint life expectancies
              of the Participant and his spouse, such life expectancy or joint
              life expectancies, at the election of the Participant or his
              surviving spouse, as the case may be, may be recalculated
              annually. Any such election shall be irrevocable as to the
              Participant (and spouse, if applicable) and shall apply to all
              subsequent years. In no event, however, shall the life expectancy
              of a non-spouse Beneficiary be recalculated.

                                       17
<PAGE>   22
7.5 AMOUNT OF DEATH BENEFIT.

      (a)     DEATH BEFORE TERMINATION OF EMPLOYMENT. In the event of the death
              of a Participant while in the employ of the Employer, vesting in
              the Participant's Account shall be one hundred percent (100%), if
              not otherwise one hundred percent (100%) vested under Section 6.1,
              with the credit balance of the Participant's Account being payable
              to his Beneficiary.

      (b)     DEATH AFTER TERMINATION OF EMPLOYMENT. In the event of the death
              of a former Participant after termination of employment, but prior
              to the complete distribution of his vested Account balance under
              the Plan, the undistributed vested balance of the Participant's
              Account shall be paid to the Participant's Beneficiary.

7.6 DESIGNATION OF BENEFICIARY. Each Participant shall file with the
Administrator a designation of Beneficiary to receive payment of any death
benefit payable hereunder if such Beneficiary should survive the Participant.
However, no Participant who is married shall be permitted to designate a
Beneficiary other than his spouse unless the Participant's spouse has signed a
written consent witnessed by a Plan representative or a notary public, which
provides for the designation of an alternate Beneficiary.

Subject to the above, Beneficiary designations may include primary and
contingent Beneficiaries, and may be revoked or amended at any time in similar
manner or form, and the most recent designation shall govern. In the absence of
an effective designation of Beneficiary, or if the Beneficiary dies before
complete distribution of the Participant's vested Account, all amounts shall be
paid to the surviving spouse of the Participant, if living, or otherwise to the
Participant's estate. Notification to Participants of the death benefits under
the Plan and the method of designating a Beneficiary shall be given at the time
and in the manner provided by regulations and rulings under the Code.

7.7 DISTRIBUTION OF DEATH BENEFITS. Distribution of any death benefit hereunder
shall be made within one (1) year of the Participant's death or, in the case of
a surviving spouse, within a reasonable time after the Participant's death or,
if the surviving spouse so elects and if the Participant's vested Account
exceeds $3,500, no later than the date on which the Participant would have
reached age seventy and one-half (70-1/2). If a surviving spouse dies before
distributions to the spouse begin, this paragraph shall be applied as if the
surviving spouse were the Participant.

To the extent payments are not designated to or for the benefit of a natural
person, or if payments commence after the required time, the following
distribution modes shall be available:

      (a)     a lump sum payable at any time within five (5) years of the
              Participant's death; and

      (b)     payments of installments at such time and in such amount as
              determined by the Beneficiary, provided that all amounts must be
              paid from the Trust within five (5) years of the Participant's
              death.

If a Participant dies after payments have commenced, any survivor's benefit must
be paid no less rapidly than the method of payment in effect at the time of the
Participant's death.

                                       18
<PAGE>   23

7.8 ELIGIBLE ROLLOVER DISTRIBUTIONS. Notwithstanding the foregoing provisions of
this Article Seven, the provisions of this Section 7.8 shall apply to
distributions made under the Plan.

      (a)     A distributee may elect, at the time and in the manner prescribed
              by the Administrator, to have any portion of an eligible rollover
              distribution paid directly to an eligible retirement plan
              specified by the distributee in a direct rollover.

      (b)     Definitions:

              (i)    ELIGIBLE ROLLOVER DISTRIBUTION. An eligible rollover
                     distribution is any distribution of all or any portion of
                     the balance to the credit of the distributee, except that
                     an eligible rollover distribution does not include: any
                     distribution that is one of a series of substantially equal
                     periodic payments (not less frequently than annually) made
                     for the life (or life expectancy) of the distributee or the
                     joint lives (or joint life expectancies) of the distributee
                     and the distributee's designated beneficiary, or for a
                     specified period of ten (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 employer
                     securities).

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

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

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

      (c)     If a distribution is one to which Sections 401(a)(11) and 417 of
              the Code do not apply, such distribution may commence less than 30
              days after the notice required under Section 1.411(a)-11(c) of the
              Income Tax Regulations is given, provided that:

              (i)    the Administrator clearly informs the Participant that the
                     Participant has a right to a period of at least 30 days
                     after receiving the notice to consider the decision of
                     whether or not to elect a distribution (and, if applicable,
                     a particular distribution option), and

              (ii)   the Participant, after receiving the notice, affirmatively
                     elects a distribution.

                                       19
<PAGE>   24

                   ARTICLE EIGHT--LOANS IN-SERVICE WITHDRAWALS

8.1 LOANS.

      (a)     PERMISSIBLE AMOUNT AND PROCEDURES. Upon the application of a
              Participant, the Administrator may, in accordance with a uniform
              and nondiscriminatory policy, direct the Trustee to grant a loan
              to the Participant, which loan shall be secured by the
              Participant's vested Account balance. The Participant's signature
              shall be required on a promissory note. In determining a rate of
              interest on such loan, the Administrator may refer to the rate of
              interest used for obligations of a comparable nature by commercial
              lending institutions within a radius of fifty (50) miles of the
              Employer's principal place of business. Participant loans shall be
              treated as segregated investments, and interest repayments shall
              be credited only to the Participant's Account.

      (b)     LIMITATION ON AMOUNT OF LOANS. A Participant's loan shall not
              exceed the lesser of:

              (1)    $50,000, which amount shall be reduced by the highest
                     outstanding loan balance during the preceding twelve
                     (12)-month period; or

              (2)    one-half (1/2) of the vested value of the Participant's
                     Account, determined as of the Valuation Date preceding the
                     date of the Participant's loan application.

In no event, however, shall any portion of the Participant's Account which is
invested in the Company Stock fund be liquidated in order to provide such loan.

Any loan must be repaid within five (5) years. The repayment of any loan must be
made in at least quarterly installments of principal and interest. If a
Participant defaults on any outstanding loan, the unpaid balance, and any
interest due thereon, shall become due and payable in accordance with the terms
of the underlying promissory note; provided, however, that such foreclosure on
the promissory note and attachment of security shall not occur until a
distributable event occurs in accordance with the provisions of Article Seven.

If a Participant terminates employment while any loan balance is outstanding,
the unpaid balance, and any interest due thereon, shall become due and payable
in accordance with the terms of the underlying promissory note. If such amount
is not paid to the Plan, it shall be charged against the amounts that are
otherwise payable to the Participant or the Participant's Beneficiary under the
provisions of the Plan.

In the case of a Participant who has loans outstanding from other plans of the
Employer (or a member of the Employer's related group (within the meaning of
Section 2.5(b)), the Administrator shall be responsible for reporting to the
Trustee the existence of said loans in order to aggregate all such loans within
the limits of Section 72(p) of the Code.

                                       20
<PAGE>   25

8.2 HARDSHIP DISTRIBUTIONS. In the case of a financial hardship resulting from a
proven immediate and heavy financial need, a Participant may receive a
distribution not to exceed the lesser of (i) the vested value of the
Participant's Account attributable to his elective deferrals, without regard to
earnings thereon after December 31, 1988, and any voluntary after-tax and/or
rollover contributions he may have made (including earnings thereon) determined
as of the Valuation Date immediately preceding such withdrawal request, or (ii)
the amount necessary to satisfy the financial hardship. The amount of any such
immediate and heavy financial need may include any amounts necessary to pay
Federal, state or local income taxes or penalties reasonably anticipated to
result from the distribution. Such distribution shall be made in accordance with
nondiscriminatory and objective standards consistently applied by the
Administrator. Hardship distributions under this Section shall be deemed to be
the result of an immediate and heavy financial need if such distribution is to
(a) pay expenses for medical care (as described in Section 213(d) of the Code)
previously incurred by the Participant, the Participant's spouse, or any
dependents of the Participant (as defined in Section 152 of the Code), or to
permit the Participant, the Participant's spouse, or any dependents of the
Participant to obtain such medical care, (b) purchase the principal residence of
the Participant (excluding mortgage payments), (c) pay tuition and related
educational fees for the next twelve (12) months of post-secondary education for
the Participant, Participant's spouse, or any of the Participant's dependents or
(d) prevent the eviction of the Participant from his principal residence or
foreclosure on the Participant's principal residence. In addition, any hardship
distribution hereunder shall only be made provided that the funds for such
hardship are not available from other financial resources of the Participant,
the Participant's spouse or the Participant's children.

The provisions of this Section (relating to hardship distributions) are intended
to comply with Treasury Regulations issued under Section 401(k) of the Code, and
shall be so interpreted.

8.3 WITHDRAWALS AFTER AGE 59-1/2. After attaining age fifty-nine and one-half
(59-1/2), a Participant, by giving written notice to the Administrator, may
withdraw from the Plan a sum (a) not in excess of the credit balance of his
Account attributable to his elective deferrals as of the Valuation Date
preceding such notice and (b) not less than such minimum amount as the
Administrator may establish from time to time to facilitate administration of
the Plan. Any such withdrawals shall be made in accordance with
nondiscriminatory and objective standards consistently applied by the
Administrator.

                                       21
<PAGE>   26

                    ARTICLE NINE --ADMINISTRATION OF THE PLAN

9.1 PLAN ADMINISTRATION. The Employer shall be the Plan Administrator,
hereinbefore and hereinafter called the Administrator, and named fiduciary of
the Plan, unless the Employer, by action of its board of directors, shall
designate a person or committee of persons to be the Administrator and named
fiduciary. The administration of the Plan, as provided herein, including a
determination of the payment of benefits to Participants and their
Beneficiaries, shall be the responsibility of the Administrator. In the event
more than one party shall act as Administrator, all actions shall be made by
majority decisions. In the administration of the Plan, the Administrator may (a)
employ agents to carry out nonfiduciary responsibilities (other than Trustee
responsibilities), (b) consult with counsel, who may be counsel to the Employer,
and (c) provide for the allocation of fiduciary responsibilities (other than
Trustee responsibilities) among its members. Actions dealing with fiduciary
responsibilities shall be taken in writing and the performance of agents,
counsel and fiduciaries to whom fiduciary responsibilities have been delegated
shall be reviewed periodically.

The expenses of administering the Plan and the compensation of all employees,
agents, or counsel of the Administrator, including accounting fees,
recordkeeper's fees, and the fees of any benefit consulting firm, shall be paid
by the Plan, or shall be paid by the Employer if the Employer so elects. To the
extent required by applicable law, compensation may not be paid by the Plan to
full-time Employees of the Employer.

The Administrator shall obtain from the Trustee, not less often than annually, a
report with respect to the value of the assets held in the Trust Fund, in such
form as may be required by the Administrator.

The Administrator shall administer the Plan and adopt such rules and regulations
as, in the opinion of the Administrator, are necessary or advisable to implement
and administer the Plan and to transact its business.

9.2 CLAIMS PROCEDURE. Pursuant to procedures established by the Administrator,
adequate notice in writing shall be provided to any Participant or Beneficiary
whose claim for benefits under the Plan has been denied within ninety (90) days
of receipt of such claim. Such notice shall set forth the specific reason for
such denial, shall be written in a manner calculated to be understood by the
claimant, and shall advise of the right to administrative review. If such review
is requested by the claimant or his authorized representative within ninety (90)
days after receipt by the claimant of written notification of denial of his
claim, the Administrator shall afford a reasonable opportunity for a full and
fair review by the Administrator of the decision denying the claim. The review
shall focus on the additional facts, legal interpretations or material, if any,
presented by the claimant. A hearing at its place of business may be scheduled
by the Administrator, but a hearing is not required under the review procedure.

9.3 TRUST AGREEMENT. The Trust Agreement entered into by and between the
Employer and the Trustee, including any supplements or amendments thereto, or
any successor Trust Agreement, is incorporated by reference herein.

                                       22
<PAGE>   27

                   ARTICLE TEN--SPECIAL COMPLIANCE PROVISIONS

10.1 DISTRIBUTION OF EXCESS ELECTIVE DEFERRALS. If the amount of any elective
deferrals made by a Participant exceeds the dollar limitation of Section 4.1(c),
then the excess amount, and any income allocable thereto, shall be distributed
to such Participant subject to the requirements of applicable law.

10.2  LIMITATIONS ON 401(K) CONTRIBUTIONS.

      (a)     AVERAGE ACTUAL DEFERRAL PERCENTAGE TEST. Amounts contributed as
              elective deferrals under Section 4.1(a), and any "fail-safe"
              contributions made under this Section, are considered to be
              amounts deferred pursuant to Section 401(k) of the Code. For
              purposes of this Article, these amounts are referred to as the
              "deferred amounts." For purposes of the average actual deferral
              percentage test described below, such deferred amounts must be
              made before the last day of the twelve (12)-month period
              immediately following the Plan Year to which the contributions
              relate. The Employer shall maintain records sufficient to
              demonstrate satisfaction of the average actual deferral percentage
              test and the deferred amounts used in such test.

              As of the last day of each Plan Year, the deferred amounts for the
              Plan Year for the Participants who are Highly-Compensated
              Employees shall satisfy either of the following tests:

              (1)    The average actual deferral percentage for the eligible
                     Participants who are Highly-Compensated Employees shall not
                     exceed the average actual deferral percentage for eligible
                     Participants who are Nonhighly-Compensated Employees
                     multiplied by 1.25; or

              (2)    The average actual deferral percentage for eligible
                     Participants who are Highly-Compensated Employees shall not
                     exceed the average actual deferral percentage of eligible
                     Participants who are Nonhighly-Compensated Employees
                     multiplied by two (2), provided that the average actual
                     deferral percentage for eligible Participants who are
                     Highly-Compensated Employees does not exceed the average
                     actual deferral percentage for eligible Participants who
                     are Nonhighly-Compensated Employees by more than two (2)
                     percentage points, or such lesser amount as the Secretary
                     of the Treasury shall prescribe to prevent the multiple use
                     of this alternative limitation with respect to any
                     Highly-Compensated Employee.

For purposes of the above tests, the "actual deferral percentage" shall mean the
ratio (expressed as a percentage) that the deferred amounts, which are allocated
to the Participant's Account as of any day in the Plan Year, on behalf of each
eligible Participant for the Plan Year bears to the eligible Participant's
compensation, as defined in Code Section 414(s) and the regulations promulgated
thereunder. The "average actual deferral percentage" shall mean the average
(expressed as a percentage) of the actual deferral percentages of the eligible
Participants in each group. "Eligible Participant" shall mean each Employee who
is eligible to participate in the Plan under Section 3.1.

                                       23
<PAGE>   28

For purposes of this Section 10.2, the actual deferral percentage for any
eligible Participant who is a Highly-Compensated Employee for the Plan Year and
who is eligible to have elective deferrals allocated to his account under two
(2) or more plans or arrangements described in Code Section 401(k) that are
maintained by the Employer or any employer who is a related group member (within
the meaning of Section 2.5(b)) shall be determined as if all such deferrals were
made under a single arrangement. In the event that this Plan satisfies the
requirements of Code Section 410(b) only if aggregated with one (1) or more
other plans, or if one (1) or more other plans satisfy the requirements of Code
Section 410(b) only if aggregated with this Plan, then the provisions of this
Section 10.2 shall be applied by determining the actual deferral percentage of
eligible Participants as if all such plans were a single plan.

For purposes of determining the actual deferral percentage of a Participant who
is classified as a Highly-Compensated Employee as the result of being a five
percent (5%) owner, or who is one of the ten (10) highest paid
Highly-Compensated Employees, the deferred amount and the compensation of such
Participant shall include the deferred amounts and compensation of his family
members (as defined in Code Section 414(q)(6)(B)) participating in the Plan.
Such family members shall be disregarded in determining the average actual
deferral percentage for Participants who are Nonhighly-Compensated Employees.

The determination and treatment of deferred amounts and the actual deferral
percentage of any Participant shall be subject to the prescribed requirements of
the Secretary of the Treasury.

In the event the average actual deferral percentage test is not satisfied for a
Plan Year, the Employer, in its discretion, may make a special "fail-safe"
contribution for eligible Participants who are Nonhighly-Compensated Employees,
to be allocated among their Accounts in proportion to their Compensation for the
Plan Year.

      (b)  DISTRIBUTIONS OF EXCESS CONTRIBUTIONS.

              (1)    IN GENERAL. If the average actual deferral percentage test
                     of Section 10.2(a) is not satisfied for a Plan Year, then
                     the "excess contributions", and income allocable thereto,
                     shall be distributed, to the extent required under Treasury
                     regulations, no later than the last day of the Plan Year
                     following the Plan Year for which the excess contributions
                     were made. However, if such excess contributions are
                     distributed later than two and one-half (2-1/2) months
                     following the last day of the Plan Year in which such
                     excess contributions were made, a ten percent (10%) excise
                     tax shall be imposed upon the Employer with respect to such
                     excess contributions.

              (2)    EXCESS CONTRIBUTIONS. For purposes of this Section, "excess
                     contributions" shall consist of the excess of the aggregate
                     amount of deferred amounts made by or on behalf of the
                     affected Highly-Compensated Employee over the maximum
                     amount of all such contributions permitted under the test
                     under Section 10.2(a). In reducing the excess contribution
                     hereunder, the reduction shall be first applied to the
                     Highly-Compensated Employee with the highest percentage
                     under Section 10.2(a). If reductions are further required
                     to comply with Section 10.2(a), such reductions shall be
                     applied to the Highly-Compensated Employee with the next
                     highest percentage, and so forth until the
                     nondiscrimination test of Section 10.2(a) is satisfied.

              (3)    DETERMINATION OF INCOME. The income allocable to excess
                     contributions shall be determined by multiplying the income
                     allocable to the Participant's deferred amounts for the
                     Plan Year by a fraction, the numerator of which is the
                     excess contributions made on behalf of the Participant for
                     the Plan Year, and the denominator of which is the sum of
                     the Participant's Account balances attributable to the
                     Participant's deferred amounts on the last day of the Plan
                     Year.

                                       24
<PAGE>   29

              (4)    MAXIMUM DISTRIBUTABLE AMOUNT. The excess contributions to
                     be distributed to a Participant shall be adjusted for
                     income and, if there is a loss allocable to the excess
                     contribution, shall in no event be less than the lesser of
                     the Participant's Account under the Plan or the
                     Participant's deferred amounts for the Plan Year. Excess
                     contributions shall be distributed from that portion of the
                     Participant's Account attributable to such deferred amounts
                     to the extent allowable under Treasury regulations.

10.3  NONDISCRIMINATION TEST FOR EMPLOYER MATCHING CONTRIBUTIONS.

      (a)     AVERAGE CONTRIBUTION PERCENTAGE TEST. The provisions of this
              Section shall apply if Employer matching contributions are made in
              any Plan Year under Section 4.2(a) and/or if Employee after-tax
              contributions are made to the Plan under Section 4.5.

              As of the last day of each Plan Year, the average contribution
              percentage for Highly-Compensated Employees for the Plan Year
              shall satisfy either of the following tests:

              (1)    The average contribution percentage for eligible
                     Participants who are Highly-Compensated Employees shall not
                     exceed the average contribution percentage for eligible
                     Participants who are Nonhighly-Compensated Employees for
                     the Plan Year multiplied by 1.25; or

              (2)    The average contribution percentage for eligible
                     Participants who are Highly-Compensated Employees shall not
                     exceed the average contribution percentage for eligible
                     Participants who are Nonhighly-Compensated Employees for
                     the Plan Year multiplied by two (2), provided that the
                     average contribution percentage for eligible Participants
                     who are Highly-Compensated Employees does not exceed the
                     average contribution percentage for eligible Participants
                     who are Nonhighly-Compensated Employees by more than two
                     (2) percentage points or such lesser amount as the
                     Secretary of the Treasury shall prescribe to prevent the
                     multiple use of this alternative limitation with respect to
                     any Highly-Compensated Employee.

For purposes of the above tests, the "average contribution percentage" shall
mean the average (expressed as a percentage) of the contribution percentages of
the "eligible Participants" in each group. The contribution percentage" shall
mean the ratio (expressed as a percentage) that the sum of Employer matching
contributions, and, if applicable, Employee after-tax contributions, and
elective deferrals (to the extent such elective deferrals are not used to
satisfy the average actual deferral percentage test of Section 10.2) under the
Plan on behalf of the eligible Participant for the Plan Year bears to the
eligible Participant's compensation (as defined in Code Section 414(s) and the
regulations promulgated thereunder) for the Plan Year.

For purposes of this Section 10.3, the contribution percentage for any eligible
Participant who is a Highly-Compensated Employee for the Plan Year and who is
eligible to have Employer matching contributions or elective deferrals allocated
to his account under two (2) or more plans described in Section 401(a) of the
Code or under arrangements described in Section 401(k) of the Code that are
maintained by the Employer or any member of the Employer's related group (within
the meaning of Section 2.5(b)), shall be determined as if all such contributions
and elective deferrals were made under a single plan.

In the event that this Plan satisfies the requirements of Section 410(b) of the
Code only if aggregated with one (1) or more other plans, or if one (1) or more
other plans satisfy the requirements of Section 410(b) of the Code only if
aggregated with this Plan, then the provisions of this Section 10.3 shall be
applied by determining the contribution percentages of eligible Participants as
if all such plans were a single plan.

                                       25
<PAGE>   30

For purposes of determining the contribution percentage of an eligible
Participant who is classified as a Highly-Compensated Employee as the result of
being a five percent (5%) owner or who is one of the ten (10) highest paid
Highly-Compensated Employees, the Employer matching contributions, Employee
after-tax contributions, elective deferrals (to the extent not used to satisfy
the average actual deferral percentage test of Section 10.2) and compensation of
such Participant shall include the Employer matching contributions, Employee
after-tax contributions and such elective deferrals and compensation of his
family members (as defined in Code Section 414(q)(6)(B)) participating in the
Plan. Such family members shall be disregarded in determining the average
contribution percentage for eligible Participants who are Nonhighly-Compensated
Employees.

The determination and treatment of the contribution percentage of any
Participant shall satisfy such other requirements as may be prescribed by the
Secretary of the Treasury.

      (b)  DISTRIBUTION OF EXCESS EMPLOYER MATCHING CONTRIBUTIONS.

              (1)    IN GENERAL. If the nondiscrimination tests of Section
                     10.3(a) are not satisfied for a Plan Year, then the "excess
                     contributions", and any income allocable thereto, shall be
                     forfeited, if otherwise forfeitable, no later than the last
                     day of the Plan Year following the Plan Year for which the
                     nondiscrimination tests are not satisfied, and shall be
                     used to reduce Employer contributions under Section 4.2(a).
                     To the extent that such "excess contributions" are
                     nonforfeitable, such excess contributions shall be
                     distributed to the Participant on whose behalf the excess
                     contributions were made no later than the last day of the
                     Plan Year following the Plan Year for which such "excess
                     contributions" were made. However, if such excess
                     contributions are distributed later than two and one-half
                     (2-1/2) months following the last day of the Plan Year in
                     which such excess contributions were made, a ten percent
                     (10%) excise tax shall be imposed upon the Employer with
                     respect to such excess contributions. For purposes of the
                     limitations of Section 11.1(b)(1) of the Plan, excess
                     contributions shall be considered annual additions.

                     Notwithstanding the foregoing, to the extent otherwise
                     required to comply with the requirements of Section
                     401(a)(4) of the Code and the regulations thereunder,
                     vested matching contributions may be forfeited.

              (2)    EXCESS CONTRIBUTIONS. For purposes of this Section, "excess
                     contributions" shall consist of the excess of the amount of
                     Employer matching contributions and, if applicable,
                     Employee after-tax contributions, and elective deferrals
                     (to the extent not used to satisfy the average actual
                     deferral percentage test of Section 10.2) made on behalf of
                     the affected Highly-Compensated Employee over the maximum
                     amount of all such contributions permitted under the
                     nondiscrimination tests under Section 10.3(a). In reducing
                     the excess contribution hereunder, the reduction shall be
                     first applied to the Highly-Compensated Employee with the
                     highest percentage under Section 10.3(a). If reductions are
                     further required to comply with Section 10.3(a), such
                     reductions shall be applied to the Highly-Compensated
                     Employee with the next highest percentage, and so forth
                     until the nondiscrimination tests of Section 10.3(a) are
                     satisfied.

              (3)    DETERMINATION OF INCOME. The income allocable to excess
                     contributions shall be determined by multiplying the income
                     allocable to the Employer matching contributions and, if
                     applicable, Employee after-tax contributions, and such
                     elective deferrals by a fraction, the numerator of which is
                     the excess contributions on behalf of the Participant for
                     the Plan Year, and the denominator of which is the sum of
                     the Participant's Account balances attributable to Employer
                     matching contributions and, if

                                       26
<PAGE>   31

                     applicable, Employee after-tax contributions, and such
                     elective deferrals, on the last day of the Plan Year.

10.4 LIMITATION ON THE MULTIPLE USE ALTERNATIVE. The sum of the average actual
deferral percentage of Highly-Compensated Employees under Section 10.2(a) and
the average contribution percentage of Highly-Compensated Employees under
Section 10.3(a) shall not exceed the "aggregate limit", as defined in Section
401(m)(9) of the Code and the regulations promulgated thereunder.

If the aggregate limit is exceeded, the average contribution percentage of the
Highly-Compensated Employees shall be reduced in accordance with the provisions
of Section 10.3(b). In lieu of reducing the average contribution percentage, the
Administrator may reduce the average actual deferral percentage of the
Highly-Compensated Employees in accordance with the provisions of Section
10.2(b). The reductions under this Section shall be made only to the extent
necessary to comply with the restrictions on the multiple use of the
"alternative limitation" within the meaning of Code Section 401(m)(9).

                                       27
<PAGE>   32
                 ARTICLE ELEVEN--LIMITATION ON ANNUAL ADDITIONS
                           TO A PARTICIPANT'S ACCOUNT

11.1  RULES AND DEFINITIONS.

      (a)     RULES. The following rules shall limit additions to Participants'
              Accounts:

              (1)    If the Participant does not participate, and has never
                     participated, in another qualified plan maintained by the
                     Employer, the amount of annual additions which may be
                     credited to the Participant's Account for any limitation
                     year shall not exceed the lesser of the "maximum
                     permissible" amount (as hereafter defined) or any other
                     limitation contained in this Plan. If the Employer
                     contribution that would otherwise be allocated to the
                     Participant's Account would cause the annual additions for
                     the limitation year to exceed the maximum permissible
                     amount, the amount allocated shall be reduced so that the
                     annual additions for the limitation year shall equal the
                     maximum permissible amount.

              (2)    Prior to determining the Participant's actual compensation
                     for the limitation year, the Employer may determine the
                     maximum permissible amount for a Participant on the basis
                     of a reasonable estimation of the Participant's
                     compensation for the limitation year, uniformly determined
                     for all Participants similarly situated.

              (3)    As soon as is administratively feasible after the end of
                     the limitation year, the maximum permissible amount for the
                     limitation year shall be determined on the basis of the
                     Participant's actual compensation for the limitation year.

              (4)    If there is an excess amount, the excess shall be disposed
                     of as follows:

                     (A)    Any nondeductible voluntary Employee after-tax
                            contributions and, to the extent elected by the
                            Administrator pursuant to a nondiscriminatory
                            procedure, elective deferrals under Section 4.1(a),
                            to the extent they would reduce the excess amount,
                            shall be returned to the Participant.

                     (B)    If an excess amount still exists after the
                            application of subparagraph (A), and the Participant
                            is covered by the Plan at the end of the limitation
                            year, the excess amount in the Participant's Account
                            shall be used to reduce Employer contributions
                            (including any allocation of forfeitures, if
                            applicable) for such Participant in the next
                            limitation year, and each succeeding limitation year
                            if necessary;

                     (C)    If an excess amount still exists after the
                            application of subparagraphs (A) and (B), and the
                            Participant is not covered by the Plan at the end of
                            the limitation year, the excess amount shall be held
                            unallocated in a suspense account and applied to
                            reduce future Employer contributions (including
                            allocation of any forfeitures) for all remaining
                            Participants in the next limitation year, and each
                            succeeding limitation year if necessary.

                     (D)    If a suspense account is in existence at any time
                            during the limitation year pursuant to this Section
                            11.1(a)(4), it shall not participate in the
                            allocation of the Trust's investment gains and
                            losses. In addition, all amounts held in the
                            suspense account shall be allocated and reallocated
                            to Participants' Accounts before any Employer or
                            Employee contributions may be made for the
                            limitation year.

                                       28
<PAGE>   33

              (5)    If, in addition to this Plan, the Participant is covered
                     under another defined contribution plan maintained by the
                     Employer, or a welfare benefit fund, as defined in Code
                     Section 419(e), maintained by the Employer, or an
                     individual medical account, as defined in Code Section
                     415(1)(2), maintained by the Employer which provides an
                     annual addition, the annual additions which may be credited
                     to a Participant's account under all such plans for any
                     such limitation year shall not exceed the maximum
                     permissible amount. Benefits shall be reduced under any
                     discretionary defined contribution plan before they are
                     reduced under any defined contribution pension plan. If
                     both plans are discretionary contribution plans, they shall
                     first be reduced under this Plan. Any excess amount
                     attributable to this Plan shall be disposed of in the
                     manner described in Section 11.1(a)(4).

              (6)    If the Employer maintains, or at any time maintained, a
                     qualified defined benefit plan covering any Participant in
                     this Plan, the sum of the Participant's defined benefit
                     plan fraction and defined contribution plan fraction shall
                     not exceed 1.0 in any limitation year. The annual additions
                     which may be credited to the Participant's Account under
                     this Plan for any limitation year shall be limited so that
                     if the limitations of Code Section 415(e) become
                     applicable, benefits under a defined contribution plan
                     shall have first been provided before benefits under a
                     defined benefit plan are provided.

              (7)    In any Plan Year in which the Plan becomes a Super
                     Top-Heavy Plan (as defined in Section 13.2 below), the
                     denominators of the defined benefit fraction and defined
                     contribution fraction shall be computed using one hundred
                     percent (100%) of the maximum dollar limitation instead of
                     one hundred and twenty-five percent (125%).

              (8)    In any year in which the Plan is a Top-Heavy Plan (but not
                     a Super Top-Heavy Plan), the limitations shall be similarly
                     reduced, subject to the special provisions of Section 13.3,
                     which provide for the use of the one hundred and
                     twenty-five percent (125%) limitation subject to the added
                     minimum allocations.

      (b) DEFINITIONS.

              (1)    ANNUAL ADDITIONS: The following amounts credited to a
                     Participant's Account for the limitation year shall be
                     treated as annual additions:

                     (A)    Employer contributions;

                     (B)    Elective deferrals;

                     (C)    Employee after-tax contributions, if any;

                     (D)    Forfeitures, if any; and

                     (E)    Amounts allocated after March 31, 1984 to an
                            individual medical account, as defined in Section
                            415(l)(2) of the Code, which is part of a defined
                            benefit plan maintained by the Employer. Also,
                            amounts derived from contributions paid or accrued
                            after December 31, 1985 in taxable years ending
                            after such date which are attributable to
                            post-retirement medical benefits allocated to the
                            separate account of a Key Employee, as defined in
                            Section 419A(d)(3), and amounts under a welfare
                            benefit fund, as defined in Section 419(e),
                            maintained by the Employer, shall be treated as
                            annual additions to a defined contribution plan.

                                       29
<PAGE>   34

                     For this purpose, any excess amount applied under Section
                     11.1(a)(4) in the limitation year to reduce Employer
                     contributions shall be considered annual additions for such
                     limitation year.

              (2)    COMPENSATION: For purposes of determining maximum permitted
                     benefits under this Section, compensation shall include all
                     of a Participant's earned income, wages, salaries, and fees
                     for professional services, and other amounts received for
                     personal services actually rendered in the course of
                     employment with the Employer, including, but not limited
                     to, commissions paid to salesmen, compensation for services
                     on the basis of a percentage of profits, commissions on
                     insurance premiums, tips and bonuses, and excluding the
                     following:

                     (A)    Employer contributions to a plan of deferred
                            compensation which are not included in the
                            Employee's gross income for the taxable year in
                            which contributed, or Employer contributions under a
                            simplified employee pension plan (funded with
                            individual retirement accounts or annuities) to the
                            extent such contributions are deductible by the
                            Employee, or any distributions from a plan of
                            deferred compensation;

                     (B)    Amounts realized from the exercise of a nonqualified
                            stock option, or when restricted stock (or property)
                            held by the Employee either becomes freely
                            transferable or is no longer subject to a
                            substantial risk of forfeiture;

                     (C)    Amounts realized from the sale, exchange, or other
                            disposition of stock acquired under a qualified
                            stock option; and

                     (D)    Other amounts which received special tax benefits,
                            or contributions made by the Employer (whether or
                            not under a salary reduction agreement) toward the
                            purchase of an annuity described in Section 403(b)
                            of the Code (whether or not the amounts are actually
                            excludable from the gross income of the Employee).

                     Compensation shall be measured on the basis of compensation
                     paid in the limitation year.

              (3)    DEFINED BENEFIT FRACTION: This shall mean a fraction, the
                     numerator of which is the sum of the Participant's
                     projected annual benefits under all the defined benefit
                     plans maintained or previously maintained by the Employer,
                     and the denominator of which is the lesser of one hundred
                     and twenty-five percent (125%) of the dollar limitation in
                     effect for the limitation year under Section 415(b)(1)(A)
                     of the Code or one hundred and forty percent (140%) of the
                     highest average compensation including any adjustment under
                     Code Section 415(b).

              (4)    DEFINED CONTRIBUTION FRACTION: This shall mean a fraction,
                     the numerator of which is the sum of the annual additions
                     to the Participant's account under all the defined
                     contribution plans (whether or not terminated), welfare
                     benefit funds, and individual medical accounts maintained
                     by the Employer for the current and all prior limitation
                     years, and the denominator of which is the sum of the
                     maximum aggregate amounts for the current and all prior
                     limitation years of Service with the Employer, regardless
                     of whether a defined contribution plan was maintained by
                     the Employer.

                     The maximum aggregate amount in any limitation year is the
                     lesser of one hundred and twenty-five percent (125%) of the
                     dollar limitation then in effect under Section 415(c)(1)(A)
                     of the Code or thirty-five (35%) of the Participant's
                     compensation for such year.

                                       30
<PAGE>   35

                     If the Employee, as of the end of the first day of the
                     first limitation year beginning after December 31, 1986,
                     was a participant in one (1) or more defined contribution
                     plans maintained by the Employer which were in existence on
                     May 5, 1986, the numerator of this fraction shall be
                     adjusted if the sum of this fraction and the defined
                     benefit fraction would otherwise exceed 1.0 under the terms
                     of this Plan. Under the adjustment, an amount equal to the
                     product of (i) the excess of the sum of the fractions over
                     1.0 and (ii) the denominator of this fraction, will be
                     permanently subtracted from the numerator of this fraction.
                     The adjustment is calculated using the fractions as they
                     would be computed as of the end of the last limitation year
                     beginning before January 1, 1987, and disregarding any
                     changes in the terms and conditions of the Plan made after
                     May 5, 1986, but using the Code Section 415 limitation
                     applicable to the first limitation year beginning on or
                     after January 1, 1987.

                     The annual addition for any limitation year beginning
                     before January 1, 1987, shall not be recomputed to treat
                     all Employee contributions as annual additions.

              (5)    DEFINED CONTRIBUTION DOLLAR LIMITATION: This shall mean the
                     greater of $30,000 or one-fourth (1/4) of the defined
                     benefit dollar limitation of Section 415(b)(1) of the Code
                     in effect for the limitation year.

              (6)    EMPLOYER: This term refers to the Employer that adopts this
                     Plan, and all members of a controlled group of corporations
                     (as defined in Section 414(b) of the Code, as modified by
                     Section 415(h)), commonly-controlled trades or businesses
                     (as defined in Section 414(c), as modified by Section
                     415(h)), or affiliated service groups (as defined in
                     Section 414(m)) of which the Employer is a part, or any
                     other entity required to be aggregated with the Employer
                     under Code Section 414(o).

              (7)    HIGHEST AVERAGE COMPENSATION: This means the average
                     compensation for the three (3) consecutive limitation years
                     with the Employer that produces the highest average.

              (8)    LIMITATION YEAR:  This shall mean the Plan Year.

              (9)    MAXIMUM PERMISSIBLE AMOUNT: This shall mean an amount equal
                     to the lesser of the defined contribution dollar limitation
                     or twenty-five percent (25%) of the Participant's
                     compensation for the limitation year. If a short limitation
                     year is created because of an amendment changing the
                     limitation year to a different twelve (12)-consecutive
                     month period, the maximum permissible amount shall not
                     exceed the defined contribution dollar limitation
                     multiplied by the following fraction:

                   Number of Months in the Short Limitation Year
                   ---------------------------------------------
                                       12

              (10)   PROJECTED ANNUAL BENEFIT: This is the annual retirement
                     benefit (adjusted to an actuarially equivalent straight
                     life annuity if such benefit is expressed in a form other
                     than a straight life annuity or qualified joint and
                     survivor annuity) to which the Participant would be
                     entitled under the terms of the plan, assuming:

                     (A)    the Participant will continue employment until
                            normal retirement age under the plan (or current
                            age, if later), and

                     (B)    the Participant's compensation for the current
                            limitation year and all other relevant factors used
                            to determine benefits under the plan will remain
                            constant for all future limitation years.

                                       31
<PAGE>   36
                    ARTICLE TWELVE--AMENDMENT AND TERMINATION

12.1 AMENDMENT. The Employer, by resolution of its Board of Directors, shall
have the right to amend, alter or modify the Plan at any time, or from time to
time, in whole or in part. Any such amendment shall become effective under its
terms upon adoption by the Employer. However, no amendment affecting the duties,
powers or responsibilities of the Trustee may be made without the written
consent of the Trustee. No amendment shall be made to the Plan which shall:

      (a)     make it possible (other than as provided in Section 14.3) for any
              part of the corpus or income of the Trust Fund (other than such
              part as may be required to pay taxes and administrative expenses)
              to be used for or diverted to purposes other than the exclusive
              benefit of the Participants or their Beneficiaries; or

      (b)     alter the schedule for vesting in a Participant's Account with
              respect to any Participant with three (3) or more Years of Service
              without his consent or deprive any Participant of any
              nonforfeitable portion of his Account.

Notwithstanding the other provisions of this Section or any other provisions of
the Plan, any amendment or modification of the Plan may be made retroactively if
necessary or appropriate to conform to or to satisfy the conditions of any law,
governmental regulation, or ruling, and to meet the requirements of the Employee
Retirement Income Security Act of 1974, as it may be amended.

12.2 TERMINATION OF THE PLAN. The Employer, by resolution of its Board of
Directors, reserves the right at any time and in its sole discretion to
discontinue payments under the Plan and to terminate the Plan. In the event the
Plan is terminated, or upon complete discontinuance of contributions under the
Plan by the Employer, the rights of each Participant to his Account on the date
of such termination or discontinuance of contributions, to the extent of the
fair market value under the Trust Fund, shall become fully vested and
nonforfeitable. The Employer shall direct the Trustee to distribute the Trust
Fund in accordance with the Plan's distribution provisions to the Participants
and their Beneficiaries, each Participant or Beneficiary receiving a portion of
the Trust Fund equal to the value of his Account as of the date of distribution.
These distributions may be implemented by the continuance of the Trust and the
distribution of the Participants' Account shall be made at such time and in such
manner as though the Plan had not terminated, or by any other appropriate
method, including rollover into Individual Retirement Accounts. Upon
distribution of the Trust Fund, the Trustee shall be discharged from all
obligations under the Trust and no Participant or Beneficiary shall have any
further right or claim therein. If a partial termination of the Plan is deemed
to have occurred, this Section shall apply only to those Participant's affected
by such partial termination.

                                       32
<PAGE>   37

                     ARTICLE THIRTEEN--TOP-HEAVY PROVISIONS

13.1 APPLICABILITY. The provisions of this Article shall become applicable only
for any Plan Year in which the Plan is a Top-Heavy Plan. The determination of
whether the Plan is a Top-Heavy Plan shall be made each Plan Year by the
Administrator.

13.2 DEFINITIONS. For purposes of this Article, the following definitions shall
apply:

      (a)     "KEY EMPLOYEE": "Key Employee" shall mean any Employee or former
              Employee (and the Beneficiaries of such Employee) who, at any time
              during the determination period, was (1) an officer of the
              Employer earning compensation (as defined in Section 416(i) of the
              Code) in excess of fifty percent (50%) of the dollar limitation
              under Section 415(b)(1)(A) of the Code, (2) an owner (or
              considered an owner under Section 318 of the Code) of both more
              than a one-half percent (1/2%) interest in the Employer and one of
              the ten (10) largest interests in the Employer if such
              individual's compensation exceeds the dollar limitation under
              Section 415(c)(1)(A) of the Code, (3) a five percent (5%) owner of
              the Employer, or (4) a one percent (1%) owner of the Employer who
              has an annual compensation of more than $150,000. For purposes of
              this Section, annual compensation shall mean compensation as
              defined in Code Section 415(c)(3), but including amounts
              contributed by the Employer pursuant to a salary reduction
              agreement which are excludable from the Employee's income under
              Code Sections 125, 402(a)(8), 402(h) or 403(b). The determination
              period of the Plan is the Plan Year containing the determination
              date as defined in Section 13.2(c)(4) and the four (4) preceding
              Plan Years.

              The determination of who is a Key Employee (including the terms
              "5% owner" and "1% owner") shall be made in accordance with
              Section 416(i)(1) of the Code and the regulations thereunder.

      (b)     "SUPER TOP-HEAVY PLAN": The Plan shall constitute a "Super
              Top-Heavy Plan" if it meets the test for status as a Top-Heavy
              Plan, where "90%" is substituted for "60%" at each place in
              Section 13.2(c).

      (c)     "TOP-HEAVY PLAN":

              (1)    The Plan shall constitute a "Top-Heavy Plan" if any of the
                     following conditions exist:

                     (A)    The top-heavy ratio for the Plan exceeds sixty
                            percent (60%) and the Plan is not part of any
                            required aggregation group or permissive aggregation
                            group of plans; or

                     (B)    The Plan is part of a required aggregation group of
                            plans (but is not part of a permissive aggregation
                            group) and the top-heavy ratio for the group of
                            plans exceeds sixty percent (60%); or

                     (C)    The Plan is a part of a required aggregation group
                            of plans and part of a permissive aggregation group
                            and the top-heavy ratio for the permissive
                            aggregation group exceeds sixty percent (60%).

              (2)    If the Employer maintains one (1) or more defined
                     contribution plans (including any simplified employee
                     pension plan funded with individual retirement accounts or
                     annuities) and the Employer maintains or has maintained one
                     (1) or more defined benefit plans which have covered or
                     could cover a Participant in this Plan, the top-heavy

                                       33
<PAGE>   38

                     ratio is a fraction, the numerator of which is the sum of
                     account balances under the defined contribution plans for
                     all Key Employees and the actuarial equivalents of accrued
                     benefits under the defined benefit plans for all Key
                     Employees, and the denominator of which is the sum of the
                     account balances under the defined contribution plans for
                     all Participants and the actuarial equivalents of accrued
                     benefits under the defined benefit plans for all
                     Participants. Both the numerator and denominator of the
                     top-heavy ratio shall include any distribution of an
                     account balance or an accrued benefit made in the five
                     (5)-year period ending on the determination date and any
                     contribution due to a defined contribution pension plan but
                     unpaid as of the determination date. In determining the
                     accrued benefit of a non-Key Employee who is participating
                     in a plan that is part of a required aggregation group, the
                     method of determining such benefit shall be either (i) in
                     accordance with the method, if any, that uniformly applies
                     for accrual purposes under all plans maintained by the
                     Employer or any member of the Employer's related group
                     (within the meaning of Section 2.5(b)), or (ii) if there is
                     no such method, as if such benefit accrued not more rapidly
                     than the slowest accrual rate permitted under the
                     fractional accrual rate of Code Section 411(b)(1)(C).

              (3)    For purposes of (1) and (2) above, the value of account
                     balances and the actuarial equivalents of accrued benefits
                     shall be determined as of the most recent Valuation Date
                     that falls within or ends with the twelve (12)-month period
                     ending on the determination date. The account balances and
                     accrued benefits of a Participant who is not a Key Employee
                     but who was a Key Employee in a prior year shall be
                     disregarded. The accrued benefits and account balances of
                     Participants who have performed no Hours of Service with
                     any Employer maintaining the plan for the five (5)-year
                     period ending on the determination date shall be
                     disregarded. The calculations of the top-heavy ratio, and
                     the extent to which distributions, rollovers, and transfers
                     are taken into account shall be made under Section 416 of
                     the Code and regulations issued thereunder. Deductible
                     Employee contributions shall not be taken into account for
                     purposes of computing the top-heavy ratio. When aggregating
                     plans, the value of account balances and accrued benefits
                     shall be calculated with reference to the determination
                     dates that fall within the same calendar year.

              (4)    DEFINITION OF TERMS FOR TOP-HEAVY STATUS:

                     (A) "TOP-HEAVY RATIO" shall mean the following:

                            (1)    If the Employer maintains one or more defined
                                   contribution plans (including any simplified
                                   employee pension plan funded with individual
                                   retirement accounts or annuities) and the
                                   Employer has never maintained any defined
                                   benefit plans which have covered or could
                                   cover a Participant in this Plan, the
                                   top-heavy ratio is a fraction, the numerator
                                   of which is the sum of the account balances
                                   of all Key Employees as of the determination
                                   date (including any part of any account
                                   balance distributed in the five (5)-year
                                   period ending on the determination date), and
                                   the denominator of which is the sum of the
                                   account balances (including any part of any
                                   account balance distributed in the five
                                   (5)-year period ending on the determination
                                   date) of all Participants as of the
                                   determination date. Both the numerator and
                                   the denominator shall be increased by any
                                   contributions due but unpaid to a defined
                                   contribution pension plan as of the
                                   determination date.

                     (B)    "PERMISSIVE AGGREGATION GROUP" shall mean the
                            required aggregation group of plans plus any other
                            plan or plans of the Employer which, when considered

                                       34
<PAGE>   39

                            as a group with the required aggregation group,
                            would continue to satisfy the requirements of
                            Section 401(a)(4) and/or 410 of the Code.

                     (C)    "REQUIRED AGGREGATION GROUP" shall mean (i) each
                            qualified plan of the Employer (including any
                            terminated plan) in which at least one Key Employee
                            participates, and (ii) any other qualified plan of
                            the Employer which enables a plan described in (i)
                            to meet the requirements of Section 401(a)(4) and/or
                            410 of the Code.

                     (D)    "DETERMINATION DATE" shall mean, for any Plan Year
                            subsequent to the first Plan Year, the last day of
                            the preceding Plan Year. For the first Plan Year of
                            the Plan, "determination date" shall mean the last
                            day of that Plan Year.

                     (E)    "VALUATION DATE" shall mean the last day of the Plan
                            Year.

                     (F)    Actuarial equivalence shall be based on the interest
                            and mortality rates utilized to determine actuarial
                            equivalence when benefits are paid from any defined
                            benefit plan. If no rates are specified in said
                            plan, the following shall be utilized: pre- and
                            post-retirement interest -- five percent (5%);
                            post-retirement mortality based on the Unisex
                            Pension (1984) Table as used by the Pension Benefit
                            Guaranty Corporation on the date of execution
                            hereof.

13.3 ALLOCATION OF EMPLOYER CONTRIBUTIONS AND FORFEITURES FOR A TOP-HEAVY PLAN
     YEAR.

      (a)     Except as otherwise provided below, in any Plan Year in which the
              Plan is a Top-Heavy Plan, the Employer contributions and
              forfeitures allocated on behalf of any Participant who is a
              non-Key Employee shall not be less than the lesser of three
              percent (3%) of such Participant's compensation (as defined in
              Section 11.1(b)(2)) or the largest percentage of Employer
              contributions and forfeitures as a percentage of the Key
              Employee's Compensation, allocated on behalf of any Key Employee
              for that Plan Year. This minimum allocation shall be made even
              though, under other Plan provisions, the Participant would not
              otherwise be entitled to receive an allocation or would have
              received a lesser allocation for the Plan Year because of
              insufficient Employer contributions under Section 4.2 or the
              Participant's failure to make elective deferrals under Section
              4.1.

      (b)     The minimum allocation under this Section shall not apply to any
              Participant who was not employed by the Employer on the last day
              of the Plan Year.

      (c)     The minimum allocation under this Section shall be offset and
              reduced by any allocation of contributions and forfeitures under
              Section 4.2, and under any other defined contribution plan (if
              such contributions are not matching contributions under Code
              Section 401(m)) with a Plan Year ending in the same calendar year
              as the Valuation Date.

      (d)     For purposes of the Plan, a non-Key Employee shall be any Employee
              or Beneficiary of such Employee, any former Employee, or
              Beneficiary of such former Employee, who is not or was not a Key
              Employee during the Plan Year ending on the determination date,
              nor during the four (4) preceding Plan Years.

      (e)     If no defined benefit plan has ever been part of a permissive or
              required aggregation group of plans of the Employer, the
              contributions and forfeitures under this step shall be offset by
              any allocation of contributions and forfeitures under any other
              defined contribution plan of the Employer with a Plan Year ending
              in the same calendar year as this Plan's Valuation Date.

                                       35
<PAGE>   40
      (f)     There shall be no duplication of the minimum benefits required
              under Code Section 416. Benefits shall be provided under defined
              contribution plans before under defined benefit plans. If a
              defined benefit plan (active or terminated) is part of the
              permissive or required aggregation group of plans, the allocation
              method of subparagraph (a) above shall apply, except that "3%"
              shall be increased to "5%."

      (g)     There shall be no duplication of the minimum benefits required
              under Code Section 416. Benefits shall be provided under defined
              contribution plans before defined benefit plans. If a defined
              benefit plan (active or terminated) is part of the permissive or
              required aggregation group of plans, and if any Participant in the
              Plan would have his benefits limited due to the application of the
              Code limitation rule in Section 11.1 in a Plan Year in which the
              Plan is a Top-Heavy Plan but not a Super Top-Heavy Plan, the
              allocation method of subparagraph (f) above shall apply, except
              that "5%" shall be increased to "7.5%."

13.4 VESTING. The following minimum vesting schedule applies to the Plan in any
Plan Year in which the Plan is a Top-Heavy Plan, notwithstanding the schedule
set forth in Section 6.1. For vesting to be determined under this schedule, an
Employee must be credited with at least one (1) Hour of Service in any Plan Year
in which the Plan is a Top-Heavy Plan.

                   Years of Service                         Vested Percentage
                   ----------------                         -----------------

                  LESS THAN 2 YEARS                                  0%
                  2 YEARS BUT LESS THAN 3                           20%
                  3 YEARS BUT LESS THAN 4                           40%
                  4 YEARS BUT LESS THAN 5                           60%
                  5 YEARS BUT LESS THAN 6                           80%
                  6 YEARS AND THEREAFTER                           100%

The minimum vesting schedule applies to all benefits within the meaning of
Section 411(a)(7) of the Code except those attributable to Employee
contributions, if any, and elective deferrals, including benefits accrued before
the effective date of Section 416 and benefits accrued before the Plan became a
Top-Heavy Plan. Further, no reduction in vested benefits may occur in the event
the Plan's status as a Top-Heavy Plan changes for any Plan Year. In addition, if
a Plan's status changes from a Top-Heavy Plan to that of a non-Top-Heavy Plan, a
Participant with three (3) or more Years of Service for vesting purposes, shall
continue to have his vested rights determined under the schedule which he
selects.

Payment of a Participant's vested Account balance under this Section shall be
made in accordance with the provisions of Article Seven.

                                       36
<PAGE>   41
                   ARTICLE FOURTEEN--MISCELLANEOUS PROVISIONS

14.1 PLAN DOES NOT AFFECT EMPLOYMENT. Neither the creation of this Plan, any
amendment thereto, the creation of any fund nor the payment of benefits
hereunder shall be construed as giving any legal or equitable right to any
Employee or Participant against the Employer, its officers or Employees, or
against the Trustee. All liabilities under this Plan shall be satisfied, if at
all, only out of the Trust Fund held by the Trustee. Participation in the Plan
shall not give any Participant any right to be retained in the employ of the
Employer, and the Employer hereby expressly retains the right to hire and
discharge any Employee at any time with or without cause, as if the Plan had not
been adopted, and any such discharged Participant shall have only such rights or
interests in the Trust Fund as may be specified herein.

14.2 SUCCESSOR TO THE EMPLOYER. In the event of the merger, consolidation,
reorganization or sale of assets of the Employer, under circumstances in which a
successor person, firm, or corporation shall carry on all or a substantial part
of the business of the Employer, and such successor shall employ a substantial
number of Employees of the Employer and shall elect to carry on the provisions
of the Plan, such successor shall be substituted for the Employer under the
terms and provisions of the Plan upon the filing in writing with the Trustee of
its election to do so.

14.3 REPAYMENTS TO THE EMPLOYER. Notwithstanding any provisions of this Plan to
the contrary:

      (a)     Any monies or other Plan assets attributable to any contribution
              made to this Plan by the Employer because of a mistake of fact
              shall be returned to the Employer within one (1) year after the
              date of contribution.

      (b)     Any monies or other Plan assets attributable to any contribution
              made to this Plan by the Employer shall be refunded to the
              Employer, to the extent such contribution is predicated on the
              deductibility thereof under the Code and the income tax deduction
              for such contribution is disallowed. Such amount shall be refunded
              within one (1) taxable year after the date of such disallowance or
              within one (1) year of the resolution of any judicial or
              administrative process with respect to the disallowance. All
              Employer contributions hereunder are expressly contributed based
              upon such contributions' deductibility under the Code.

However, the provisions of this Section shall not apply to elective deferrals
made by a Participant under Section 4.1.

14.4 BENEFITS NOT ASSIGNABLE. Except as provided in Section 414(p) of the Code
with respect to "qualified domestic relations orders," the rights of any
Participant or his Beneficiary to any benefit or payment hereunder shall not be
subject to voluntary or involuntary alienation or assignment.

                                       37
<PAGE>   42

14.5 MERGER OF PLANS. In the case of any merger or consolidation of this Plan
with, or transfer of the assets or liabilities of the Plan to, any other plan,
the terms of such merger, consolidation or transfer shall be such that each
Participant would receive (in the event of termination of this Plan or its
successor immediately thereafter) a benefit which is no less than what the
Participant would have received in the event of termination of this Plan
immediately before such merger, consolidation or transfer.

14.6 INVESTMENT EXPERIENCE NOT A FORFEITURE. The decrease in value of any
Account due to adverse investment experience shall not be considered an
impermissible "forfeiture" of any vested balance.

14.7 VOTING OF COMPANY STOCK. In advance of each meeting of shareholders of the
Employer, the Administrator, or its designee, shall furnish to each Participant,
former Participant and Beneficiary having an interest in Company Stock by reason
of his Account in the Plan, the proxy statement for the meeting, together with a
form to be returned to the Administrator (its designee) or the Trustee, on which
may be set forth the respondent's instructions as to the manner of voting the
shares of Company Stock then held for his Account by the Trustee. The Trustee
shall vote the shares of Company Stock in accordance with such instructions, and
shall vote combined fractional shares credited to various Accounts to reflect,
to the extent possible, the voting instructions. Shares of Company Stock for
which no instructions have been given shall be voted in the same ratio, to the
nearest whole vote, as the ratio in which the total shares with respect to which
timely directions were received were voted in such matters.

14.8 DISTRIBUTION TO LEGALLY INCAPACITATED. In the event any benefit is payable
to a minor or to a person deemed to be incompetent or to a person otherwise
under legal disability, or who is by sole reason of advanced age, illness, or
other physical or mental incapacity incapable of handling the disposition of his
property, the Administrator, may direct the Trustee to apply all or any portion
of such benefit directly to the care, comfort, maintenance, support, education
or use of such person or to pay or distribute the whole or any part of such
benefit to (a) the spouse of such person, (b) the parent of such person, (c) the
guardian, committee, or other legal representative, wherever appointed, of such
person, (d) the person with whom such person shall reside, (e) any other person
having the care and control of such person, or (f) such person. The receipt of
any such payment or distribution shall be a complete discharge of liability for
Plan obligations.

14.9 CONSTRUCTION. Wherever appropriate, the use of the masculine gender shall
be extended to include the feminine and/or neuter or vice versa; and the
singular form of words shall be extended to include the plural; and the plural
shall be restricted to mean the singular.

14.10 GOVERNING DOCUMENTS. A Participant's rights shall be determined under the
terms of the Plan as in effect at the Participant's date of separation from
Service.

14.11 GOVERNING LAW. The provisions of this Plan shall be construed under the
laws of the state of the situs of the Trust, except to the extent such laws are
preempted by Federal law.

14.12 HEADINGS. The Article headings and Section numbers are included solely for
ease of reference. If there is any conflict between such headings or numbers and
the text of the Plan, the text shall control.

                                       38
<PAGE>   43

14.13 COUNTERPARTS. This Plan may be executed in any number of counterparts,
each of which shall be deemed an original; said counterparts shall constitute
but one and the same instrument, which may be sufficiently evidenced by any one
counterpart.

14.14 LOCATION OF PARTICIPANT OR BENEFICIARY UNKNOWN. In the event that all or
any portion of the distribution payable to a Participant or to a Participant's
Beneficiary hereunder shall, at the expiration of five (5) years after it shall
become payable, remain unpaid solely by reason of the inability of the
Administrator to ascertain the whereabouts of such Participant or Beneficiary,
after sending a registered letter, return receipt requested, to the last known
address, and after further diligent effort, the amount so distributable shall be
reallocated in the same manner as a forfeiture under Section 6.2 pursuant to
this Plan. In the event a Participant or Beneficiary is located subsequent to
the reallocation of his Account balance, such Account balance shall be restored
in accordance with the provisions of Section 6.2.

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

IN WITNESS WHEREOF, the Employer, by its duly authorized officer, has caused
this Plan to be executed on the 1st day of July, 1996.

                               CYBERGUARD CORPORATION

                               By: /s/ Patrick O. Wheeler
                                   ---------------------------------------------
                                        Authorized Officer

                                       39
<PAGE>   44

                               FIRST AMENDMENT TO

                 CYBERGUARD CORPORATION RETIREMENT SAVINGS PLAN

WHEREAS, Cyberguard Corporation (the "Employer") heretofore adopted the
Cyberguard Corporation Retirement Savings Plan (the Plan"); and

WHEREAS, the Employer reserved the right to amend the Plan; and

WHEREAS, the Employer desires to amend the Plan;

NOW, THEREFORE, the Plan is hereby amended, effective as of September 1, 1998,
as follows:

1.       The first paragraph of Section 6.2 shall be amended to read in its
         entirety as follows:

         6.2 FORFEITURE OF NONVESTED BALANCE. The nonvested portion of a
         Participant's Account, as determined in accordance with Section 6.1,
         shall be forfeited as of the earlier of (i) the date on which the
         Participant receives distribution of his vested Account or (ii) date on
         which the Participant incurs five (5) consecutive one (1)-year Breaks
         in Service. However, no forfeiture shall occur solely as a result of a
         Participant's withdrawal of any voluntary after-tax contributions. The
         amount forfeited shall be used to reduce future Employer matching
         contributions under the Plan.

2.       Except as hereinabove amended, the provisions of the Plan shall
         continue in full force and effect.

IN WITNESS WHEREOF, the Employer, by its duly authorized officer, has caused
this First Amendment to be executed on the ___ day of ___________, 1998.

                                 CYBERGUARD CORPORATION

                                 By:
                                    --------------------------------------------

<PAGE>   45

                               SECOND AMENDMENT TO

                 CYBERGUARD CORPORATION RETIREMENT SAVINGS PLAN

WHEREAS, Cyberguard Corporation (the "Employer") heretofore adopted the
Cyberguard Corporation Retirement Savings Plan (the "Plan"); and

WHEREAS, the Employer reserved the right to amend the Plan; and

WHEREAS, the Employer desires to amend the Plan;

NOW, THEREFORE, the Plan is hereby amended, effective as of July 1, 1999, as
follows:

1.       Section 6.1 shall be amended by adding the following immediately before
         the last paragraph of said Section:

         Except as otherwise provided with respect to Normal Retirement,
         disability, or death, each other Participant who separates from Service
         with the Employer on or after July 1,1999 shall have a nonforfeitable
         (vested) right to a percentage of the value of his Account derived from
         Employer matching contributions under Section 4.2(a) and additional
         Employer contributions under Section 4.2(C) as follows:

                      Years of Service                   Vested Percentage
                      ----------------                   -----------------

                    LESS THAN 1 YEAR                           0    %
                    1 YEAR BUT LESS THAN 2                    33 1/3%
                    2 YEARS BUT LESS THAN 3                   66 2/3%
                    3 YEARS AND THEREAFTER                   100    %

2.       Except as hereinabove amended, the provisions of the Plan shall
         continue in full force and effect.

IN WITNESS WHEREOF, the Employer, by its duly authorized officer, has caused
this Second Amendment to be executed on the 19th day of July, 1999.

                                    CYBERGUARD CORPORATION

                                     By: /s/ Terrence A. Zielinski
                                         ---------------------------------------

<PAGE>   46

                                 THIRD AMENDMENT

                TO CYBERGUARD CORPORATION RETIREMENT SAVINGS PLAN

WHEREAS, Cyberguard Corporation (the "Employer") heretofore adopted the
Cyberguard Corporation Retirement Savings Plan (the "Plan"); and

WHEREAS, the Employer reserved the right to amend the Plan; and

WHEREAS, the Employer desires to amend the Plan;

NOW, THEREFORE, the Plan is hereby amended as follows:

1.       Section 6.1 of the Plan shall be amended by adding the following
         paragraph to the conclusion of such Section:

                  "Notwithstanding the foregoing, any Participant employed by
                  the Employer's TradeWave division as of the date of the
                  Employer's sale of such division shall be one hundred percent
                  (100%) vested in his or her Account."

2.       Except as hereinabove amended, the provisions of the Plan shall
         continue in full force and effect.

IN WITNESS WHEREOF, the Employer, by its duly authorized officer, has caused
this Third Amendment to be executed on the 4th day of May, 2000.

                              CYBERGUARD CORPORATION

                              By: /s/ David R. Proctor
                                  ----------------------------------------------
                                      Chief Executive Officer<PAGE>   1
                                                                    EXHIBIT 10.5

                             VISUAL DATA CORPORATION
                              1291 S.W. 29th Avenue
                          Pompano Beach, Florida 33069

                                    March 30, 2001

Halifax Fund, L.P.
Palladin Opportunity Fund, L.L.C.
c/o The Palladin Group, L.P.
195 Maplewood Avenue
Maplewood, New Jersey 07040

         Re:      Amendment to Purchase Agreement

Ladies and Gentlemen:

         Reference is made to the Purchase Agreement, dated as of December 8,
2000 (the "Purchase Agreement"), by and among you (the "Purchasers") and the
undersigned (the "Company"). Capitalized terms used herein without definition
shall have the meaning set forth in the Purchase Agreement.

         For good and valuable consideration, the receipt of which is hereby
acknowledged, the Purchasers and the Company hereby agree that the Purchase
Agreement shall be amended, effective the date hereof, as follows:

         1.       Issuance of Warrants.

         Concurrently with the execution and delivery of this Amendment to the
Purchase Agreement, the Company is issuing to the Purchasers the Five-Year
Warrants referenced in Section 5.1 of the Purchase Agreement.

         2.       First Company Put Right.

         (a)      Section 5.1 of the Purchase Agreement is amended to provide
that the First Additional Securities shall consist solely of an additional
$1,000,000 principal amount of Debentures.

         (b)      Section 5.2 is amended to provide that the First Put Notice
must be delivered within 5 days of the Effective Date.

         3.       Second Company Put Right.

                                       1
<PAGE>   2

         Sections 5.4, 5.5 and 5.6 of the Purchase Agreement are hereby deleted
in their entirety.

         4.       Registration Rights Agreement.

         The Registration Rights Agreement, dated as of December 8, 2000 by and
between the Company and the Purchaser is hereby amended to provide that the
terms "Additional Debentures" and "Additional Warrants" shall not include the
"Second Additional Securities" previously referred to in Section 5.4 of the
Purchase Agreement, the terms "Additional Common Shares" shall refer only to the
shares of Common Stock issuable upon conversion of the First Additional
Securities and the term "Additional Warrant Shares" shall refer only to the
shares of Common Stock issuable upon exercise of the Warrants referred to in
Section 1 above.

         5.       General.

         As amended hereby, the Purchase Agreement and the Registration Rights
Agreement remain in full force and effect.

                                    Sincerely yours,

                                    VISUAL DATA CORPORATION

                                    By:  /S/
                                       ----------------------------------------
                                         Randy Selman, President

Agreed to and accepted
as of the date hereof:

HALIFAX FUND, L.P.

By:  /S/
   ------------------------------

PALLADIN OPPORTUNITY FUND, L.L.C.

By: /S/
   ------------------------------

                                       2

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