Document:

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                                                                    EXHIBIT 10.1

                      UNITED STATES PENSION SERVICES, INC.
                              401(K) PLAN AND TRUST

Copyright 1996 United States Pension Services, Inc.

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                                TABLE OF CONTENTS

                                    ARTICLE I

                                   DEFINITIONS

                                   ARTICLE II

                     TOP HEAVY PROVISIONS AND ADMINISTRATION

2.1      TOP HEAVY PLAN REQUIREMENTS..........................................16
2.2      DETERMINATION OF TOP HEAVY STATUS....................................16
2.3      POWERS AND RESPONSIBILITIES OF THE EMPLOYER..........................19
2.4      DESIGNATION OF ADMINISTRATIVE AUTHORITY..............................20
2.5      ALLOCATION AND DELEGATION OF RESPONSIBILITIES........................20
2.6      POWERS AND DUTIES OF THE ADMINISTRATOR...............................21
2.7      RECORDS AND REPORTS..................................................22
2.8      APPOINTMENT OF ADVISERS..............................................22
2.9      INFORMATION FROM EMPLOYER............................................22
2.10     PAYMENT OF EXPENSES..................................................22
2.11     MAJORITY ACTIONS.....................................................23
2.12     CLAIMS PROCEDURE.....................................................23
2.13     CLAIMS REVIEW PROCEDURE..............................................23

                                   ARTICLE III

                                   ELIGIBILITY

3.1      CONDITIONS OF ELIGIBILITY............................................24
3.2      EFFECTIVE DATE OF PARTICIPATION......................................24
3.3      DETERMINATION OF ELIGIBILITY.........................................24
3.4      TERMINATION OF ELIGIBILITY...........................................24
3.5      OMISSION OF ELIGIBLE EMPLOYEE........................................24
3.6      INCLUSION OF INELIGIBLE EMPLOYEE.....................................25
3.7      ELECTION NOT TO PARTICIPATE..........................................25
3.8      CONTROL OF ENTITLES BY OWNER-EMPLOYEE................................25

                                   ARTICLE IV

                           CONTRIBUTION AND ALLOCATION

4.1      FORMULA FOR DETERMINING EMPLOYER'S CONTRIBUTION......................26
4.2      PARTICIPANT'S SALARY REDUCTION ELECTION..............................27
4.3      TIME OF PAYMENT OF EMPLOYER'S CONTRIBUTION...........................31
4.4      ALLOCATION OF CONTRIBUTION, FORFEITURES AND EARNINGS.................31
4.5      ACTUAL DEFERRAL PERCENTAGE TESTS.....................................37

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4.6      ADJUSTMENT TO ACTUAL DEFERRAL PERCENTAGE TESTS.......................39
4.7      ACTUAL CONTRIBUTION PERCENTAGE TESTS.................................43
4.8      ADJUSTMENT TO ACTUAL CONTRIBUTION PERCENTAGE TESTS...................46
4.9      MAXIMUM ANNUAL ADDITIONS.............................................50
4.10     ADJUSTMENT FOR EXCESSIVE ANNUAL ADDITIONS............................56
4.11     TRANSFERS FROM QUALIFIED PLANS.......................................57
4.12     VOLUNTARY CONTRIBUTIONS..............................................58
4.13     DIRECTED INVESTMENT ACCOUNT..........................................59
4.14     QUALIFIED VOLUNTARY EMPLOYEE CONTRIBUTIONS...........................59
4.15     INTEGRATION IN MORE THAN ONE PLAN....................................60

                                    ARTICLE V

                                   VALUATIONS

5.1      VALUATION OF THE TRUST FUND..........................................60
5.2      METHOD OF VALUATION..................................................60

                                   ARTICLE VI

                   DETERMINATION AND DISTRIBUTION OF BENEFITS

6.1      DETERMINATION OF BENEFITS UPON RETIREMENT............................61
6.2      DETERMINATION OF BENEFITS UPON DEATH.................................61
6.3      DETERMINATION OF BENEFITS IN EVENT OF DISABILITY.....................63
6.4      DETERMINATION OF BENEFITS UPON TERMINATION...........................63
6.5      DISTRIBUTION OF BENEFITS.............................................66
6.6      DISTRIBUTION OF BENEFITS UPON DEATH..................................71
6.7      TIME OF SEGREGATION OR DISTRIBUTION..................................75
6.8      DISTRIBUTION FOR MINOR BENEFICIARY...................................75
6.9      LOCATION OF PARTICIPANT OR BENEFICIARY UNKNOWN.......................76
6.10     PRE-RETIREMENT DISTRIBUTION..........................................76
6.11     ADVANCE DISTRIBUTION FOR HARDSHIP....................................76
6.12     LIMITATIONS ON BENEFITS AND DISTRIBUTIONS............................78
6.13     SPECIAL RULE FOR NON-ANNUITY PLANS...................................78

                                   ARTICLE VII

                                     TRUSTEE

7.1      BASIC RESPONSIBILITIES OF THE TRUSTEE................................79
7.2      INVESTMENT POWERS AND DUTIES OF THE TRUSTEE..........................79
7.3      OTHER POWERS OF THE TRUSTEE..........................................81
7.4      LOANS TO PARTICIPANTS................................................83
7.5      DUTIES OF THE TRUSTEE REGARDING PAYMENTS.............................85
7.6      TRUSTEE'S COMPENSATION AND EXPENSES AND TAXES........................86
7.7      ANNUAL REPORT OF THE TRUSTEE.........................................86

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7.8      AUDIT................................................................86
7.9      RESIGNATION, REMOVAL AND SUCCESSION OF TRUSTEE.......................87
7.10     TRANSFER OF INTEREST.................................................88
7.11     TRUSTEE INDEMNIFICATION..............................................89
7.12     EMPLOYER SECURITIES AND REAL PROPERTY................................89

                                  ARTICLE VIII

                       AMENDMENT, TERMINATION, AND MERGERS

8.1      AMENDMENT............................................................89
8.2      TERMINATION..........................................................90
8.3      MERGER OR CONSOLIDATION..............................................91

                                   ARTICLE IX

                                  MISCELLANEOUS

9.1      EMPLOYER ADOPTIONS...................................................91
9.2      PARTICIPANT'S RIGHTS.................................................91
9.3      ALIENATION...........................................................91
9.4      CONSTRUCTION OF PLAN.................................................92
9.5      GENDER AND NUMBER....................................................92
9.6      LEGAL ACTION.........................................................92
9.7      PROHIBITION AGAINST DIVERSION OF FUNDS...............................93
9.8      BONDING..............................................................93
9.9      INSURER'S PROTECTIVE CLAUSE..........................................93
9.10     RECEIPT AND RELEASE FOR PAYMENTS.....................................94
9.11     ACTION BY THE EMPLOYER...............................................94
9.12     NAMED FIDUCIARIES AND ALLOCATION OF RESPONSIBILITY...................94
9.13     HEADINGS.............................................................94
9.14     APPROVAL BY INTERNAL REVENUE SERVICE.................................95
9.15     UNIFORMITY...........................................................95
9.16     PAYMENT OF BENEFITS..................................................95

                                    ARTICLE X

                             PARTICIPATING EMPLOYERS

10.1     ELECTION TO BECOME A PARTICIPATING EMPLOYER..........................95
10.2     REQUIREMENTS OF PARTICIPATING EMPLOYERS..............................96
10.3     DESIGNATION OF AGENT.................................................96
10.4     EMPLOYEE TRANSFERS...................................................96
10.5     PARTICIPATING EMPLOYER'S CONTRIBUTION AND FORFEITURES................97
10.6     AMENDMENT............................................................97

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10.7     DISCONTINUANCE OF PARTICIPATION......................................97
10.8     ADMINISTRATOR'S AUTHORITY............................................97
10.9     PARTICIPATING EMPLOYER CONTRIBUTION FOR AFFILIATE....................97

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                                    ARTICLE I
                                   DEFINITIONS

         As used" in this Plan, the following words and phrases shall have the
meanings set forth herein unless a different meaning is clearly required by the
context:

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

         1.2      "ADMINISTRATOR" means the person(s) or entity designated by
the Employer pursuant to Section 2.4 to administer the Plan on behalf of the
Employer.

         1.3      "ADOPTION AGREEMENT" means the separate Agreement which is
executed by the Employer and accepted by the Trustee which sets forth the
elective provisions of this Plan and Trust as specified by the Employer.

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

         1.5      "AGGREGATE ACCOUNT" means with respect to each Participant,
the value of all accounts maintained on behalf of a Participant, whether
attributable to Employer or Employee contributions, subject to the provisions of
Section 2.2.

         1.6      "ANNIVERSARY DATE" means the anniversary date specified in C3
of the Adoption Agreement.

         1.7      "BENEFICIARY" means the person to whom a share of a deceased
Participant's interest in the Plan is payable, subject to the restrictions of
Sections 6.2 and 6.6.

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

         1.9      "COMPENSATION" with respect to any Participant means one of
the following as elected in the Adoption Agreement. However, Compensation for
any Self-Employed Individual shall be equal to his Earned Income.

                  (a)      Information required to be reported under Sections
         6041, 6051 and 6052 (wages, tips and Other Compensation Box on Form
         W-2). Compensation is defined as wages, as defined in Code Section
         3401(a), and all other payments of Compensation to an Employee by the
         Employer (in the course of the Employer's trade or business) for which
         the Employer is required to furnish the Employee a

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         written statement under Code Sections 6041(d) and 6051(a)(3).
         Compensation must be determined without regard to any rules under Code
         Section 3401(a) that limit the remuneration included in wages based on
         the nature or location of the employment or the services performed
         (such as the exception for agricultural labor in Section 340l(a)(2)).

                  (b)      Section 3401(a) wages. Compensation is defined as
         wages within the meaning of Code Section 3401(a) for the purposes of
         income tax withholding at the source but determined without regard to
         any rules that limit the remuneration included in wages based on the
         nature or location of the employment or the services performed (such as
         the exception for agricultural labor in Code Section 340l(a)(2)).

                  (c)      415 safe-harbor compensation. Compensation is defined
         as wages, salaries, and fees for professional services and other
         amounts received (without regard to whether or not an amount is paid in
         cash) for personal services actually rendered in the course of
         employment with the Employer maintaining the Plan to the extent that
         the amounts are includible in gross income (including, but not limited
         to, commissions paid salesmen, compensation for services on the basis
         of a percentage of profits, commissions on insurance premiums, tips,
         bonuses, fringe benefits, and reimbursements, or other expense
         allowances under a nonaccountable plan (as described in Regulation
         Section 1.62-2(c)), and excluding the following:

                           (1)      Employer contributions to a plan of deferred
                  compensation which are not includible in the Employee's gross
                  income for the taxable year in which contributed, or Employer
                  contributions under a simplified employee pension plan to the
                  extent such contributions are deductible by the Employee, or
                  any distributions from a plan of deferred compensation;

                           (2)      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;

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

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

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         If, in connection with the adoption of any amendment, the definition of
Compensation has been modified, then, for Plan Years prior to the Plan Year
which includes the adoption date of such amendment, Compensation means
compensation determined pursuant to the Plan then in effect.

         In addition, if specified in the Adoption Agreement, Compensation for
all Plan purposes shall also include compensation which is not currently
includible in the Participant's gross income by reason of the application of
Code Sections 125, 402(a)(8), 402(h)(l)(B), or 403(b).

         Compensation in excess of $200,000 shall be disregarded. Such amount
shall be adjusted at the same time and in such manner as permitted under Code
Section 415(d). In applying this limitation, the family group of a Highly
Compensated Participant who is subject to the Family Member aggregation rules of
Code Section 414(q)(6) because such Participant is either a "five percent owner"
of the Employer or one of the ten (10) Highly Compensated Employees paid the
greatest "415 Compensation" during the year, shall be treated as a single
Participant, except that for this purpose Family Members shall include only the
affected Participant's spouse and any lineal descendants who have not attained
age nineteen (19) before the close of the year. If, as a result of the
application of such rules, the adjusted $200,000 limitation is exceeded, then
(except for purposes of determining the portion of Compensation up to the
integration level if this plan is integrated), the limitation shall be prorated
among the affected individuals in proportion to each such individual's
Compensation as determined under this Section prior to the application of this
limitation.

         For Plan Years beginning prior to January 1, 1989, the $200,000 limit
(without regard to Family Member aggregation) shall apply only for Top Heavy
Plan Years and shall not be adjusted.

         In addition to other applicable limitations set forth in the Plan, and
notwithstanding any other provision of the Plan to the contrary, for Plan Years
beginning on or after January 1, 1994, the annual Compensation for each Employee
taken into account under the Plan shall not exceed the OBRA `93 annual
Compensation limit. The OBRA `93 annual Compensation limit is $l50,000, as
adjusted by the Commissioner for increases in the cost of living In accordance
with Section 401(a)(17)(B) of the Internal Revenue 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 will 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.

         For Plan Years beginning on or after January 1, 1994, any reference in
this Plan to the limitation under Section 401(a)(17) of the Code shall mean the
OBRA `93 annual Compensation limit set forth in this provision.

         If Compensation for any prior determination period is taken into
account in determining an Employee's benefits accruing in the current Plan Year,
the Compensation for that prior determination period is subject to the OBRA `93
Compensation limit in effect for that prior determination period. For this
purpose, for determination periods beginning before the first day

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of the Plan Year beginning on or after January 1, 1994, the OBRA `93 annual
Compensation limit is $150,000.

         1.10     "CONTRACT" OR "POLICY" means any life insurance policy,
retirement income policy, or annuity contract (group or individual) issued by
the Insurer. In the event of any conflict between the terms of this Plan and the
terms of any insurance contract purchased hereunder, the Plan provisions shall
control.

         1.11     "DEFERRED COMPENSATION" means that portion of a Participant's
total Compensation that such Participant has elected to defer for a Plan Year
pursuant to Section 4.2.

         1.12     "EARLY RETIREMENT DATE" means the date specified in the
Adoption Agreement on which a Participant or Former Participant has satisfied
the age and service requirements specified in the Adoption Agreement (Early
Retirement Age). A Participant shall become fully Vested upon satisfying this
requirement if still employed at his Early Retirement Age.

         A Former Participant who terminates employment after satisfying the
service requirement for Early Retirement and who thereafter reaches the age
requirement contained herein shall be entitled to receive his benefits under
this Plan.

         1.13     "EARNED INCOME" means with respect to a Self-Employed
Individual, the net earnings from self-employment in the trade or business with
respect to which the Plan is established, for which the personal services of the
individual are a material income-producing factor. Net earnings will be
determined without regard to items not included in gross income and the
deductions allocable to such items. Net earnings are reduced by contributions by
the Employer to a qualified Plan to the extent deductible under Code Section
404. In addition, for Plan Years beginning after December 31, 1989, net earnings
shall be determined with regard to the deduction allowed to the Employer by Code
Section 164(f).

         1.14     "ELECTIVE CONTRIBUTION" means the Employer's contributions to
the Plan that are made pursuant to the Participant's deferral election pursuant
to Section 4.2, excluding any such amounts distributed as "excess annual
additions" pursuant to Section 4.9. In addition, if selected in E3 of the
Adoption Agreement, the Employer's matching contribution made pursuant to
Section 4.1(b) shall or shall not be considered an Elective Contribution for
purposes of the Plan, as provided in Section 4.3(b). Elective Contributions
shall be subject to the requirements of Sections 4.2(b) and 4.2(c) and shall
further be required to satisfy the discrimination requirements of Regulation
l.40l(k)-1(b)(3), the provisions of which are specifically incorporated herein
by reference.

         1.15     "ELIGIBLE EMPLOYEE" means any Employee specified in Dl of the
Adoption Agreement.

         1.16     "EMPLOYEE" means any person who is employed by the Employer,
but excludes any person who is employed as an independent contractor. The term
Employee shall also include Leased Employees as provided in Code Section 414(n)
or (o).

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         Except as provided in the Non-Standardized Adoption Agreement, all
Employees of all entities which are an Affiliated Employer will be treated as
employed by a single employer.

         1.17     "EMPLOYER" means the entity specified in the Adoption
Agreement, any Participating Employer (as defined in Section 10.1) which shall
adopt this Plan, any successor which shall maintain this Plan and any
predecessor which has maintained this Plan.

         1.18     "EXCESS COMPENSATION" means, with respect to a Plan that is
integrated with Social Security, a Participant's Compensation which is in excess
of the amount set forth in the Adoption Agreement.

         1.19     "EXCESS CONTRIBUTIONS" means, with respect to a Plan Year, the
excess of Elective Contributions and Qualified Non-Elective Contributions made
on behalf of Highly Compensated Participants for the Plan Year over the maximum
amount of such contributions permitted under Section 4.5(a).

         1.20     "EXCESS DEFERRED COMPENSATION" means, with respect to any
taxable year of a Participant, the excess of the aggregate amount of such
Participant's Deferred Compensation and the elective deferrals pursuant to
Section 4.2(f) actually made on behalf of such Participant for such taxable
year, over the dollar limitation provided for in Code Section 402(g), which is
incorporated herein by reference. Excess Deferred Compensation shall be treated
as an "annual Addition" pursuant to Section 4.9 when contributed to the Plan
unless distributed to the affected Participant not later than the first April
15th following the close of the Participant's taxable year.

         1.21     "FAMILY MEMBER" means, with respect to an affected
Participant, such Participant's spouse, and such Participant's lineal
descendants and ascendants and their spouses, all as described in Code Section
414(q)(6)(B).

         1.22     "FIDUCIARY" means any person who (a) exercises any
discretionary authority or discretionary control respecting management of the
Plan or exercises any authority or control respecting management or disposition
of its assets, (b) renders investment advice for a fee or other compensation,
direct or indirect, with respect to any monies or other property of the Plan or
has any authority or responsibility to do so, or (c) has any discretionary
authority or discretionary responsibility in the administration of the Plan,
including, but not limited to, the Trustee, the Employer and its representative
body, and the Administrator.

         1.23     "FISCAL YEAR" means the Employer's accounting year as
specified in the Adoption Agreement.

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

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

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

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

         1.25     "FORMER PARTICIPANT" means a person who has been a
Participant, but who has ceased to be a Participant for any reason.

         1.26     "414(S) COMPENSATION" with respect to any Employee means his
Compensation as defined in Section 1.9. However, for purposes of this Section,
Compensation shall be Compensation paid and, if selected in the Adoption
Agreement, shall only be recognized as of an Employee's effective date of
participation. If, in connection with the adoption of any amendment, the
definition of "414(s) Compensation" has been modified, then for Plan Years prior
to the Plan Year which includes the adoption date of such amendment, "414(s)
Compensation" means compensation determined pursuant to the Plan Year in effect.

         1.27     "415 COMPENSATION" means compensation as defined in Section
4.9(f)(2).

         If, in connection with the adoption of any amendment, the definition of
"415 Compensation" has been modified, then, for Plan Years prior to the Plan
Year which includes the adoption date of such amendment, "415 Compensation"
means compensation determined pursuant to the Plan then in effect.

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

                  (a)      Employees who at any time during the "determination
         year" or "look-back year" were "five percent owners" as defined in
         Section 1.35(c).

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

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

                  (d)      Employees who during the "look-back year" were
         officers of the Employer (as that term is defined within the meaning of
         the Regulations under Code Section 416) and received "415 Compensation"
         during the "look-back year" from the Employer greater than 50 percent
         of the limit in effect under Code

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         Section 415(b)(1)(A) for any such Plan Year. The number of officers
         shall be limited to the lesser of (i) 50 employees; or (ii) the greater
         of 3 employees or 10 percent of all employees. If the Employer does not
         have at least one officer whose annual "415 Compensation" is in excess
         of 50 percent of the Code Section 415(b)(1)(A) limit, then the highest
         paid officer of the Employer will be treated as a Highly Compensated
         Employee.

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

         "Determination year" shall be the Plan Year for which testing is being
performed, and the "look-back year" shall be the immediately preceding
twelve-month period. However, if the Plan Year is a calendar year, or if another
Plan of the Employer so provides, then the "look-back year" shall be the
calendar year ending with or within the Plan Year for which testing 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 testing is being performed (the "lag period"). With
respect to this election, it shall be applied on a uniform and consistent basis
to all plans, entities, and arrangements of the Employer.

         For purposes of this Section, the determination of "415 Compensation"
shall be made by including amounts that would otherwise be excluded from a
Participant's gross income by reason of the application of Code Sections 125,
402(a)(8), 402(h)(1)(B) and, in the case of Employer contributions made pursuant
to a salary reduction agreement, Code Section 403(b). Additionally, the dollar
threshold amounts specified in (b) and (c) above shall be adjusted at such time
and in such manner as is provided in Regulations. In the case of such an
adjustment, the dollar limits which shall be applied are those for the calendar
year in which the "determination year" or "look back year" begins.

         In determining who is a Highly Compensated Employee, Employees who are
non-resident aliens and who received no earned income (within the meaning of
Code Section 911(d)) from the Employer constituting United States source income
within the meaning of Code Section 861(a)(3) shall not be treated as Employees.
Additionally, all Affiliated Employers shall be taken into account as a single
employer and Leased Employees within the meaning of Code Sections 414(n)(2) and
4l4(o)(2) shall be considered Employees unless such Leased Employees are covered
by a plan described in Code Section 414(n)(5) and are not covered in any
qualified plan maintained by the Employer. The exclusion of Leased Employees for
this purpose shall be applied on a uniform and consistent basis for all of the
Employer's retirement plans. In addition, Highly Compensated Former Employees
shall be treated as Highly Compensated Employees without regard to whether they
performed services during the "determination year."

         1.29     "HIGHLY COMPENSATED FORMER EMPLOYEE" means a former Employee
who had a separation year prior to the "determination year" and was a Highly
Compensated Employee in the year of separation from service or in any
"determination year" after attaining age 55. Notwithstanding the foregoing, an
Employee who separated from service prior to 1987 will be

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treated as a Highly Compensated Former Employee only if during the separation
year (or year preceding the separation year) or any year after the Employee
attains age 55 (or the last year ending before the Employee's 55th birthday),
the Employee either received "415 Compensation" in excess of $50,000 or was a
"five percent owner." For purposes of this Section, "determination year," "415
Compensation" and "five percent owner" shall be determined in accordance with
Section 1.28. Highly Compensated Former Employees shall be treated as Highly
Compensated Employees. The method set forth in this Section for determining who
is a "Highly Compensated Former Employee" shall be applied on a uniform and
consistent basis for all purposes for which the Code Section 414(q) definition
is applicable.

         1.30     "HIGHLY COMPENSATED PARTICIPANT" means any Highly Compensated
Employee who is eligible to participate in the Plan.

         1.31     "HOUR OF SERVICE" means (1) each hour for which an Employee is
directly or indirectly compensated or entitled to compensation by the Employer
for the performance of duties during the applicable computation period; (2) each
hour for which an Employee is directly or indirectly compensated or entitled to
compensation by the Employer (irrespective of whether the employment
relationship has terminated) for reasons other than performance of duties (such
as vacation, holidays, sickness, jury duty, disability, lay-off, military duty
or leave of absence) during the applicable computation period; (3) each hour for
which back pay is awarded or agreed to by the Employer without regard to
mitigation of damages. The same Hours of Service shall not be credited both
under (1) or (2), as the case may be, and under (3).

         Notwithstanding the above, (i) no more than 501 Hours of Service are
required to be credited to an Employee on account of any single continuous
period during which the Employee performs no duties (whether or not such period
occurs in a single computation period); (ii) an hour for which an Employee is
directly or indirectly paid, or entitled to payment, on account of a period
during which no duties are performed is not required to be credited to the
Employee if such payment is made or due under a plan maintained solely for the
purpose of complying with applicable worker's compensation, or unemployment
compensation or disability insurance laws; and (iii) Hours of Service are not
required to be credited for a payment which solely reimburses an Employee for
medical or medically related expenses incurred by the Employee.

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

         An Hour of Service must be counted for the purpose of determining a
Year of Service, a year of participation for purposes of accrued benefits, a
1-Year Break in Service, and employment commencement date (or reemployment
commencement date). The provisions of Department of Labor regulations
2530.200b-2(b) and (c) are incorporated herein by reference.

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         Hours of Service will be credited for employment with all Affiliated
Employers and for any individual considered to be a Leased Employee pursuant to
Code Sections 414(n) or 414(o) and the Regulations thereunder.

         Hours of Service will be determined on the basis of the method selected
in the Adoption Agreement.

         1.32     "INSURER" means any legal reserve insurance company which
shall issue one or more policies under the Plan.

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

         1.34     "JOINT AND SURVIVOR ANNUITY" means an annuity for the life of
a Participant with a survivor annuity for the life of the Participant's spouse
which is not less than 1/2, nor greater than the amount of the annuity payable
during the joint lives of the Participant and the Participant's spouse. The
Joint and Survivor Annuity will be the amount of benefit which can be purchased
with the Participant's Vested interest in the Plan.

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

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

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

                  (c)      a "five percent owner" of the Employer. "Five percent
         owner" means any person who owns (or is considered as owning within the
         meaning of Code Section 318) more than five percent (5%) of the
         outstanding stock of the Employer or stock possessing more than five
         percent (5%) of the total combined voting power of all stock of the
         Employer or, in the case of an unincorporated business, any person who
         owns more than five percent (5%) of the capital or profits interest in
         the Employer. In determining percentage ownership hereunder,

                                       9
<PAGE>

         employers that would otherwise be aggregated under Code Sections
         414(b), (c), (m) and (o) shall be treated as separate employers.

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

         For purposes of this Section, the determination of "415 Compensation"
shall be made by including amounts that would otherwise be excluded from a
Participant's gross income by reason of the application of Code Sections 125,
402(a)(8), 402(h)(1)(B) and, in the case of Employer contributions made pursuant
to a salary reduction agreement, Code Section 403(b).

         1.36     "LATE RETIREMENT DATE" means the date of, or the first day of
the month or the Anniversary Date coinciding with or next following, whichever
corresponds to the election made for the Normal Retirement Date, a Participant's
actual retirement after having reached his Normal Retirement Date.

         1.37     "LEASED EMPLOYEE" means any person (other than an Employee of
the recipient) who pursuant to an agreement between the recipient and any other
person ("leasing organization") has performed services for the recipient (or for
the recipient and related persons determined in accordance with Code Section
414(n)(6)) on a substantially full time basis for a period of at least one year,
and such services are of a type historically performed by employees in the
business field of the recipient employer. Contributions or benefits provided a
leased employee by the leasing organization which are attributable to services
performed for the recipient employer shall be treated as provided by the
recipient employer.

         A leased employee shall not be considered an Employee of the recipient
if: (i) such employee is covered by a money purchase pension plan providing: (1)
a nonintegrated employer contribution rate of at least 10 percent of
compensation, as defined in Code Section 415(c)(3), 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), (2) immediate participation, and (3) full and immediate vesting; and
(ii) leased employees do not constitute more than 20 percent of the recipient's
non-highly compensated workforce.

         1.38     "NET PROFIT" means with respect to any Fiscal Year the
Employer's net income or profit for such Fiscal Year determined upon the basis
of the Employer's books of account in

                                       10
<PAGE>

accordance with generally accepted accounting principles, without any reduction
for taxes based upon income, or for contributions made by the Employer to this
Plan and any other qualified plan.

         1.39     "NON-ELECTIVE CONTRIBUTION" means the Employer's contributions
to the Plan other than those made pursuant to the Participant's deferral
election made pursuant to Section 4.2 and any Qualified Non-Elective
Contribution. In addition, if selected in E3 of the Adoption Agreement, the
Employer's Matching Contribution made pursuant to Section 4.1(b) shall be
considered a Non-Elective Contribution for purposes of the Plan.

         1.40     "NON-HIGHLY COMPENSATED PARTICIPANT" means any Participant who
is neither a Highly Compensated Employee nor a Family Member.

         1.41     "NON-KEY EMPLOYEE" means any Employee or former Employee (and
his Beneficiaries) who is not a Key Employee.

         1.42     "NORMAL RETIREMENT AGE" means the age specified in the
Adoption Agreement at which time a Participant shall become fully Vested in his
Participant's Account.

         1.43     "NORMAL RETIREMENT DATE" means the date specified in the
Adoption Agreement on which a Participant shall become eligible to have his
benefits distributed to him.

         1.44     "1-YEAR BREAK IN SERVICE" means the applicable computation
period during which an Employee has not completed more than 500 Hours of Service
with the Employer. Further, solely for the purpose of determining whether a
Participant has incurred a 1-Year Break in Service, Hours of Service shall be
recognized for "authorized leaves of absence" and "maternity and paternity
leaves of absence."

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

         A "maternity or paternity leave of absence" means, for Plan Years
beginning after December 31, 1984, an absence from work for any period by reason
of the Employee's pregnancy, birth of the Employee's child, placement of a child
with the Employee in connection with the adoption of such child, or any absence
for the purpose of caring for such child for a period immediately following such
birth or placement. For this purpose, Hours of Service shall be credited for the
computation period in which the absence from work begins, only if credit
therefore is necessary to prevent the Employee from incurring a 1-Year Break in
Service, or, in any other case, in the immediately following computation period.
The Hours of Service credited for a "maternity or paternity leave of absence"
shall be those which would normally have been credited but for such absence, or,
in any case in which the Administrator is unable to determine such hours
normally credited, eight (8) Hours of Service per day. The total Hours of
Service required to be credited for a "maternity or paternity leave of absence"
shall not exceed 501.

                                       11
<PAGE>

         1.45     "OWNER-EMPLOYEE" means a sole proprietor who owns the entire
interest in the Employer or a partner who owns more than 10% of either the
capital interest or the profits interest in the Employer and who receives income
for personal services from the Employer.

         1.46     "PARTICIPANT" means any Eligible Employee who participates in
the Plan as provided in Section 3.2 and has not for any reason become ineligible
to participate further in the Plan.

         1.47     "PARTICIPANT'S ACCOUNT" means the account established and
maintained by the Administrator for each Participant with respect to his total
interest under the Plan resulting from the Employer's Non-Elective
Contributions. A separate accounting shall be maintained for matching
contributions if they are deemed to be Non-Elective Contributions.

         1.48     "PARTICIPANT'S COMBINED ACCOUNT" means the total aggregate
amount of each Participant's Elective Account, Qualified Non-Elective Account,
and Participant's Account.

         1.49     "PARTICIPANT'S ELECTIVE ACCOUNT" means the account established
and maintained by the Administrator for each Participant with respect to his
total interest in the Plan and Trust resulting from the Employer's Elective
Contributions. A separate accounting shall be maintained with respect to that
portion of the Participant's Elective Account attributable to Elective
Contributions made pursuant to Section 4.2, Employer matching contributions if
they are deemed to be Elective Contributions, and any Qualified Non-Elective
Contributions.

         1.50     "PARTICIPANT'S ROLLOVER ACCOUNT" means the account established
and maintained by the Administrator for each Participant with respect to his
total interest in the Plan resulting from amounts transferred from another
qualified plan or "conduit" Individual Retirement Account in accordance with
Section 4.11.

         1.51     "PLAN" means this instrument (hereinafter referred to as
United States Pension Services, Inc. 401(k) Plan and Trust Basic Plan Document
#04) including all amendments thereto, and the Adoption Agreement as adopted by
the Employer.

         1.52     "PLAN YEAR" means the Plan's accounting year as specified in
C2 of the Adoption Agreement.

         1.53     "PRE-RETIREMENT SURVIVOR ANNUITY" means an immediate annuity
for the life of the Participant's spouse, the payments under which must be equal
to the actuarial equivalent of 50% of the Participant's Vested interest in the
Plan as of the date of death.

         1.54     "QUALIFIED NON-ELECTIVE ACCOUNT" means the account established
hereunder to which Qualified Non-Elective Contributions are allocated.

         1.55     "QUALIFIED NON-ELECTIVE CONTRIBUTION" means the Employer's
contributions to the Plan that are made pursuant to Section 4.1(d) and Section
4.6(b) which are used to satisfy the "Actual Deferral Percentage" tests.
Qualified Non-Elective Contributions are nonforfeitable when made and are
distributable only as specified in Sections 4.2(c) and 6.11. In addition, the

                                       12
<PAGE>

Employer's contributions to the Plan that are made pursuant to Section 4.8(h)
and which are used to satisfy the "Actual Contribution Percentage" tests shall
be considered Qualified Non-Elective Contributions.

         1.56     "QUALIFIED VOLUNTARY EMPLOYEE CONTRIBUTION ACCOUNT" means the
account established and maintained by the Administrator for each Participant
with respect to his total interest under the Plan resulting from the
Participant's tax deductible qualified voluntary employee contributions made
pursuant to Section 4.14.

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

         1.58     "RETIRED PARTICIPANT" means a person who has been a
Participant, but who has become entitled to retirement benefits under the Plan.

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

         1.60     "SELF-EMPLOYED INDIVIDUAL" means an individual who has earned
income for the taxable year from the trade or business for which the Plan is
established, and, also, an individual who would have had earned income but for
the fact that the trade or business had no net profits for the taxable year. A
Self-Employed Individual shall be treated as an Employee.

         1.61     "SHAREHOLDER-EMPLOYEE" means a Participant who owns more than
five percent (5%) of the Employer's outstanding capital stock during any year in
which the Employer elected to be taxed as a Small Business Corporation under the
applicable Code Section.

         1.62     "SHORT PLAN YEAR" means, if specified in the Adoption
Agreement, that the Plan Year shall be less than a 12 month period. If chosen,
the following rules shall apply in the administration of this Plan. In
determining whether an Employee has completed a Year of Service for benefit
accrual purposes in the Short Plan Year, the number of the Hours of Service
required shall be proportionately reduced based on the number of days in the
Short Plan Year. The determination of whether an Employee has completed a Year
of Service for vesting and eligibility purposes shall be made in accordance with
Department of Labor Regulation 2530.203-2(c). In addition, if this Plan is
integrated with Social Security, the integration level shall also be
proportionately reduced based on the number of days in the Short Plan Year.

         1.63     "SUPER TOP HEAVY PLAN" means a plan described in Section
2.2(b).

         1.64     "TAXABLE WAGE BASE" means, with respect to any year, the
maximum amount of earnings which may be considered wages for such year under
Code Section 3121(a)(1).

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

                                       13
<PAGE>

         1.66     "TOP HEAVY PLAN" means a plan described in Section 2.2(a).

         1.67     "TOP HEAVY PLAN YEAR" means a Plan Year commencing after
December 31, 1983 during which the Plan is a Top Heavy Plan.

         1.68     "TOP PAID GROUP" shall be determined pursuant to Code Section
414(q) and the Regulations thereunder and generally means the top 20 percent of
Employees who performed services for the Employer during the applicable year,
ranked according to the amount of "415 Compensation" (as determined pursuant to
Section 1.28) received from the Employer during such year. All Affiliated
Employers shall be taken into account as a single employer, and Leased Employees
shall be treated as Employees pursuant to Code Section 414(n) or (o). Employees
who are non-resident aliens who received no earned income (within the meaning of
Code Section 91 1(d)(2)) from the Employer constituting United States source
income within the meaning of Code Section 861(a)(3) shall not be treated as
Employees. Additionally, for the purpose of determining the number of active
Employees in any year. the following additional Employees shall also be
excluded, however, such Employees shall still be considered for the purpose of
identifying the particular Employees in the Top Paid Group:

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

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

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

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

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

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

         1.69     "TOTAL AND PERMANENT DISABILITY" means the inability to engage
in any substantial gainful activity by reason of any medically determinable
physical or mental impairment that can be expected to result in death or which
has lasted or can be expected to last for a continuous period of not less than
12 months. The disability of a Participant shall be determined by a licensed
physician chosen by the Administrator. However, if the condition constitutes
total disability under the federal Social Security Acts, the Administrator may
rely upon such determination that the Participant is Totally and Permanently
Disabled for the purposes of this Plan. The determination shall be applied
uniformly to all Participants.

                                       14
<PAGE>

         1.70     "TRUSTEE" means the person or entity named in B6 of the
Adoption Agreement and any successors.

         1.71     "TRUST FUND" means the assets of the Plan and Trust as the
same shall exist from time to time.

         1.72     "VESTED" means the nonforfeitable portion of any account
maintained on behalf of a Participant.

         1.73     "VOLUNTARY CONTRIBUTION ACCOUNT" means the account established
and maintained by the Administrator for each Participant with respect to his
total interest in the Plan resulting from the Participant's nondeductible
voluntary contributions made pursuant to Section 4.12.

         Amounts recharacterized as voluntary Employee contributions pursuant to
Section 4.6(a) shall remain subject to the limitations of Sections 4.2(b) and
4.2(c). Therefore, a separate accounting shall be maintained with respect to
that portion of the Voluntary Contribution Account attributable to voluntary
Employee contributions made pursuant to Section 4.12.

         1.74     "YEAR OF SERVICE" means the computation period of twelve (12)
consecutive months, herein set forth, and during which an Employee has completed
at least 1000 Hours of Service.

         For purposes of eligibility for participation, the initial computation
period shall begin with the date on which the Employee first performs an Hour of
Service (employment commencement date). The computation period beginning after a
1-Year Break in Service shall be measured from the date on which an Employee
again performs an Hour of Service. The succeeding computation periods shall
begin with the first anniversary of the Employee's employment commencement date.
However, if one (1) Year of Service or less is required as a condition of
eligibility, then after the initial eligibility computation period, the
eligibility computation period shall shift to the current Plan Year which
includes the anniversary of the date on which the Employee first performed an
Hour of Service. An Employee who is credited with 1,000 Hours of Service in both
the initial eligibility computation period and the first Plan Year which
commences prior to the first anniversary of the Employee's initial eligibility
computation period will be credited with two Years of Service for purposes of
eligibility to participate.

         For vesting purposes, and all other purposes not specifically addressed
in this Section, the computation period shall be the Plan Year, including
periods prior to the Effective Date of the Plan unless specifically excluded
pursuant to the Adoption Agreement.

         Years of Service and breaks in service will be measured on the same
computation period.

         Years of Service with any predecessor Employer which maintained this
Plan shall be recognized.

                                       15
<PAGE>

         Years of Service with any other predecessor Employer shall be
recognized as specified in the Adoption Agreement.

         Years of Service with any Affiliated Employer shall be recognized.

                                   ARTICLE II
                     TOP HEAVY PROVISIONS AND ADMINISTRATION

         2.1      TOP HEAVY PLAN REQUIREMENTS.

         For any Top Heavy Plan Year, the Plan shall provide the special vesting
requirements of Code Section 416(b) pursuant to Section 6.4 of the Plan and the
special minimum allocation requirements of Code Section 416(c) pursuant to
Section 4.4(i) of the Plan.

         2.2      DETERMINATION OF TOP HEAVY STATUS.

                  (a)      This Plan shall be a Top Heavy Plan for any Plan Year
         beginning after December 31, 1983, in which, as of the Determination
         Date, (1) the Present Value of Accrued Benefits of Key Employees and
         (2) the sum of the Aggregate Accounts of Key Employees under this Plan
         and all plans of an Aggregation Group, exceeds sixty percent (60%) of
         the Present Value of Accrued Benefits and the Aggregate Accounts of all
         Key and Non-Key Employees under this Plan and all plans of an
         Aggregation Group.

                  If any Participant is a Non-Key Employee for any Plan Year,
         but such Participant was a Key Employee for any prior Plan Year, such
         Participant's Present Value of Accrued Benefit and/or Aggregate Account
         balance shall not be taken into account for purposes of determining
         whether this Plan is a Top Heavy or Super Top Heavy Plan (or whether
         any Aggregation Group which includes this Plan is a Top Heavy Group).
         In addition, if a Participant or Former Participant has not performed
         any services for any Employer maintaining the Plan at any time during
         the five year period ending on the Determination Date, any accrued
         benefit for such Participant or Former Participant shall not be taken
         into account for the purposes of determining whether this Plan is a Top
         Heavy or Super Top Heavy Plan.

                  (b)      This Plan shall be a Super Top Heavy Plan for any
         Plan Year beginning after December 31, 1983, in which, as of the
         Determination Date, (1) the Present Value of Accrued Benefits of Key
         Employees and (2) the sum of the Aggregate Accounts of Key Employees
         under this Plan and all plans of an Aggregation Group, exceeds ninety
         percent (90%) of the Present Value of Accrued Benefits and the
         Aggregate Accounts of all Key and Non-Key Employees under this Plan and
         all plans of an Aggregation Group.

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

                                       16
<PAGE>

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

                           (2)      an adjustment for any contributions due as
                  of the Determination Date. Such adjustment shall be the amount
                  of any contributions actually made after the valuation date
                  but on or before the Determination Date, except for the first
                  Plan Year when such adjustment shall also reflect the amount
                  of any contributions made after the Determination Date that
                  are allocated as of a date in that first Plan Year;

                           (3)      any Plan distributions made within the Plan
                  Year that includes the Determination Date or within the four
                  (4) preceding Plan Years. However, in the case of
                  distributions made after the valuation date and prior to the
                  Determination Date, such distributions are not included as
                  distributions for top heavy purposes to the extent that such
                  distributions are already included in the Participant's
                  Aggregate Account balance as of the valuation date.
                  Notwithstanding anything herein to the contrary, all
                  distributions, including distributions made prior to January
                  1, 1984, and distributions under a terminated plan which if it
                  had not been terminated would have been required to be
                  included in an Aggregation Group, will be counted. Further,
                  distributions from the Plan (including the cash value of life
                  insurance policies) of a Participant's account balance because
                  of death shall be treated as a distribution for the purposes
                  of this paragraph.

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

                           (5)      with respect to unrelated rollovers and
                  plan-to-plan transfers (ones which are both initiated by the
                  Employee and made from a plan maintained by one employer to a
                  plan maintained by another employer), if this Plan provides
                  the rollovers or plan-to-plan transfers, it shall always
                  consider such rollovers or plan-to-plan transfers as a
                  distribution for the purposes of this Section. If this Plan is
                  the plan accepting such rollovers or plan-to-plan transfers,
                  it shall not consider such rollovers or plan-to-plan transfers
                  accepted after December 31, 1983 as part of the Participant's
                  Aggregate Account balance. However, rollovers or plan-to-plan
                  transfers accepted prior to January 1, 1984 shall be
                  considered as part of the Participant's Aggregate Account
                  balance.

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

                                       17
<PAGE>

                  irrespective of the date on which such rollover or
                  plan-to-plan transfer is accepted.

                           (7)      For the purposes of determining whether two
                  employers are to be treated as the same employer in 2.2(c)(5)
                  and 2.2(c)(6) above, all employers aggregated under Code
                  Section 414(b), (c), (m) and (o) are treated as the same
                  employer.

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

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

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

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

                  In the case of a Permissive Aggregation Group, only a plan
                  that is part of the Required Aggregation Group will be
                  considered a Top Heavy Plan if the Permissive Aggregation
                  Group is a Top Heavy Group. No plan in the Permissive
                  Aggregation Group will be considered a Top Heavy Plan if the
                  Permissive Aggregation Group is not a Top Heavy Group.

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

                           (4)      When aggregating plans, the value of
                  Aggregate Accounts and Accrued Benefits will be calculated
                  with reference to the Determination Dates that fall within the
                  same calendar year.

                                       18
<PAGE>

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

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

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

                  However, any such determination must include present value of
         accrued benefit attributable to any Plan distributions referred to in
         Section 2.2(c)(3) above, any Employee contributions referred to in
         Section 2.2(c)(4) above or any related or unrelated rollovers referred
         to in Sections 2.2(c)(5) and 2.2(c)(6) above.

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

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

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

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

                  (h)      The Administrator shall determine whether this Plan
         is a Top Heavy Plan on the Anniversary Date specified in the Adoption
         Agreement. Such determination of the top heavy ratio shall be in
         accordance with Code Section 416 and the Regulations thereunder.

         2.3      POWERS AND RESPONSIBILITIES OF THE EMPLOYER.

                  (a)      The Employer shall be empowered to appoint and remove
         the Trustee and the Administrator from time to time as it deems
         necessary for the proper administration of the Plan to assure that the
         Plan is being operated for the exclusive benefit of the Participants
         and their Beneficiaries in accordance with the terms of the Plan, the
         Code, and the Act.

                                       19
<PAGE>

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

                  (c)      The Employer may, in its discretion, appoint an
         Investment Manager to manage all or a designated portion of the assets
         of the Plan. In such event, the Trustee shall follow the directive of
         the Investment Manager in investing the assets of the Plan managed by
         the Investment Manager.

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

         2.4      DESIGNATION OF ADMINISTRATIVE AUTHORITY.

         The Employer shall appoint one or more Administrators. Any person,
including, but not limited to, the Employees of the Employer, shall be eligible
to serve as an Administrator. Any person so appointed shall signify his
acceptance by filing written acceptance with the Employer. An Administrator may
resign by delivering his written resignation to the Employer or be removed by
the Employer by delivery of written notice of removal, to take effect at a date
specified therein, or upon delivery to the Administrator if no date is
specified.

         The Employer, upon the resignation or removal of an Administrator,
shall promptly designate in writing a successor to this position. If the
Employer does not appoint an Administrator, the Employer will function as the
Administrator.

         2.5      ALLOCATION AND DELEGATION OF RESPONSIBILITIES.

         If more than one person is appointed as Administrator, the
responsibilities of each Administrator may be specified by the Employer and
accepted in writing by each Administrator. In the event that no such delegation
is made by the Employer, the Administrators may allocate the responsibilities
among themselves, in which event the Administrators shall notify the Employer
and the Trustee in writing of such action and specify the responsibilities of
each Administrator. The Trustee thereafter shall accept and rely upon any
documents executed by the appropriate Administrator until such time as the
Employer or the Administrators file with the Trustee a written revocation of
such designation.

                                       20
<PAGE>

         2.6      POWERS AND DUTIES OF THE ADMINISTRATOR.

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

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

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

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

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

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

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

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

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

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

                                       21
<PAGE>

                  (i)      to prepare and distribute to Employees a procedure
         for notifying Participants and Beneficiaries of their rights to elect
         Joint and Survivor Annuities and Pre-Retirement Survivor Annuities if
         required by the Code and Regulations thereunder;

                  (j)      to prepare and implement a procedure to notify
         Eligible Employees that they may elect to have a portion of their
         Compensation deferred or paid to them in cash;

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

         2.7      RECORDS AND REPORTS.

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

         2.8      APPOINTMENT OF ADVISERS.

         The Administrator, or the Trustee with the consent of the
Administrator, may appoint counsel, specialists, advisers, and other persons as
the Administrator or the Trustee deems necessary or desirable in connection with
the administration of this Plan.

         2.9      INFORMATION FROM EMPLOYER.

         To enable the Administrator to perform his functions, the Employer
shall supply full and timely information to the Administrator on all matters
relating to the Compensation of all Participants, their Hours of Service, their
Years of Service, their retirement, death, disability, or termination of
employment, and such other pertinent facts as the Administrator may require; and
the Administrator shall advise the Trustee of such of the foregoing facts as may
be pertinent to the Trustee's duties under the Plan. The Administrator may rely
upon such information as is supplied by the Employer and shall have no duty or
responsibility to verify such information.

         2.10     PAYMENT OF EXPENSES.

         All expenses of administration may be paid out of the Trust Fund unless
paid by the Employer. Such expenses shall include any expenses incident to the
functioning of the Administrator, including, but not limited to, fees of
accountants, counsel, and other specialists and their agents, and other costs of
administering the Plan. Until paid, the expenses shall constitute a liability of
the Trust Fund. However, the Employer may reimburse the Trust Fund for any
administration expense incurred. Any administration expense paid to the Trust
Fund as a reimbursement shall not be considered an Employer contribution.

                                       22
<PAGE>

         2.11     MAJORITY ACTIONS.

         Except where there has been an allocation and delegation of
administrative authority pursuant to Section 2.5, if there shall be more than
one Administrator, they shall act by a majority of their number, but may
authorize one or more of them to sign all papers on their behalf.

         2.12     CLAIMS PROCEDURE.

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

         2.13     CLAIMS REVIEW PROCEDURE.

         Any Employee, former Employee, or Beneficiary of either, who has been
denied a benefit by a decision of the Administrator pursuant to Section 2.12
shall be entitled to request the Administrator to give further consideration to
his claim by filing with the Administrator a written request for a hearing. Such
request, together with a written statement of the reasons why the claimant
believes his claim should be allowed, shall be filed with the Administrator no
later than 60 days after receipt of the written notification provided for in
Section 2.12. The Administrator shall then conduct a hearing within the next 60
days, at which the claimant may be represented by an attorney or any other
representative of his choosing and expense and at which the claimant shall have
an opportunity to submit written and oral evidence and arguments in support of
his claim. At the hearing (or prior thereto upon 5 business days written notice
to the Administrator) the claimant or his representative shall have an
opportunity to review all documents in the possession of the Administrator which
are pertinent to the claim at issue and its disallowance. Either the claimant or
the Administrator may cause a court reporter to attend the hearing and record
the proceedings. In such event, a complete written transcript of the proceedings
shall be furnished to both parties by the court reporter. The full expense of
any such court reporter and such transcripts shall be borne by the party causing
the court reporter to attend the hearing. A final decision as to the allowance
of the claim shall be made by the Administrator within 60 days of receipt of the
appeal (unless there has been an extension of 60 days due to special
circumstances, provided the delay and the special circumstances occasioning it
are communicated to the claimant within the 60 day period). Such communication
shall be written in a manner calculated to be understood by the claimant and
shall include specific reasons for the decision and specific references to the
pertinent Plan provisions on which the decision is based.

                                       23
<PAGE>

                                   ARTICLE III
                                   ELIGIBILITY

         3.1      CONDITIONS OF ELIGIBILITY.

         Any Eligible Employee shall be eligible to participate hereunder on the
date he has satisfied the requirements specified in the Adoption Agreement.

         3.2      EFFECTIVE DATE OF PARTICIPATION.

         An Eligible Employee who has become eligible to be a Participant shall
become a Participant effective as of the day specified in the Adoption
Agreement.

         In the event an Employee who has satisfied the Plan's eligibility
requirements and would otherwise have become a Participant shall go from a
classification of a noneligible Employee to an Eligible Employee, such Employee
shall become a Participant as of the date he becomes an Eligible Employee.

         In the event an Employee who has satisfied the Plan's eligibility
requirements and would otherwise become a Participant shall go from a
classification of an Eligible Employee to a noneligible Employee and becomes
ineligible to participate and has not incurred a 1-Year Break in Service, such
Employee shall participate in the Plan as of the date he returns to an eligible
class of Employees. If such Employee does incur a 1-Year Break in Service,
eligibility will be determined under the Break in Service rules of the Plan.

         3.3      DETERMINATION OF ELIGIBILITY.

         The Administrator shall determine the eligibility of each Employee for
participation in the Plan based upon information furnished by the Employer. Such
determination shall be conclusive and binding upon all persons, as long as the
same is made pursuant to the Plan and the Act. Such determination shall be
subject to review per Section 2.13.

         3.4      TERMINATION OF ELIGIBILITY.

         In the event a Participant shall go from a classification of an
Eligible Employee to an ineligible Employee, such Former Participant shall
continue to vest in his interest in the Plan for each Year of Service completed
while a noneligible Employee, until such time as his Participant's Account shall
be forfeited or distributed pursuant to the terms of the Plan. Additionally, his
interest in the Plan shall continue to share in the earnings of the Trust Fund.

         3.5      OMISSION OF ELIGIBLE EMPLOYEE.

         If, in any Plan Year, any Employee who should be included as a
Participant in the Plan is erroneously omitted and discovery of such omission is
not made until after a contribution by his Employer for the year has been made,
the Employer shall make a subsequent contribution, if necessary after the
application of Section 4.4(e), so that the omitted Employee receives a total

                                       24
<PAGE>

amount which the said Employee would have received had he not been omitted. Such
contribution shall be made regardless of whether or not it is deductible in
whole or in part in any taxable year under applicable provisions of the Code.

         3.6      INCLUSION OF INELIGIBLE EMPLOYEE.

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

         3.7      ELECTION NOT TO PARTICIPATE.

         An Employee may, subject to the approval of the Employer, elect
voluntarily not to participate in the Plan. The election not to participate must
be communicated to the Employer, in writing, at least thirty (30) days before
the beginning of a Plan Year. For Standardized Plans, a Participant or an
Eligible Employee may not elect not to participate. Furthermore, the foregoing
election not to participate shall not be available with respect to partners in a
partnership.

         3.8      CONTROL OF ENTITLES BY OWNER-EMPLOYEE.

                  (a)      If this Plan provides contributions or benefits for
         one or more Owner-Employees who control both the business for which
         this Plan is established and one or more other entities, this Plan and
         the plan established for other trades or businesses must, when looked
         at as a single Plan, satisfy Code Sections 401(a) and (d) for the
         Employees of this and all other entities.

                  (b)      If the Plan provides contributions or benefits for
         one or more Owner-Employees who control one or more other trades or
         businesses, the employees of the other trades or businesses must be
         included in a plan which satisfies Code Sections 401(a) and (d) and
         which provides contributions and benefits not less favorable than
         provided for Owner-Employees under this Plan.

                  (c)      If an individual is covered as an Owner-Employee
         under the plans of two or more trades or businesses which are not
         controlled and the individual controls a trade or business, then the
         benefits or contributions of the employees under the plan of the trades
         or businesses which are controlled must be as favorable as those
         provided for him under the most favorable plan of the trade or business
         which is not controlled.

                  (d)      For purposes of the preceding paragraphs, an
         Owner-Employee, or two or more Owner-Employees, will be considered to
         control an entity if the Owner-Employee, or two or more Owner-Employees
         together:

                                       25
<PAGE>

                           (1)      own the entire interest in an unincorporated
                  entity, or

                           (2)      in the case of a partnership, own more than
                  50 percent of either the capital interest or the profits
                  interest in the partnership.

                  (e)      For purposes of the preceding sentence, an
         Owner-Employee, or two or more Owner-Employees shall be treated as
         owning any interest in a partnership which is owned, directly or
         indirectly, by a partnership which such Owner-Employee, or such two or
         more Owner-Employees, are considered to control within the meaning of
         the preceding sentence.

                                   ARTICLE IV
                           CONTRIBUTION AND ALLOCATION

         4.1      FORMULA FOR DETERMINING EMPLOYER'S CONTRIBUTION.

         For each Plan Year, the Employer shall contribute to the Plan:

                  (a)      The amount of the total salary reduction elections of
         all Participants made pursuant to Section 4.2(a), which amount shall be
         deemed an Employer's Elective Contribution, plus

                  (b)      If specified in E3 of the Adoption Agreement, a
         matching contribution equal to the percentage specified in the Adoption
         Agreement of the Deferred Compensation of each Participant eligible to
         share in the allocations of the matching contribution, which amount
         shall be deemed an Employer's Non-Elective or Elective Contribution as
         selected in the Adoption Agreement, plus

                  (c)      If specified in E4 of the Adoption Agreement, a
         discretionary amount, if any, which shall be deemed an Employer's
         Non-Elective Contribution, plus

                  (d)      If specified in E5 of the Adoption Agreement, a
         Qualified Non-Elective Contribution.

                  (e)      Notwithstanding the foregoing, however, the
         Employer's contributions for any Fiscal Year shall not exceed the
         maximum amount allowable as a deduction to the Employer under the
         provisions of Code Section 404. All contributions by the Employer shall
         be made in cash or in such property as is acceptable to the Trustee.

                  (f)      Except, however, to the extent necessary to provide
         the top heavy minimum allocations, the Employer shall make a
         contribution even if it exceeds current or accumulated Net Profit or
         the amount which is deductible under Code Section 404.

                                       26
<PAGE>

         4.2      PARTICIPANT'S SALARY REDUCTION ELECTION.

                  (a)      Each Participant may elect to defer his Compensation
         which would have been received in the Plan Year, but for the deferral
         election, subject to the limitations of this Section and the Adoption
         Agreement. A deferral election (or modification of an earlier election)
         may not be made with respect to Compensation which is currently
         available on or before the date the Participant executed such election,
         or if later, the latest of the date the Employer adopts this cash or
         deferred arrangement, or the date such arrangement first became
         effective. Any elections made pursuant to this Section shall become
         effective as soon as is administratively feasible.

                  Additionally, if elected in the Adoption Agreement, each
         Participant may elect to defer and have allocated for a Plan Year all
         or a portion of any cash bonus attributable to services performed by
         the Participant for the Employer during such Plan Year and which would
         have been received by the Participant on or before two and one-half
         months following the end of the Plan Year but for the deferral. A
         deferral election may not be made with respect to cash bonuses which
         are. currently available on or before the date the Participant executed
         such election. Notwithstanding the foregoing, cash bonuses attributable
         to services performed by the Participant during a Plan Year but which
         are to be paid to the Participant later than two and one-half months
         after the close of such Plan Year will be subjected to whatever
         deferral election is in effect at the time such cash bonus would have
         otherwise been received.

                  The amount by which Compensation and/or cash bonuses are
         reduced shall be that Participant's Deferred Compensation and be
         treated as an Employer Elective Contribution and allocated to that
         Participant's Elective Account.

                  Once made, a Participant's election to reduce Compensation
         shall remain in effect until modified or terminated. Modifications may
         be made as specified in the Adoption Agreement, and terminations may be
         made at any time. Any modification or termination of an election will
         become effective as soon as is administratively feasible.

                  (b)      The balance in each Participant's Elective Account
         shall be fully Vested at all times and shall not be subject to
         Forfeiture for any reason.

                  (c)      Amounts held in the Participant's Elective Account
         and Qualified Non-Elective Account may be distributable as permitted
         under the Plan, but in no event prior to the earlier of:

                           (1)      a Participant's termination of employment,
                  Total and Permanent Disability, or death;

                           (2)      a Participant's attainment of age 59 1/2;

                           (3)      the proven financial hardship of a
                  Participant, subject to the limitations of Section 6.11;

                                       27
<PAGE>

                           (4)      the termination of the Plan without the
                  existence at the time of Plan termination of another defined
                  contribution plan (other than an employee stock ownership plan
                  as defined in Code Section 4975(e)(7)) or the establishment of
                  a successor defined contribution plan (other than an employee
                  stock ownership plan as defined in Code Section 4975(e)(7)) by
                  the Employer or an Affiliated Employer within the period
                  ending twelve months after distribution of all assets from the
                  Plan maintained by the Employer;

                           (5)      the date of the sale by the Employer to an
                  entity that is not an Affiliated Employer of substantially all
                  of the assets (within the meaning of Code Section 409(d)(2))
                  with respect to a Participant who continues employment with
                  the corporation acquiring such assets; or

                           (6)      the date of the sale by the Employer or an
                  Affiliated Employer of its interest in a subsidiary (within
                  the meaning of Code Section 409(d)(3)) to an entity that is
                  not an Affiliated Employer with respect to a Participant who
                  continues employment with such subsidiary.

                  (d)      In any Plan Year beginning after December 31, 1986, a
         Participant's Deferred Compensation made under this Plan and all other
         plans, contracts or arrangements of the Employer maintaining this Plan
         shall not exceed the limitation imposed by Code Section 402(g), as in
         effect for the calendar year in which such Plan Year began. If such
         dollar limitation is exceeded solely from elective deferrals made under
         this Plan or any other Plan maintained by the Employer, a Participant
         will be deemed to have notified the Administrator of such excess amount
         which shall be distributed in a manner consistent with Section 4.2(f).
         This dollar limitation shall be adjusted annually pursuant to the
         method provided in Code Section 415(d) in accordance with Regulations.

                  (e)      In the event a Participant has received a hardship
         distribution pursuant to Regulation 1.401(k)-l(d)(2)(iii)(B) from any
         other plan maintained by the Employer or from his Participant's
         Elective Account pursuant to Section 6.11(c), then such Participant
         shall not be permitted to elect to have Deferred Compensation
         contributed to the Plan on his behalf for a period of twelve (12)
         months following the receipt of the distribution. Furthermore, the
         dollar limitation under Code Section 402(g) shall be reduced, with
         respect to the Participant's taxable year following the taxable year in
         which the hardship distribution was made, by the amount of such
         Participant's Deferred Compensation, if any, made pursuant to this Plan
         (and any other plan maintained by the Employer) for the taxable year of
         the hardship distribution.

                  (f)      If a Participant's Deferred Compensation under this
         Plan together with any elective deferrals (as defined in Regulation
         l.402(g)-l(b)) under another qualified cash or deferred arrangement (as
         defined in Code Section 401(k)), a simplified employee pension (as
         defined in Code Section 408(k)), a salary reduction arrangement (within
         the meaning of Code Section 3121(a)(5)(D)), a deferred compensation
         plan under Code Section 457,

                                       28
<PAGE>

         or a trust described in Code Section 50l(c)(l8) cumulatively exceed the
         limitation imposed by Code Section 402(g) (as adjusted annually in
         accordance with the method provided in Code Section 4 15(d) pursuant to
         Regulations) for such Participant's taxable year, the Participant may,
         not later than March 1st following the close of his taxable year,
         notify the Administrator in writing of such excess and request that his
         Deferred Compensation under this Plan be reduced by an amount specified
         by the Participant. In such event, the Administrator shall direct the
         Trustee to distribute such excess amount (and any Income allocable to
         such excess amount) to the Participant not later than the first April
         15th following the close of the Participant's taxable year.
         Distributions in accordance with this paragraph may be made for any
         taxable year of the Participant which begins after December 31, 1986.
         Any distribution of less than the entire amount of Excess Deferred
         Compensation and Income shall be treated as a pro rata distribution of
         Excess Deferred Compensation and Income. The amount distributed shall
         not exceed the Participant's Deferred Compensation under the Plan for
         the taxable year. Any distribution on or before the last day of the
         Participant's taxable year must satisfy each of the following
         conditions:

                           (1)      the Participant shall designate the
                  distribution as Excess Deferred Compensation;

                           (2)      the distribution must be made after the date
                  on which the Plan received the Excess Deferred Compensation;
                  and

                           (3)      the Plan must designate the distribution as
                  a distribution of Excess Deferred Compensation.

                  Any distribution under this Section shall be made first from
         unmatched Deferred Compensation and, thereafter, simultaneously from
         Deferred Compensation which is matched and matching contributions which
         relate to such Deferred Compensation. However, any such matching
         contributions which are not Vested shall be forfeited in lieu of being
         distributed.

                  For the purpose of this Section, "Income" means the amount of
         income or loss allocable to a Participant's Excess Deferred
         Compensation and shall be equal to the sum of the allocable gain or
         loss for the taxable year of the Participant and the allocable gain or
         loss for the period between the end of the taxable year of the
         Participant and the date of distribution ("gap period"). The income or
         loss allocable to each such period is calculated separately and is
         determined by multiplying the income or loss allocable to the
         Participant's Deferred Compensation for the respective period by a
         fraction. The numerator of the fraction is the Participant's Excess
         Deferred Compensation for the taxable year of the Participant. The
         denominator is the balance, as of the last day of the respective
         period, of the Participant's Elective Account that is attributable to
         the Participant's Deferred Compensation reduced by the gain allocable
         to such total amount for the respective period and increased by the
         loss allocable to such total amount for the respective period.

                                       29
<PAGE>

                  In lieu of the "fractional method" described above, a "safe
         harbor method" may be used to calculate the allocable income or loss
         for the "gap period." Under such "safe harbor method" allocable income
         or loss for the "gap period" shall be deemed to equal ten percent (10%)
         of the income or loss allocable to a Participant's Excess Deferred
         Compensation for the taxable year of the Participant multiplied by the
         number of calendar months in the "gap period." For purposes of
         determining the number of calendar months in the "gap period," a
         distribution occurring on or before the fifteenth day of the month
         shall be treated as having been made on the last day of the preceding
         month and a distribution occurring after such fifteenth day shall be
         treated as having been made on the first day of the next subsequent
         month.

                  Income or loss allocable to any distribution of Excess
         Deferred Compensation on or before the last day of the taxable year of
         the Participant shall be calculated from the first day of the taxable
         year of the Participant to the date on which the distribution is made
         pursuant to either the "fractional method" or the "safe harbor method."

                  Notwithstanding the above, for any distribution under this
         Section which is made after August 15, 1991, such distribution shall
         not include any income for the "gap period". Further provided, for any
         distribution under this Section which is made after August 15, 1991,
         the amount of Income may be computed using a reasonable method that is
         consistent with Section 4.4(c), provided such method is used
         consistently for all Participants and for all such distributions for
         the Plan Year.

                  Notwithstanding the above, for the 1987 calendar year, Income
         during the "gap period" shall not be taken into account.

                  (g)      Notwithstanding Section 4.2(f) above, a Participant's
         Excess Deferred Compensation shall be reduced, but not below zero, by
         any distribution and/or recharacterization of Excess Contributions
         pursuant to Section 4.6(a) for the Plan Year beginning with or within
         the taxable year of the Participant.

                  (h)      At Normal Retirement Date, or such other date when
         the Participant shall be entitled to receive benefits, the fair market
         value of the Participant's Elective Account shall be used to provide
         benefits to the Participant or his Beneficiary.

                  (i)      Employer Elective Contributions made pursuant to this
         Section may be segregated into a separate account for each Participant
         in a federally insured savings account, certificate of deposit in a
         bank or savings and loan association, money market certificate, or
         other short-term debt security acceptable to the Trustee until such
         time as the allocations pursuant to Section 4.4 have been made.

                  (j)      The Employer and the Administrator shall adopt a
         procedure necessary to implement the salary reduction elections
         provided for herein.

                                       30
<PAGE>

         4.3      TIME OF PAYMENT OF EMPLOYER'S CONTRIBUTION.

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

         However, Employer Elective Contributions accumulated through payroll
deductions shall be paid to the Trustee as of the earliest date on which such
contributions can reasonably be segregated from the Employer's general assets,
but in any event within ninety (90) days from the date on which such amounts
would otherwise have been payable to the Participant in cash. The provisions of
Department of Labor regulations 2510.3-102 are incorporated herein by reference.
Furthermore, any additional Employer contributions which are allocable to the
Participant's Elective Account for a Plan Year shall be paid to the Plan no
later than the twelve-month period immediately following the close of such Plan
Year.

         4.4      ALLOCATION OF CONTRIBUTION, FORFEITURES AND EARNINGS.

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

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

                           (1)      With respect to the Employer's Elective
                  Contribution made pursuant to Section 4.1(a), to each
                  Participant's Elective Account in an amount equal to each such
                  Participant's Deferred Compensation for the year.

                           (2)      With respect to the Employer's Matching
                  Contribution made pursuant to Section 4.1(b), to each
                  Participant's Account, or Participant's Elective Account as
                  selected in E3 of the Adoption Agreement, in accordance with
                  Section 4.1(b).

                  Except, however, a Participant who is not credited with a Year
                  of Service during any Plan Year shall or shall not share in
                  the Employer's Matching Contribution for that year as provided
                  in E3 of the Adoption Agreement. However, for Plan Years
                  beginning after 1989, if this is a standardized Plan, a
                  Participant shall share in the Employer's Matching
                  Contribution regardless of Hours of Service.

                           (3)      With respect to the Employer's Non-Elective
                  Contribution made pursuant to Section 4.1(c), to each
                  Participant's Account in accordance with the provisions of E4
                  of the Adoption Agreement.

                                       31
<PAGE>

                  However, if an integrated allocation formula is selected at E4
                  of the Adoption Agreement, then such contribution shall be
                  allocated to each Participant's Combined Account in a dollar
                  amount equal to 5.7% of the sum of each Participant's total
                  Compensation plus Excess Compensation. If the Employer does
                  not contribute such amount for all Participants, each
                  Participant will be allocated a share of the contribution in
                  the same proportion that his total Compensation plus his total
                  Excess Compensation for the Plan Years bears to the total
                  Compensation plus the total Excess Compensation of all
                  Participants for that year. The balance of the contribution,
                  if any, will be allocated in the same proportion that his
                  total Compensation bears to the total Compensation of all
                  Participant's eligible to share in the allocation.

                  Regardless of the preceding, 4.3% shall be substituted for
                  5.7% above if Excess Compensation is based on more than 20%
                  and less than or equal to 80% of the Taxable Wage Base. If
                  Excess Compensation is based on less than 100% and more than
                  80% of the Taxable Wage Base, then 5.4% shall be substituted
                  for 5.7% above.

                           (4)      With respect to the Employer's Qualified
                  Non-Elective Contribution made pursuant to Section 4.1(d), to
                  each Participant's Qualified Non-Elective Contribution Account
                  in the same proportion that each such Participant's
                  Compensation for the year bears to the total Compensation of
                  all Participants for such year.

                           (5)      Regardless of the preceding, a Participant
                  who is not credited with a Year of Service during a Plan Year
                  shall not share in the allocation of the Employer's
                  Non-Elective Contribution made pursuant to Section 4.1(c) and
                  the Employer's Qualified Non-Elective Contribution made
                  pursuant to Section 4.1(d), unless reduced pursuant to Section
                  4.4(h). However, for Plan Years beginning after 1989, for a
                  standardized plan, and if elected in the non-standardized
                  Adoption Agreement, a Participant shall share in the
                  allocation of such contributions regardless of whether a Year
                  of Service was completed during the Plan Year.

                  (c)      As of each Anniversary Date or other valuation date,
         before allocation of Employer contributions and Forfeitures, any
         earnings or losses (net appreciation or net depreciation) of the Trust
         Fund shall be allocated in the same proportion that each Participant's
         and Former Participant's nonsegregated accounts bear to the total of
         all Participants' and Former Participants' nonsegregated accounts as of
         such date. If any nonsegregated account of a Participant has been
         distributed prior to the Anniversary Date or other valuation date
         subsequent to a Participant's termination of employment, no earnings or
         losses shall be credited to such account.

                  Notwithstanding the above, with respect to contributions made
         to a 401(k) Plan after the previous Anniversary Date or allocation
         date, the method specified in the Adoption Agreement shall be used.

                                       32
<PAGE>

                  (d)      Participants' Accounts shall be debited for any
         insurance or annuity premiums paid, if any, and credited with any
         dividends or interest received on insurance contracts.

                  (e)      As of each Anniversary Date any amounts which became
         Forfeitures since the last Anniversary Date shall first be made
         available to reinstate previously forfeited account balances of Former
         Participants, if any, in accordance with Section 6.4(g)(2) or be used
         to satisfy any contribution that may be required pursuant to Section
         3.5 and/or 6.9. The remaining Forfeitures, if any, shall be treated in
         accordance with the Adoption Agreement. Provided, however, that in the
         event the allocation of Forfeitures provided herein shall cause the
         "annual addition" (as defined in Section 4.9) to any Participant's
         Account to exceed the amount allowable by the Code, the excess shall be
         reallocated in accordance with Section 4.10. Except, however, for any
         Plan Year beginning prior to January 1, 1990, and if elected in the
         non-standardized Adoption Agreement for any Plan Year beginning on or
         after January 1, 1990, a Participant who performs less than a Year of
         Service during any Plan Year shall not share in the Plan Forfeitures
         for that year, unless there is a Short Plan Year or a contribution
         required pursuant to Section 4.4(h).

                  (f)      Minimum Allocations Required for Top Heavy Plan
         Years: Notwithstanding the foregoing, for any Top Heavy Plan Year, the
         sum of the Employer's contributions and Forfeitures allocated to the
         Participant's Combined Account of each Non-Key Employee shall be equal
         to at least three percent (3%) of such Non-Key Employee's "415
         Compensation" (reduced by contributions and forfeitures, if any,
         allocated to each Non-Key Employee in any defined contribution plan
         included with this plan in a Required Aggregation Group). However, if
         (i) the sum of the Employer's contributions and Forfeitures allocated
         to the Participant's Combined Account of each Key Employee for such Top
         Heavy Plan Year is less than three percent (3%) of each Key Employee's
         "415 Compensation" and (ii) this Plan is not required to be included in
         an Aggregation Group to enable a defined benefit plan to meet the
         requirements of Code Section 40l(a)(4) or 410, the sum of the
         Employer's contributions and Forfeitures allocated to the Participant's
         Combined Account of each Non-Key Employee shall be equal to the largest
         percentage allocated to the Participant's Combined Account of any Key
         Employee. However, for Plan Years beginning after December 31, 1988, in
         determining whether a Non-Key Employee has received the required
         minimum allocation, such Non-Key Employee's Deferred Compensation and
         matching contributions used to satisfy the "Actual Deferral Percentage"
         test pursuant to Section 4.5(a) or the "Actual Contribution Percentage"
         test of Section 4.7(a) shall not be taken into account.

                  If this is an integrated Plan, then for any Top Heavy Plan
         Year the Employer's contribution shall be allocated as follows:

                           (1)      An amount equal to 3% multiplied by each
                  Participant's Compensation for the Plan Year shall be
                  allocated to each Participant's Account. If the Employer does
                  not contribute such amount for all Participants, the amount

                                       33
<PAGE>

                  shall be allocated to each Participant's Account in the same
                  proportion that his total Compensation for the Plan Year bears
                  to the total Compensation of all Participants for such year.

                           (2)      The balance of the Employer's contribution
                  over the amount allocated under subparagraph (1) hereof shall
                  be allocated to each Participant's Account in a dollar amount
                  equal to 3% multiplied by a Participant's Excess Compensation.
                  If the Employer does not contribute such amount for all
                  Participants, each Participant will be allocated a share of
                  the contribution in the same proportion that his Excess
                  Compensation bears to the total Excess Compensation of all
                  Participants for that year.

                           (3)      The balance of the Employer's contribution
                  over the amount allocated under subparagraph (2) hereof shall
                  be allocated to each Participant's Account in a dollar amount
                  equal to 2.7% multiplied by the sum of each Participant's
                  total Compensation plus Excess Compensation. If the Employer
                  does not contribute such amount for all Participants, each
                  Participant will l)e allocated a share of the contribution in
                  the same proportion that his total Compensation plus his total
                  Excess Compensation for the Plan Year bears to the total
                  Compensation plus the total Excess Compensation of all
                  Participants for that year.

                  Regardless of the preceding, 1.3% shall be substituted for
                  2.7% above if Excess Compensation is based on more than 20%
                  and less than or equal to 80% of the Taxable Wage Base. If
                  Excess Compensation is based on less than 100% and more than
                  80% of the Taxable Wage Base, then 2.4% shall be substituted
                  for 2.7% above.

                           (4)      The balance of the Employer's contributions
                  over the amount allocated above, if any, shall be allocated to
                  each Participant's Account in the same proportion that his
                  total Compensation for the Plan Year bears to the total
                  Compensation of all Participants for such year.

                           For each Non-Key Employee who is a Participant in
                  this Plan and another non-paired defined contribution plan
                  maintained by the Employer, the minimum 3% allocation
                  specified above shall be provided as specified in F3 of the
                  Adoption Agreement.

                  (g)      For purposes of the minimum allocations set forth
         above, the percentage allocated to the Participant's Combined Account
         of any Key Employee shall be equal to the ratio of the sum of the
         Employer's contributions and Forfeitures allocated on behalf of such
         Key Employee divided by the "415 Compensation" for such Key Employee.

                  (h)      For any Top Heavy Plan Year, the minimum allocations
         set forth above shall be allocated to the Participant's Combined
         Account of all Non-Key Employees who are Participants and who are
         employed by the Employer on the last day of the Plan Year, including
         Non-Key Employees who have (1) failed to complete a Year of Service; or
         (2)

                                       34
<PAGE>

         declined to make mandatory contributions (if required) or salary
         reduction contributions to the Plan.

                  (i)      Notwithstanding anything herein to the contrary, in
         any Plan Year in which the Employer maintains both this Plan and a
         defined benefit pension plan included in a Required Aggregation Group
         which is top heavy, the Employer shall not be required to provide a
         Non-Key Employee with both the full separate minimum defined benefit
         plan benefit and the full separate defined contribution plan
         allocations. Therefore, if the Employer maintains both a Defined
         Benefit and a Defined Contribution Plan that are a Top Heavy Group, the
         top heavy minimum benefits shall be provided as follows:

         Applies if F1b of the Adoption Agreement is selected -

                           (1)      The requirements of Section 2.1 shall apply
                  except that each Non-Key Employee who is a Participant in this
                  Plan or a Money Purchase Plan and who is also a Participant in
                  the Defined Benefit Plan shall receive a minimum allocation of
                  five percent (5%) of such Participant's "415 Compensation"
                  from the applicable Defined Contribution Plan(s).

                           (2)      For each Non-Key Employee who is a
                  Participant only in the Defined Benefit Plan, the Employer
                  will provide a minimum non-integrated benefit in the Defined
                  Benefit Plan equal to 2% of his highest five consecutive year
                  average "415 Compensation" for each Year of Service while a
                  Participant in the Plan, in which the Plan is top heavy, not
                  to exceed ten.

                           (3)      For each Non-Key Employee who is a
                  Participant only in this Defined Contribution Plan, the
                  Employer will provide a contribution equal to 3% of his "415
                  Compensation."

         Applies if Flc of the Adoption Agreement is selected -

                           (4)      The minimum allocation specified in Section
                  4.4(i)(l) shall be 7 1/2% for years in which the Plan is Top
                  Heavy, but not Super Top Heavy.

                           (5)      The minimum benefit specified in Section
                  4.4(i)(2) shall be 3% for years in which the Plan is Top
                  Heavy, but not Super Top Heavy.

                           (6)      The minimum allocation specified in Section
                  4.4(i)(3) shall be 4% for years in which the Plan is Top
                  Heavy, but not Super Top Heavy.

                  (j)      For the purposes of this Section, "415 Compensation"
         shall be limited to $200,000 (unless adjusted in such manner as
         permitted under Code Section 415(d)). However, for Plan Years beginning
         prior to January 1, 1989, the $200,000 limit shall apply only for Top
         Heavy Plan Years and shall not be adjusted.

                                       35
<PAGE>

                  (k)      Notwithstanding anything herein to the contrary,
         participants who terminated employment during the Plan Year shall share
         in the salary reduction contributions made by the Employer for the year
         of termination without regard to the Hours of Service credited.

                  (l)      Notwithstanding anything herein to the contrary
         (other than Sections 4.4(k) and 6.6(h)(1)), any Participant who
         terminated employment during the Plan Year for reasons other than
         death, Total and Permanent Disability, or retirement shall or shall not
         share in the allocations of the Employer's Matching Contribution made
         pursuant to Section 4.1(b), the Employer's Non-Elective Contributions
         made pursuant to Section 4.1(c), the Employer's Qualified Non-Elective
         Contribution made pursuant to Section 4.1(d), and Forfeitures as
         provided in the Adoption Agreement. Notwithstanding the foregoing, for
         Plan Years beginning after 1989, if this is a standardized Plan, any
         such terminated Participant shall share in such allocations provided
         the terminated Participant completed more than 500 Hours of Service.

                  (m)      Notwithstanding anything herein to the contrary,
         Participants terminating for reasons of death, Total and Permanent
         Disability, or retirement shall share in the allocation of the
         Employer's Matching Contribution made pursuant to Section 4.1(b), the
         Employer's Non-Elective Contributions made pursuant to Section 4.1(c),
         the Employer's Qualified Non-Elective Contribution made pursuant to
         Section 4.1(d), and Forfeitures as provided in this Section regardless
         of whether they completed a Year of Service during the Plan Year.

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

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

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

                  (o)      Notwithstanding any election in the Adoption
         Agreement to the contrary, if this is a non-standardized Plan that
         would otherwise fail to meet the requirements of Code Sections
         401(a)(26), 410(b)(l), or 4l0(b)(2)(A)(i) and the Regulations
         thereunder because Employer matching Contributions made pursuant to
         Section 4.1(h), Employer Non-Elective Contributions made pursuant to
         Section 4.1(c) or Employer Qualified Non-Elective Contributions made
         pursuant to Section 4.1(d) have not been allocated to a sufficient
         number or percentage of Participants for a Plan Year, then the
         following rules shall apply:

                           (1)      Allocations of the respective contribution
                  and Forfeitures shall first be made to all active Participants
                  who are employed on the last day of the Plan Year, regardless
                  of the number of Hours of Service completed; and

                                       36
<PAGE>

                           (2)      If after application of paragraph (1) above,
                  the applicable test is still not satisfied, then the group of
                  Participants eligible to share in the Employer's contribution
                  and Forfeitures for the Plan Year shall be further expanded to
                  include the minimum number of Participants who are not
                  actively employed on the last day of the Plan Year as are
                  necessary to satisfy the applicable test. The specific
                  Participants who shall become eligible to share shall be those
                  Participants, when compared to similarly situated
                  Participants, who have completed the greatest number of Hours
                  of Service in the Plan Year before terminating employment.

                  Nothing in this Section shall permit the reduction of a
         Participant's accrued benefit. Therefore any amounts that have
         previously been allocated to Participants may not be reallocated to
         satisfy these requirements. In such event, the Employer shall make an
         additional contribution equal to the amount such affected Participants
         would have received had they been included in the allocations, even if
         it exceeds the amount which would be deductible under Code Section 404.
         Any adjustment to the allocations pursuant to this paragraph shall be
         considered a retroactive amendment adopted by the last day of the Plan
         Year.

         4.5      ACTUAL DEFERRAL PERCENTAGE TESTS.

                  (a)      Maximum Annual Allocation: For each Plan Year
         beginning after December 31, 1986, the annual allocation derived from
         Employer Elective Contributions and Qualified Non-Elective
         Contributions to a Participant's Elective Account and Qualified
         Non-Elective Account shall satisfy one of the following tests:

                           (1)      The "Actual Deferral Percentage" for the
                  Highly Compensated Participant group shall not be more than
                  the "Actual Deferral Percentage" of the Non-Highly Compensated
                  Participant group multiplied by 1.25, or

                           (2)      The excess of the "Actual Deferral
                  Percentage" for the Highly Compensated Participant group over
                  the "Actual Deferral Percentage" for the Non-Highly
                  Compensated Participant group shall not be more than two
                  percentage points. Additionally, the "Actual Deferral
                  Percentage" for the Highly Compensated Participant group shall
                  not exceed the "Actual Deferral Percentage" for the Non-Highly
                  Compensated Participant group multiplied by 2. The provisions
                  of Code Section 401(k)(3) and Regulation 1.401(k)-l(b) are
                  incorporated herein by reference.

                  However, for Plan Years beginning after December 31, 1988, to
                  prevent the multiple use of the alternative method described
                  in (2) above and Code Section 40l(m)(9)(A), any Highly
                  Compensated Participant eligible to make elective deferrals
                  pursuant to Section 4.2 and to make Employee contributions or
                  to receive matching contributions under this Plan or under any
                  other plan maintained by the Employer or an Affiliated
                  Employer shall have his actual contribution ratio reduced
                  pursuant to Regulation 1.401(m)-2, the provisions of which are
                  incorporated herein by reference.

                                       37
<PAGE>

                  (b)      For the purposes of this Section "Actual Deferral
         Percentage" means, with respect to the Highly Compensated Participant
         group and Non-Highly Compensated Participant group for a Plan Year, the
         average of the ratios, calculated separately for each Participant in
         such group, of the amount of Employer Elective Contributions and
         Qualified Non-Elective Contributions allocated to each Participant's
         Elective Account and Qualified Non-Elective Account for such Plan Year,
         to such Participant's "414(s) Compensation" for such Plan Year. The
         actual deferral ratio for each Participant and the "Actual Deferral
         Percentage" for each group, for Plan Years beginning after December 31,
         1988, shall be calculated to the nearest one-hundredth of one percent
         of the Participant's "414(s) Compensation." Employer Elective
         Contributions allocated to each Non-Highly Compensated Participant's
         Elective Account shall be reduced by Excess Deferred Compensation to
         the extent such excess amounts are made under this Plan or any other
         plan maintained by the Employer.

                  (c)      For the purpose of determining the actual deferral
         ratio of a Highly Compensated Participant who is subject to the Family
         Member aggregation rules of Code Section 414(q)(6) because such
         Participant is either a "five percent owner" of the Employer or one of
         the ten (10) Highly Compensated Employees paid the greatest "415
         Compensation" during the year, the following shall apply:

                           (1)      The combined actual deferral ratio for the
                  family group (which shall be treated as one Highly Compensated
                  Participant) shall be the greater of: (i) the ratio determined
                  by aggregating Employer Elective Contributions and "414(s)
                  Compensation" of all eligible Family Members who are Highly
                  Compensated Participants without regard to family aggregation;
                  and (ii) the ratio determined by aggregating Employer Elective
                  Contributions and "414(s) Compensation" of all eligible Family
                  Members (including Highly Compensated Participants). However,
                  in applying the $200,000 limit to "414(s) Compensation" for
                  Plan Years beginning after December 31, 1988, Family Members
                  shall include only the affected Employee's spouse and any
                  lineal descendants who have not attained age 19 before the
                  close of the Plan Year.

                           (2)      The Employer Elective Contributions and
                  "414(s) Compensation" of all Family Members shall be
                  disregarded for purposes of determining the "Actual Deferral
                  Percentage" of the Non-Highly Compensated Participant group
                  except to the extent taken into account in paragraph (1)
                  above.

                           (3)      If a Participant is required to be
                  aggregated as a member of more than one family group in a
                  plan, all Participants who are members of those family groups
                  that include the Participant are aggregated as one family
                  group in accordance with paragraphs (1) and (2) above.

                  (d)      For the purposes of Sections 4.5(a) and 4.6, a Highly
         Compensated Participant and a Non-Highly Compensated Participant shall
         include any Employee

                                       38
<PAGE>

         eligible to make a deferral election pursuant to Section 4.2, whether
         or not such deferral election was made or suspended pursuant to Section
         4.2.

                  (e)      For the purposes of this Section and Code Sections
         401(a)(4), 410(b) and 401(k), if two or more plans which include cash
         or deferred arrangements are considered one plan for the purposes of
         Code Section 40l(a)(4) or 410(b) (other than Code Section
         401(b)(2)(A)(ii) as in effect for Plan Years beginning after December
         31, 1988), the cash or deferred arrangements included in such plans
         shall be treated as one arrangement. In addition, two or more cash or
         deferred arrangements may be considered as a single arrangement for
         purposes of determining whether or not such arrangements satisfy Code
         Sections 401(a)(4), 410(b) and 401(k). In such a case, the cash or
         deferred arrangements included in such plans and the plans including
         such arrangements shall be treated as one arrangement and as one plan
         for purposes of this Section and Code Sections 401(a)(4), 410(b) and
         401(k). For plan years beginning after December 31, 1989, plans may be
         aggregated under this paragraph (e) only if they have the same plan
         year.

                  Notwithstanding the above, for Plan Years beginning after
         December 31, 1988, an employee stock ownership plan described in Code
         Section 4975(e)(7) may not be combined with this Plan for purposes of
         determining whether the employee stock ownership plan or this Plan
         satisfies this Section and Code Sections 401(a)(4), 410(b) and 401(k).

                  (f)      For the purposes of this Section, if a Highly
         Compensated Participant is a Participant under two (2) or more cash or
         deferred arrangements (other than a cash or deferred arrangement which
         is part of an employee stock ownership plan as defined in Code Section
         4975(e)(7) for Plan Years beginning after December 31, 1988) of the
         Employer or an Affiliated Employer, all such cash or deferred
         arrangements shall be treated as one cash or deferred arrangement for
         the purpose of determining the actual deferral ratio with respect to
         such Highly Compensated Participant. However, for Plan Years beginning
         after December 31, 1988, if the cash or deferred arrangements have
         different Plan Years, this paragraph shall be applied by treating all
         cash or deferred arrangements ending with or within the same calendar
         year as a single arrangement.

         4.6      ADJUSTMENT TO ACTUAL DEFERRAL PERCENTAGE TESTS.

         In the event that the initial allocations of the Employer's Elective
Contributions and Qualified Non-Elective Contributions made pursuant to Section
4.4 do not satisfy one of the tests set forth in Section 4.5, for Plan Years
beginning after December 31, 1986, the Administrator shall adjust Excess
Contributions pursuant to the options set forth below:

                  (a)      On or before the fifteenth day of the third month
         following the end of each Plan Year, the Highly Compensated Participant
         having the highest actual deferral ratio shall have his portion of
         Excess Contributions distributed to him and/or at his election
         recharacterized as a voluntary Employee contribution pursuant to
         Section 4.12 until one of the tests set forth in Section 4.5 is
         satisfied, or until his actual deferral ratio equals the actual
         deferral ratio of the Highly Compensated Participant having the second
         highest

                                       39
<PAGE>

         actual deferral ratio. This process shall continue until one of the
         tests set forth in Section 4.5 is satisfied. For each Highly
         Compensated Participant, the amount of Excess Contributions is equal to
         the Elective Contributions and Qualified Non-Elective Contributions
         made on behalf of such Highly Compensated Participant (determined prior
         to the application of this paragraph) minus the amount determined by
         multiplying the Highly Compensated Participant's actual deferral ratio
         (determined after application of this paragraph) by his "414(s)
         Compensation." However, in determining the amount of Excess
         Contributions to be distributed and/or recharacterized with respect to
         an affected Highly Compensated Participant as determined herein, such
         amount shall be reduced by any Excess Deferred Compensation previously
         distributed to such affected Highly Compensated Participant for his
         taxable year ending with or within such Plan Year. Any distribution
         and/or recharacterization of Excess Contributions shall be made in
         accordance with the following:

                           (1)      With respect to the distribution of Excess
                  Contributions pursuant to (a) above, such distribution:

                                    (i)      may be postponed but not later than
                           the close of the Plan Year following the Plan Year to
                           which they are allocable;

                                    (ii)     shall be made first from unmatched
                           Deferred Compensation and, thereafter, simultaneously
                           from Deferred Compensation which is matched and
                           matching contributions which relate to such Deferred
                           Compensation. However, any such matching
                           contributions which are not Vested shall be forfeited
                           in lieu of being distributed;

                                    (iii)    shall be made from Qualified
                           Non-Elective Contributions only to the extent that
                           Excess Contributions exceed the balance in the
                           Participant's Elective Account attributable to
                           Deferred Compensation and Employer matching
                           contributions.

                                    (iv)     shall be adjusted for Income; and

                                    (v)      shall be designated by the Employer
                           as a distribution of Excess Contributions (and
                           Income).

                           (2)      With respect to the recharacterization of
                  Excess Contributions pursuant to (a) above, such
                  recharacterized amounts:

                                    (i)      shall be deemed to have occurred on
                           the date on which the last of those Highly
                           Compensated Participants with Excess Contributions to
                           be recharacterized is notified of the
                           recharacterization and the tax consequences of such
                           recharacterization;

                                      40
<PAGE>
                  (ii)     for Plan Years ending on or before August 8, 1988,
         may be postponed but not later than October 24, 1988;

                  (iii)    shall not exceed the amount of Deferred Compensation
         on behalf of any Highly Compensated Participant for any Plan Year;

                  (iv)     shall be treated as voluntary Employee contributions
         for purposes of Code Section 401(a)(4) and Regulation 1.401(k)-1(b).
         However, for purposes of Sections 2.2 and 4.4(f), recharacterized
         Excess Contributions continue to be treated as Employer contributions
         that are Deferred Compensation. For Plan Years beginning after December
         31, 1988, Excess Contributions recharacterized as voluntary Employee
         contributions shall continue to be nonforfeitable and subject to the
         same distribution rules provided for in Section 4.9(f);

                  (v)      which relate to Plan Years ending on or before
         October 24, 1988, may be treated as either Employer contributions or
         voluntary Employee contributions and therefore shall not be subject to
         the restrictions of Section 4.2(c);

                  (vi)     are not permitted if the amount recharacterized plus
         voluntary Employee contributions actually made by such Highly
         Compensated Participant, exceed the maximum amount of voluntary
         Employee contributions (determined prior to application of Section
         4.7(a)) that such Highly Compensated Participant is permitted to make
         under the Plan in the absence of recharacterization;

                  (vii)    shall be adjusted for Income.

         (3)      Any distribution and/or recharacterization of less than the
entire amount of Excess Contributions shall be treated as a pro rata
distribution and/or recharacterization of Excess Contributions and Income.

         (4)      The determination and correction of Excess Contributions of a
Highly Compensated Participant whose actual deferral ratio is determined under
the family aggregation rules shall be accomplished as follows:

                  (i)      If the actual deferral ratio for the Highly
         Compensated Participant is determined in accordance with Section
         4.5(c)(l)(ii), then the actual deferral ratio shall be reduced as
         required herein and the Excess Contributions for the family unit shall
         be allocated among the Family Members in proportion to the Elective
         Contributions of each Family Member that were combined to determine the
         group actual deferral ratio.

                  (ii)     If the actual deferral ratio for the Highly
         Compensated Participant is determined under Section 4.5(c)(1)(i), then
         the actual

                                       41
<PAGE>

         deferral ratio shall first be reduced as required herein, but not below
         the actual deferral ratio of the group of Family Members who are not
         Highly Compensated Participants without regard to family aggregation.
         The Excess Contributions resulting from this initial reduction shall be
         allocated (in proportion to Elective Contributions) among the Highly
         Compensated Participants whose Elective Contributions were combined to
         determine the actual deferral ratio. If further reduction is still
         required, then Excess Contributions resulting from this further
         reduction shall be determined by taking into account the contributions
         of all Family Members and shall be allocated among them in proportion
         to their respective Elective Contributions.

         (b)      Within twelve (12) months after the end of the Plan Year, the
Employer shall make a special Qualified Non-Elective Contribution on behalf of
Non-Highly Compensated Participants in an amount sufficient to satisfy one of
the tests set forth in Section 4.5(a). Such contribution shall be allocated to
the Participant's Qualified Non-Elective Account of each Non-Highly Compensated
Participant in the same proportion that each Non-Highly Compensated
Participant's Compensation for the year bears to the total Compensation of all
Non-Highly Compensated Participants.

         (c)      For purposes of this Section, "Income" means the income or
loss allocable to Excess Contributions which shall equal the sum of the
allocable gain or loss for the Plan Year and the allocable gain or loss for the
period between the end of the Plan Year and the date of distribution ("gap
period"). The income or loss allocable to Excess Contributions for the Plan Year
and the "gap period" is calculated separately and is determined by multiplying
the income or loss for the Plan Year or the "gap period" by a fraction. The
numerator of the fraction is the Excess Contributions for the Plan Year. The
denominator of the fraction is the total of the Participant's Elective Account
attributable to Elective Contributions and the Participant's Qualified
Non-Elective Account as of the end of the Plan Year or the "gap period," reduced
by the gain allocable to such total amount for the Plan Year or the "gap period"
and increased by the loss allocable to such total amount for the Plan Year or
the "gap period."

         In lieu of the "fractional method" described above, a "safe harbor
method" may be used to calculate the allocable Income for the "gap period."
Under such "safe harbor method," allocable Income for the "gap period" shall be
deemed to equal ten percent (10%) of the Income allocable to Excess
Contributions for the Plan Year of the Participant multiplied by the number of
calendar months in the "gap period." For purposes of determining the number of
calendar months in the "gap period," a distribution occurring on or before the
fifteenth day of the month shall be treated as having been made on the last day
of the preceding month and a distribution occurring after such fifteenth day
shall be treated as having been made on the first day of the next subsequent
month.

         Notwithstanding the above, for any distribution under this Section
which is made after August 15, 1991, such distribution shall not include any
Income for the "gap

                                       42
<PAGE>

period". Further provided, for any distribution under this Section which is made
after August 15, 1991, the amount of Income may be computed using a reasonable
method that is consistent with Section 4.4(c), provided such method is used
consistently for all Participants and for all such distributions for the Plan
Year.

         Notwithstanding the above, for Plan Years which began in 1987, Income
during the "gap period" shall not be taken into account.

         (d)      Any amounts not distributed or recharacterized within 2 1/2
months after the end of the Plan Year shall be subject to the 10% Employer
excise tax imposed by Code Section 4979.

4.7      ACTUAL CONTRIBUTION PERCENTAGE TESTS.

         (a)      The "Actual Contribution Percentage," for Plan Years beginning
after the later of the Effective Date of this Plan or December 31, 1986, for the
Highly Compensated Participant group shall not exceed the greater of:

                  (1)      125 percent of such percentage for the Non-Highly
         Compensated Participant group; or

                  (2)      the lesser of 200 percent of such percentage for the
         Non-Highly Compensated Participant group, or such percentage for the
         Non-Highly Compensated Participant group plus 2 percentage points.
         However, for Plan Years beginning after December 31, 1988, to prevent
         the multiple use of the alternative method described in this paragraph
         and Code Section 401(m)(9)(A), any Highly Compensated Participant
         eligible to make elective deferrals pursuant to Section 4.2 or any
         other cash or deferred arrangement maintained by the Employer or an
         Affiliated Employer and to make Employee contributions or to receive
         matching contributions under any plan maintained by the Employer or an
         Affiliated Employer shall have his actual contribution ratio reduced
         pursuant to Regulation 1.40l(m)-2. The provisions of Code Section
         401(m) and Regulations l.401(m)-1(b) and l.401(m)-2 are incorporated
         herein by reference.

         (b)      For the purposes of this Section and Section 4.8, "Actual
Contribution Percentage" for a Plan Year means, with respect to the Highly
Compensated Participant group and Non-Highly Compensated Participant group, the
average of the ratios (calculated separately for each Participant in each group)
of:

                  (1)      the sum of Employer matching contributions pursuant
         to Section 4.1(b) (to the extent such matching contributions are not
         used to satisfy the tests set forth in Section 4.5), voluntary Employee
         contributions made pursuant to Section 4.12 and Excess Contributions
         recharacterized as voluntary Employee contributions pursuant to Section
         4.6(a) contributed under the Plan on behalf of each such Participant
         for such Plan Year; to

                                       43
<PAGE>

                  (2)      the Participant's "414(s) Compensation" for such Plan
         Year.

         (c)      For purposes of determining the "Actual Contribution
Percentage" and the amount of Excess Aggregate Contributions pursuant to Section
4.8(e), only Employer matching contributions (excluding matching contributions
forfeited or distributed pursuant to Section 4.2(f), 4.6(a) or 4.8(a))
contributed to the Plan prior to the end of the succeeding Plan Year shall be
considered. In addition, the Administrator may elect to take into account, with
respect to Employees eligible to have Employer matching contributions made
pursuant to Section 4.1(b) or voluntary Employee contributions made pursuant to
Section 4.12 allocated to their accounts, elective deferrals (as defined in
Regulation l.402(g)-l(b)) and qualified non-elective contributions (as defined
in Code Section 401(m)(4)(C)) contributed to any plan maintained by the
Employer. Such elective deferrals and qualified non-elective contributions shall
be treated as Employer matching contributions subject to Regulation
1.40l(m)-l(b)(2) which is incorporated herein by reference. However, for Plan
Years beginning after December 31, 1988, the Plan Year must be the same as the
plan year of the plan to which the elective deferrals and the qualified
non-elective contributions are made.

         (d)      For the purpose of determining the actual contribution ratio
of a Highly Compensated Employee who is subject to the Family Member aggregation
rules of Code Section 414(q)(6) because such Employee is either a "five percent
owner" of the Employer or one of the ten (10) Highly Compensated Employees paid
the greatest "415 Compensation" during the year, the following shall apply:

                  (1)      The combined actual contribution ratio for the family
         group (which shall be treated as one Highly Compensated Participant)
         shall be the greater of: (i) the ratio determined by aggregating
         Employer matching contributions made pursuant to Section 4.1(b) (to the
         extent such matching contributions are not used to satisfy the tests
         set forth in Section 4.5), voluntary Employee contributions made
         pursuant to Section 4.12, Excess Contributions recharacterized as
         voluntary Employee contributions pursuant to Section 4.6(a) and "414(s)
         Compensation" of all eligible Family Members who are Highly Compensated
         Participants without regard to family aggregation; and (ii) the ratio
         determined by aggregating Employer matching contributions made pursuant
         to Section 4.1(b) (to the extent such matching contributions are not
         used to satisfy the tests set forth in Section 4.5), voluntary Employee
         contributions made pursuant to Section 4.12, Excess Contributions
         recharacterized as voluntary Employee contributions pursuant to Section
         4.6(a) and "414(s) Compensation" of all eligible Family Members
         (including Highly Compensated Participants). However, in applying the
         $200,000 limit to "414(s) Compensation" for Plan Years beginning after
         December 31, 1988, Family Members shall include only the affected
         Employee's spouse and any lineal descendants who have not attained age
         19 before the close of the Plan Year.

                  (2)      The Employer matching contributions made pursuant to
         Section 4.1(b) (to the extent such matching contributions are not used
         to satisfy the tests

                                       44
<PAGE>

         set forth in Section 4.5), voluntary Employee contributions made
         pursuant to Section 4.12, Excess Contributions recharacterized as
         voluntary Employee contributions pursuant to Section 4.6(a) and "414(s)
         Compensation" of all Family Members shall be disregarded for purposes
         of determining the "Actual Contribution Percentage" of the Non-Highly
         Compensated Participant group except to the extent taken into account
         in paragraph (1) above.

                  (3)      If a Participant is required to be aggregated as a
         member of more than one family group in a plan, all Participants who
         are members of those family groups that include the Participant are
         aggregated as one family group in accordance with paragraphs (1) and
         (2) above.

         (e)      For purposes of this Section and Code Sections 401(a)(4), 4
10(b) and 40 1(m), if two or more plans of the Employer to which matching
contributions, Employee contributions, or both, are made are treated as one plan
for purposes of Code Sections 401(a)(4) or 410(b) (other than the average
benefits test under Code Section 410(b)(2)(A)(ii) as in effect for Plan Years
beginning after December 31, 1988), such plans shall be treated as one plan. In
addition, two or more plans of the Employer to which matching contributions,
Employee contributions, or both, are made may be considered as a single plan for
purposes of determining whether or not such plans satisfy Code Sections
401(a)(4), 401(b) and 401(m). In such a case, the aggregated plans must satisfy
this Section and Code Sections 401(a)(4), 401(b) and 401(m) as though such
aggregated plans were a single plan. For plan years beginning after December 31,
1989, plans may be aggregated under this paragraph only if they have the same
plan year.

         Notwithstanding the above, for Plan Years beginning after December 31,
1988, an employee stock ownership plan described in Code Section 4975(e)(7) may
not be aggregated with this Plan for purposes of determining whether the
employee stock ownership plan or this Plan satisfies this Section and Code
Sections 401(a)(4), 410(b) and 401(m).

         (f)      If a Highly Compensated Participant is a Participant under two
or more plans (other than an employee stock ownership plan as defined in Code
Section 4975(e)(7) for Plan Years beginning after December 31, 1988) which are
maintained by the Employer or an Affiliated Employer to which matching
contributions, Employee contributions, or both, are made, all such contributions
on behalf of such Highly Compensated Participant shall be aggregated for
purposes of determining such Highly Compensated Participant's actual
contribution ratio. However, for Plan Years beginning after December 31, 1988,
if the plans have different plan years, this paragraph shall be applied by
treating all plans ending with or within the same calendar year as a single
plan.

         (g)      For purposes of Section 4.7(a) and 4.8, a Highly Compensated
Participant and a Non-Highly Compensated Participant shall include any Employee
eligible to have matching contributions made pursuant to Section 4.1(b) (whether
or not a deferred election was made or suspended pursuant to Section 4.2(e))
allocated to his account for

                                       45
<PAGE>

the Plan Year or to make salary deferrals pursuant to Section 4.2 (if the
Employer uses salary deferrals to satisfy the provisions of this Section) or
voluntary Employee contributions pursuant to Section 4.12 (whether or not
voluntary Employee contributions are made) allocated to his account for the Plan
Year.

         (h)      For purposes of this Section, "Matching Contribution" shall
mean an Employer contribution made to the Plan, or to a contract described in
Code Section 403(b), on behalf of a Participant on account of an Employee
contribution made by such Participant, or on account of a participant's deferred
compensation, under a plan maintained by the Employer.

4.8      ADJUSTMENT TO ACTUAL CONTRIBUTION PERCENTAGE TESTS.

         (a)      In the event that for Plan Years beginning after December 31,
1986, the "Actual Contribution Percentage" for the Highly Compensated
Participant group exceeds the "Actual Contribution Percentage" for the
Non-Highly Compensated Participant group pursuant to Section 4.7(a), the
Administrator (on or before the fifteenth day of the third month following the
end of the Plan Year, but in no event later than the close of the following Plan
Year) shall direct the Trustee to distribute to the Highly Compensated
Participant having the highest actual contribution ratio, his portion of Excess
Aggregate Contributions (and Income allocable to such contributions) or, if
forfeitable, forfeit such non-Vested Excess Aggregate Contributions attributable
to Employer matching contributions (and Income allocable to such Forfeitures)
until either one of the tests set forth in Section 4.7(a) is satisfied, or until
his actual contribution ratio equals the actual contribution ratio of the Highly
Compensated Participant having the second highest actual contribution ratio.
This process shall continue until one of the tests set forth in Section 4.7(a)
is satisfied. The distribution and/or Forfeiture of Excess Aggregate
Contributions shall be made in the following order:

                  (1)      Employer matching contributions distributed and/or
         forfeited pursuant to Section 4.6(a)( 1);

                  (2)      Voluntary Employee contributions including Excess
         Contributions recharacterized as voluntary Employee contributions
         pursuant to Section 4.6(a)(2);

                  (3)      Remaining Employer matching contributions.

         (b)      Any distribution or Forfeiture of less than the entire amount
of Excess Aggregate Contributions (and Income) shall be treated as a pro rata
distribution of Excess Aggregate Contributions and Income. Distribution of
Excess Aggregate Contributions shall be designated by the Employer as a
distribution of Excess Aggregate Contributions (and Income). Forfeitures of
Excess Aggregate Contributions shall be treated in accordance with Section 4.4.
However, no such Forfeiture may be allocated to a Highly Compensated Participant
whose contributions are reduced pursuant to this Section.

                                       46
<PAGE>

         (c)      Excess Aggregate Contributions attributable to amounts other
than voluntary Employee contributions, including forfeited matching
contributions, shall be treated as Employer contributions for purposes of Code
Sections 404 and 415 even if distributed from the Plan.

         (d)      For the purposes of this Section and Section 4.7, "Excess
Aggregate Contributions" means, with respect to any Plan Year, the excess of:

                  (1)      the aggregate amount of Employer matching
         contributions made pursuant to Section 4.1(b) (to the extent such
         contributions are taken into account pursuant to Section 4.7(b)),
         voluntary Employee contributions made pursuant to Section 4.12, Excess
         Contributions recharacterized as voluntary Employee contributions
         pursuant to Section 4.6(a) and any Qualified Non-Elective Contributions
         or elective deferrals taken into account pursuant to Section 4.7(c)
         actually made on behalf of the Highly Compensated Participant group for
         such Plan Year, over

                  (2)      the maximum amount of such contributions permitted
         under the limitations of Section 4.7(a).

         (e)      For each Highly Compensated Participant, the amount of Excess
Aggregate Contributions is equal to the total Employer matching contributions
made pursuant to Section 4.1(b) (to the extent taken into account pursuant to
Section 4.7(b)), voluntary Employee contributions made pursuant to Section 4.12,
Excess Contributions recharacterized as voluntary Employee contributions
pursuant to Section 4.6(a) and any Qualified Non-Elective Contributions or
elective deferrals taken into account pursuant to Section 4.7(c) on behalf of
the Highly Compensated Participant (determined prior to the application of this
paragraph) minus the amount determined by multiplying the Highly Compensated
Participant's actual contribution ratio (determined after application of this
paragraph) by his "414(s) Compensation." The actual contribution ratio must be
rounded to the nearest one-hundredth of one percent for Plan Years beginning
after December 31, 1988. In no case shall the amount of Excess Aggregate
Contribution with respect to any Highly Compensated Participant exceed the
amount of Employer matching contributions made pursuant to Section 4.1(b) (to
the extent taken into account pursuant to Section 4.7(b)), voluntary Employee
contributions made pursuant to Section 4.12, Excess Contributions
recharacterized as voluntary Employee contributions pursuant to Section 4.6(a)
and any Qualified Non-Elective Contributions or elective deferrals taken into
account pursuant to Section 4.7(c) on behalf of such Highly Compensated
Participant for such Plan Year.

         (f)      The determination of the amount of Excess Aggregate
Contributions with respect to any Plan Year shall be made after first
determining the Excess Contributions, if any, to be treated as voluntary
Employee contributions due to recharacterization for the plan year of any other
qualified cash or deferred arrangement (as defined in Code Section 401(k))
maintained by the Employer that ends with or within the Plan Year or which are

                                       47
<PAGE>

treated as voluntary Employee contributions due to recharacterization pursuant
to Section 4.6(a).

         (g)      The determination and correction of Excess Aggregate
Contributions of a Highly Compensated Participant whose actual contribution
ratio is determined under the family aggregation rules shall be accomplished as
follows:

                  (1)      If the actual contribution ratio for the Highly
         Compensated Participant is determined in accordance with Section
         4.7(d)(1)(ii), then the actual contribution ratio shall be reduced and
         the Excess Aggregate Contributions for the family unit shall be
         allocated among the Family Members in proportion to the sum of Employer
         matching contributions made pursuant to Section 4.1(b) (to the extent
         taken into account pursuant to Section 4.7(b)), voluntary Employee
         contributions made pursuant to Section 4.12, Excess Contributions
         recharacterized as voluntary Employee contributions pursuant to Section
         4.6(a) and any Qualified Non-Elective Contributions or elective
         deferrals taken into account pursuant to Section 4.7(c) of each Family
         Member that were combined to determine the group actual contribution
         ratio.

                  (2)      If the actual contribution ratio for the Highly
         Compensated Participant is determined under Section 4.7(d)(l)(i), then
         the actual contribution ratio shall first be reduced, as required
         herein, but not below the actual contribution ratio of the group of
         Family Members who are not Highly Compensated Participants without
         regard to family aggregation. The Excess Aggregate Contributions
         resulting from this initial reduction shall be allocated among the
         Highly Compensated Participants whose Employer matching contributions
         made pursuant to Section 4.1(b) (to the extent taken into account
         pursuant to Section 4.7(b)), voluntary Employee contributions made
         pursuant to Section 4.12, Excess Contributions recharacterized as
         voluntary Employee contributions pursuant to Section 4.6(a) and any
         Qualified Non-Elective Contributions or elective deferrals taken into
         account pursuant to Section 4.7(c) were combined to determine the
         actual contribution ratio. If further reduction is still required, then
         Excess Aggregate Contributions resulting from this further reduction
         shall be determined by taking into account the contributions of all
         Family Members and shall be allocated among them in proportion to their
         respective Employer matching contributions made pursuant to Section
         4.1(b) (to the extent taken into account pursuant to Section 4.7(b)),
         voluntary Employee contributions made pursuant to Section 4.12, Excess
         Contributions recharacterized as voluntary Employee contributions
         pursuant to Section 4.6(a) and any Qualified Non-Elective Contributions
         or elective deferrals taken into account pursuant to Section 4.7(c).

         (h)      Notwithstanding the above, within twelve (12) months after the
end of the Plan Year, the Employer may make a special Qualified Non-Elective
Contribution on behalf of Non-Highly Compensated Participants in an amount
sufficient to satisfy one of the tests set forth in Section 4.7(a). Such
contribution shall be allocated to the

                                       48
<PAGE>

Participant's Qualified Non-Elective Account of each Non-Highly Compensated
Participant in the same proportion that each Non-Highly Compensated
Participant's Compensation for the year bears to the total Compensation of all
Non-Highly Compensated Participants. A separate accounting shall be maintained
for the purpose of excluding such contributions from the "Actual Deferral
Percentage" tests pursuant to Section 4.5(a).

         (i)      For purposes of this Section, "Income" means the income or
loss allocable to Excess Aggregate Contributions which shall equal the sum of
the allocable gain or loss for the Plan Year and the allocable gain or loss for
the period between the end of the Plan Year and the date of distribution ("gap
period"). The income or loss allocable to Excess Aggregate Contributions for the
Plan Year and the "gap period" is calculated separately and is determined by
multiplying the income or loss for the Plan Year or the "gap period" by a
fraction. The numerator of the fraction is the Excess Aggregate Contributions
for the Plan Year. The denominator of the fraction is the total Participant's
Account and Voluntary Contribution Account attributable to Employer matching
contributions subject to Section 4.7, voluntary Employee contributions made
pursuant to Section 4.12, and any Qualified Non-Elective Contributions and
elective deferrals taken into account pursuant to Section 4.7(c) as of the end
of the Plan Year or the "gap period," reduced by the gain allocable to such
total amount for the Plan Year or the "gap period" and increased by the loss
allocable to such total amount for the Plan Year or the "gap period."

         In lieu of the "fractional method" described above, a "safe harbor
method" may be used to calculate the allocable Income for the "gap period."
Under such "safe harbor method," allocable Income for the "gap period" shall be
deemed to equal ten percent (10%) of the Income allocable to Excess Aggregate
Contributions for the Plan Year of the Participant multiplied by the number of
calendar months in the "gap period." For purposes of determining the number of
calendar months in the "gap period," a distribution occurring on or before the
fifteenth day of the month shall be treated as having been made on the last day
of the preceding month and a distribution occurring after such fifteenth day
shall be treated as having been made on the first day of the next subsequent
month.

         The Income allocable to Excess Aggregate Contributions resulting from
recharacterization of Elective Contributions shall be determined and distributed
as if such recharacterized Elective Contributions had been distributed as Excess
Contributions.

         Notwithstanding the above, for any distribution under this Section
which is made after August 15, 1991, such distribution shall not include any
Income for the "gap period". Further provided, for any distribution under this
Section which is made after August 15, 1991, the amount of Income may be
computed using a reasonable method that is consistent with Section 4.4(c),
provided such method is used consistently for all Participants and for all such
distributions for the Plan Year.

         Notwithstanding the above, for any distribution under this Section
which is made after August 15, 1991, such distribution shall not include any
Income for the "gap

                                       49
<PAGE>

period". Further provided, for any distribution under this Section which is made
after August 15, 1991, the amount of Income may be computed using a reasonable
method that is consistent with Section 4.4(c), provided such method is used
consistently for all Participants and for all such distributions for the Plan
Year.

         Notwithstanding the above, for Plan Years which began in 1987, Income
during the "gap period" shall not be taken into account.

4.9      MAXIMUM ANNUAL ADDITIONS.

         (a)      (1) If the Participant does not participate in, and has never
participated in another qualified 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(l)(2)) maintained
by the Employer, which provides Annual Additions, the amount of Annual Additions
which may be credited to the Participant's accounts for any Limitation Year
shall not exceed the lesser of the Maximum Permissible Amount or any other
limitation contained in this Plan. If the Employer contribution that would
otherwise be contributed or allocated to the Participant's accounts would cause
the Annual Additions for the Limitation Year to exceed the Maximum Permissible
Amount, the amount contributed or allocated will be reduced so that the Annual
Additions for the Limitation Year will 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 such Limitation Year
shall be determined on the basis of the Participant's actual compensation for
such Limitation Year.

                  (4)      If there is an excess amount pursuant to Section 4.10
or Section 4.5, the excess will be disposed of in one of the following manners,
as uniformly determined by the Plan Administrator for all Participants similarly
situated:

                           (i)      Any Deferred Compensation or nondeductible
                  Voluntary Employee Contributions, to the extent they would
                  reduce the Excess Amount, will be distributed to the
                  Participant;

                           (ii)     If, after the application of subparagraph
                  (i), an Excess Amount still exists, and the Participant is
                  covered by the Plan at the end of the Limitation Year, the
                  Excess Amount in the Participant's account will be used to
                  reduce Employer contributions (including any allocation of

                                       50
<PAGE>

                  Forfeitures) for such Participant in the next Limitation Year,
                  and each succeeding Limitation Year if necessary;

                           (iii)    If, after the application of subparagraph
                  (i), an Excess Amount still exists, and the Participant is not
                  covered by the Plan at the end of a Limitation Year, the
                  Excess Amount will be held unallocated in a suspense account.
                  The suspense account will be 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;

                           (iv)     If a suspense account is in existence at any
                  time during a Limitation Year pursuant to this Section, it
                  will not participate in the allocation of investment gains and
                  losses. If a suspense account is in existence at any time
                  during a particular limitation year, all amounts in the
                  suspense account must be allocated and reallocated to
                  participants accounts before any employer contributions or any
                  employee contributions may be made to the plan for that
                  limitation year. Excess amounts may not be distributed to
                  participants or former participants.

         (b)      (1) This subsection applies if, in addition to this Plan, the
Participant is covered under another qualified Prototype 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(l)(2)) maintained by the Employer, which provides
Annual Additions, during any Limitation Year. The Annual Additions which may be
credited to a Participant's accounts under this Plan for any such Limitation
Year shall not exceed the Maximum Permissible Amount reduced by the Annual
Additions credited to a Participant's accounts under the other plans and welfare
benefit funds for the same Limitation Year. If the Annual Additions with respect
to the Participant under other defined contribution plans and welfare benefit
funds maintained by the Employer are less than the Maximum Permissible Amount
and the Employer contribution that would otherwise be contributed or allocated
to the Participant's accounts under this Plan would cause the Annual Additions
for the Limitation Year to exceed this limitation, the amount contributed or
allocated will be reduced so that the Annual Additions under all such plans and
welfare benefit funds for the Limitation Year will equal the Maximum Permissible
Amount. If the Annual Additions with respect to the Participant under such other
defined contribution plans and welfare benefit funds in the aggregate are equal
to or greater than the Maximum Permissible Amount, no amount will be contributed
or allocated to the Participant's account under this Plan for the Limitation
Year.

                  (2)      Prior to determining the Participant's actual
Compensation for the Limitation Year, the Employer may determine the Maximum
Permissible Amount for a Participant in the manner described in Section
4.9(a)(2).

                                       51
<PAGE>

                  (3)      As soon as is administratively feasible after the end
of the Limitation Year, the Maximum Permissible Amount for the Limitation Year
will be determined on the basis of the Participant's actual Compensation for the
Limitation Year.

                  (4)      If, pursuant to Section 4.9(b)(2) or Section 4.10, a
Participant's Annual Additions under this Plan and such other plans would result
in an Excess Amount for a Limitation Year, the Excess Amount will be deemed to
consist of the Annual Additions last allocated, except that Annual Additions
attributable to a welfare benefit fund or individual medical account will be
deemed to have been allocated first regardless of the actual allocation date.

                  (5)      If an Excess Amount was allocated to a Participant on
an allocation date of this Plan which coincides with an allocation date of
another plan, the Excess Amount attributed to this Plan will be the product of:

                           (i)      the total Excess Amount allocated as of such
                  date, times

                           (ii)     the ratio of (1) the Annual Additions
                  allocated to the Participant for the Limitation Year as of
                  such date under this Plan to (2) the total Annual Additions
                  allocated to the Participant for the Limitation Year as of
                  such date under this and all the other qualified defined
                  contribution plans.

                  (6)      Any Excess Amount attributed to this Plan will be
disposed in the manner described in Section 4.9(a)(4).

         (c)      If the Participant is covered under another qualified defined
contribution plan maintained by the Employer which is not a Prototype Plan,
Annual Additions which may be credited to the Participant's account under this
Plan for any Limitation Year will be limited in accordance with Section 4.9(b),
unless the Employer provides other limitations in the Adoption Agreement.

         (d)      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 will 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 will be limited in accordance with the Limitation on Allocations Section of
the Adoption Agreement.

         (e)      For purposes of applying the limitations of Code Section 415,
the transfer of funds from one qualified plan to another is not an "annual
addition." In addition, the following are not Employee contributions for the
purposes of Section 4.9(f)(l)(2): (1) rollover contributions (as defined in Code
Sections 402(a)(5), 403(a)(4), 403(b)(8) and 408(d)(3)); (2) repayments of loans
made to a Participant from the Plan; (3) repayments of distributions received by
an Employee pursuant to Code Section 41l(a)(7)(B) (cash-outs); (4) repayments of
distributions received by an Employee pursuant to Code Section

                                       52
<PAGE>

41l(a)(3)(D) (mandatory contributions); and (5) Employee contributions to a
simplified employee pension excludable from gross income under Code Section
408(k)(6).

         (f)      For purposes of this Section, the following terms shall be
defined as follows:

                  (1)      Annual Additions means the sum credited to a
         Participant's accounts for any Limitation Year of (l) Employer
         contributions, (2) effective with respect to "limitation years"
         beginning after December 31, 1986, Employee contributions, (3)
         forfeitures, (4) amounts allocated, after March 31, 1984, to an
         individual medical account, as defined in Code Section 415(l)(2), which
         is part of a pension or annuity plan maintained by the Employer and (5)
         amounts derived from contributions paid or accrued after December 31,
         1985, in taxable years ending after such date, which are attributable
         to post-retirement medical benefits allocated to the separate account
         of a key employee (as defined in Code Section 4l9A(d)(3)) under a
         welfare benefit fund (as defined in Code Section 419(e)) maintained by
         the Employer. Except, however, the "415 Compensation" percentage
         limitation referred to in paragraph (a)(2) above shall not apply to:
         (1) any contribution for medical benefits (within the meaning of Code
         Section 4l9A(f)(2)) after separation from service which is otherwise
         treated as an "annual addition," or (2) any amount otherwise treated as
         an "annual addition" under Code Section 415(l)(l). Notwithstanding the
         foregoing, for "limitation years" beginning prior to January 1, 1987,
         only that portion of Employee contributions equal to the lesser of
         Employee contributions in excess of six percent (6%) of "415
         Compensation" or one-half of Employee contributions shall be considered
         an "annual addition."

         For this purpose, any Excess Amount applied under Sections 4.9(a)(4)
and 4.9(b)(6) in the Limitation Year to reduce Employer contributions shall be
considered Annual Additions for such Limitation Year.

                  (2)      Compensation means a Participant's Compensation as
         elected in the Adoption Agreement. However, regardless of any selection
         made in the Adoption Agreement, "415 Compensation" shall exclude
         compensation which is not currently includible in the Participant's
         gross income by reason of the application of Code Sections 125,
         402(a)(8), 402(h)(l)(B), or 403(b).

         For limitation years beginning after December 31, 1991, for purposes of
applying the limitations of this article, compensation for a limitation year is
the compensation actually paid or made available during such limitation year.

         Notwithstanding the preceding sentence, compensation for a participant
in a defined contribution plan who is permanently and totally disabled (as
defined in section 22(e)(3) of the Internal Revenue Code) is the compensation
such participant would have received for the limitation year if the participant
had been paid at the rate of compensation paid immediately before becoming
permanently and totally disabled; such

                                       53
<PAGE>

imputed compensation for the disabled participant may be taken into account only
if the participant is not a Highly Compensated Employee and contributions made
on behalf of such participant are non forfeitable when made.

                  (3)      Defined Benefit Fraction means a fraction, the
         numerator of which is the sum of the Participant's Projected Annual
         Benefits under all the defined benefit plans (whether or not
         terminated) maintained by the Employer, and the denominator of which is
         the lesser of 125 percent of the dollar limitation determined for the
         Limitation Year under Code Sections 415(b) and (d) or 140 percent of
         his Highest Average Compensation including any adjustments under Code
         Section 415(b).

         Notwithstanding the above, if the Participant was a Participant as of
the first day of the first Limitation Year beginning after December 31, 1986, in
one or more defined benefit plans maintained by the Employer which were in
existence on May 6, 1986, the denominator of this fraction will not be less than
125 percent of the sum of the annual benefits under such plans which the
Participant had accrued as of the end of the close of the last Limitation Year
beginning before January 1, 1987, disregarding any changes in the terms and
conditions of the plan after May 5, 1986. The preceding sentence applies only if
the defined benefit plans individually and in the aggregate satisfied the
requirements of Code Section 415 for all Limitation Years beginning before
January 1, 1987.

         Notwithstanding the foregoing, for any Top Heavy Plan Year, 100 shall
be substituted for 125 unless the extra minimum allocation is being made
pursuant to the Employer's election in Fl of the Adoption Agreement. However,
for any Plan Year in which this Plan is a Super Top Heavy Plan, 100 shall be
substituted for 125 in any event.

                  (4)      Defined Contribution Dollar Limitation means $30,000,
         or, if greater, one-fourth of the defined benefit dollar limitation set
         forth in Code Section 4l5(b)(1) as in effect for the Limitation Year.

                  (5)      Defined Contribution Fraction means 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) maintained by the Employer for the current and all
         prior Limitation Years, (including the Annual Additions attributable to
         the Participant's nondeductible voluntary employee contributions to any
         defined benefit plans, whether or not terminated, maintained by the
         Employer and the annual additions attributable to all welfare benefit
         funds, as defined in Code Section 4 19(e), and individual medical
         accounts, as defined in Code Section 415(l)(2), maintained by the
         Employer), 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 125 percent of the Defined
         Contribution Dollar Limitation or 35 percent of the Participant's
         Compensation

                                       54
<PAGE>

         for such year. For Limitation Years beginning prior to January 1, 1987,
         the "annual addition" shall not be recomputed to treat all Employee
         contributions as an Annual Addition.

         If the Employee was a Participant as of the end of the first day of the
first Limitation Year beginning after December 31, 1986, in one or more defined
contribution plans maintained by the Employer which were in existence on May 5,
1986, the numerator of this fraction will be adjusted if the sum of this
fraction and the Defined Benefit Fraction would otherwise exceed 1.0 under the
terms of this Plan. Under the adjustment, an amount equal to the product of (1)
the excess of the sum of the fractions over 1.0 times (2) the denominator of
this fraction, 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.

         Notwithstanding the foregoing, for any Top Heavy Plan Year, 100 shall
be substituted for 125 unless the extra minimum allocation is being made
pursuant to the Employer's election in Fl of the Adoption Agreement. However,
for any Plan Year in which this Plan is a Super Top Heavy Plan, 100 shall be
substituted for 125 in any event.

                  (6)      Employer means the Employer that adopts this Plan and
         all Affiliated Employers, except that for purposes of this Section,
         Affiliated Employers shall be determined pursuant to the modification
         made by Code Section 415(h).

                  (7)      Excess Amount means the excess of the Participant's
         Annual Additions for the Limitation Year over the Maximum Permissible
         Amount.

                  (8)      Highest Average Compensation means the average
         Compensation for the three consecutive Years of Service with the
         Employer that produces the highest average. A Year of Service with the
         Employer is the 12 consecutive month period defined in Section El of
         the Adoption Agreement which is used to determine Compensation under
         the Plan.

                  (9)      Limitation Year means the Compensation Year (a 12
         consecutive month period) as elected by the Employer in the Adoption
         Agreement. All qualified plans maintained by the Employer must use the
         same Limitation Year. If the Limitation Year is amended to a different
         12 consecutive month period, the new Limitation Year must begin on a
         date within the Limitation Year in which the amendment is made.

                  (10)     Master or Prototype Plan means a plan the form of
         which is the subject of a favorable opinion letter from the Internal
         Revenue Service.

                                       55
<PAGE>

                  (11)     Maximum Permissible Amount means the maximum Annual
         Addition that may be contributed or allocated to a Participant's
         account under the plan for any Limitation Year, which shall not exceed
         the lesser of:

                           (i)      the Defined Contribution Dollar Limitation,
                  or

                           (ii)     25 percent of the Participant's Compensation
                  for the Limitation Year.

         The Compensation Limitation referred to in (ii) shall not apply to any
contribution for medical benefits (within the meaning of Code Sections 401(h) or
419A(f)(2)) which is otherwise treated as an annual addition under Code Sections
415(l)(1) or 419A(d)(2).

         If a short Limitation Year is created because of an amendment changing
the Limitation Year to a different 12 consecutive month period, the Maximum
Permissible Amount will not exceed the Defined Contribution Dollar Contribution
multiplied by the following fraction:

                  number of months in the short Limitation Year
                  ---------------------------------------------
                                       12

                  (12)     Projected Annual Benefit means the annual retirement
         benefit (adjusted to an actuarially equivalent straight life annuity if
         such benefit is expressed in a form other than a straight life annuity
         or qualified Joint and Survivor Annuity) to which the Participant would
         be entitled under the terms of the plan assuming:

                           (i)      the Participant will continue employment
                  until Normal Retirement Age (or current age, if later), and

                           (ii)     the Participant's Compensation for the
                  current Limitation Year and all other relevant factors used to
                  determine benefits under the Plan will remain constant for all
                  future Limitation Years.

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

4.10     ADJUSTMENT FOR EXCESSIVE ANNUAL ADDITIONS.

         (a)      If as a result of the allocation of Forfeitures, a reasonable
error in estimating a Participant's annual Compensation, a reasonable error in
determining the amount of elective deferrals (within the meaning of Code Section
402(g)(3)) that may be made with respect to any Participant under the limits of
Section 4.9, or other facts and

                                       56
<PAGE>

circumstances to which Regulation 1.415-6(b)(6) shall be applicable, the "annual
additions" under this Plan would cause the maximum provided in Section 4.9 to be
exceeded, the Administrator shall treat the excess in accordance with Section
4.9(a)(4).

4.11     TRANSFERS FROM QUALIFIED PLANS.

         (a)      If specified in the Adoption Agreement and with the consent of
the Administrator, amounts may be transferred from other qualified plans,
provided that the trust from which such funds are transferred permits the
transfer to be made and the transfer will not jeopardize the tax exempt status
of the Plan or create adverse tax consequences for the Employer. The amounts
transferred shall be set up in a separate account herein referred to as a
"Participant's Rollover Account." Such account shall be fully Vested at all
times and shall not be subject to forfeiture for any reason.

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

         (c)      Amounts attributable to elective contributions (as defined in
Regulation l.401(k)-1(g)(4)), including amounts treated as elective
contributions, which are transferred from another qualified plan in a
plan-to-plan transfer shall be subject to the distribution limitations provided
for in Regulation 1401(k)-1(d).

         (d)      At Normal Retirement Date, or such other date when the
Participant or his Beneficiary shall be entitled to receive benefits, the fair
market value of the Participant's Rollover Account shall be used to provide
additional benefits to the Participant or his Beneficiary. Any distributions of
amounts held in a Participant's Rollover Account shall be made in a manner which
is consistent with and satisfies the provisions of Section 6.5, including, but
not limited to, all notice and consent requirements of Code Sections 41l(a)(l1)
and 417 and the Regulations thereunder. Furthermore, such amounts shall be
considered as part of a Participant's benefit in determining whether an
involuntary cash-out of benefits without Participant consent may be made.

         (e)      The Administrator may direct that employee transfers made
after a valuation date be segregated into a separate account for each
Participant until such time as the allocations pursuant to this Plan have been
made, at which time, they may remain segregated or be invested as part of the
general Trust Fund, to be determined by the Administrator.

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

                                       57
<PAGE>

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

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

         (h)      Notwithstanding anything herein to the contrary, a transfer
directly to this Plan from another qualified plan (or a transaction having the
effect of such a transfer) shall only be permitted if it will not result in the
elimination or reduction of any "Section 41l(d)(6) protected benefit" as
described in Section 8.1.

4.12     VOLUNTARY CONTRIBUTIONS.

         (a)      If elected in the Adoption Agreement, each Participant may, at
the discretion of the Administrator in a nondiscriminatory manner, elect to
voluntarily contribute a portion of his compensation earned while a Participant
under this Plan. Such contributions shall be paid to the Trustee within a
reasonable period of time but in no event later than 90 days after the receipt
of the contribution.

         (b)      The balance in each Participant's Voluntary Contribution
Account shall be fully Vested at all times and shall not be subject to
Forfeiture for any reason.

         (c)      A Participant may elect to withdraw his voluntary
contributions from his Voluntary Contribution Account and the actual earnings
thereon in a manner which is consistent with and satisfies the provisions of
Section 6.5, including, but not limited to, all notice and consent requirements
of Code Sections 41l(a)(11) and 417 and the Regulations thereunder. If the
Administrator maintains sub-accounts with respect to voluntary contributions
(and earnings thereon) which were made on or before a specified date, a
Participant shall be permitted to designate which sub-account shall be the
source for his withdrawal. No Forfeitures shall occur solely as a result of an
Employee's withdrawal of Employee contributions.

         In the event such a withdrawal is made, or in the event a Participant
has received a hardship distribution pursuant to Regulation
1.401(k)-l(d)(2)(iii)(B) from any other plan maintained by the Employer or from
his Participant's Elective Account pursuant to Section 6.11, then such
Participant shall be barred from making any voluntary

                                       58
<PAGE>

contributions to the Trust Fund for a period of twelve (12) months after receipt
of the withdrawal or distribution.

         (d)      At Normal Retirement Date, or such other date when the
Participant or his Beneficiary shall be entitled to receive benefits, the fair
market value of the Voluntary Contribution Account shall be used to provide
additional benefits to the Participant or his Beneficiary.

         (e)      The Administrator may direct that voluntary contributions made
after a valuation date be segregated into a separate account until such time as
the allocations pursuant to this Plan have been made, at which time they may
remain segregated or be invested as part of the general Trust Fund, to be
determined by the Administrator.

4.13     DIRECTED INVESTMENT ACCOUNT.

         (a)      If elected in the Adoption Agreement, all Participants may
direct the Trustee as to the Investment of all or a portion of any one or more
of their individual account balances. Participants may direct the Trustee in
writing to invest their account in specific assets as permitted by the
Administrator provided such investments are in accordance with the Department of
Labor regulations and are permitted by the Plan. That portion of the account of
any Participant so directing will thereupon be considered a Directed Investment
Account.

         (b)      A separate Directed Investment Account shall be established
for each Participant who has directed an investment. Transfers between the
Participant's regular account and their Directed Investment Account shall be
charged and credited as the case may be to each account. The Directed Investment
Account shall not share in Trust Fund Earnings, but it shall be charged or
credited as appropriate with the net earnings, gains, losses and expenses as
well as any appreciation or depreciation in market value during each Plan Year
attributable to such account.

         (c)      The Administrator shall establish a procedure, to be applied
in a uniform and nondiscriminatory manner, setting forth the permissible
investment options under this Section, how often changes between investments may
be made, and any other limitations that the Administrator shall impose on a
Participant's right to direct investments.

4.14     QUALIFIED VOLUNTARY EMPLOYEE CONTRIBUTIONS.

         (a)      If this is an amendment to a Plan that previously permitted
deductible voluntary contributions, then each Participant who made a "Qualified
Voluntary Employee Contribution" within the meaning of Code Section 219(e)(2) as
it existed prior to the enactment of the Tax Reform Act of 1986, shall have his
contribution held in a separate Qualified Voluntary Employee Contribution
Account which shall be fully

                                       59
<PAGE>

         Vested at all times. Such contributions, however, shall not be
         permitted if they are attributable to taxable years beginning after
         December 31, 1986.

                  (b)      A Participant may, upon written request delivered to
         the Administrator, make withdrawals from his Qualified Voluntary
         Employee Contribution Account. Any distribution shall be made in a
         manner which is consistent with and satisfies the provisions of Section
         6.5, including, but not limited to, all notice and consent requirements
         of Code Sections 41l(a)(1l) and 417 and the Regulations thereunder.

                  (c)      At Normal Retirement Date, or such other date when
         the Participant or his Beneficiary shall be entitled to receive
         benefits, the fair market value of the Qualified Voluntary Employee
         Contribution Account shall be used to provide additional benefits to
         the Participant or his Beneficiary.

                  (d)      Unless the Administrator directs Qualified Voluntary
         Employee Contributions made pursuant to this Section be segregated into
         a separate account for each Participant, they shall be invested as part
         of the general Trust Fund and share in earnings and losses.

         4.15     INTEGRATION IN MORE THAN ONE PLAN.

         If the Employer and/or an Affiliated Employer maintain qualified
retirement plans integrated with Social Security such that any Participant in
this Plan is covered under more than one of such plans, then such plans will be
considered to be one plan and will be considered to be integrated if the extent
of the integration of all such plans does not exceed 100%. For purposes of the
preceding sentence, the extent of integration of a plan is the ratio, expressed
as a percentage, which the actual benefits, benefit rate, offset rate, or
employer contribution rate, whatever is applicable under the Plan bears to the
limitation applicable to such Plan. If the Employer maintains two or more
standardized paired plans, only one plan may be integrated with Social Security.

                                   ARTICLE V
                                   VALUATIONS

         5.1      VALUATION OF THE TRUST FUND.

         The Administrator shall direct the Trustee, as of each Anniversary
Date, and at such other date or dates deemed necessary by the Administrator,
herein called "valuation date," to determine the net worth of the assets
comprising the Trust Fund as it exists on the "valuation date." In determining
such net worth, the Trustee shall value the assets comprising the Trust Fund at
their fair market value as of the "valuation date" and shall deduct all expenses
for which the Trustee has not yet obtained reimbursement from the Employer or
the Trust Fund.

         5.2      METHOD OF VALUATION.

                                       60
<PAGE>

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

                                   ARTICLE VI
                   DETERMINATION AND DISTRIBUTION OF BENEFITS

         6.1      DETERMINATION OF BENEFITS UPON RETIREMENT

         Every Participant may terminate his employment with the Employer and
retire for the purposes hereof on or after his Normal Retirement Date or Early
Retirement Date. Upon such Normal Retirement Date or Early Retirement Date, all
amounts credited to such Participant's Combined Account shall become
distributable. However, a Participant may postpone the termination of his
employment with the Employer to a later date, in which event the participation
of such Participant in the Plan, including the right to receive allocations
pursuant to Section 4.4, shall continue until his Late Retirement Date. Upon a
Participant's Retirement Date, or as soon thereafter as is practicable, the
Administrator shall direct the distribution of all amounts credited to such
Participant's Combined Account in accordance with Section 6.5.

         6.2      DETERMINATION OF BENEFITS UPON DEATH.

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

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

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

                                       61
<PAGE>

                  (d)      Unless otherwise elected in the manner prescribed in
         Section 6.6, the Beneficiary of the Pre-Retirement Survivor Annuity
         shall be the Participant's spouse. Except, however, the Participant may
         designate a Beneficiary other than his spouse for the Pre-Retirement
         Survivor Annuity if:

                           (1)      the Participant and his spouse have validly
                  waived the Pre-Retirement Survivor Annuity in the manner
                  prescribed in Section 6.6, and the spouse has waived his or
                  her right to be the Participant's Beneficiary, or

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

                           (3)      the Participant has no spouse, or

                           (4)      the spouse cannot be located.

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

                  (e)      If the Plan provides an insured death benefit and a
         Participant dies before any insurance coverage to which he is entitled
         under the Plan is effected, his death benefit from such insurance
         coverage shall be limited to the standard rated premium which was or
         should have been used for such purpose.

                  (f)      In the event of any conflict between the terms of
         this Plan and the terms of any Contract issued hereunder, the Plan
         provisions shall control.

                                       62
<PAGE>

         6.3      DETERMINATION OF BENEFITS IN EVENT OF DISABILITY.

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

         6.4      DETERMINATION OF BENEFITS UPON TERMINATION.

                  (a)      On or before the Anniversary Date coinciding with or
         subsequent to the termination of a Participant's employment for any
         reason other than retirement, death, or Total and Permanent Disability,
         the Administrator may direct the Trustee to segregate the amount of the
         Vested portion of such Terminated Participant's Combined Account and
         invest the aggregate amount thereof in a separate, federally insured
         savings account, certificate of deposit, common or collective trust
         fund of a bank or a deferred annuity. In the event the Vested portion
         of a Participant's Combined Account is not segregated, the amount shall
         remain in a separate account for the Terminated Participant and share
         in allocations pursuant to Section 4.4 until such time as a
         distribution is made to the Terminated Participant. The amount of the
         portion of the Participant's Combined Account which is not Vested may
         be credited to a separate account (which will always share in gains and
         losses of the Trust) and at such time as the amount becomes a
         Forfeiture shall be treated in accordance with the provisions of the
         Plan regarding Forfeitures.

                  Regardless of whether distributions in kind are permitted, in
         the event that the amount of the Vested portion of the Terminated
         Participant's Combined Account equals or exceeds the fair market value
         of any insurance Contracts, the Trustee, when so directed by the
         Administrator and agreed to by the Terminated Participant, shall
         assign, transfer, and set over to such Terminated Participant all
         Contracts on his life in such form or with such endorsements, so that
         the settlement options and forms of payment are consistent with the
         provisions of Section 6.5. In the event that the Terminated
         Participant's Vested portion does not at least equal the fair market
         value of the Contracts, if any, the Terminated Participant may pay over
         to the Trustee the sum needed to make the distribution equal to the
         value of the Contracts being assigned or transferred, or the Trustee,
         pursuant to the Participant's election, may borrow the cash value of
         the Contracts from the Insurer so that the value of the Contracts is
         equal to the Vested portion of the Terminated Participant's Combined
         Account and then assign the Contracts to the Terminated Participant.

                  Distribution of the funds due to a Terminated Participant
         shall be made on the occurrence of an event which would result in the
         distribution had the Terminated Participant remained in the employ of
         the Employer (upon the Participant's death, Total and Permanent
         Disability, Early or Normal Retirement). However, at the election of
         the

                                       63
<PAGE>

         Participant, the Administrator shall direct that the entire Vested
         portion of the Terminated Participant's Combined Account to be payable
         to such Terminated Participant provided the conditions, if any, set
         forth in the Adoption Agreement have been satisfied. Any distribution
         under this paragraph shall be made in a manner which is consistent with
         and satisfies the provisions of Section 6.5, including but not limited
         to, all notice and consent requirements of Code Sections 411(a)(11) and
         417 and the Regulations thereunder.

                  Notwithstanding the above, if the value of a Terminated
         Participant's Vested benefit derived from Employer and Employee
         contributions does not exceed, and at the time of any prior
         distribution, has never exceeded $3,500, the Administrator shall direct
         that the entire Vested benefit be paid to such Participant in a single
         lump-sum without regard to the consent of the Participant or the
         Participant's spouse. A Participant's Vested benefit shall not include
         Qualified Voluntary Employee Contributions within the meaning of Code
         Section 72(o)(5)(B) for Plan Years beginning prior to January 1,1989.

                  (b)      The Vested portion of any Participant's Account shall
         be a percentage of such Participant's Account determined on the basis
         of the Participant's number of Years of Service according to the
         vesting schedule specified in the Adoption Agreement.

                  (c)      For any Top Heavy Plan Year, one of the minimum top
         heavy vesting schedules as elected by the Employer in the Adoption
         Agreement will automatically apply to the Plan. The minimum top heavy
         vesting schedule applies to all benefits within the meaning of Code
         Section 41l(a)(7) except those attributable to Employee contributions,
         including benefits accrued before the effective date of Code Section
         416 and benefits accrued before the Plan became top heavy. Further, no
         decrease in a Participant's Vested percentage may occur in the event
         the Plan's status as top heavy changes for any Plan Year. However, this
         Section does not apply to the account balances of any Employee who does
         not have an Hour of Service after the Plan has initially become top
         heavy and the Vested percentage of such Employee's Participant's
         Account shall be determined without regard to this Section 6.4(c).

                  If in any subsequent Plan Year, the Plan ceases to be a Top
         Heavy Plan, the Administrator shall continue to use the vesting
         schedule in effect while the Plan was a Top Heavy Plan for each
         Employee who had an Hour of Service during a Plan Year when the Plan
         was Top Heavy.

                  (d)      Notwithstanding the vesting schedule above, upon the
         complete discontinuance of the Employer's contributions to the Plan or
         upon any full or partial termination of the Plan, all amounts credited
         to the account of any affected Participant shall become 100% Vested and
         shall not thereafter be subject to Forfeiture.

                  (e)      If this is an amended or restated Plan, then
         notwithstanding the vesting schedule specified in the Adoption
         Agreement, the Vested percentage of a Participant's Account shall not
         be less than the Vested percentage attained as of the later of the
         effective date or adoption date of this amendment and restatement. The
         computation of a Participant's nonforfeitable percentage of his
         interest in the Plan shall not be reduced as

                                       64
<PAGE>

         the result of any direct or indirect amendment to this Article, or due
         to changes in the Plan's status as a Top Heavy Plan.

                  (f)      If the Plan's vesting schedule is amended, or if the
         Plan is amended in any way that directly or indirectly affects the
         computation of the Participant's nonforfeitable percentage or if the
         Plan is deemed amended by an automatic change to a top heavy vesting
         schedule, then each Participant with at least 3 Years of Service as of
         the expiration date of the election period may elect to have his
         nonforfeitable percentage computed under the Plan without regard to
         such amendment or change. Notwithstanding the foregoing, for Plan Years
         beginning before January 1, 1989, or with respect to Employees who fail
         to complete at least one (1) Hour of Service in a Plan Year beginning
         after December 31, 1988, five (5) shall be substituted for three (3) in
         the preceding sentence. If a Participant fails to make such election,
         then such Participant shall be subject to the new vesting schedule. The
         Participant's election period shall commence on the adoption date of
         the amendment and shall end 60 days after the latest of:

                           (1)      the adoption date of the amendment,

                           (2)      the effective date of the amendment, or

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

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

                           (2)      If any Former Participant shall be
         reemployed by the Employer before five (5) consecutive 1-Year Breaks in
         Service, and such Former Participant had received a distribution of his
         entire Vested interest prior to his reemployment, his forfeited account
         shall be reinstated only if he repays the full amount distributed to
         him before the earlier of five (5) years after the first date on which
         the Participant is subsequently reemployed by the Employer or the close
         of the first period of 5 consecutive 1-Year Breaks in Service
         commencing after the distribution. If a distribution occurs for any
         reason other than a separation from service, the time for repayment may
         not end earlier than five (5) years after the date of separation. In
         the event the Former Participant does repay the full amount distributed
         to him, the undistributed portion of the Participant's Account must be
         restored in full, unadjusted by any gains or losses occurring
         subsequent to the Anniversary Date or other valuation date preceding
         his termination. If an employee receives a distribution pursuant to
         this section and the employee resumes employment covered under this
         plan, the employee's employer-derived account balance will be restored
         to the amount on the date of distribution if the employee repays to the
         plan the full amount of the distribution attributable to employer
         contributions before the earlier of 5 years after the first date on
         which the participant is subsequently re-employed by the employer, or
         the date the participant incurs 5 consecutive 1-year breaks in service
         following the date of the distribution. If a non-

                                       65
<PAGE>

Vested Former Participant was deemed to have received a distribution and such
Former Participant is reemployed by the Employer before five (5) consecutive
1-Year Breaks in Service, then such Participant will be deemed to have repaid
the deemed distribution as of the date of reemployment.

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

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

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

                           (iii)    A Former Participant who is reemployed and
                  who has not had his Years of Service before a 1-Year Break in
                  Service disregarded pursuant to (i) above, shall participate
                  in the Plan as of his date of reemployment;

                           (iv)     If a Former Participant completes a Year of
                  Service (a 1-Year Break in Service previously occurred, but
                  employment had not terminated), he shall participate in the
                  Plan retroactively from the first day of the Plan Year during
                  which he completes one (1) Year of Service.

         (h)      In determining Years of Service for purposes of vesting under
the Plan, Years of Service shall be excluded as specified in the Adoption
Agreement.

6.5      DISTRIBUTION OF BENEFITS.

         (a)      (1) Unless otherwise elected as provided below, a Participant
who is married on the "annuity starting date" and who does not die before the
"annuity starting date" shall receive the value of all of his benefits in the
form of a Joint and Survivor Annuity. The Joint and Survivor Annuity is an
annuity that commences immediately and shall be equal in value to a single life
annuity. Such joint and survivor benefits following the Participant's death
shall continue to the spouse during the spouse's lifetime at a rate equal to 50%
of the rate at which such benefits were payable to the Participant. This Joint
and Survivor Annuity shall be considered the designated qualified Joint and
Survivor Annuity and automatic form of payment for the purposes of this Plan.
However, the Participant may elect to receive a smaller annuity benefit with
continuation of payments to the spouse at a rate of seventy-five percent (75%)
or one hundred percent (100%) of the rate payable to a Participant during his
lifetime which alternative Joint and Survivor

                                       66
<PAGE>

Annuity shall be equal in value to the automatic Joint and 50% Survivor Annuity.
An unmarried Participant shall receive the value of his benefit in the form of a
life annuity. Such unmarried Participant, however, may elect in writing to waive
the life annuity. The election must comply with the provisions of this Section
as if it were an election to waive the Joint and Survivor Annuity by a married
Participant, but without the spousal consent requirement. The Participant may
elect to have any annuity provided for in this Section distributed upon the
attainment of the "earliest retirement age" under the Plan. The "earliest
retirement age" is the earliest date on which, under the Plan, the Participant
could elect to receive retirement benefits.

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

                  (3)      The election period to waive the Joint and Survivor
Annuity shall be the 90 day period ending on the "annuity starting date."

                  (4)      For purposes of this Section and Section 6.6, the
"annuity starting date" means the first day of the first period for which an
amount is paid as an annuity, or, in the case of a benefit' not payable in the
form of an annuity, the first day on which all events have occurred which
entitles the Participant to such benefit.

                  (5)      With regard to the election, the Administrator shall
provide to the Participant no less than 30 days and no more than 90 days before
the "annuity starting date" a written explanation of:

                           (i)      the terms and conditions of the Joint and
                  Survivor Annuity, and

                           (ii)     the Participant's right to make and the
                  effect of an election to waive the Joint arid Survivor
                  Annuity, and

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<PAGE>

                           (iii)    the right of the Participant's spouse to
                  consent to any election to waive the Joint arid Survivor
                  Annuity, and

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

         (b)      In the event a married Participant duly elects pursuant to
paragraph (a)(2) above not to receive his benefit in the form of a Joint and
Survivor Annuity, or if such Participant is not married, in the form of a life
annuity, the Administrator, pursuant to the election of the Participant, shall
direct the distribution to a Participant or his Beneficiary any amount to which
he is entitled under the Plan in one or more of the following methods which are
permitted pursuant to the Adoption Agreement:

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

                  (2)      Payments over a period certain in monthly, quarterly,
         semiannual, or annual cash installments. In order to provide such
         installment payments, the Administrator may direct that the
         Participant's interest in the Plan be segregated and invested
         separately, and that the funds in the segregated account be used for
         the payment of the installments. The period over which such payment is
         to be made shall not extend beyond the Participant's life expectancy
         (or the life expectancy of the Participant and his designated
         Beneficiary);

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

         (c)      The present value of a Participant's Joint and Survivor
Annuity derived from Employer and Employee contributions may not be paid without
his written consent if the value exceeds, or has ever exceeded at the time of
any prior distribution, $3,500. Further, the spouse of a Participant must
consent in writing to any immediate distribution. If the value of the
Participant's benefit derived from Employer and Employee contributions does not
exceed $3,500 and has never exceeded $3,500 at the time of any prior
distribution, the Administrator may immediately distribute such benefit without
such Participant's consent. No distribution may be made under the preceding
sentence after the "annuity starting date" unless the Participant and his spouse
consent in writing to such distribution. Any written consent required under this
paragraph must be obtained not more than 90 days before commencement of the
distribution and shall be made in a manner consistent with Section 6.5(a)(2).

         (d)      Any distribution to a Participant who has a benefit which
exceeds, or has ever exceeded at the time of any prior distribution, $3,500
shall require such Participant's

                                       68
<PAGE>

consent if such distribution commences prior to the later of his Normal
Retirement Age or age 62. With regard to this required consent:

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

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

                  (3)      Notice of the rights specified under this paragraph
         shall be provided no less than 30 days and no more than 90 days before
         the "annuity starting date."

                  (4)      Written consent of the Participant to the
         distribution must not be made before the Participant receives the
         notice and must not be made more than 90 days before the "annuity
         starting date."

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

         (e)      Notwithstanding any provision in the Plan to the contrary, the
distribution of a Participant's benefits, made on or after January 1, 1985,
whether under the Plan or through the purchase of an annuity Contract, shall be
made in accordance with the following requirements and shall otherwise comply
with Code Section 401(a)(9) and the Regulations thereunder (including Regulation
Section 1.401(a)(9)-2), the provisions of which are incorporated herein by
reference:

                  (1)      A Participant's benefits shall be distributed to him
         not later than April 1st of the calendar year following the later of
         (i) the calendar year in which the Participant attains age 70 1/2 or
         (ii) the calendar year in which the Participant retires, provided,
         however, that this clause (ii) shall not apply in the case of a
         Participant who is a "five (5) percent owner" at any time during the
         five (5) Plan Year period ending in the calendar year in which he
         attains age 70 1/2 or, in the case of a Participant who becomes a "five
         (5) percent owner" during any subsequent Plan Year, clause (ii) shall
         no longer apply and the required beginning date shall be the April 1st
         of the calendar year following the calendar year in which such
         subsequent Plan Year ends. Alternatively, distributions to a
         Participant must begin no later than the applicable April 1st as
         determined under the preceding sentence and must be made over the life
         of the Participant (or the lives of the Participant and the
         Participant's designated Beneficiary) or, if benefits are paid in the
         form of a Joint and Survivor Annuity, the life expectancy of the

                                       69
<PAGE>

         Participant (or the life expectancies of the Participant and his
         designated Beneficiary) in accordance with Regulations. For Plan Years
         beginning after December 31, 1988, clause (ii) above shall not apply to
         any Participant unless the Participant had attained age 70 1/2 before
         January 1, 1988 and was not a "five (5) percent owner" at any time
         during the Plan Year ending with or within the calendar year in which
         the Participant attained age 66 1/2 or any subsequent Plan Year.

                  (2)      Distributions to a Participant and his Beneficiaries
         shall only be made in accordance with the incidental death benefit
         requirements of Code Section 40l(a)(9)(G) and the Regulations
         thereunder.

         Additionally, for calendar years beginning before 1989, distributions
may also be made under an alternative method which provides that the then
present value of the payments to be made over the period of the Participant's
life expectancy exceeds fifty percent (50%) of the then present value of the
total payments to be made to the Participant and his Beneficiaries.

         (f)      For purposes of this Section, the life expectancy of a
Participant and a Participant's spouse (other than in the case of a life
annuity) shall be redetermined annually in accordance with Regulations if
permitted pursuant to the Adoption Agreement. If the Participant or the
Participant's spouse may elect whether recalculations will be made, then the
election, once made, shall be irrevocable. If no election is made by the time
distributions must commence, then the life expectancy of the Participant and the
Participant's spouse shall not be subject to recalculation. Life expectancy and
joint and last survivor expectancy shall be computed using the return multiples
in Tables V and VI of Regulation 1.72-9.

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

         (h)      Subject to the spouse's right of consent afforded under the
Plan, the restrictions imposed by this Section shall not apply if a Participant
has, prior to January 1, 1984, made a written designation to have his retirement
benefit paid in an alternative method acceptable under Code Section 401(a) as in
effect prior to the enactment of the Tax Equity and Fiscal Responsibility Act of
1982.

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

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

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<PAGE>

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

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

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

6.6      DISTRIBUTION OF BENEFITS UPON DEATH.

         (a)      Unless otherwise elected as provided below, a Vested
Participant who dies before the annuity starting date and who has a surviving
spouse shall have the Pre-Retirement Survivor Annuity paid to his surviving
spouse. The Participant's spouse may direct that payment of the Pre-Retirement
Survivor Annuity commence within a reasonable period after the Participant's
death. If the spouse does not so direct, payment of such benefit will commence
at the time the Participant would have attained the later of his Normal
Retirement Age or age 62. However, the spouse may elect a later commencement
date. Any distribution to the Participant's spouse shall be subject to the rules
specified in Section 6.6(h).

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

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

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

                                       71
<PAGE>
                           (1)      The period beginning with the first day of
                  the Plan Year in which the Participant attains age 32 and
                  ending with the close of the Plan Year preceding the Plan Year
                  in which the Participant attains age 35;

                           (2)      A reasonable period after the individual
                  becomes a Participant. For this purpose, in the case of an
                  individual who becomes a Participant after age 32, the
                  explanation must be provided by the end of the three-year
                  period beginning with the first day of the first Plan Year for
                  which the individual is a Participant;

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

                           (4)      A reasonable period ending after Code
                  Section 40l(a)(11) applies to the Participant; or

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

                  (e)      The Pre-Retirement Survivor Annuity provided for in
         this Section shall apply only to Participants who are credited with an
         Hour of Service on or after August 3, 1984. Former Participants who are
         not credited with an Hour of Service on or after August 23, 1984 shall
         be provided with rights to the Pre-Retirement Survivor Annuity in
         accordance with Section 303(e)(2) of the Retirement Equity Act of 1984.

                  (f)      If the value of the Pre-Retirement Survivor Annuity
         derived from Employer and Employee contributions does not exceed $3,500
         and has never exceeded $3,500 at the time of any prior distribution,
         the Administrator shall direct the immediate distribution of such
         amount to the Participant's spouse. No distribution may be made under
         the preceding sentence after the annuity starting date unless the
         spouse consents in writing. If the value exceeds, or has ever exceeded
         at the time of any prior distribution, $3,500, an immediate
         distribution of the entire amount may be made to the surviving spouse,
         provided such surviving spouse consents in writing to such
         distribution. Any written consent required under this paragraph must be
         obtained not more than 90 days before commencement of the distribution
         and shall be made in a manner consistent with Section 6.5(a)(2).

                  (g)      (1) In the event there is an election to waive the
         Pre-Retirement Survivor Annuity, and for death benefits in excess of
         the Pre-Retirement Survivor Annuity, such death benefits shall be paid
         to the Participant's Beneficiary by either of the following methods, as
         elected by the Participant (or if no election has been made prior to
         the Participant's death, by his Beneficiary) subject to the rules
         specified in Section 6.6(h) and the selections made in the Adoption
         Agreement:

                                       72
<PAGE>

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

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

                                    (iii)    If death benefits in excess of the
                           Pre-Retirement Survivor Annuity are to be paid to the
                           surviving spouse, such benefits may be paid pursuant
                           to (i) or (ii) above, or used to purchase an annuity
                           so as to increase the payments made pursuant to the
                           Pre-Retirement Survivor Annuity;

                           (2)      In the event the death benefit payable
                  pursuant to Section 6.2 is payable in installments, then, upon
                  the death of the Participant, the Administrator may direct
                  that the death benefit be segregated and invested separately,
                  and that the funds accumulated in the segregated account be
                  used for the payment of the installments.

                  (h)      Notwithstanding any provision in the Plan to the
         contrary, distributions upon the death of a Participant made on or
         after January 1, 1985, shall be made in accordance with the following
         requirements and shall otherwise comply with Code Section 40l(a)(9) and
         the Regulations thereunder.

                           (1)      If it is determined, pursuant to
                  Regulations, that the distribution of a Participant's interest
                  has begun and the Participant dies before his entire interest
                  has been distributed to him, the remaining portion of such
                  interest shall be distributed at least as rapidly as under the
                  method of distribution selected pursuant to Section 6.5 as of
                  his date of death.

                           (2)      If a Participant dies before he has begun to
                  receive any distributions of his interest in the Plan or
                  before distributions are deemed to have begun pursuant to
                  Regulations, then his death benefit shall be distributed to
                  his Beneficiaries in accordance with the following rules
                  subject to the selections made in the Adoption Agreement and
                  Subsections 6.6(h)(3) and 6.6(i) below:

                                    (i)      The entire death benefit shall be
                           distributed to the Participant's Beneficiaries by
                           December 31st of the calendar year in which the fifth
                           anniversary of the Participant's death occurs;

                                    (ii)     The 5-year distribution requirement
                           of (i) above shall not apply to any portion of the
                           deceased Participant's interest which is payable to
                           or for the benefit of a designated Beneficiary. In
                           such event, such

                                       73
<PAGE>

                           portion shall be distributed over the life of such
                           designated Beneficiary (or over a period not
                           extending beyond the life expectancy of such
                           designated Beneficiary) provided such distribution
                           begins not later than December 31st of the calendar
                           year immediately following the calendar year in which
                           the Participant died;

                                    (iii)    However, in the event the
                           Participant's spouse (determined as of the date of
                           the Participant's death) is his designated
                           Beneficiary, the provisions of (ii) above shall apply
                           except that the requirement that distributions
                           commence within one year of the Participant's death
                           shall not apply. In lieu thereof, distributions must
                           commence on or before the later of: (1) December 31st
                           of the calendar year immediately following the
                           calendar year in which the Participant died; or (2)
                           December 31st of the calendar year in which the
                           Participant would have attained age 70 1/2. If the
                           surviving spouse dies before distributions to such
                           spouse begin, then the 5-year distribution
                           requirement of this Section shall apply as if the
                           spouse was the Participant.

                           (3)      Notwithstanding subparagraph (2) above, or
                  any selections made in the Adoption Agreement, if a
                  Participant's death benefits are to be paid in the form of a
                  Pre-Retirement Survivor Annuity, then distributions to the
                  Participant's surviving spouse must commence on or before the
                  later of: (1) December 31st of the calendar year immediately
                  following the calendar year in which the Participant died; or
                  (2) December 31st of the calendar year in which the
                  Participant would have attained age 70 1/2.

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

                  (j)      For purposes of this Section, the life expectancy of
         a Participant and a Participant's spouse (other than in the case of a
         life annuity) shall or shall not be redetermined annually as provided
         in the Adoption Agreement and in accordance with Regulations. If the
         Participant or the Participant's spouse may elect, pursuant to the
         Adoption Agreement, to have life expectancies recalculated, then the
         election, once made shall be irrevocable. If no election is made by the
         time distributions must commence, then the life expectancy of the
         Participant and the Participant's spouse shall not be subject to

                                       74
<PAGE>

         recalculation. Life expectancy and joint and last survivor expectancy
         shall be computed using the return multiples in Tables V and VI of
         Regulation Section 1.72-9.

                  (k)      In the event that less than 100% of a Participant's
         interest in the Plan is distributed to such Participant's spouse, the
         portion of the distribution attributable to the Participant's Voluntary
         Contribution Account shall be in the same proportion that the
         Participant's Voluntary Contribution Account bears to the Participant's
         total interest in the Plan.

                  (l)      Subject to the spouse's right of consent afforded
         under the Plan, the restrictions imposed by this Section shall not
         apply if a Participant has, prior to January 1, 1984, made a written
         designation to have his death benefits paid in an alternative method
         acceptable under Code Section 401(a) as in effect prior to the
         enactment of the Tax Equity and Fiscal Responsibility Act of 1982.

         6.7      TIME OF SEGREGATION OR DISTRIBUTION.

         Except as limited by Sections 6.5 and 6.6, whenever a distribution is
to be made, or a series of payments are to commence, on or as of an Anniversary
Date, the distribution or series of payments may be made or begun on such date
or as soon thereafter as is practicable, but in no event later than 180 days
after the Anniversary Date. However, unless a Former Participant elects in
writing to defer the receipt of benefits (such election may not result in a
death benefit that is more than incidental), the payment of benefits shall begin
not later than the 60th day after the close of the Plan Year in which the latest
of the following events occurs: (a) the date on which the Participant attains
the earlier of age 65 or the Normal Retirement Age specified herein; (b) the
10th anniversary of the year in which the Participant commenced participation in
the Plan; or (c) the date the Participant terminates his service with the
Employer.

         Notwithstanding the foregoing, the failure of a Participant and, if
applicable, the Participant's spouse, to consent to a distribution pursuant to
Section 6.5(d), shall be deemed to be an election to defer the commencement of
payment of any benefit sufficient to satisfy this Section.

         6.8      DISTRIBUTION FOR MINOR BENEFICIARY.

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

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         6.9      LOCATION OF PARTICIPANT OR BENEFICIARY UNKNOWN.

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

         6.10     PRE-RETIREMENT DISTRIBUTION.

         If elected in the Adoption Agreement, at such time as a Participant
shall have attained the age specified in the Adoption Agreement, the
Administrator, at the election of the Participant, shall direct the Trustee to
distribute up to the entire amount then credited to the accounts maintained on
behalf of the Participant. However, no such distribution may be made to any
Participation less his Participant's Account has become fully Vested. In the
event that the Administrator makes such a distribution, the Participant shall
continue to be eligible to participate in the Plan on the same basis as any
other Employee. Any distribution made pursuant to this Section shall be made in
a manner consistent with Section 6.5, including but not limited to, all notice
and consent requirements required by Code Sections 411(a)(l1) and 417 and the
Regulations thereunder.

         Notwithstanding the above, pre-retirement distributions from a
Participant's Elective Account and Qualified Non-Elective Account shall not be
permitted prior to the Participants attaining 59 1/2 except as otherwise
permitted under the terms of the Plan.

         6.11     ADVANCE DISTRIBUTION FOR HARDSHIP.

                  (a)      The Administrator, at the election of the
         Participant, shall direct the Trustee to distribute to any Participant
         in any one Plan Year up to the lesser of (1) 100% of his accounts as
         specified in the Adoption Agreement valued as of the last Anniversary
         Date or other valuation date or (2) the amount necessary to satisfy the
         immediate and heavy financial need of the Participant. Any distribution
         made pursuant to this Section shall be deemed to be made as of the
         first day of the Plan Year or, if later, the valuation date immediately
         preceding the date of distribution, and the account from which the
         distribution is made shall be reduced accordingly. Withdrawal under
         this Section shall be authorized only if the distribution is on account
         of one of the following or any other items permitted by the Internal
         Revenue Service:

                           (1)      Medical expenses described in Code Section
                  213(d) incurred by the Participant, his spouse, or any of his
                  dependents (as defined in Code Section 152) or expenses
                  necessary for these persons to obtain medical care;

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                           (2)      The purchase (excluding mortgage payments)
                  of a principal residence for the Participant;

                           (3)      Funeral expenses for a member of the
                  Participant's family;

                           (4)      Payment of tuition and related educational
                  fees for the next 12 months of post-secondary education for
                  the Participant, his spouse, children, or dependents; or

                           (5)      The need to prevent the eviction of the
                  Participant from his principal residence or foreclosure on the
                  mortgage of the Participant's principal residence.

                  (b)      No such distribution shall be made from the
         Participant's Account until such Account has become fully Vested.

                  (c)      No distribution shall be made pursuant to this
         Section unless the Administrator, based upon the Participant's
         representation and such other facts as are known to the Administrator,
         determines that all of the following conditions are satisfied:

                           (1)      The distribution is not in excess of the
                  amount of the immediate and heavy financial need of the
                  Participant (including any amounts necessary to pay any
                  federal, state, or local taxes or penalties reasonably
                  anticipated to result from the distribution);

                           (2)      The Participant has obtained all
                  distributions, other than hardship distributions, and all
                  nontaxable loans currently available under all plans
                  maintained by the Employer;

                           (3)      The Plan, and all other plans maintained by
                  the Employer, provide that the Participant's elective
                  deferrals and voluntary Employee contributions will be
                  suspended for at least twelve (12) months after receipt of the
                  hardship distribution; and

                           (4)      The Plan, and all other plans maintained by
                  the Employer, provide that the Participant may not make
                  elective deferrals for the Participant's taxable year
                  immediately following the taxable year of the hardship
                  distribution in excess of the applicable limit under Code
                  Section 402(g) for such next taxable year less the amount of
                  such Participant's elective deferrals for the taxable year of
                  the hardship distribution.

                  (d)      Notwithstanding the above, distributions from the
         Participant's Elective Account and Qualified Non-Elective Account
         pursuant to this Section shall be limited solely to the Participant's
         Deferred Compensation and any income attributable thereto credited to
         the Participant's Elective Account as of December 31, 1988.

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<PAGE>

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

         6.12     LIMITATIONS ON BENEFITS AND DISTRIBUTIONS.

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

         6.13     SPECIAL RULE FOR NON-ANNUITY PLANS.

         If elected in the Adoption Agreement, the following shall apply to a
Participant in a Profit Sharing Plan and to any distribution, made on or after
the first day of the first plan year beginning after December 31, 1988, from or
under a separate account attributable solely to accumulated deductible employee
contributions, as defined in Code Section 72(o)(5)(B), and maintained on behalf
of a participant in a money purchase pension plan, (including a target benefit
plan):

                  (a)      The Participant shall be prohibited from electing
         benefits in the form of a life annuity;

                  (b)      Upon the death of the Participant, the Participant's
         entire Vested account balances will be paid to his or her surviving
         spouse, or, if there is no surviving spouse or the surviving spouse has
         already consented to waive his or her benefit, in accordance with
         Section 6.6, to his designated Beneficiary;

                  (c)      Except to the extent otherwise provided in this
         Section and Section 6.5(h), the other provisions of Sections 6.2, 6.5
         and 6.6 regarding spousal consent and the forms of distributions shall
         be inoperative with respect to this Plan.

                  (d)      If a distribution is one to which Sections 401(a)(1l)
         and 417 of the Internal Revenue Code do not apply, such distribution
         may commence less than 30 days after the notice required under Section
         1.41l(a)-l1(c) of the Income Tax Regulations is given, provided that:

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

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<PAGE>

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

         This Section shall not apply to any Participant if it is determined
that this Plan is a direct or indirect transferee of a defined benefit plan or
money purchase plan, or a target benefit plan, stock bonus or profit sharing
plan which would otherwise provide for a life annuity form of payment to the
Participant.

                                  ARTICLE VII
                                     TRUSTEE

         7.1      BASIC RESPONSIBILITIES OF THE TRUSTEE.

         The Trustee shall have the following categories of responsibilities:

                  (a)      Consistent with the "funding policy and method"
         determined by the Employer to invest, manage, and control the Plan
         assets subject, however, to the direction of an Investment Manager if
         the Employer should appoint such manager as to all or a portion of the
         assets of the Plan;

                  (b)      At the direction of the Administrator, to pay
         benefits required under the Plan to be paid to Participants, or, in the
         event of their death, to their Beneficiaries;

                  (c)      To maintain records of receipts and disbursements and
         furnish to the Employer and/or Administrator for each Plan Year a
         written annual report per Section 7.7; and

                  (d)      If there shall be more than one Trustee, they shall
         act by a majority of their number, but may authorize one or more of
         them to sign papers on their behalf.

         7.2      INVESTMENT POWERS AND DUTIES OF THE TRUSTEE.

                  (a)      The Trustee shall, except as provided in the Adoption
         Agreement, invest and reinvest the Trust Fund to keep the Trust Fund
         invested without distinction between principal and income and in such
         securities or property, real or personal, wherever situated, as the
         Trustee shall deem advisable, including, but not limited to, stocks,
         common or preferred, bonds and other evidences of indebtedness or
         ownership, and real estate or any interest therein. The Trustee shall
         at all times in making investments of the Trust Fund consider, among
         other factors, the short and long-term financial needs of the Plan on
         the basis of information furnished by the Employer. In making such
         investments, the Trustee shall not be restricted to securities or other
         property of the character expressly authorized by the applicable law
         for trust investments; however, the Trustee shall give due regard to
         any limitations imposed by the Code or the Act so that at all times
         this Plan may qualify as a qualified Plan and Trust.

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<PAGE>

                  (b)      The Trustee may employ a bank or trust company
         pursuant to the terms of its usual and customary bank agency agreement,
         under which the duties of such bank or trust company shall be of a
         custodial, clerical and record-keeping nature.

                  (c)      The Trustee may from time to time transfer to a
         common, collective, or pooled trust fund maintained by any corporate
         Trustee hereunder pursuant to Revenue Ruling 81-100, all or such part
         of the Trust Fund as the Trustee may deem advisable, and such part or
         all of the Trust Fund so transferred shall be subject to all the terms
         and provisions of the common, collective, or pooled trust fund which
         contemplate the commingling for investment purposes of such trust
         assets with trust assets of other trusts. The Trustee may withdraw from
         such common, collective, or pooled trust fund all or such part of the
         Trust Fund as the Trustee may deem advisable.

                  (d)      The Trustee, at the direction of the Administrator
         and pursuant to instructions from the individual designated in the
         Adoption Agreement for such purpose and subject to the conditions set
         forth in the Adoption Agreement, shall ratably apply for, own, and pay
         all premiums on Contracts on the lives of the Participants. Any initial
         or additional Contract purchased on behalf of a Participant shall have
         a face amount of not less than $1,000, the amount set forth in the
         Adoption Agreement, or the limitation of the Insurer, whichever is
         greater. If a life insurance Contract is to be purchased for a
         Participant, the aggregate premium for ordinary life insurance for each
         Participant must be less than 50% of the aggregate contributions and
         Forfeitures allocated to a Participant's Combined Account. For purposes
         of this limitation, ordinary life insurance Contracts are Contracts
         with both non-decreasing death benefits and non-increasing premiums. If
         term insurance or universal life insurance is purchased with such
         contributions, the aggregate premium must be 25% or less of the
         aggregate contributions and Forfeitures allocated to a Participant's
         Combined Account. If both term insurance and ordinary life insurance
         are purchased with such contributions, the amount expended for term
         insurance plus one-half of the premium for ordinary life insurance may
         not in the aggregate exceed 25% of the aggregate Employer contributions
         and Forfeitures allocated to a Participant's Combined Account. The
         Trustee must distribute the Contracts to the Participant or convert the
         entire value of the Contracts at or before retirement into cash or
         provide for a periodic income so that no portion of such value may be
         used to continue life insurance protection beyond retirement.
         Notwithstanding the above, the limitations imposed herein with respect
         to the purchase of life insurance shall not apply, in the case of a
         Profit Sharing Plan, to the portion of a Participant's Account that has
         accumulated for at least two (2) Plan Years.

         Notwithstanding anything hereinabove to the contrary, amounts credited
to a Participant's Qualified Voluntary Employee Contribution Account pursuant to
Section 4.14, shall not be applied to the purchase of life insurance contracts.

                  (e)      The Trustee will be the owner of any life insurance
         Contract purchased under the terms of this Plan. The Contract must
         provide that the proceeds will be payable to the Trustee; however, the
         Trustee shall be required to pay over all proceeds of the Contract to
         the Participant's designated Beneficiary in accordance with the
         distribution

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<PAGE>

         provisions of Article VI. A Participant's spouse will be the designated
         Beneficiary pursuant to Section 6.2, unless a qualified election has
         been made in accordance with Sections 6.5 and 6.6 of the Plan, if
         applicable. Under no circumstances shall the Trust retain any part of
         the proceeds. However, the Trustee shall not pay the proceeds in a
         method that would violate the requirements of the Retirement Equity
         Act, as stated in Article VI of the Plan, or Code Section 401(a)(9) and
         the Regulations thereunder.

         7.3      OTHER POWERS OF THE TRUSTEE.

         The Trustee, in addition to all powers and authorities under common
law, statutory authority, including the Act, and other provisions of this Plan,
shall have the following powers and authorities, except as provided in the
Adoption Agreement, to be exercised in the Trustee's sole discretion:

                  (a)      To purchase, or subscribe for, any securities or
         other property and to retain the same. In conjunction with the purchase
         of securities, margin accounts may be opened and maintained;

                  (b)      To sell, exchange, convey, transfer, grant options to
         purchase, or otherwise dispose of any securities or other property held
         by the Trustee, by private contract or at public auction. No person
         dealing with the Trustee shall be bound to see to the application of
         the purchase money or to inquire into the validity, expediency, or
         propriety of any such sale or other disposition, with or without
         advertisement;

                  (c)      To vote upon any stocks, bonds, or other securities;
         to give general or special proxies or powers of attorney with or
         without power of substitution; to exercise any conversion privileges,
         subscription rights or other options, and to make any payments
         incidental thereto; to oppose, or to consent to, or otherwise
         participate in, corporate reorganizations or other changes affecting
         corporate securities, and to delegate discretionary powers, and to pay
         any assessments or charges in connection therewith; and generally to
         exercise any of the powers of an owner with respect to stocks, bonds,
         securities, or other property;

                  (d)      To cause any securities or other property to be
         registered in the Trustee's own name or in the name of one or more of
         the Trustee's nominees, and to hold any investments in bearer form, but
         the books and records of the Trustee shall at all times show that all
         such investments are part of the Trust Fund;

                  (e)      To borrow or raise money for the purposes of the Plan
         in such amount, and upon such terms and conditions, as the Trustee
         shall deem advisable; and for any sum so borrowed, to issue a
         promissory note as Trustee, and to secure the repayment thereof by
         pledging all, or any part, of the Trust Fund; and no person lending
         money to the Trustee shall be bound to see to the application of the
         money lent or to inquire into the validity, expediency, or propriety of
         any borrowing;

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<PAGE>

                  (f)      To keep such portion of the Trust Fund in cash or
         cash balances as the Trustee may, from time to time, deem to be in the
         best interests of the Plan, without liability for interest thereon;

                  (g)      To accept and retain for such time as the Trustee may
         deem advisable any securities or other property received or acquired as
         Trustee hereunder, whether or not such securities or other property
         would normally be purchased as investments hereunder;

                  (h)      To make, execute, acknowledge, and deliver any and
         all documents of transfer and conveyance and any and all other
         instruments that may be necessary or appropriate to carry out the
         powers herein granted;

                  (i)      To settle, compromise, or submit to arbitration any
         claims, debts, or damages due or owing to or from the Plan, to commence
         or defend suits or legal or administrative proceedings, and to
         represent the Plan in all suits and legal and administrative
         proceedings;

                  (j)      To employ suitable agents and counsel and to pay
         their reasonable expenses and compensation, and such agent or counsel
         may or may not be agent or counsel for the Employer;

                  (k)      To apply for and procure from the Insurer as an
         investment of the Trust Fund such annuity, or other Contracts (on the
         life of any Participant) as the Administrator shall deem proper; to
         exercise, at any time or from time to time, whatever rights and
         privileges may be granted under such annuity, or other Contracts; to
         collect, receive, and settle for the proceeds of all such annuity, or
         other Contracts as and when entitled to do so under the provisions
         thereof;

                  (l)      To invest funds of the Trust in time deposits or
         savings accounts bearing a reasonable rate of interest in the Trustee's
         bank;

                  (m)      To invest in Treasury Bills and other forms of United
         States government obligations;

                  (n)      To sell, purchase and acquire put or call options if
         the options are traded on and purchased through a national securities
         exchange registered under the Securities Exchange Act of 1934, as
         amended, or, if the options are not traded on a national securities
         exchange, are guaranteed by a member firm of the New York Stock
         Exchange;

                  (o)      To deposit monies in federally insured savings
         accounts or certificates of deposit in banks or savings and loan
         associations;

                  (p)      To pool all or any of the Trust Fund, from time to
         time, with assets belonging to any other qualified employee pension
         benefit trust created by the Employer or any Affiliated Employer, and
         to commingle such assets and make joint or common investments and carry
         joint accounts on behalf of this Plan and such other trust or trusts,

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<PAGE>

         allocating undivided shares or interests in such Investments or
         accounts or any pooled assets of the two or more trusts in accordance
         with their respective interests;

                  (q)      To do all such acts and exercise all such rights and
         privileges, although not specifically mentioned herein, as the Trustee
         may deem necessary to carry out the purposes of the Plan.

                  (r)      Directed Investment Account. The powers granted to
         the Trustee shall be exercised in the sole fiduciary discretion of the
         Trustee. However, if elected in the Adoption Agreement, each
         Participant may direct the Trustee to separate and keep separate all or
         a portion of his interest in the Plan; and further each Participant is
         authorized and empowered, in his sole and absolute discretion, to give
         directions to the Trustee in such form as the Trustee may require
         concerning the investment of the Participant's Directed Investment
         Account, which directions must be followed by the Trustee subject,
         however, to restrictions on payment of life insurance premiums. Neither
         the Trustee nor any other persons including the Administrator or
         otherwise shall be under any duty to question any such direction of the
         Participant or to review any securities or other property, real or
         personal, or to make any suggestions to the Participant in connection
         therewith, and the Trustee shall comply as promptly as practicable with
         directions given by the Participant hereunder. Any such direction may
         be of a continuing nature or otherwise and may be revoked by the
         Participant at any time in such form as the Trustee may require. The
         Trustee may refuse to comply with any direction from the Participant in
         the event the Trustee, in its sole and absolute discretion, deems such
         directions improper by virtue of applicable law, and in such event, the
         Trustee shall not be responsible or liable for any loss or expense
         which may result. Any costs and expenses related to compliance with the
         Participant's directions shall be borne by the Participant's Directed
         Investment Account.

                  Notwithstanding anything hereinabove to the contrary, the
         Trustee shall not, at any time after December 31, 1981, invest any
         portion of a Directed Investment Account in "collectibles" within the
         meaning of that term as employed in Code Section 408(m).

         7.4      LOANS TO PARTICIPANTS.

                  (a)      If specified in the Adoption Agreement, the Trustee
         (or, if loans are treated as Directed Investment pursuant to the
         Adoption Agreement, the Administrator) may, in the Trustee's (or, if
         applicable, the Administrator's) sole discretion, make loans to
         Participants or Beneficiaries under the following circumstances: (1)
         loans shall be made available to all Participants and Beneficiaries on
         a reasonably equivalent basis; (2) loans shall not be made available to
         Highly Compensated Employees in an amount greater than the amount made
         available to other Participants; (3) loans shall bear a reasonable rate
         of interest; (4) loans shall be adequately secured; and (5) shall
         provide for periodic repayment over a reasonable period of time.

                  (b)      Loans shall not be made to any Shareholder-Employee
         or Owner-Employee unless an exemption for such loan is obtained
         pursuant to Act Section 408 and

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<PAGE>

         further provided that such loan would not be subject to tax pursuant to
         Code Section 4975.

                  (c)      Loans shall not be granted to any Participant that
         provide for a repayment period extending beyond such Participant's
         Normal Retirement Date.

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

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

                           (2)      the greater of (A) one-half (1/2) of the
                  present value of the non-forfeitable accrued benefit of the
                  Employee under the Plan, or (B), if permitted pursuant to the
                  Adoption Agreement, $10,000.

                  For purposes of this limit, all plans of the Employer shall be
         considered one plan. Additionally, with respect to any loan made prior
         to January 1, 1987, the $50,000 limit specified in (1) above shall be
         unreduced.

                  (e)      No Participant loan shall take into account the
         present value of such Participant's Qualified Voluntary Employee
         Contribution Account.

                  (f)      Loans shall provide for level amortization with
         payments to be made not less frequently than quarterly over a period
         not to exceed five (5) years. However, loans used to acquire any
         dwelling unit which, within a reasonable time, is to be used
         (determined at the time the loan is made) as a principal residence of
         the Participant shall provide for periodic repayment over a reasonable
         period of time that may exceed five (5) years. Notwithstanding the
         foregoing, loans made prior to January 1, 1987 which are used to
         acquire, construct, reconstruct or substantially rehabilitate any
         dwelling unit which, within a reasonable period of time is to be used
         (determined at the time the loan is made) as a principal residence of
         the Participant or a member of his family (within the meaning of Code
         Section 267(c)(4)) may provide for periodic repayment over a reasonable
         period of time that may exceed five (5) years. Additionally, loans made
         prior to January 1, 1987, may provide for periodic payments which are
         made less frequently than quarterly and which do not necessarily result
         in level amortization.

                  (g)      An assignment or pledge of any portion of a
         Participant's interest in the Plan and a loan, pledge, or assignment
         with respect to any insurance Contract purchased under the Plan, shall
         be treated as a loan under this Section.

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<PAGE>

                  (h)      Any loan made pursuant to this Section after August
         18, 1985 where the Vested interest of the Participant is used to secure
         such loan shall require the written consent of the Participant's spouse
         in a maimer consistent with Section 6.5(a) provided the spousal consent
         requirements of such Section apply to the Plan. Such written consent
         must be obtained within the 90-day period prior to the date the loan is
         made. Any security interest held by the Plan by reason of an
         outstanding loan to the Participant shall be taken into account in
         determining the amount of the death benefit or Pre-Retirement Survivor
         Annuity. However, no spousal consent shall be required under this
         paragraph if the total accrued benefit subject to the security is not
         in excess of $3,500.

                  (i)      With regard to any loans granted or renewed on or
         after the last day of the first Plan Year beginning after December 31,
         1988, a Participant loan program shall be established which must
         include, but need not be limited to, the following:

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

                           (2)      a procedure for applying for loans;

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

                           (4)      limitations, if any, on the types and
                  amounts of loans offered, including what constitutes a
                  hardship or financial need if selected in the Adoption
                  Agreement;

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

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

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

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

         7.5      DUTIES OF THE TRUSTEE REGARDING PAYMENTS.

         At the direction of the Administrator, the Trustee shall, from time to
time, in accordance with the terms of the Plan, make payments out of the Trust
Fund. The Trustee shall not be responsible in any way for the application of
such payments.

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<PAGE>

         7.6      TRUSTEE'S COMPENSATION AND EXPENSES AND TAXES.

         The Trustee shall be paid such reasonable compensation as set forth in
the Trustee's fee schedule (if the Trustee has such a schedule) or as agreed
upon in writing by the Employer and the Trustee. An individual serving as
Trustee who already receives full-time pay from the Employer shall not receive
compensation from this Plan. In addition, the Trustee shall be reimbursed for
any reasonable expenses, including reasonable counsel fees incurred by it as
Trustee. Such compensation and expenses shall be paid from the Trust Fund unless
paid or advanced by the Employer. All taxes of any kind and all kinds whatsoever
that may be levied or assessed under existing or future laws upon, or in respect
of, the Trust Fund or the income thereof, shall be paid from the Trust Fund.

         7.7      ANNUAL REPORT OF THE TRUSTEE.

         Within a reasonable period of time after the later of the Anniversary
Date or receipt of the Employer's contribution for each Plan Year, the Trustee,
or its agent, shall furnish to the Employer and Administrator a written
statement of account with respect to the Plan Year for which such contribution
was made setting forth:

                  (a)      the net income, or loss, of the Trust Fund;

                  (b)      the gains, or losses, realized by the Trust Fund upon
         sales or other disposition of the assets;

                  (c)      the increase, or decrease, in the value of the Trust
         Fund;

                  (d)      all payments and distributions made from the Trust
         Fund; and

                  (e)      such further information as the Trustee and/or
         Administrator deems appropriate. The Employer, forthwith upon its
         receipt of each such statement of account, shall acknowledge receipt
         thereof in writing and advise the Trustee and/or Administrator of its
         approval or disapproval thereon Failure by the Employer to disapprove
         any such statement of account within thirty (30) days after its receipt
         thereof shall be deemed an approval thereof. The approval by the
         Employer of any statement of account shall be binding as to all matters
         embraced therein as between the Employer and the Trustee to the same
         extent as if the account of the Trustee had been settled by judgment or
         decree in an action for a judicial settlement of its account in a court
         of competent jurisdiction in which the Trustee, the Employer and all
         persons having or claiming an interest in the Plan were parties;
         provided, however, that nothing herein contained shall deprive the
         Trustee of its right to have its accounts judicially settled if the
         Trustee so desires.

         7.8      AUDIT.

                  (a)      If an audit of the Plan's records shall be required
         by the Act and the regulations thereunder for any Plan Year, the
         Administrator shall direct the Trustee to engage on behalf of all
         Participants an independent qualified public accountant for that

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<PAGE>

         purpose. Such accountant shall, after an audit of the books and records
         of the Plan in accordance with generally accepted auditing standards,
         within a reasonable period after the close of the Plan Year, furnish to
         the Administrator and the Trustee a report of his audit setting forth
         his opinion as to whether any statements, schedules or lists, that are
         required by Act Section 103 or the Secretary of Labor to be filed with
         the Plan's annual report, are presented fairly in conformity with
         generally accepted accounting principles applied consistently.

                  (b)      All auditing and accounting fees shall be an expense
         of and may, at the election of the Administrator, be paid from the
         Trust Fund.

                  (c)      If some or all of the information necessary to enable
         the Administrator to comply with Act Section 103 is maintained by a
         bank, insurance company, or similar institution, regulated and
         supervised and subject to periodic examination by a state or federal
         agency, it shall transmit and certify the accuracy of that information
         to the Administrator as provided in Act Section 103(b) within one
         hundred twenty (120) days after the end of the Plan Year or such other
         date as may be prescribed under regulations of the Secretary of Labor.

         7.9      RESIGNATION, REMOVAL AND SUCCESSION OF TRUSTEE.

                  (a)      The Trustee may resign at any time by delivering to
         the Employer, at least thirty (30) days before its effective date, a
         written notice of his resignation.

                  (b)      The Employer may remove the Trustee by mailing by
         registered or certified mail, addressed to such Trustee at his last
         known address, at least thirty (30) days before its effective date, a
         written notice of his removal.

                  (c)      Upon the death, resignation, incapacity, or removal
         of any Trustee, a successor may be appointed by the Employer; and such
         successor, upon accepting such appointment in writing and delivering
         same to the Employer, shall, without further act, become vested with
         all the estate, rights., powers, discretions, and duties of his
         predecessor with like respect as if he were originally named as a
         Trustee herein. Until such a successor is appointed, the remaining
         Trustee or Trustees shall have full authority to act under the terms of
         the Plan.

                  (d)      The Employer may designate one or more successors
         prior to the death, resignation, incapacity, or removal of a Trustee.
         In the event a successor is so designated by the Employer and accepts
         such designation, the successor shall, without further act, become
         vested with all the estate, rights, powers, discretions, and duties of
         his predecessor with the like effect as if he were originally named as
         Trustee herein immediately upon the death, resignation, incapacity, or
         removal of his predecessor.

                  (e)      Whenever any Trustee hereunder ceases to serve as
         such, he shall furnish to the Employer and Administrator a written
         statement of account with respect to the portion of the Plan Year
         during which he served as Trustee. This statement shall be either

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<PAGE>

         (i) included as part of the annual statement of account for the Plan
         Year required under Section 7.7 or (ii) set forth in a special
         statement, Any such special statement of account should be rendered to
         the Employer no later than the due date of the annual statement of
         account for the Plan Year. The procedures set forth in Section 7.7 for
         the approval by the Employer of annual statements of account shall
         apply to any special statement of account rendered hereunder and
         approval by the Employer of any such special statement in the manner
         provided in Section 7.7 shall have the same effect upon the statement
         as the Employer's approval of an annual statement of account. No
         successor to the Trustee shall have any duty or responsibility to
         investigate the acts or transactions of any predecessor who has
         rendered all statements of account required by Section 7.7 and this
         subparagraph.

         7.10     TRANSFER OF INTEREST.

         Notwithstanding any other provision contained in this Plan, the Trustee
at the direction of the Administrator shall transfer the Vested interest, if
any, of such Participant in his account to another trust forming part of a
pension, profit sharing, or stock bonus plan maintained by such Participant's
new employer and represented by said employer in writing as meeting the
requirements of Code Section 401(a), provided that the trust to which such
transfers are made permits the transfer to be made.

                  (a)      Notwithstanding any provision of the plan to the
         contrary, with respect to distributions made after December 31, 1992, a
         Participant shall be permitted to elect to have any "eligible rollover
         distribution" transferred directly to an "eligible retirement plan"
         specified by the Participant. The Plan provisions otherwise applicable
         to distributions continue to apply to the direct transfer option. The
         Participant shall, in the time and manner prescribed by the
         Administrator, specify the amount to be directly transferred and the
         "eligible retirement plan" to receive the transfer. Any portion of a
         distribution which is not transferred shall be distributed to the
         Participant.

                  (b)      For purposes of this Section, the term "eligible
         rollover distribution" means any distribution other than a distribution
         of substantially equal periodic payments over the life or life
         expectancy of the Participant (or joint life or joint life expectancies
         of the Participant and the designated beneficiary) or a distribution
         over a period certain of ten years or more. Amounts required to be
         distributed under Code Section 401(a)(9) are "not eligible rollover
         distributions. The direct transfer option described in subsection (a)
         applies only to eligible rollover distributions which would otherwise
         be includible in gross income if not transferred.

                  (c)      For purposes of this Section, the term "eligible
         retirement plan" means an individual retirement account as described in
         Code Section 408(a), an individual retirement annuity as described in
         Code Section 408(b), an annuity plan as described in Code Section
         403(a), or a defined contribution plan as described in Code Section
         401(a) which is exempt from tax under Code Section 501(a) and which
         accepts rollover distributions.

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<PAGE>

                  (d)      The election described in subsection (a) also applies
         to the surviving spouse after the Participant's death; however,
         distributions to the surviving spouse may only be transferred to an
         individual retirement account or individual retirement annuity. For
         purposes of subsection (a), a spouse or former spouse who is the
         alternate payee under a qualified domestic relations order as defined
         in Code Section 4l4(p) will be treated as the Participant.

         For purposes of this section, the term "eligible retirement plan" has
the meaning given such term by Code Section 402(c)(8)(B), except that a
qualified trust shall be considered an eligible retirement plan only if it is a
defined contribution plan, the terms of which permit the acceptance of rollover
distributions.

         7.11     TRUSTEE INDEMNIFICATION.

         The Employer agrees to indemnify and save harmless the Trustee against
any and all claims, losses, damages, expenses and liabilities the Trustee may
incur in the exercise and performance of the Trustee's powers and duties
hereunder, unless the same are determined to be due to gross negligence or
willful misconduct.

         7.12     EMPLOYER SECURITIES AND REAL PROPERTY.

         The Trustee shall be empowered to acquire and hold "qualifying Employer
securities" and "qualifying Employer real property," as those terms are defined
in the Act. However, no more than 100% of the fair market value of all the
assets in the Trust Fund may be invested in "qualifying Employer securities" and
"qualifying Employer real property."

                                  ARTICLE VIII
                       AMENDMENT, TERMINATION, AND MERGERS

         8.1      AMENDMENT.

                  (a)      The Employer shall have the right at any time to
         amend this Plan subject to the limitations of this Section. However,
         any amendment which affects the rights, duties or responsibilities of
         the Trustee and Administrator may only be made with the Trustee's and
         Administrator's written consent. Any such amendment shall become
         effective as provided therein upon its execution. The Trustee shall not
         be required to execute any such amendment unless the amendment affects
         the duties of the Trustee hereunder.

                  (b)      The Employer may (1) change the choice of options in
         the Adoption Agreement, (2) add overriding language in the Adoption
         Agreement when such language is necessary to satisfy Code Sections 415
         or 416 because of the required aggregation of multiple plans, and (3)
         add certain model amendments published by the Internal Revenue Service
         which specifically provide that their adoption will not cause the Plan
         to be treated as an individually designed plan. An Employer that amends
         the Plan for any other reason, including a waiver of the minimum
         funding requirement under Code Section 412(d), will

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<PAGE>

         no longer participate in this Prototype Plan and will be considered to
         have an individually designed plan.

                  (c)      The Employer expressly delegates authority to the
         sponsoring organization of this Plan, the right to amend this Plan by
         submitting a copy of the amendment to each Employer who has adopted
         this Plan after first having received a ruling or favorable
         determination from the Internal Revenue Service that the Plan as
         amended qualifies under Code Section 401(a) and the Act. For purposes
         of this Section, the mass submitter shall be recognized as the agent of
         the sponsoring organization. If the sponsoring organization does not
         adopt the amendments made by the mass submitter, it will no longer be
         identical to or a minor modifier of the mass submitter plan.

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

                  (e)      Except as permitted by Regulations (including
         Regulation 1.411(d)-4), no Plan amendment or transaction having the
         effect of a Plan amendment (such as a merger, plan transfer or similar
         transaction) shall be effective if it eliminates or reduces any
         "Section 411(d)(6) protected benefit" or adds or modifies conditions
         relating to "Section 41l(d)(6) protected benefits" the result of which
         is a further restriction on such benefit unless such protected benefits
         are preserved with respect to benefits accrued as of the later of the
         adoption date or effective date of the amendment. `Section 41l(d)(6)
         protected benefits" are benefits described in Code Section
         41l(d)(6)(A), early retirement benefits and retirement-type subsidies,
         and optional forms of benefit.

         8.2      TERMINATION.

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

                  (b)      Upon the full termination of the Plan, the Employer
         shall direct the distribution of the assets to Participants in a manner
         which is consistent with and satisfies the provisions of Section 6.5.
         Distributions to a Participant shall be made in cash (or in property if
         permitted in the Adoption Agreement) or through the purchase of
         irrevocable nontransferable deferred commitments from the Insurer.
         Except as permitted by Regulations, the termination of the Plan shall
         not result in the reduction of "Section 411(d)(6) protected benefits"
         as described in Section 8.1.

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<PAGE>

         8.3      MERGER OR CONSOLIDATION.

         This Plan may be merged or consolidated with, or its assets and/or
liabilities may be transferred to any other plan only if the benefits which
would be received by a Participant of this Plan, in the event of a termination
of the plan immediately after such transfer, merger or consolidation, are at
least equal to the benefits the Participant would have received if the Plan had
terminated immediately before the transfer, merger or consolidation and such
merger or consolidation does not otherwise result in the elimination or
reduction of any Section 411(d)(6) protected benefits" as described in Section
8.1(e).

                                   ARTICLE IX
                                  MISCELLANEOUS

         9.1      EMPLOYER ADOPTIONS.

                  (a)      Any organization may become the Employer hereunder by
         executing the Adoption Agreement in form satisfactory to the Trustee,
         and it shall provide such additional information as the Trustee may
         require. The consent of the Trustee to act as such shall be signified
         by its execution of the Adoption Agreement.

                  (b)      Except as otherwise provided in this Plan, the
         affiliation of the Employer and the participation of its Participants
         shall be separate and apart from that of any other employer and its
         participants hereunder.

         9.2      PARTICIPANT'S RIGHTS.

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

         9.3      ALIENATION.

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

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<PAGE>

                  (b)      This provision shall not apply to the extent a
         Participant or Beneficiary is indebted to the Plan, for any reason,
         under any provision of this Plan. At the time a distribution is to be
         made to or for a Participant's or Beneficiary's benefit, such
         proportion of the amount to be distributed as shall equal such
         indebtedness shall be paid to the Plan, to apply against or discharge
         such indebtedness. Prior to making a payment, however, the Participant
         or Beneficiary must be given written notice by the Administrator that
         such indebtedness is to be so paid in whole or part from his
         Participant's Combined Account. If the Participant or Beneficiary does
         not agree that the indebtedness is a valid claim against his Vested
         Participant's Combined Account, he shall be entitled to a review of the
         validity of the claim in accordance with procedures provided in
         Sections 2.12 and 2.13.

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

         9.4      CONSTRUCTION OF PLAN.

         This Plan and Trust shall be construed and enforced according to the
Act and the laws of the State or Commonwealth in which the Employer's principal
office is located, other than its laws respecting choice of law, to the extent
not pre-empted by the Act.

         9.5      GENDER AND NUMBER.

         Wherever any words are used herein in the masculine, feminine or neuter
gender, they shall be construed as though they were also used in another gender
in all cases where they would so apply, and whenever any words are used herein
in the singular or plural form, they shall be construed as though they were also
used in the other form in all cases where they would so apply.

         9.6      LEGAL ACTION.

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

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<PAGE>

         9.7      PROHIBITION AGAINST DIVERSION OF FUNDS.

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

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

         9.8      BONDING.

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

         9.9      INSURER'S PROTECTIVE CLAUSE.

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

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<PAGE>

         9.10     RECEIPT AND RELEASE FOR PAYMENTS.

         Any payment to any Participant, his legal representative, Beneficiary,
or to any guardian or committee appointed for such Participant or Beneficiary in
accordance with the provisions of this Plan, shall, to the extent thereof, be in
full satisfaction of all claims hereunder against the Trustee and the Employer.

         9.11     ACTION BY THE EMPLOYER.

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

         9.12     NAMED FIDUCIARIES AND ALLOCATION OF RESPONSIBILITY.

         The "named Fiduciaries" of this Plan are (1) the Employer, (2) the
Administrator, (3) the Trustee, and (4) any Investment Manager appointed
hereunder. The named Fiduciaries shall have only those specific powers, duties,
responsibilities, and obligations as are specifically given them under the Plan.
In general, the Employer shall have the sole responsibility for making the
contributions provided for under Section 4.1; and shall have the sole authority
to appoint and remove the Trustee and the Administrator; to formulate the Plan's
"funding policy and method"; and to amend the elective provisions of the
Adoption Agreement or terminate, in whole or in part, the Plan. The
Administrator shall have the sole responsibility for the administration of the
Plan, which responsibility is specifically described in the Plan. The Trustee
shall have the sole responsibility of management of the assets held under the
Trust, except those assets, the management of which has been assigned to an
Investment Manager, who shall be solely responsible for the management of the
assets assigned to it, all as specifically provided in the Plan. Each named
Fiduciary warrants that any directions given, information furnished, or action
taken by it shall be in accordance with the provisions of the Plan, authorizing
or providing for such direction, information or action. Furthermore, each named
Fiduciary may rely upon any such direction, information or action of another
named Fiduciary as being proper under the Plan, and is riot required under the
Plan to inquire into the propriety of any such direction, information or action.
It is intended under the Plan that each named Fiduciary shall be responsible for
the proper exercise of its own powers, duties, responsibilities and obligations
under the Plan. No named Fiduciary shall guarantee the Trust Fund in any manner
against investment loss or depreciation in asset value. Any person or group may
serve in more than one Fiduciary capacity.

         9.13     HEADINGS.

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

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<PAGE>

         9.14     APPROVAL BY INTERNAL REVENUE SERVICE.

                  (a)      Notwithstanding anything herein to the contrary, if,
         pursuant to a timely application filed by or in behalf of the Plan, the
         Commissioner of Internal Revenue Service or his delegate should
         determine that the Plan does not initially qualify as a tax-exempt plan
         under Code Sections 401 and 501, and such determination is not
         contested, or if contested, is finally upheld, then if the Plan is a
         new plan, it shall be void ab initio and all amounts contributed to the
         Plan, by the Employer, less expenses paid, shall be returned within one
         year and the Plan shall terminate, and the Trustee shall be discharged
         from all further obligations. If the disqualification relates to an
         amended plan, then the Plan shall operate as if it had not been amended
         and restated.

                  (b)      Notwithstanding any provisions to the contrary,
         except Sections 3.5, 3.6, and 4.l(f), any contribution by the Employer
         to the Trust Fund is conditioned upon the deductibility of the
         contribution by the Employer under the Code and, to the extent any such
         deduction is disallowed, the Employer may within one (1) year following
         the disallowance of the deduction, demand repayment of such disallowed
         contribution and the Trustee shall return such contribution within one
         (1) year following the disallowance. Earnings of the Plan attributable
         to the excess contribution may not be returned to the Employer, but any
         losses attributable thereto must reduce the amount so returned.

                  (c)      If an Employer's Plan fails to attain or retain
         qualification, then such Plan will no longer participate in this
         Prototype Plan and will be considered an individually designed plan.

         9.15     UNIFORMITY.

         All provisions of this Plan shall be interpreted and applied in a
uniform, nondiscriminatory manner.

         9.16     PAYMENT OF BENEFITS.

         Benefits under this Plan shall be paid, subject to Section 6.10 and
Section 6.11 only upon death, Total and Permanent Disability, normal or early
retirement, termination of employment, or upon Plan Termination.

                                   ARTICLE X
                             PARTICIPATING EMPLOYERS

         10.1     ELECTION TO BECOME A PARTICIPATING EMPLOYER.

         Notwithstanding anything herein to the contrary, with the consent of
the Employer and Trustee, any Affiliated Employer may adopt this Plan and all of
the provisions hereof, and participate herein and be known as a Participating
Employer, by a properly executed document evidencing said intent and will of
such Participating Employer.

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<PAGE>

         10.2     REQUIREMENTS OF PARTICIPATING EMPLOYERS.

                  (a)      Each Participating Employer shall be required to
         select the same Adoption Agreement provisions as those selected by the
         Employer other than the Plan Year, the Fiscal Year, and such other
         items that must, by necessity, vary among employers.

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

                  (c)      The Trustee may, but shall not be required to,
         commingle, hold and invest as one Trust Fund all contributions made by
         Participating Employers, as well as all increments thereof.

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

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

         10.3     DESIGNATION OF AGENT.

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

         10.4     EMPLOYEE TRANSFERS.

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

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<PAGE>

         10.5     PARTICIPATING EMPLOYER'S CONTRIBUTION AND FORFEITURES

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

         10.6     AMENDMENT.

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

         10.7     DISCONTINUANCE OF PARTICIPATION.

         Except in the case of a Standardized Plan, any Participating Employer
shall be permitted to discontinue or revoke its participation in the Plan at any
time. At the time of any such discontinuance or revocation, satisfactory
evidence thereof and of any applicable conditions imposed shall be delivered to
the Trustee. The Trustee shall thereafter transfer, deliver and assign Contracts
and other Trust Fund assets allocable to the Participants of such Participating
Employer to such new Trustee as shall have been designated by such Participating
Employer, in the event that it has established a separate pension plan for its
Employees provided, however, that no such transfer shall be made if the result
is the elimination or reduction of any "Section 41l(d)(6) protected benefits" in
accordance with Section 8.1(e). If no successor is designated, the Trustee shall
retain such assets for the Employees of said Participating Employer pursuant to
the provisions of Article VII hereof. In no such event shall any part of the
corpus or income of the Trust Fund as it relates to such Participating Employer
be used for or diverted for purposes other than for the exclusive benefit of the
Employees of such Participating Employer.

         10.8     ADMINISTRATOR'S AUTHORITY.

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

         10.9     PARTICIPATING EMPLOYER CONTRIBUTION FOR AFFILIATE.

         If any Participating Employer is prevented in whole or in part from
making a contribution which it would otherwise have made under the Plan by
reason of having no current or

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accumulated earnings or profits, or because such earnings or profits are less
than the contribution which it would otherwise have made, then, pursuant to Code
Section 404(a)(3)(B), so much of the contribution which such Participating
Employer was so prevented from making may be made, for the benefit of the
participating employees of such Participating Employer, by other Participating
Employers who are members of the same affiliated group within the meaning of
Code Section 1504 to the extent of their current or accumulated earnings or
profits, except that such contribution by each such other Participating Employer
shall be limited to the proportion of its total current and accumulated earnings
or profits remaining after adjustment for its contribution to the Plan made
without regard to this paragraph which the total prevented contribution bears to
the total current and accumulated earnings or profits of all the Participating
Employers remaining after adjustment for all contributions made to the Plan
without regard to this paragraph.

         A Participating Employer on behalf of whose employees a contribution is
made under this paragraph shall not be required to reimburse the contributing
Participating Employers.

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                             ADOPTION AGREEMENT FOR
                      UNITED STATES PENSION SERVICES, INC.
                       STANDARDIZED 401(K) PROFIT SHARING
                                 PLAN AND TRUST

The undersigned Employer adopts the UNITED STATES PENSION SERVICES, INC.
Standardized 401(k) Profit Sharing Plan and Trust for those Employees who shall
qualify as Participants hereunder, to be known as the

A1       AMERICAN RETIREMENT CORPORATION 401(k) PLAN
                      (Enter Plan Name)

         It shall be effective as of the date specified below. The Employer
         hereby selects the following Plan specifications:

CAUTION:          The failure to properly fill out this Adoption Agreement may
                  result in disqualification of the Plan.

EMPLOYER INFORMATION
B1       Name of Employer           American Retirement Corporation

B2       Address                    111 Westwood Place, Suite 200
                                    Brentwood, TN 37027

         Telephone                  (615) 221-2250

B3       Employer
         Identification Number      62-1674303

B4       Date Business
         Commenced                  February 8, 1978

B5       TYPE OF ENTITY
         a. ( )   S Corporation
         b. ( )   Professional Service Corporation
         c. (X)   Corporation
         d. ( )   Sole Proprietorship
         e. ( )   Partnership
         f. ( )   Other

         AND, is the Employer a member of...

         g. a controlled group? (X) Yes ( ) No
         h. an affiliated service group? ( ) Yes (X) No

B6       NAME(S) OF TRUSTEE(S)
         a. Terry Frisby
         b. Ross Roadman
         c. George Hicks
         d. Laurie Mathis

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B7       TRUSTEES' ADDRESS
         a. (X)   Use Employer Address
         b. ( )   Street, City State Zip

B8       LOCATION OF EMPLOYER'S PRINCIPAL OFFICE:
         a. (X)   State
         b. ( )   Commonwealth of
         c. Tennessee and this Plan and Trust shall be governed under the same.

B9       EMPLOYER FISCAL YEAR means the 12 consecutive month period:
         Commencing on a. January 1 (e.g., January 1st) and ending on
         b. December 31 .

PLAN INFORMATION

C1       EFFECTIVE DATE

         This Adoption Agreement of the UNITED STATES PENSION SERVICES, INC.
         Standardized 401(k) Profit Sharing Plan and Trust shall:

         a. ( )   establish a new Plan and Trust effective as of
                  (hereinafter called the "Effective Date").
         b. (X)   constitute an amendment and restatement in its entirety of a
                  previously established qualified Plan and Trust of the
                  Employer which was effective April 1, 1985 (hereinafter called
                  the "Effective Date"). Except as specifically provided in the
                  Plan, the effective date of this amendment and restatement is
                  May 1, 2001 (For TRA '86 amendments, enter the first day of
                  the first Plan Year beginning in 1989).

C2       PLAN YEAR means the 12 consecutive month period:
         Commencing on a. January 1 (e.g., January 1st) and ending on b.
         December 31.

         IS THERE A SHORT PLAN YEAR?
         c. (X)   No
         d. ( )   Yes, beginning and ending.

C3       ANNIVERSARY DATE of Plan (Annual Valuation Date)
         a.       December 31

C4       PLAN NUMBER assigned by the Employer (select one)
         a. (X) 001 b. ( ) 002 c. ( ) 003 d. ( ) Other

C5       NAME OF PLAN ADMINISTRATOR (Document provides for the Employer to
         appoint an Administrator. If none is named, the Employer will become
         the Administrator.)

          a. (X)  Employer (Use Employer Address)
          b. ( )  Name Address ( ) Use Employer Address, City State Zip,
                  Telephone, Administrator's I.D. Number

C6       PLAN'S AGENT FOR SERVICE OF LEGAL PROCESS
         a. (X)   Employer (Use Employer Address)
         b. ( )   Name, Address

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ELIGIBILITY, VESTING AND RETIREMENT AGE

D1       ELIGIBLE EMPLOYEES (Plan Section 1.15) shall mean all Employees who
         have satisfied the eligibility requirements except those checked below:

         a. (X)   N/A. No exclusions.

         b. ( )   Employees whose employment is governed by a collective
                  bargaining agreement between the Employer and "employee
                  representatives" under which retirement benefits were the
                  subject of good faith bargaining. For this purpose, the term
                  "employee representatives" does not include any organization
                  more than half of whose members are employees who are owners,
                  officers, or executives of the Employer.
         c. ( )   Employees who are nonresident aliens who received no earned
                  income (within the meaning of Code Section 911(d)(2)) from the
                  Employer which constitutes income from sources within the
                  United States (within the meaning of Code Section 861(a)(3)).

         NOTE:    For purposes of this section, the term Employee shall include
                  all Employees of this Employer, any Affiliated Employer, and
                  any leased employees deemed to be Employees under Code Section
                  414(n) or 414(o).

D2       HOURS OF SERVICE (Plan Section 1.31) will be determined on the basis of
         the method selected below. Only one method may be selected. The method
         selected will be applied to all Employees covered under the Plan.

         a. (X)   On the basis of actual hours for which an Employee is paid or
                  entitled to payment.
         b. ( )   On the basis of days worked. An Employee will be credited with
                  ten (10) Hours of Service if under the Plan such Employee
                  would be credited with at least one (1) Hour of Service during
                  the day.
         c. ( )   On the basis of weeks worked. An Employee will be credited
                  forty-five (45) Hours of Service if under the Plan such
                  Employee would be credited with at least one (1) Hour of
                  Service during the week.
         d. ( )   On the basis of semi-monthly payroll periods. An Employee will
                  be credited ninety-five (95) Hours of Service if under the
                  Plan such Employee would be credited with at least one (1)
                  Hour of Service during the semi-monthly payroll period.
         e. ( )   On the basis of months worked. An Employee will be credited
                  one hundred ninety (190) Hours of Service if under the Plan
                  such Employee would be credited with at least one (1) Hour of
                  Service during the month.

D3       CONDITIONS OF ELIGIBILITY (Plan Section 3.1)
         (Check either a OR b and c, and if applicable, d)

         Any Eligible Employee will be eligible to participate in the Plan if
         such Eligible Employee has satisfied the service and age requirements,
         if any, specified below:

         a. ( )   NO AGE OR SERVICE REQUIRED.

         b. (X)   SERVICE REQUIREMENT. (may not exceed 1 year)

                 1. ( ) None
                 2. (X) 1/2 Year of Service
                 3. ( ) 1 Year of Service
                 4. ( ) Other

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         NOTE:    If the Year(s) of Service selected is or includes a fractional
                  year, an Employee will not be required to complete any
                  specified number of Hours of Service to receive credit for
                  such fractional year. If expressed in Months of Service, an
                  Employee will not be required to complete any specified number
                  of Hours of Service in a particular month.

         c. (X)   AGE REQUIREMENT (may not exceed 21)

                  1. ( ) N/A - No Age Requirement.
                  2. ( ) 20 1/2
                  3. (X) 21
                  4. ( ) Other

         d. ( )   FOR NEW PLANS ONLY - Regardless of any of the above age or
                  service requirements, any Eligible Employee who was employed
                  on the Effective Date of the Plan shall be eligible to
                  participate hereunder and shall enter the Plan as of such
                  date.

D4       EFFECTIVE DATE OF PARTICIPATION (Plan Section 3.2) An Eligible Employee
         shall become a Participant as of:

         a. ( )   the first day of the Plan Year in which he met the
                  requirements.
         b. ( )   the first day of the Plan Year in which he met the
                  requirements, if he met the requirements in the first 6 months
                  of the Plan Year, or as of the first day of the next
                  succeeding Plan Year if he met the requirements in the last 6
                  months of the Plan Year.
         c. ( )   the earlier of the first day of the seventh month or the first
                  day of the Plan Year coinciding with or next following the
                  date on which he met the requirements.
         d. ( )   the first day of the Plan Year next following the date on
                  which he met the requirements. (Eligibility must be 1/2 Year
                  of Service or less or 1 1/2 Years of Service or less if 100%
                  immediate vesting is selected and age 20 1/2 or less.)
         e. ( )   the first day of the month coinciding with or next following
                  the date on which he met the requirements.
         f. (X)   Other: the first day of the quarter coinciding with or next
                  following the date on which the met the requirements ,
                  provided that an Employee who has satisfied the maximum age
                  and service requirements that are permissible in Section D3
                  above and who is otherwise entitled to participate, shall
                  commence participation no later than the earlier of (a) 6
                  months after such requirements are satisfied, or (b) the first
                  day of the first Plan Year after such requirements are
                  satisfied, unless the Employee separates from service before
                  such participation date.

Copyright 1996-N UNITED STATES PENSION SERVICES, INC.

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D5       VESTING OF PARTICIPANT'S INTEREST (Plan Section 6.4(b))

         The vesting schedule, based on number of Years of Service, shall be as
follows:

         a. ( )   100% upon entering Plan. (Required if eligibility requirement
                  is greater than one (1) Year of Service.)

         b. ( ) 0-2 years 0%         c. ( ) 0-4 years 0%
                3 years 100%                5 years 100%

         d. ( ) 0-1 year  0%         e. ( ) 1 year 25%
                2 years 20%                 2 years 50%
                3 years 40%                 3 years 75%
                4 years 60%                 4 years 100%
                5 years 80%
                6 years 100%

         f. (X) 1 year 20%           g. ( ) 0-2 years 0%
                2 years 40%                 3 years 20%
                3 years 60%                 4 years 40%
                4 years 80%                 5 years 60%
                5 years 100%                6 years 80%
                                            7 years 100%

         h. ( ) Other - Must be at least as liberal as either c. or g. above.
             Years of Service               Percentage
                              ------                  --------

D6       FOR AMENDED PLANS (Plan Section 6.4(f)) If the vesting schedule has
         been amended to a less favorable schedule, enter the pre-amended
         schedule below:

         a. (X)   Vesting schedule has not been amended or amended schedule is
                  more favorable in all years.
         b. ( )   Years of Service Percentage

D7       TOP HEAVY VESTING (Plan Section 6.4(c)) If this Plan becomes a Top
         Heavy Plan, the following vesting schedule, based on number of Years of
         Service, for such Plan Year and each succeeding Plan Year, whether or
         not the Plan is a Top Heavy Plan, shall apply and shall be treated as a
         Plan amendment pursuant to this Plan. Once effective, this schedule
         shall also apply to any contributions made prior to the effective date
         of Code Section 416 and/or before the Plan became a Top Heavy Plan.

         a. (X)   N/A (D5a, b, d, e or f was selected)

         b. ( ) 0-1 year 0%          c. ( ) 0-2 years 0%
                2 years 20%                 3 years 100%
                3 years 40%
                4 years 60%
                5 years 80%
                6 years 100%

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         NOTE:    This section does not apply to the Account balances of any
                  Participant who does not have an Hour of Service after the
                  Plan has initially become top heavy. Such Participant's
                  Account balance attributable to Employer contributions and
                  Forfeitures will be determined without regard to this section.

D8       VESTING (Plan Section 6.4(h)) In determining Years of Service for
         vesting purposes, Years of Service attributable to the following shall
         be EXCLUDED:

         a. ( )   Service prior to the Effective Date of the Plan or a
                  predecessor plan.
         b. (X)   N/A.
         c. ( )   Service prior to the time an Employee attained age 18.
         d. (X)   N/A.

D9       PLAN SHALL RECOGNIZE SERVICE WITH PREDECESSOR EMPLOYER

         a. ( )   No.

         b. (X)   Yes: Years of Service with National Retirement Company,
             American Retirement Corporation, USAA Towers, Parklane West,
             Heritage Club, Parkplace, The Hampton, Westlake Village, Holley
             Court Terrace, Trinity Towers, Santa Catalina Villas, Richmond
             Place, Broadway Plaza, Carriage Club of Charlotte, Carriage Club of
             Jacksonville and Summit at Westlake Hills shall be recognized for
             the purpose of this Plan.

         NOTE:    If the predecessor Employer maintained this qualified Plan,
                  then Years of Service with such predecessor Employer shall be
                  recognized pursuant to Section 1.74 and b. must be marked.

D10      NORMAL RETIREMENT AGE ("NRA") (Plan Section 1.42) means:

         a. (X)   the date a Participant attains his 65 birthday. (not to
                  exceed 65th)
         b. ( )   the later of the date a Participant attains his birthday (not
                  to exceed 65th) or the
         c. (not to exceed 5th) anniversary of the first day of the Plan Year in
            which participation in the Plan commenced.

D11      NORMAL RETIREMENT DATE (Plan Section 1.43) shall commence:

         a. (X)   as of the Participant's "NRA." OR (must select b. or c. AND 1.
                  or 2.)
         b. ( )   as of the first day of the month...
         c. ( )   as of the Anniversary Date...
              1.  ( ) coinciding with or next following the Participant's
                      "NRA."
              2.  ( ) nearest the Participant's "NRA."

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D12      EARLY RETIREMENT DATE (Plan Section 1.12) means the:

         a. ( )   No Early Retirement provision provided.
         b. (X)   date on which a Participant...
         c. ( )   first day of the month coinciding with or next following the
                  date on which a Participant...
         d. ( )   Anniversary Date coinciding with or next following the date on
                  which a Participant...

         AND, if b., c. or d. was selected...

              1.  (X) attains his 55 birthday and has
              2.  (X) completed at least 5 Years of Service.

CONTRIBUTIONS, ALLOCATIONS AND DISTRIBUTIONS

E1       a. COMPENSATION (Plan Section 1.9) with respect to any Participant
            means:

              1.  ( ) Wages, tips and other Compensation on Form W-2.
              2.  (X) Section 3401(a) wages (wages for withholding purposes).
              3.  ( ) 415 safe-harbor compensation.

         AND COMPENSATION

              1.  (X) shall
              2.  ( ) shall not exclude (even if includible in gross income)
                      reimbursements or other expense allowances, fringe
                      benefits (cash or noncash), moving expenses, deferred
                      compensation, and welfare benefits.

         b. COMPENSATION shall be

              1.  (X) actually paid (must be selected if Plan is integrated)
              2.  ( ) accrued

         c. FOR PURPOSES OF THIS SECTION E1, Compensation shall be based on:

              1.  (X) the Plan Year.
              2.  ( ) the Fiscal Year coinciding with or ending within the Plan
                      Year.
              3.  ( ) the Calendar Year coinciding with or ending within the
                      Plan Year.

         NOTE:    The Limitation Year shall be the same as the year on which
                  Compensation is based.

         d. HOWEVER, for an Employee's first year of participation, Compensation
            shall be  recognized as of:

              1.  ( ) the first day of the Plan Year.
              2.  (X) the date the Participant entered the Plan.

         e. IN ADDITION, COMPENSATION and "414(s) Compensation"

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              1.  (X) shall 2. ( ) shall not include compensation which is not
                  currently includible in the Participant's gross income by
                  reason of the application of Code Sections 125, 402(a)(8),
                  402(h)(1)(B), or 403(b).

E2       SALARY REDUCTION ARRANGEMENT - ELECTIVE CONTRIBUTION
         (Plan Section 4.2) Each Employee may elect to have his Compensation
         reduced by:

         a. ( )   %
         b. (X)   up to 20 %
         c. ( )   from % to %
         d. ( )   up to the maximum percentage allowable not to exceed the
                  limits of Code Sections 401(k), 404 and 415.

         AND...

         e.  (X)  A Participant may elect to commence salary reductions as of
                  any Plan Entry Date(s) (ENTER AT LEAST ONE DATE OR PERIOD). A
                  Participant may modify the amount of salary reductions as of
                  January 1, April 1, July 1 or October 1 (ENTER AT LEAST ONE
                  DATE OR PERIOD).

         AND...

         Shall cash bonuses paid within 2 1/2 months after the end of the Plan
Year be subject to the salary reduction election?

         f. ( )   Yes
         g. (X)   No

E3       FORMULA FOR DETERMINING EMPLOYER'S MATCHING CONTRIBUTION
         (Plan Section 4.1(b))

         a. ( )   N/A. There shall be no matching contributions.
         b. ( )   The Employer shall make matching contributions equal to %
                  (e.g. 50%) of the Participant's salary reductions.
         c. (X)   The Employer may make matching contributions equal to a
                  discretionary percentage, to be determined by the Employer, of
                  the Participant's salary reductions.
         d. ( )   The Employer shall make matching contributions equal to the
                  sum of % of the portion of the Participant's salary reduction
                  which does not exceed % of the Participant's Compensation plus
                  % of the portion of the Participant's salary reduction which
                  exceeds % of the Participant's Compensation, but does not
                  exceed % of the Participant's Compensation.
         e. ( )   The Employer shall make matching contributions equal to the
                  percentage determined under the following schedule:
                       Participant's Total
                       Years of Service
                       Matching Percentage

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FOR PLANS WITH MATCHING CONTRIBUTIONS

         f. (X)   Matching contributions g. ( ) shall h. (X) shall not be used
                  in satisfying the deferral percentage tests. (If used, full
                  vesting and restrictions on withdrawals will apply and the
                  match will be deemed to be an Elective Contribution).
         i.  (X)  For Plan Years beginning prior to 1990, a Year of Service ( )
                  shall j. (X) shall not be required in order to share in the
                  matching contributions. For Plan Years beginning after 1989, a
                  Year of Service shall not be required in order to share in the
                  matching contributions.
         k. (X)   In determining matching contributions, only salary reductions
                  up to 2 % of a Participant's Compensation will be matched. l.
                  ( ) N/A
         m. ( )   The matching contribution made on behalf of a Participant for
                  any Plan Year shall not exceed $ . n. (X) N/A
         o. (X)   Matching contributions shall be made on behalf of
              1.  (X) all Participants.
              2.  ( ) only Non-Highly Compensated Employees.
         p.  (X)  Notwithstanding anything in the Plan to the contrary, all
                  matching contributions which relate to distributions of Excess
                  Deferred Compensation, Excess Contributions, and Excess
                  Aggregate Contributions shall be Forfeited. (Select this
                  option only if it is applicable.)

E4       WILL A DISCRETIONARY EMPLOYER CONTRIBUTION BE PROVIDED (OTHER THAN A
         DISCRETIONARY MATCHING OR QUALIFIED NON-ELECTIVE CONTRIBUTION) (Plan
         Section 4.1)?

         a. ( )   No.

         b. ( )   Yes, the Employer may make a discretionary contribution out of
                  its current or accumulated Net Profit.

         c. (X)   Yes, the Employer may make a discretionary contribution which
                  is not limited to its current or accumulated Net Profit.

         IF YES (b. or c. is selected above), the Employer's discretionary
         contribution shall be allocated as follows:

         d. (X)   FOR A NON-INTEGRATED PLAN

         The Employer discretionary contribution for the Plan Year shall be
         allocated in the same ratio as each Participant's Compensation bears to
         the total of such Compensation of all Participants.

         e. ( )   FOR AN INTEGRATED PLAN

         The Employer discretionary contribution for the Plan Year shall be
         allocated in accordance with Plan Section 4.4(b)(3) based on a
         Participant's Compensation in excess of:

         f. ( )   The Taxable Wage Base.
         g. ( )   The greater of $10,000 or 20% of the Taxable Wage Base.
         h. ( )   % of the Taxable Wage Base. (See Note below)
         i. ( )   $ . (see Note below)

Copyright 1996-N UNITED STATES PENSION SERVICES, INC.

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         NOTE:    The integration percentage of 5.7% shall be reduced to:

                  1. 4.3% if h. or i. above is more than 20% and less than or
                     equal to 80% of the Taxable Wage Base.
                  2. 5.4% if h. or i. above is less than 100% and more than 80%
                     of the Taxable Wage Base.

E5       QUALIFIED NON-ELECTIVE CONTRIBUTIONS (Plan Section 4.1)

         a. (X)   N/A. There shall be no Qualified Non-Elective Contributions
                  except as provided in Sections 4.6 and 4.8.
         b. ( )   The Employer shall make a Qualified Non-Elective Contribution
                  equal to % of the total Compensation of all Participants
                  eligible to share in the allocations.
         c. ( )   The Employer may make a Qualified Non-Elective Contribution in
                  an amount to be determined by the Employer.

E6       FORFEITURES (Plan Section 4.4(e))
         a. Forfeitures of contributions other than matching contributions shall
            be...
               1. (X) added to the Employer's contribution under the Plan.
               2. ( ) allocated to all Participants eligible to share in the
                  allocations in the same proportion that each Participant's
                  Compensation for the year bears to the Compensation of all
                  Participants for such year.

         b. Forfeitures of matching contributions shall be...

               1. ( ) N/A. No matching contributions or match is fully vested.
               2. (X) used to reduce the Employer's matching contribution.
               3. ( ) allocated to all Participants eligible to share in the
                  allocations in proportion to each such Participant's
                  Compensation for the year.
               4. ( ) allocated to all Non-Highly Compensated Employee's
                  eligible to share in the allocations in proportion to each
                  such Participant's Compensation for the year.

E7       ALLOCATIONS TO TERMINATED PARTICIPANTS (Plan Section 4.4(l))

         Any Participant who terminated employment during the Plan Year for
         reasons other than death, Total and Permanent Disability or retirement:

         a.  With respect to the allocation of Employer Non-Elective
             Contributions (other than matching), Qualified Non-Elective
             Contributions, and Forfeitures for Plan Years beginning prior to
             1990:
               1. (X) N/A
               2. ( ) shall share in such allocations provided such Participant
                  completed a Year of Service.
               3. ( ) shall not share in such allocations regardless of Hours
                  of Service.

         NOTE:    The Plan provides that for Plan Years beginning after 1989, a
                  terminated Participant shall share in such allocations
                  provided such Participant completed more than 500 Hours of
                  Service.

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         b.  With respect to the allocation of Employer Matching Contributions,
             a Participant:
               1. For Plan Years beginning after 1989,
                  i.   ( ) N/A, Plan does not provide for matching
                           contributions.
                  ii.  (X) shall share in the allocations, regardless of
                           Hours of Service.
                  iii. ( ) shall share in the allocations provided such
                           Participant completed more than 500 Hours of Service.
               2. For Plan Years beginning before 1990,
                   i.  (X) N/A, new Plan, or same as Plan Years beginning after
                           1989.
                   ii. ( ) shall share in the allocations, regardless of Hours
                           of Service.
                   iii. ( ) shall share in the allocations provided such
                            Participant completed a Year of Service.

E8       ALLOCATIONS OF EARNINGS (Plan Section 4.4(c))

         Allocations of earnings with respect to amounts contributed to the Plan
         after the previous Anniversary Date or other valuation date shall be
         determined...

         a. ( )   by using a weighted average.
         b. ( )   by treating one-half of all such contributions as being a part
                  of the Participant's nonsegregated account balance as of the
                  previous Anniversary Date or valuation date.
         c. ( )   by using the method specified in Section 4.4(c).
         d. (X)   other daily valued

E9       LIMITATIONS ON ALLOCATIONS (Plan Section 4.9)

         a. If any Participant is or was covered under another qualified defined
            contribution plan maintained by the Employer, other than a Master or
            Prototype Plan, or if the Employer maintains a welfare benefit fund,
            as defined in Code Section 419(e), or an individual medical account,
            as defined in Code Section 415(l)(2), under which amounts are
            treated as Annual Additions with respect to any Participant in this
            Plan:

               1. (X) N/A.
               2. ( ) The provisions of Section 4.9(b) of the Plan will apply as
                  if the other plan were a Master or Prototype Plan.
               3. ( ) Provide the method under which the Plans will limit total
                  Annual Additions to the Maximum Permissible Amount, and will
                  properly reduce any Excess Amounts, in a manner that precludes
                  Employer discretion.

         b. If any Participant is or ever has been a Participant in a defined
            benefit plan maintained by the Employer:

               1. (X) N/A.
               2. ( ) In any Limitation Year, the Annual Additions credited to
                  the Participant under this Plan may not cause the sum of the
                  Defined Benefit Plan Fraction and the Defined Contribution
                  Fraction to exceed 1.0. If the Employer's contribution that
                  would otherwise be made on the Participant's behalf during the
                  limitation year would cause the 1.0 limitation to be exceeded,
                  the rate of contribution under this Plan will be reduced so
                  that the sum of the fractions equals 1.0. If the 1.0
                  limitation is exceeded because of an Excess Amount, such
                  Excess Amount will be reduced in accordance with Section
                  4.9(a)(4) of the Plan.

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               3. ( ) Provide the method under which the Plans involved will
                  satisfy the 1.0 limitation in a manner that precludes Employer
                  discretion.

E10      DISTRIBUTIONS UPON DEATH (Plan Section 6.6(h))

         Distributions upon the death of a Participant prior to receiving any
         benefits shall...

         a. (X)   be made pursuant to the election of the Participant or
                  beneficiary.
         b. ( )   begin within 1 year of death for a designated beneficiary and
                  be payable over the life (or over a period not exceeding the
                  life expectancy) of such beneficiary, except that if the
                  beneficiary is the Participant's spouse, begin within the time
                  the Participant would have attained age 70 1/2.
         c. ( )   be made within 5 years of death for all beneficiaries.
         d. ( )   other

E11      LIFE EXPECTANCIES (Plan Section 6.5(f)) for minimum distributions
         required pursuant to Code Section 401(a)(9) shall...

         a. (X)   be recalculated at the Participant's election.
         b. ( )   be recalculated.
         c. ( )   not be recalculated.

E12      CONDITIONS FOR DISTRIBUTIONS UPON TERMINATION
         Distributions upon termination of employment pursuant to Section 6.4(a)
         of the Plan shall not be made unless the following conditions have been
         satisfied:

         a. (X)   N/A. Immediate distributions may be made at Participant's
                  election.
         b. ( )   The Participant has incurred 1-Year Break(s) in Service.
         c. ( )   The Participant has reached his or her Early or Normal
                  Retirement Age.
         d. ( )   Distributions may be made at the Participant's election on or
                  after the Anniversary Date following termination of
                  employment.
         e. ( )   Other

E13      FORM OF DISTRIBUTIONS (Plan Sections 6.5 and 6.6)
         Distributions under the Plan may be made...

         a.  1. (X) in lump sums.
             2. ( ) in lump sums or installments.

         b. AND, pursuant to Plan Section 6.13,

             1. (X) no annuities are allowed (avoids Joint and Survivor rules).*
             2. ( ) annuities are allowed (Plan Section 6.13 shall not apply).

         NOTE:    b.1. above may not be elected if this is an amendment to a
                  plan which permitted annuities as a form of distribution or if
                  this Plan has accepted a plan to plan transfer of assets from
                  a plan which permitted annuities as a form of distribution.

Copyright 1996-N UNITED STATES PENSION SERVICES, INC.

                                       12
<PAGE>

         c. AND, may be made in...

             1. (X) cash only (except for insurance or annuity contracts).
             2. ( ) cash or property.

*Effective September 1, 2001

TOP HEAVY REQUIREMENTS

F1       TOP HEAVY DUPLICATIONS (Plan Section 4.4(i)): When a Non-Key Employee
         is a Participant in this Plan and a Defined Benefit Plan maintained by
         the Employer, indicate which method shall be utilized to avoid
         duplication of top heavy minimum benefits.

         a. (X)   The Employer does not maintain a Defined Benefit Plan.
         b. ( )   A minimum, non-integrated contribution of 5% of each Non-Key
                  Employee's total Compensation shall be provided in this Plan,
                  as specified in Section 4.4(i). (The Defined Benefit and
                  Defined Contribution Fractions will be computed using 100% if
                  this choice is selected.)
         c. ( )   A minimum, non-integrated contribution of 7 1/2% of each
                  Non-Key Employee's total Compensation shall be provided in
                  this Plan, as specified in Section 4.4(i). (If this choice is
                  selected, the Defined Benefit and Defined Contribution
                  Fractions will be computed using 125% for all Plan Years in
                  which the Plan is Top Heavy, but not Super Top Heavy.)
         d. ( )   Specify the method under which the Plans will provide top
                  heavy minimum benefits for Non-Key Employees that will
                  preclude Employer discretion and avoid inadvertent omissions,
                  including any adjustments required under Code Section 415(e).

F2       PRESENT VALUE OF ACCRUED BENEFIT (Plan Section 2.2) for Top Heavy
         purposes where the Employer maintains a Defined Benefit Plan in
         addition to this Plan, shall be based on...

         a. (X)   N/A. The Employer does not maintain a defined benefit plan.
         b. ( )   Interest Rate:       Mortality Table:
                                ------                 ------

F3       TOP HEAVY DUPLICATIONS: Employer maintaining two (2) or more Defined
         contribution Plans (other than paired plans).
         a. (X)   N/A.
         b. ( )   A minimum, non-integrated contribution of 3% of each Non-Key
                  Employee's total Compensation shall be provided in the Money
                  Purchase Plan (or other plan subject to Code Section 412),
                  where the Employer maintains two (2) or more non-paired
                  Defined Contribution Plans.
         c. ( )   Specify the method under which the Plans will provide top
                  heavy minimum benefits for Non-Key Employees that will
                  preclude Employer discretion and avoid inadvertent
                  commissions, including any adjustments required under Code
                  Section 415(e).

Copyright 1996-N UNITED STATES PENSION SERVICES, INC.

                                       13
<PAGE>

MISCELLANEOUS

G1       LOANS TO PARTICIPANTS (Plan Section 7.4)

         a. (X)   Yes, loans may be made up to $50,000 or 1/2 Vested interest.
         b. ( )   No, loans may not be made.

         If YES, (check all that apply)...

         c. (X)   loans shall be treated as a Directed Investment.
         d. ( )   loans shall only be made for hardship or financial necessity.
         e. (X)   the minimum loan shall be $1,000.
         f. ( )   $10,000 de minimis loans may be made regardless of Vested
                  interest. (If selected, Plan may need security in addition
                  to Vested interest.)

         NOTE:    Department of Labor Regulations require the adoption of a
                  SEPARATE written loan program setting forth the requirements
                  outlined in Plan Section 7.4.

G2       DIRECTED INVESTMENT ACCOUNTS (Plan Section 4.13) are permitted for the
         interest in any one or more accounts.

         a. (X)   Yes, regardless of the Participant's Vested interest in the
                  Plan.
         b. ( )   Yes, but only with respect to the Participant's Vested
                  interest in the Plan.
         c. ( )   Yes, but only with respect to those accounts which are 100%
                  Vested.
         d. ( )   No directed investments are permitted.

G3       TRANSFERS FROM QUALIFIED PLANS (Plan Section 4.11)

         a. (X)   Yes, transfers from qualified plans (and rollovers) will be
                  allowed.
         b. ( )   No, transfers from qualified plans (and rollovers) will not be
                  allowed.

         AND, transfers shall be permitted...

         c. ( )   from any Employee, even if not a Participant.
         d. (X)   from Participants only.

G4       EMPLOYEES' VOLUNTARY CONTRIBUTIONS (Plan Section 4.12)
         a. (X)   Yes, Voluntary Contributions are allowed subject to the limits
                  of Section 4.7.
         b. ( )   No, Voluntary Contributions will not be allowed.

         NOTE:    TRA '86 subjects voluntary contributions to strict
                  discrimination rules.

G5       HARDSHIP DISTRIBUTIONS (Plan Section 6.11)
         a. (X)   Yes, from any accounts which are 100% Vested.
         b. ( )   Yes, from Participant's Elective Account only.
         c. ( )   Yes, but limited to the Participant's Account only.
         d. ( )   No.

Copyright 1996-N UNITED STATES PENSION SERVICES, INC.

                                       14
<PAGE>

         NOTE:    Distributions from a Participant's Elective Account are
                  limited to the portion of such account attributable to such
                  Participant's Deferred Compensation and earnings attributable
                  thereto up to December 31, 1988. Also hardship distributions
                  are not permitted from a Participant's Qualified Non-Elective
                  Account.

G6       PRE-RETIREMENT DISTRIBUTION (Plan Section 6.10)

         a. (X)   If a Participant has reached the age of 59 1/2, distributions
                  may be made, at the Participant's election, from any accounts
                  which are 100% Vested without requiring the Participant to
                  terminate employment.
         b. ( )   No pre-retirement distribution may be made.

         NOTE:    Distributions from a Participant's Elective Account and
                  Qualified Non-Elective Account are not permitted prior to age
                  59 1/2.

G7       TRUST INVESTMENTS: (Plan Section 7.2) Assets under this Plan shall be
         invested as follows (select all that apply):

         a. ( )   Life Insurance Contracts (must also select b. and/or c.)

               1. ( ) shall be purchased at the option of the Administrator.
               2. ( ) shall be purchased at the option of the Participant.

         AND (select all that apply)...

               3. ( ) Each initial Contract shall have a minimum face amount of
                  $ .
               4. ( ) Each additional life insurance contract shall have a
                  minimum face amount of $
               5. ( ) No initial or additional life insurance shall be purchased
                  for any Participant who is under age on the contract issue
                  date.
               6. ( ) No life insurance shall be purchased until the Participant
                  has been credited with Years of Service.
               7. ( ) No life insurance shall be purchased until the Participant
                  has been credited with Years of Service while a Participant
                  in the Plan.
               8. ( ) The maximum amount of all Contracts purchased on behalf of
                  a Participant shall not exceed $ .
               9. ( ) Waiver of premium is included on all life insurance
                  contracts and is paid with the Employer Contributions
                  allocated to the Participant's Accounts.
         b. ( )   Annuity Contracts (as permitted by the Insurer) shall be
                  purchased...
               1. ( ) at the option of the Administrator
               2. ( ) at the option of the Participant
         c. (X)   Investments may be made in any investments permitted pursuant
                  to Plan Sections 7.2 and 7.3 other than those permitted by a.
                  or b. above unless so elected.

Copyright 1996-N UNITED STATES PENSION SERVICES, INC.

                                       15
<PAGE>

An Employer who has ever maintained or who later adopts any plan in addition to
this Plan (including a welfare benefit fund, as defined in Code Section 419(e),
which provides post-retirement medical benefits allocated to separate accounts
for Key Employees, as defined in Code Section 419A(d)(3) or an individual
medical account, as defined in Code Section 415(l)(2)) (other than paired plan
N/A) may not rely on the opinion letter issued by the National Office of the
Internal Revenue Service as evidence that this Plan is qualified under Code
Section 401. If the Employer who adopts or maintains multiple plans wishes to
obtain reliance that the Employer's plan(s) are qualified, application for a
determination letter should be made to the appropriate key district director of
Internal Revenue.

This Adoption Agreement may be used only in conjunction with basic Plan document
#04. This Adoption Agreement and the basic Plan document shall together be known
as UNITED STATES PENSION SERVICES, INC. Standardized 401(k) Profit Sharing Plan
and Trust #04-002.

The adoption of this Plan, its qualification by the IRS, and the related tax
consequences are the responsibility of the Employer and its independent tax and
legal advisors.

United States Pension Services, Inc., acting on behalf of the IBJ Schroder Bank
& Trust Company ("IBJ") (who is the sponsoring organization of this prototype),
will notify the Employer of any amendments made to the Plan or of the
discontinuance or abandonment of the Plan, provided this Plan has been
acknowledged by United States Pension Services, Inc., acting on behalf of IBJ.
Furthermore, in order to be eligible to receive such notification, we agree to
notify UNITED STATES PENSION SERVICES, INC. of any change in address.

Copyright 1996-N UNITED STATES PENSION SERVICES, INC.

                                       16
<PAGE>

IN WITNESS WHEREOF, the Employer and Trustee hereby cause this Plan to be
executed on _____________, ______. Furthermore, this Plan may not be used unless
acknowledged by UNITED STATES PENSION SERVICES, INC. or its authorized
representative.

EMPLOYER:

American Retirement Corporation

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

TRUSTEE(S):

------------------------                             --------------------------
Terry Frisby                                         Ross Roadman

------------------------                             --------------------------
George Hicks                                         Laurie Mathis

PARTICIPATING EMPLOYER:
N/A
(enter name)
By: N/A

This Plan may not be used, and shall not be deemed to be a Prototype Plan,
unless an authorized representative of UNITED STATES PENSION SERVICES, INC. has
acknowledged the use of the Plan. Such acknowledgment is for administerial
purposes only. It acknowledges that the Employer is using the Plan but does not
represent that this Plan, including the choices selected on the Adoption
Agreement, has been reviewed by a representative of the sponsor or constitutes a
qualified retirement plan.

UNITED STATES PENSION SERVICES, INC.

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

With regard to any questions regarding the provisions of the Plan, adoption of
the Plan, or the effect of an opinion letter from the IRS, call or write (this
information must be completed by the sponsor of this Plan or its designated
representative):

Name              PFPC Inc. (formerly United States Pension Services, Inc.)
Address           3507 Frontage Road, Suite 200
                  Tampa, Florida 33607
Telephone         (813) 289-1904

Copyright 1996-N UNITED STATES PENSION SERVICES, INC.

                                       17<PAGE>
                                                                   EXHIBIT 10.2

                         AMERICAN RETIREMENT CORPORATION

                            1997 STOCK INCENTIVE PLAN

SECTION 1.  Purpose; Definitions.

         The purpose of the American Retirement Corporation 1997 Stock Incentive
Plan (the "Plan") is to enable American Retirement Corporation (the
"Corporation") to attract, retain and reward key employees of and consultants to
the Corporation and its Subsidiaries and Affiliates, and directors who are not
also employees of the Corporation, and to strengthen the mutuality of interests
between such key employees, consultants, and directors by awarding such key
employees, consultants, and directors performance-based stock incentives and/or
other equity interests or equity-based incentives in the Corporation, as well as
performance-based incentives payable in cash. The creation of the Plan shall not
diminish or prejudice other compensation programs approved from time to time by
the Board.

         For purposes of the Plan, the following terms shall be defined as set
forth below:

         A. "Affiliate" means any entity other than the Corporation and its
Subsidiaries that is designated by the Board as a participating employer under
the Plan, provided that the Corporation directly or indirectly owns at least 20%
of the combined voting power of all classes of stock of such entity or at least
20% of the ownership interests in such entity.

         B.       "Board" means the Board of Directors of the Corporation.

         C.       "Cause" has the meaning provided in Section 5(j) of the Plan.

         D.       "Change in Control" has the meaning provided in Section 10(b)
of the Plan.

         E.       "Change in Control Price" has the meaning provided in Section
10(d) of the Plan.

         F.       "Common Stock" means the Corporation's Common Stock, par value
$.01 per share.

         G.       "Code" means the Internal Revenue Code of 1986, as amended
from time to time, and any successor thereto.

         H.       "Committee" means the Committee referred to in Section 2 of
the Plan.

         I.       "Corporation" means American Retirement Corporation, a
corporation organized under the laws of the State of Tennessee or any successor
corporation.

         J.       "Disability" means disability as determined under the
Corporation's Group Long Term Disability Insurance Plan.

<PAGE>

         K.       "Early Retirement" means retirement, for purposes of this Plan
with the express consent of the Corporation at or before the time of such
retirement, from active employment with the Corporation and any Subsidiary or
Affiliate prior to age 65, in accordance with any applicable early retirement
policy of the Corporation then in effect or as may be approved by the Committee.

         L.       "Effective Date" has the meaning provided in Section 14 of the
Plan.

         M.       "Equity Issuance" means an issuance of Common Stock by the
Corporation following the Effective Date of this Plan in connection with a
public or private offering, including in connection with an acquisition, merger
or similar transaction, but excluding issuances of Common Stock under this Plan
or in any other compensatory transaction with an officer or employee of, or
consultant to, the Corporation or its Subsidiaries or Affiliates.

         N.       "Exchange Act" means the Securities Exchange Act of 1934, as
amended from time to time, and any successor thereto.

         O.       "Fair Market Value" means with respect to the Common Stock, as
of any given date or dates, unless otherwise determined by the Committee in good
faith, the reported closing price of a share of Common Stock on the NYSE or such
other market or exchange as is the principal trading market for the Common
Stock, or, if no such sale of a share of Common Stock is reported on the NYSE or
other exchange or principal trading market on such date, the fair market value
of a share of Common Stock as determined by the Committee in good faith.

         P.       "Incentive  Stock  Option"  means any Stock  Option  intended
to be and  designated  as an  "Incentive  Stock  Option"  within the meaning of
Section 422 of the Code.

         Q.       "Immediate Family" means any child, stepchild, grandchild,
parent, stepparent, grandparent, spouse, sibling, mother-in-law, father-in-law,
son-in-law, daughter-in-law, brother-in-law, or sister-in-law, and shall include
adoptive relationships.

         R.       "Non-Employee  Director" means a member of the Board who is a
Non-Employee Director within the meaning of Rule 16b-3(b)(3) promulgated under
the Exchange Act and an outside director within the meaning of Treasury
Regulation Sec. 162-27(e)(3) promulgated under the Code.

         S.       "Non-Qualified Stock Option" means any Stock Option that is
not an Incentive Stock Option.

         T.       "NYSE" means The New York Stock Exchange.

         U.       "Normal Retirement" means retirement from active employment
with the Corporation and any Subsidiary or Affiliate on or after age 65.

                                        2
<PAGE>

        V.       "Other  Stock-Based  Award" means an award under  Section 8
below that is valued in whole or in part by reference to, or is otherwise based
on, the Common Stock.

         W.       "Outside Director" means a member of the Board who is not an
officer or employee of the Corporation or any Subsidiary or Affiliate of the
Corporation.

         X.       "Outside Director Option" means an award to an Outside
Director under Section 9 below.

         Y.       "Plan" means this American Retirement Corporation 1997 Stock
Incentive Plan, as amended from time to time.

         Z.       "Restricted Stock" means an award of shares of Common Stock
that is subject to restrictions under Section 7 of the Plan.

         AA.      "Restriction Period" has the meaning provided in Section 7 of
the Plan.

         BB.      "Retirement" means Normal or Early Retirement.

         CC.      "Section 162(m) Maximum" has the meaning provided in Section
3(a) hereof.

         DD.      "Stock Appreciation Right" means the right pursuant to an
award granted under Section 6 below to surrender to the Corporation all (or a
portion) of a Stock Option in exchange for an amount equal to the difference
between (i) the Fair Market Value, as of the date such Stock Option (or such
portion thereof) is surrendered, of the shares of Common Stock covered by such
Stock Option (or such portion thereof), subject, where applicable, to the
pricing provisions in Section 6(b)(ii), and (ii) the aggregate exercise price of
such Stock Option (or such portion thereof).

         EE.      "Stock Option" or "Option" means any option to purchase shares
of Common Stock (including Restricted Stock, if the Committee so determines)
granted pursuant to Section 5 below.

         FF.      "Subsidiary" means any corporation (other than the
Corporation) in an unbroken chain of corporations beginning with the Corporation
if each of the corporations (other than the last corporation in the unbroken
chain) owns stock possessing 50% or more of the total combined voting power of
all classes of stock in one of the other corporations in the chain.

SECTION 2.  Administration.

                                       3
<PAGE>

         The Plan shall be administered by a Committee of not less than two
Non-Employee Directors, who shall be appointed by the Board and who shall serve
at the pleasure of the Board. The functions of the Committee specified in the
Plan may be exercised by an existing Committee of the Board composed exclusively
of Non-Employee Directors. The initial Committee shall be the Compensation
Committee of the Board. In the event there are not at least two Non-Employee
Directors on the Board, the Plan shall be administered by the Board and all
references herein to the Committee shall refer to the Board.

         The Committee shall have authority to grant, pursuant to the terms of
the Plan, to officers, other key employees and consultants eligible under
Section 4: (i) Stock Options, (ii) Stock Appreciation Rights, (iii) Restricted
Stock, and/or (iv) Other Stock-Based Awards.

         In particular, the Committee, or the Board, as the case may be, shall
have the authority, consistent with the terms of the Plan:

                  (a) to select the officers, key employees of and consultants
         to the Corporation and its Subsidiaries and Affiliates to whom Stock
         Options, Stock Appreciation Rights, Restricted Stock, and/or Other
         Stock-Based Awards may from time to time be granted hereunder;

                  (b) to determine whether and to what extent Incentive Stock
         Options, Non-Qualified Stock Options, Stock Appreciation Rights,
         Restricted Stock, and/or Other Stock-Based Awards, or any combination
         thereof, are to be granted hereunder to one or more eligible persons;

                  (c) to determine the number of shares to be covered by each
         such award granted hereunder;

                  (d) to determine the terms and conditions, not inconsistent
         with the terms of the Plan, of any award granted hereunder (including,
         but not limited to, the share price and any restriction or limitation,
         or any vesting acceleration or waiver of forfeiture restrictions
         regarding any Stock Option or other award and/or the shares of Common
         Stock relating thereto, based in each case on such factors as the
         Committee shall determine, in its sole discretion); and to amend or
         waive any such terms and conditions to the extent permitted by Section
         11 hereof;

                  (e) to determine whether and under what circumstances a Stock
         Option may be settled in cash or Restricted Stock under Section 5(m) or
         (n), as applicable, instead of Common Stock;

                  (f) to determine whether, to what extent, and under what
         circumstances Option grants and/or other awards under the Plan are to
         be made, and operate, on a tandem basis vis-a-vis other awards under
         the Plan and/or cash awards made outside of the Plan;

                                       4
<PAGE>

                  (g) to determine whether, to what extent, and under what
         circumstances shares of Common Stock and other amounts payable with
         respect to an award under this Plan shall be deferred either
         automatically or at the election of the participant (including
         providing for and determining the amount (if any) of any deemed
         earnings on any deferred amount during any deferral period);

                  (h) to determine whether to require payment of tax withholding
         requirements in shares of Common Stock subject to the award; and

                  (i) to impose any holding period required to satisfy Section
         16 under the Exchange Act.

         The Committee shall have the power to delegate authority to the
Corporation's Chief Executive Officer, or to a committee composed of executive
officers of the Corporation, to grant, on behalf of the Committee, Stock Options
exercisable at an exercise price per share equal to the Fair Market Value on the
date of grant, subject to such guidelines as the Committee may determine from
time to time; provided, however that (i) Options may only be granted pursuant to
such delegated authority for the purposes specified by the Committee, which may
include attracting new employees, awarding outstanding performance, or retaining
employees; (ii) the Committee shall specify the maximum number of shares of
Common Stock that may be granted for purposes of attracting any single new
employee at any specified level and the maximum number that may be granted to
any other employee for any other purpose; (iii) Options may not be granted
pursuant to such delegated authority to any officer of the Corporation who is,
or upon consummation of his or her employment with the Corporation will be,
subject to Section 16 under the Exchange Act; (iv) Options to purchase no more
than 100,000 shares in the aggregate and 10,000 shares per individual may be
granted pursuant to such delegated authority in any fiscal year; and (v) a
report of each grant of an Option pursuant to such delegated authority shall be
presented to the Committee at the first meeting of the Committee following such
grant. Options granted pursuant to such delegated authority in accordance
herewith shall be deemed, to the extent permitted under applicable law, to have
been granted by the Committee for all purposes under the Plan.

         The Committee shall have the authority to adopt, alter, and repeal such
rules, guidelines, and practices governing the Plan as it shall, from time to
time, deem advisable; to interpret the terms and provisions of the Plan and any
award issued under the Plan (and any agreements relating thereto); and to
otherwise supervise the administration of the Plan; provided, however, that, to
the extent that this Plan otherwise requires the approval of the Board or the
shareholders of the Corporation, all decisions of the Committee shall be subject
to such Board or shareholder approval Subject to the foregoing, all decisions
made by the Committee pursuant to the provisions of the Plan shall be made in
the Committee's sole discretion and shall be final and binding on all persons,
including the Corporation and Plan participants.

                                       5
<PAGE>

SECTION 3.  Shares of Common Stock Subject to Plan.

         (a) As of the Effective Date, the aggregate number of shares of Common
Stock that may be issued under the Plan shall be 1,640,625 shares. Such number
shall, upon the consummation of any Equity Issuance, increase automatically by
fifteen percent (15%) of the number of shares of Common Stock issued in such
Equity Issuance; provided, however, that Incentive Stock Options may not be
issued after 3,500,000 shares of Common Stock have been issued under the Plan.
The shares of Common Stock issuable under the Plan may consist, in whole or in
part, of authorized and unissued shares or treasury shares. No officer of the
Corporation or other person whose compensation may be subject to the limitations
on deductibility under Section 162(m) of the Code shall be eligible to receive
awards pursuant to this Plan relating to in excess of 500,000 shares of Common
Stock in any fiscal year (the "Section 162(m) Maximum").

         (b) If any shares of Common Stock that have been optioned cease to be
subject to a Stock Option, or if any shares of Common Stock that are subject to
any Restricted Stock or Other Stock-Based Award granted hereunder are forfeited
prior to the payment of any dividends, if applicable, with respect to such
shares of Common Stock, or any such award otherwise terminates without a payment
being made to the participant in the form of Common Stock, such shares shall
again be available for distribution in connection with future awards under the
Plan.

         (c) In the event of any merger, reorganization, consolidation,
recapitalization, extraordinary cash dividend, stock dividend, stock split or
other change in corporate structure affecting the Common Stock, an appropriate
substitution or adjustment shall be made in the maximum number of shares that
may be awarded under the Plan, in the number and option price of shares subject
to outstanding Options granted under the Plan, in the number of shares
underlying Outside Director Options to be granted under Section 9 hereof, the
Section 162(m) Maximum and in the number of shares subject to other outstanding
awards granted under the Plan as may be determined to be appropriate by the
Committee, in its sole discretion, provided that the number of shares subject to
any award shall always be a whole number. An adjusted option price shall also be
used to determine the amount payable by the Corporation upon the exercise of any
Stock Appreciation Right associated with any Stock Option.

SECTION 4.  Eligibility.

         Officers, other key employees and Outside Directors of and consultants
to the Corporation and its Subsidiaries and Affiliates who are responsible for
or contribute to the management, growth and/or profitability of the business of
the Corporation and/or its Subsidiaries and Affiliates are eligible to be
granted awards under the Plan. Outside Directors are eligible to receive awards
pursuant to Section 9 and not pursuant to any other provisions of the Plan.

                                       6
<PAGE>

SECTION 5.  Stock Options.

         Stock Options may be granted alone, in addition to, or in tandem with
other awards granted under the Plan and/or cash awards made outside of the Plan.
Any Stock Option granted under the Plan shall be in such form as the Committee
may from time to time approve.

         Stock Options granted under the Plan may be of two types: (i) Incentive
Stock Options and (ii) Non-Qualified Stock Options. Incentive Stock Options may
be granted only to individuals who are employees of the Corporation or any
Subsidiary of the Corporation.

         The Committee shall have the authority to grant to any optionee
Incentive Stock Options, Non-Qualified Stock Options, or both types of Stock
Options (in each case with or without Stock Appreciation Rights).

         Options granted to officers, key employees, Outside Directors and
consultants under the Plan shall be subject to the following terms and
conditions and shall contain such additional terms and conditions, not
inconsistent with the terms of the Plan, as the Committee shall deem desirable.

                  (a)      Option Price. The option price per share of Common

         Stock purchasable under a Stock Option shall be determined by the
         Committee at the time of grant but shall be not less than 100% (or, in
         the case of any employee who owns stock possessing more than 10% of the
         total combined voting power of all classes of stock of the Corporation
         or of any of its Subsidiaries, not less than 110%) of the Fair Market
         Value of the Common Stock at grant, in the case of Incentive Stock
         Options, and not less than 50% of the Fair Market Value of the Common
         Stock at grant, in the case of Non-Qualified Stock Options.

                  (b)      Option Term. The term of each Stock Option shall be
         fixed by the Committee, but no Incentive Stock Option shall be
         exercisable more than ten years (or, in the case of an employee who
         owns stock possessing more than 10% of the total combined voting power
         of all classes of stock of the Corporation or any of its Subsidiaries
         or parent corporations, more than five years) after the date the Option
         is granted.

                  (c)      Exercisability. Stock Options shall be exercisable at
         such time or times and subject to such terms and conditions as shall be
         determined by the Committee at or after grant; provided, however, that
         except as provided in Section 5(g) and (h) and Section 10, unless
         otherwise determined by the Committee at or after grant, no Stock
         Option shall be exercisable prior to the first anniversary date of the
         granting of the Option. The Committee may provide that a Stock Option
         shall vest over a period of future service at a rate specified at the
         time of grant, or that the Stock Option is exercisable only in
         installments. If the Committee provides, in its sole discretion, that
         any Stock Option is exercisable only in installments, the Committee may
         waive such installment exercise

                                       7
<PAGE>

         provisions at any time at or after grant, in whole or in part, based on
         such factors as the Committee shall determine in its sole discretion.

                  (d)      Method of Exercise. Subject to whatever installment
         exercise restrictions apply under Section 5(c), Stock Options may be
         exercised in whole or in part at any time during the option period, by
         giving written notice of exercise to the Corporation specifying the
         number of shares to be purchased. Such notice shall be accompanied by
         payment in full of the purchase price, either by check, note, or such
         other instrument as the Committee may accept. As determined by the
         Committee, in its sole discretion, at or (except in the case of an
         Incentive Stock Option) after grant, payment in full or in part may
         also be made in the form of shares of Common Stock already owned by the
         optionee or, in the case of a Non-Qualified Stock Option, shares of
         Restricted Stock or shares subject to such Option or another award
         hereunder (in each case valued at the Fair Market Value of the Common
         Stock on the date the Option is exercised). If payment of the exercise
         price is made in part or in full with Common Stock, the Committee may
         award to the employee a new Stock Option to replace the Common Stock
         which was surrendered. If payment of the option exercise price of a
         Non-Qualified Stock Option is made in whole or in part in the form of
         Restricted Stock, such Restricted Stock (and any replacement shares
         relating thereto) shall remain (or be) restricted in accordance with
         the original terms of the Restricted Stock award in question, and any
         additional Common Stock received upon the exercise shall be subject to
         the same forfeiture restrictions, unless otherwise determined by the
         Committee, in its sole discretion, at or after grant. No shares of
         Common Stock shall be issued until full payment therefor has been made.
         An optionee shall generally have the rights to dividends or other
         rights of a shareholder with respect to shares subject to the Option
         when the optionee has given written notice of exercise, has paid in
         full for such shares, and, if requested, has given the representation
         described in Section 13(a).

                  (e)      Transferability of Options. No Non-Qualified Stock
         Option shall be transferable by the optionee without the prior written
         consent of the Committee other than (i) transfers by the Optionee to a
         member of his or her Immediate Family or a trust for the benefit of the
         optionee or a member of his or her Immediate Family, or (ii) transfers
         by will or by the laws of descent and distribution. No Incentive Stock
         Option shall be transferable by the optionee otherwise than by will or
         by the laws of descent and distribution and all Incentive Stock Options
         shall be exercisable, during the optionee's lifetime, only by the
         optionee.

                  (f)      Bonus for Taxes. In the case of a Non-Qualified Stock
         Option or an optionee who elects to make a disqualifying disposition
         (as defined in Section 422(a)(1) of the Code) of Common Stock acquired
         pursuant to the exercise of an Incentive Stock Option, the Committee in
         its discretion may award at the time of grant or thereafter the right
         to receive upon exercise of such Stock Option a cash bonus calculated
         to pay part or all of the federal and state, if any, income tax
         incurred by the optionee upon such exercise.

                                       8
<PAGE>

                  (g)      Termination by Death. Subject to Section 5(k), if an
         optionee's employment by the Corporation and any Subsidiary or (except
         in the case of an Incentive Stock Option) Affiliate terminates by
         reason of death, any Stock Option held by such optionee may thereafter
         be exercised, to the extent such option was exercisable at the time of
         death or (except in the case of an Incentive Stock Option) on such
         accelerated basis as the Committee may determine at or after grant (or
         except in the case of an Incentive Stock Option, as may be determined
         in accordance with procedures established by the Committee) by the
         legal representative of the estate or by the legatee of the optionee
         under the will of the optionee, for a period of one year (or such other
         period as the Committee may specify at or after grant) from the date of
         such death or until the expiration of the stated term of such Stock
         Option, whichever period is the shorter.

                  (h)      Termination by Reason of Disability. Subject to
         Section 5(k), if an optionee's employment by the Corporation and any
         Subsidiary or (except in the case of an Incentive Stock Option)
         Affiliate terminates by reason of Disability, any Stock Option held by
         such optionee may thereafter be exercised by the optionee, to the
         extent it was exercisable at the time of termination or (except in the
         case of an Incentive Stock Option) on such accelerated basis as the
         Committee may determine at or after grant (or, except in the case of an
         Incentive Stock Option, as may be determined in accordance with
         procedures established by the Committee), for a period of (i) three
         years (or such other period as the Committee may specify at or after
         grant) from the date of such termination of employment or until the
         expiration of the stated term of such Stock Option, whichever period is
         the shorter, in the case of a Non-Qualified Stock Option and (ii) one
         year from the date of termination of employment or until the expiration
         of the stated term of such Stock Option, whichever period is shorter,
         in the case of an Incentive Stock Option; provided however, that, if
         the optionee dies within the period specified in (i) above (or other
         such period as the committee shall specify at or after grant), any
         unexercised Non-Qualified Stock Option held by such optionee shall
         thereafter be exercisable to the extent to which it was exercisable at
         the time of death for a period of twelve months from the date of such
         death or until the expiration of the stated term of such Stock Option,
         whichever period is shorter. In the event of termination of employment
         by reason of Disability, if an Incentive Stock Option is exercised
         after the expiration of the exercise period applicable to Incentive
         Stock Options, but before the expiration of any period that would apply
         if such Stock Option were a Non-Qualified Stock Option, such Stock
         Option will thereafter be treated as a Non-Qualified Stock Option.

                  (i)      Termination by Reason of Retirement. Subject to
         Section 5(k), if an optionee's employment by the Corporation and any
         Subsidiary or (except in the case of an Incentive Stock Option)
         Affiliate terminates by reason of Normal or Early Retirement, any Stock
         Option held by such optionee may thereafter be exercised by the
         optionee, to the extent it was exercisable at the time of such
         Retirement or (except in the case of an Incentive Stock Option) on such
         accelerated basis as the Committee may determine at or after grant (or,
         except in the case of an Incentive Stock Option, as may be determined
         in

                                       9
<PAGE>
         accordance with procedures established by the Committee), for a period
         of (i) three years (or such other period as the Committee may specify
         at or after grant) from the date of such termination of employment or
         the expiration of the stated term of such Stock Option, whichever
         period is the shorter, in the case of a Non-Qualified Stock Option and
         (ii) three months from the date of such termination of employment or
         the expiration of the stated term of such Stock Option, whichever
         period is the shorter, in the event of an Incentive Stock Option;
         provided however, that, if the optionee dies within the period
         specified in (i) above (or other such period as the Committee shall
         specify at or after grant), any unexercised Non-Qualified Stock Option
         held by such optionee shall thereafter be exercisable to the extent to
         which it was exercisable at the time of death for a period of twelve
         months from the date of such death or until the expiration of the
         stated term of such Stock Option, whichever period is shorter. In the
         event of termination of employment by reason of Retirement, if an
         Incentive Stock Option is exercised after the expiration of the
         exercise period applicable to Incentive Stock Options, but before the
         expiration of the period that would apply if such Stock Option were a
         Non-Qualified Stock Option, the option will thereafter be treated as a
         Non-Qualified Stock Option.

                  (j)      Other Termination. Subject to Section 5(k), unless
         otherwise determined by the Committee (or pursuant to procedures
         established by the Committee) at or (except in the case of an Incentive
         Stock Option) after grant, if an optionee's employment by the
         Corporation and any Subsidiary or (except in the case of an Incentive
         Stock Option) Affiliate is involuntarily terminated for any reason
         other than death, Disability or Normal or Early Retirement, the Stock
         Option shall thereupon terminate, except that such Stock Option may be
         exercised, to the extent otherwise then exercisable, for the lesser of
         three months or the balance of such Stock Option's term if the
         involuntary termination is without Cause. For purposes of this Plan,
         "Cause" means (i) a felony conviction of a participant or the failure
         of a participant to contest prosecution for a felony, or (ii) a
         participant's willful misconduct or dishonesty, which is directly and
         materially harmful to the business or reputation of the Corporation or
         any Subsidiary or Affiliate. If an optionee voluntarily terminates
         employment with the Corporation and any Subsidiary or (except in the
         case of an Incentive Stock Option) Affiliate (except for Disability,
         Normal or Early Retirement), the Stock Option shall thereupon
         terminate; provided, however, that the Committee at grant or (except in
         the case of an Incentive Stock Option) thereafter may extend the
         exercise period in this situation for the lesser of three months or the
         balance of such Stock Option's term.

                  (k)      Incentive Stock Options. Anything in the Plan to the
         contrary notwithstanding, no term of this Plan relating to Incentive
         Stock Options shall be interpreted, amended, or altered, nor shall any
         discretion or authority granted under the Plan be so exercised, so as
         to disqualify the Plan under Section 422 of the Code, or, without the
         consent of the optionee(s) affected, to disqualify any Incentive Stock
         Option under such Section 422. No Incentive Stock Option shall be
         granted to any participant under the Plan if such grant would cause the
         aggregate Fair Market Value (as of the date

                                       10
<PAGE>
         the Incentive Stock Option is granted) of the Common Stock with respect
         to which all Incentive Stock Options are exercisable for the first time
         by such participant during any calendar year (under all such plans of
         the Company and any Subsidiary) to exceed $100,000. To the extent
         permitted under Section 422 of the Code or the applicable regulations
         thereunder or any applicable Internal Revenue Service pronouncement:

                           (i)      if (x) a participant's employment is
                  terminated by reason of death, Disability, or Retirement and
                  (y) the portion of any Incentive Stock Option that is
                  otherwise exercisable during the post-termination period
                  specified under Section 5(g), (h) or (i), applied without
                  regard to the $100,000 limitation contained in Section 422(d)
                  of the Code, is greater than the portion of such Option that
                  is immediately exercisable as an "Incentive Stock Option"
                  during such post-termination period under Section 422, such
                  excess shall be treated as a Non-Qualified Stock Option; and

                           (ii)     if the exercise of an Incentive Stock Option
                  is accelerated by reason of a Change in Control, any portion
                  of such Option that is not exercisable as an Incentive Stock
                  Option by reason of the $100,000 limitation contained in
                  Section 422(d) of the Code shall be treated as a Non-Qualified
                  Stock Option.

                  (l)      Buyout Provisions. The Committee may at any time
         offer to buy out for a payment in cash, Common Stock, or Restricted
         Stock an Option previously granted, based on such terms and conditions
         as the Committee shall establish and communicate to the optionee at the
         time that such offer is made.

                  (m)      Settlement Provisions. If the option agreement so
         provides at grant or (except in the case of an Incentive Stock Option)
         is amended after grant and prior to exercise to so provide (with the
         optionee's consent), the Committee may require that all or part of the
         shares to be issued with respect to the spread value of an exercised
         Option take the form of Restricted Stock, which shall be valued on the
         date of exercise on the basis of the Fair Market Value (as determined
         by the Committee) of such Restricted Stock determined without regards
         to the forfeiture restrictions involved.

                  (n)      Performance and Other Conditions. The Committee may
         condition the exercise of any Option upon the attainment of specified
         performance goals or other factors as the Committee may determine, in
         its sole discretion. Unless specifically provided in the option
         agreement, any such conditional Option shall vest six months prior to
         its expiration if the conditions to exercise have not theretofore been
         satisfied.

SECTION 6.  Stock Appreciation Rights.

                  (a)      Grant and Exercise. Stock Appreciation Rights may be
         granted in conjunction with all or part of any Stock Option granted
         under the Plan. In the case of a

                                       11
<PAGE>

         Non-Qualified Stock Option, such rights may be granted either at or
         after the time of the grant of such Stock Option. In the case of an
         Incentive Stock Option, such rights may be granted only at the time of
         the grant of such Stock Option. A Stock Appreciation Right or
         applicable portion thereof granted with respect to a given Stock Option
         shall terminate and no longer be exercisable upon the termination or
         exercise of the related Stock Option, subject to such provisions as the
         Committee may specify at grant where a Stock Appreciation Right is
         granted with respect to less than the full number of shares covered by
         a related Stock Option. A Stock Appreciation Right may be exercised by
         an optionee, subject to Section 6(b), in accordance with the procedures
         established by the Committee for such purpose. Upon such exercise, the
         optionee shall be entitled to receive an amount determined in the
         manner prescribed in Section 6(b). Stock Options relating to exercised
         Stock Appreciation Rights shall no longer be exercisable to the extent
         that the related Stock Appreciation Rights have been exercised.

                  (b)      Terms and Conditions. Stock Appreciation Rights shall
         be subject to such terms and conditions, not inconsistent with the
         provisions of the Plan, as shall be determined from time to time by the
         Committee, including the following:

                           (i)      Stock Appreciation Rights shall be
                  exercisable only at such time or times and to the extent that
                  the Stock Options to which they relate shall be exercisable in
                  accordance with the provisions of Section 5 and this Section 6
                  of the Plan.

                           (ii)     Upon the exercise of a Stock Appreciation
                  Right, an optionee shall be entitled to receive an amount in
                  cash and/or shares of Common Stock equal in value to the
                  excess of the Fair Market Value of one share of Common Stock
                  over the option price per share specified in the related Stock
                  Option multiplied by the number of shares in respect of which
                  the Stock Appreciation Right shall have been exercised, with
                  the Committee having the right to determine the form of
                  payment. When payment is to be made in shares, the number of
                  shares to be paid shall be calculated on the basis of the Fair
                  Market Value of the shares on the date of exercise. When
                  payment is to be made in cash, such amount shall be calculated
                  on the basis of the Fair Market Value of the Common Stock on
                  the date of exercise.

                           (iii)    Stock Appreciation Rights shall be
                  transferable only when and to the extent that the underlying
                  Stock Option would be transferable under Section 5(e) of the
                  Plan.

                           (iv)     Upon the exercise of a Stock Appreciation
                  Right, the Stock Option or part thereof to which such Stock
                  Appreciation Right is related shall be deemed to have been
                  exercised for the purpose of the limitation set forth in
                  Section 3 of the Plan on the number of shares of Common Stock
                  to be issued under the Plan.

                                       12
<PAGE>

                           (v)      The Committee, in its sole discretion, may
                  also provide that, in the event of a Change in Control and/or
                  a Potential Change in Control, the amount to be paid upon the
                  exercise of a Stock Appreciation Right shall be based on the
                  Change in Control Price, subject to such terms and conditions
                  as the Committee may specify at grant.

                           (vi)     The Committee may condition the exercise of
                  any Stock Appreciation Right upon the attainment of specified
                  performance goals or other factors as the Committee may
                  determine, in its sole discretion.

SECTION 7.  Restricted Stock.

                  (a)      Administration. Shares of Restricted Stock may be
         issued either alone, in addition to, or in tandem with other awards
         granted under the Plan and/or cash awards made outside the Plan. The
         Committee shall determine the eligible persons to whom, and the time or
         times at which, grants of Restricted Stock will be made, the number of
         shares of Restricted Stock to be awarded to any person, the price (if
         any) to be paid by the recipient of Restricted Stock (subject to
         Section 7(b)), the time or times within which such awards may be
         subject to forfeiture, and the other terms, restrictions and conditions
         of the awards in addition to those set forth in Section 7(c). The
         Committee may condition the grant of Restricted Stock upon the
         attainment of specified performance goals or such other factors as the
         Committee may determine, in its sole discretion. The provisions of
         Restricted Stock awards need not be the same with respect to each
         recipient.

                  (b)      Awards and Certificates. The prospective recipient of
         a Restricted Stock award shall not have any rights with respect to such
         award, unless and until such recipient has executed an agreement
         evidencing the award and has delivered a fully executed copy thereof to
         the Corporation, and has otherwise complied with the applicable terms
         and conditions of such award.

                           (i)      The purchase price for shares of Restricted
                  Stock shall be established by the Committee and may be zero.

                           (ii)     Awards of Restricted Stock must be accepted
                  within a period of 60 days (or such shorter period as the
                  Committee may specify at grant) after the award date, by
                  executing a Restricted Stock Award Agreement and paying
                  whatever price (if any) is required under Section 7(b)(i).

                           (iii)    Each participant receiving a Restricted
                  Stock award shall be issued a stock certificate in respect of
                  such shares of Restricted Stock. Such certificate shall be
                  registered in the name of such participant (or a transferee
                  permitted by Section 13(h) hereof), and shall bear an
                  appropriate legend referring to the terms, conditions, and
                  restrictions applicable to such award.

                                       13
<PAGE>

                           (iv)     The Committee shall require that the stock
                  certificates evidencing such shares be held in custody by the
                  Corporation until the restrictions thereon shall have lapsed,
                  and that, as a condition of any Restricted Stock award, the
                  participant shall have delivered a stock power, endorsed in
                  blank, relating to the shares of Common Stock covered by such
                  award.

                  (c)      Restrictions and Conditions. The shares of Restricted
         Stock awarded pursuant to this Section 7 shall be subject to the
         following restrictions and conditions:

                           (i)      In accordance with the provisions of this
                  Plan and the award agreement, during a period set by the
                  Committee commencing with the date of such award (the
                  "Restriction Period"), the participant shall not be permitted
                  to sell, transfer, pledge, assign, or otherwise encumber
                  shares of Restricted Stock awarded under the Plan. Within
                  these limits, the Committee, in its sole discretion, may
                  provide for the lapse of such restrictions in installments and
                  may accelerate or waive such restrictions, in whole or in
                  part, based on service, performance, such other factors or
                  criteria as the Committee may determine in its sole
                  discretion.

                           (ii)     Except as provided in this paragraph (ii)
                  and Section 7(c)(i), the participant shall have, with respect
                  to the shares of Restricted Stock, all of the rights of a
                  shareholder of the Corporation, including the right to vote
                  the shares, and the right to receive any cash dividends. The
                  Committee, in its sole discretion, as determined at the time
                  of award, may permit or require the payment of cash dividends
                  to be deferred and, if the Committee so determines,
                  reinvested, subject to Section 14(e), in additional Restricted
                  Stock to the extent shares are available under Section 3, or
                  otherwise reinvested. Pursuant to Section 3 above, stock
                  dividends issued with respect to Restricted Stock shall be
                  treated as additional shares of Restricted Stock that are
                  subject to the same restrictions and other terms and
                  conditions that apply to the shares with respect to which such
                  dividends are issued. If the Committee so determines, the
                  award agreement may also impose restrictions on the right to
                  vote and the right to receive dividends.

                           (iii)    Subject to the applicable provisions of the
                  award agreement and this Section 7, upon termination of a
                  participant's employment with the Corporation and any
                  Subsidiary or Affiliate for any reason during the Restriction
                  Period, all shares still subject to restriction will vest, or
                  be forfeited, in accordance with the terms and conditions
                  established by the Committee at or after grant.

                           (iv)     If and when the Restriction Period expires
                  without a prior forfeiture of the Restricted Stock subject to
                  such Restriction Period, certificates for an appropriate
                  number of unrestricted shares shall be delivered to the
                  participant (or a transferee permitted by Section 13(h)
                  hereof) promptly.

                                       14
<PAGE>

                  (d)      Minimum Value Provisions. In order to better ensure
         that award payments actually reflect the performance of the Corporation
         and service of the participant, the Committee may provide, in its sole
         discretion, for a tandem performance-based or other award designed to
         guarantee a minimum value, payable in cash or Common Stock to the
         recipient of a restricted stock award, subject to such performance,
         future service, deferral, and other terms and conditions as may be
         specified by the Committee.

SECTION 8.  Other Stock-Based Awards.

                  (a)      Administration. Other Stock-Based Awards, including,
         without limitation, performance shares, convertible preferred stock,
         convertible debentures, exchangeable securities and Common Stock awards
         or options valued by reference to earnings per share or Subsidiary
         performance, may be granted either alone, in addition to, or in tandem
         with Stock Options, Stock Appreciation Rights, or Restricted Stock
         granted under the Plan and cash awards made outside of the Plan;
         provided that no such Other Stock-Based Awards may be granted in tandem
         with Incentive Stock Options if that would cause such Stock Options not
         to qualify as Incentive Stock Options pursuant to Section 422 of the
         Code. Subject to the provisions of the Plan, the Committee shall have
         authority to determine the persons to whom and the time or times at
         which such awards shall be made, the number of shares of Common Stock
         to be awarded pursuant to such awards, and all other conditions of the
         awards. The Committee may also provide for the grant of Common Stock
         upon the completion of a specified performance period. The provisions
         of Other Stock-Based Awards need not be the same with respect to each
         recipient.

                  (b)      Terms and Conditions. Other Stock-Based Awards made
         pursuant to this Section 8 shall be subject to the following terms and
         conditions:

                           (i)      Shares subject to awards under this Section
                  8 and the award agreement referred to in Section 8(b)(v)
                  below, may not be sold, assigned, transferred, pledged, or
                  otherwise encumbered prior to the date on which the shares are
                  issued, or, if later, the date on which any applicable
                  restriction, performance, or deferral period lapses.

                           (ii)     Subject to the provisions of this Plan and
                  the award agreement and unless otherwise determined by the
                  Committee at grant, the recipient of an award under this
                  Section 8 shall be entitled to receive, currently or on a
                  deferred basis, interest or dividends or interest or dividend
                  equivalents with respect to the number of shares covered by
                  the award, as determined at the time of the award by the
                  Committee, in its sole discretion, and the Committee may
                  provide that such amounts (if any) shall be deemed to have
                  been reinvested in additional shares of Common Stock or
                  otherwise reinvested.

                                       15
<PAGE>

                           (iii)    Any award under Section 8 and any shares of
                  Common Stock covered by any such award shall vest or be
                  forfeited to the extent so provided in the award agreement, as
                  determined by the Committee in its sole discretion.

                           (iv)     In the event of the participant's
                  Retirement, Disability, or death, or in cases of special
                  circumstances, the Committee may, in its sole discretion,
                  waive in whole or in part any or all of the remaining
                  limitations imposed hereunder (if any) with respect to any or
                  all of an award under this Section 8.

                           (v)      Each award under this Section 8 shall be
                  confirmed by, and subject to the terms of, an agreement or
                  other instrument by the Corporation and the participant.

                           (vi)     Common Stock (including securities
                  convertible into Common Stock) issued on a bonus basis under
                  this Section 8 may be issued for no cash consideration. Common
                  Stock (including securities convertible into Common Stock)
                  purchased pursuant to a purchase right awarded under this
                  Section 8 shall be priced at least 85% of the Fair Market
                  Value of the Common Stock on the date of grant.

SECTION 9.  Awards to Outside Directors.

                  (a)      The provisions of this Section 9 shall apply only to
         awards to Outside Directors in accordance with this Section 9. The
         Committee shall have no authority to determine the timing of or the
         terms or conditions of any award under this Section 9.

                  (b)      At the date of the Corporation's initial public
         offering, each person serving as an Outside Director on such date will
         receive a non-qualified stock option to purchase 9,000 shares of Common
         Stock at a per share exercise price equal to the initial public
         offering price. Such option shall vest and become exercisable with
         respect to the following numbers of shares on the following Annual
         Meeting dates, if the grantee has been a member of the Board until such
         date (whether or not the grantee will remain a director following such
         meeting): (i) 5,000 shares on the date of the Annual Meeting of
         Shareholders in 1998, (ii) 2,000 shares on the date of the Annual
         Meeting of Shareholders in 1999 and (iii) 2,000 shares on the date of
         the Annual Meeting of Shareholders in 2000.

                  (c)      If any person who was not previously a member of the
         Board is elected or appointed an Outside Director following the initial
         public offering but prior to the date of the Annual Meeting of
         Shareholders of the Corporation in the year 2000, such Outside Director
         will receive a non-qualified stock option to purchase 7,000 shares of
         Common Stock if such Outside Director's service begins prior to the
         second anniversary of the initial public offering and 5,000 shares of
         Common Stock if such Outside Director's

                                       16
<PAGE>

         service begins after the second anniversary of the initial public
         offering but prior to the date of the Annual Meeting of Shareholders in
         the year 2000. It is intended that such grant may be increased or
         decreased to extent deemed appropriate by the Board, in its sole
         discretion, to reflect the extent to which director's expected service
         prior to the Annual Meeting of Shareholders in 2000 may exceed two
         years or may be less than one full year. The exercise price per share
         of each option granted pursuant to this Section 9(c) shall equal the
         Fair Market Value per share of Common Stock on the date of grant.
         Options granted under this Section 9(c) shall vest and become
         exercisable with respect to the following numbers of shares on the
         following Annual Meeting dates, if the grantee has been a member of the
         Board until such date (whether or not such grantee will remain a
         director following such meeting): (i) 5,000 shares (or any smaller
         number constituting the entire grant) on the date of the first Annual
         Meeting of Shareholders following the date of grant, (ii) 2,000 shares
         (or any smaller remaining number of shares) on the date of the second
         Annual Meeting of Shareholders following the date of grant and (iii)
         any remaining shares on the date of the third Annual Meeting of
         Shareholders following the date of grant.

                  (d)      On the date of each Annual Meeting of Shareholders of
         the Corporation beginning with the Annual Meeting of Shareholders in
         2000, unless this Plan has been previously terminated, each Outside
         Director who will continue as a director following such meeting will
         receive a non-qualified stock option to purchase 3,000 shares of Common
         Stock. The exercise price per share of each option granted pursuant to
         this Section 9(d) shall equal the Fair Market Value per share of Common
         Stock on the date of grant. Such option shall vest and become
         exercisable with respect to all 3,000 shares on the date of the next
         Annual Meeting of Shareholders of the Corporation if the grantee has
         been a member of the Board until such date (whether or not such grantee
         will remain a director following such meeting).

                  (e)      No Outside Director Option shall be exercisable prior
         to vesting. Each Outside Director Option shall expire, if unexercised,
         on the tenth anniversary of the date of grant. The exercise price may
         be paid in cash or in shares of Common Stock, including shares of
         Common Stock subject to the Outside Director Option.

                  (f)      Outside Director Options shall not be transferable
         without the prior written consent of the Board other than (i) transfers
         by the optionee to a member of his or her Immediate Family or a trust
         for the benefit of optionee or a member of his or her Immediate Family,
         or (ii) transfers by will or by the laws of descent and distribution.

                  (g)      Grantees of Outside Director Options shall enter into
         a stock option agreement with the Corporation setting forth the
         exercise price and other terms as provided herein.

                  (h)      Upon termination of an Outside Director's service as
         a director of the Corporation, (i) all Outside Director Options
         theretofore exercisable and held by

                                     17
<PAGE>

         such Outside Director will remain vested and exercisable through the
         expiration date and (ii) all remaining Outside Director Options held by
         such Outside Director will become exercisable and vested and remain so
         through the expiration date to the extent of any shares that would have
         become exercisable and vested within a period of less than twelve
         months following the date of termination of service. Any unvested
         Outside Director Options held by the Outside Director on the date of
         termination of service will be forfeited to the extent of any shares
         that would not have become vested and exercisable until at least twelve
         months from the date of termination of service. The Board may, in its
         sole discretion, elect to accelerate the vesting of any Outside
         Director Options in connection with the termination of service of any
         individual Outside Director.

                  (i)      Outside Director Options shall be subject to Section
         10. The number of shares and the exercise price per share of each
         Outside Director Option theretofore awarded shall be adjusted
         automatically in the same manner as the number of shares and the
         exercise price for Stock Options under Section 3(c) hereof at any time
         that Stock Options are adjusted as provided in Section 3(c). The number
         of shares underlying Outside Director Options to be awarded in the
         future shall be adjusted automatically in the same manner as the number
         of shares underlying outstanding Stock Options are adjusted under
         Section 3(c) hereof at any time that Stock Options are adjusted under
         Section 3(c) hereof.

                  (j)      The Board, in its sole discretion, may determine to
         reduce the size of any Outside Director Option prior to grant or to
         postpone the vesting and exercisability of any Outside Director Option
         prior to grant.

SECTION 10.  Change in Control Provisions.

                  (a)      Impact of Event.  In the event of:

                           (1)      a "Change in Control" as defined in Section
                  10(b); or

                           (2)      a "Potential Change in Control" as defined
                  in Section 10(c), but only if and to the extent so determined
                  by the Committee or the Board at or after grant (subject to
                  any right of approval expressly reserved by the Committee or
                  the Board at the time of such determination),

                           (i)      Subject to the limitations set forth below
                  in this Section 10(a), the following acceleration provisions
                  shall apply:

                                    (a)      Any Stock Appreciation Rights, any
                           Stock Option or Outside Director Option awarded under
                           the Plan not previously exercisable and vested shall
                           become fully exercisable and vested.

                                       18
<PAGE>

                                    (b)      The restrictions applicable to any
                           Restricted Stock and Other Stock-Based Awards, in
                           each case to the extent not already vested under the
                           Plan, shall lapse and such shares and awards shall be
                           deemed fully vested.

                           (ii)     Subject to the limitations set forth below
                  in this Section 10(a), the value of all outstanding Stock
                  Options, Stock Appreciation Rights, Restricted Stock, Outside
                  Director Options and Other Stock-Based Awards, in each case to
                  the extent vested, shall, unless otherwise determined Board or
                  by the Committee in its sole discretion prior to any Change in
                  Control, be cashed out on the basis of the "Change in Control
                  Price" as defined in Section 10(d) as of the date such Change
                  in Control or such Potential Change in Control is determined
                  to have occurred or such other date as the Board or Committee
                  may determine prior to the Change in Control.

                           (iii)    The Board or the Committee may impose
                  additional conditions on the acceleration or valuation of any
                  award in the award agreement.

                  (b)      Definition of Change in Control. For purposes of
         Section 10(a), a "Change in Control" means the happening of any of the
         following:

                           (i)      any person or entity, including a "group" as
                  defined in Section 13(d)(3) of the Exchange Act, other than
                  the Corporation or a wholly-owned subsidiary thereof or any
                  employee benefit plan of the Corporation or any of its
                  Subsidiaries, becomes the beneficial owner of the
                  Corporation's securities having 35% or more of the combined
                  voting power of the then outstanding securities of the
                  Corporation that may be cast for the election of directors of
                  the Corporation (other than as a result of an issuance of
                  securities initiated by the Corporation in the ordinary course
                  of business); or

                           (ii)     as the result of, or in connection with, any
                  cash tender or exchange offer, merger or other business
                  combination, sales of assets or contested election, or any
                  combination of the foregoing transactions, less than a
                  majority of the combined voting power of the then outstanding
                  securities of the Corporation or any successor corporation or
                  entity entitled to vote generally in the election of the
                  directors of the Corporation or such other corporation or
                  entity after such transaction are held in the aggregate by the
                  holders of the Corporation's securities entitled to vote
                  generally in the election of directors of the Corporation
                  immediately prior to such transaction; or

                           (iii) during any period of two consecutive years,
                  individuals who at the beginning of any such period constitute
                  the Board cease for any reason to constitute at least a
                  majority thereof, unless the election, or the nomination for
                  election by the Corporation's shareholders, of each director
                  of the Corporation first elected during

                                       19
<PAGE>
                  such period was approved by a vote of at least two-thirds of
                  the directors of the Corporation then still in office who were
                  directors of the Corporation at the beginning of any such
                  period.

                  (c)      Definition of Potential Change in Control. For
         purposes of Section 10(a), a "Potential Change in Control" means the
         happening of any one of the following:

                           (i)      The approval by shareholders of an agreement
                  by the Corporation, the consummation of which would result in
                  a Change in Control of the Corporation as defined in Section
                  10(b); or

                           (ii)     The acquisition of beneficial ownership,
                  directly or indirectly, by any entity, person or group (other
                  than the Corporation or a Subsidiary or any Corporation
                  employee benefit plan (including any trustee of such plan
                  acting as such trustee)) of securities of the Corporation
                  representing 5% or more of the combined voting power of the
                  Corporation's outstanding securities and the adoption by the
                  Committee of a resolution to the effect that a Potential
                  Change in Control of the Corporation has occurred for purposes
                  of this Plan.

                  (d)      Change in Control Price. For purposes of this Section
         10, "Change in Control Price" means the highest price per share paid in
         any transaction reported on the NYSE or such other exchange or market
         as is the principal trading market for the Common Stock, or paid or
         offered in any bona fide transaction related to a Potential or actual
         Change in Control of the Corporation at any time during the 60 day
         period immediately preceding the occurrence of the Change in Control
         (or, where applicable, the occurrence of the Potential Change in
         Control event), in each case as determined by the Committee except
         that, in the case of Incentive Stock Options and Stock Appreciation
         Rights relating to Incentive Stock Options, such price shall be based
         only on transactions reported for the date on which the optionee
         exercises such Stock Appreciation Rights or, where applicable, the date
         on which a cash out occurs under Section 10(a)(ii).

SECTION 11.  Amendments and Termination.

         The Board may at any time amend, alter or discontinue the Plan;
provided, however, that, without the approval of the Corporation's shareholders,
no amendment or alteration may be made which would (a) except as a result of the
provisions of Section 3(c) of the Plan, increase the maximum number of shares
that may be issued under the Plan or increase the Section 162(m) Maximum, (b)
change the provisions governing Incentive Stock Options except as required or
permitted under the provisions governing incentive stock options under the Code,
(c) amend Section 9 hereof so as to increase the size of any award (other than
as contemplated by Section 3(c) and Section 9(i) hereof) or otherwise materially
increase the benefits to Outside Directors under Section 9 hereof, or (d) make
any change for which applicable law or regulatory authority

                                       20
<PAGE>
(including the regulatory authority of the NYSE or any other market or exchange
on which the Common Stock is traded) would require shareholder approval or for
which shareholder approval would be required to secure full deductibility of
compensation received under the Plan under Section 162(m) of the Code. No
amendment, alteration, or discontinuation shall be made which would impair the
rights of an optionee or participant under a Stock Option, Stock Appreciation
Right, Restricted Stock, Other Stock-Based Award or Outside Director Option
theretofore granted, without the participant's consent.

         The Committee may amend the terms of any Stock Option or other award
theretofore granted, prospectively or retroactively, but, subject to Section 3
above, no such amendment shall impair the rights of any holder without the
holder's consent. The Committee may also substitute new Stock Options for
previously granted Stock Options (on a one for one or other basis), including
previously granted Stock Options having higher option exercise prices. Solely
for purposes of computing the Section 162(m) Maximum, if any Stock Options or
other awards previously granted to a participant are canceled and new Stock
Options or other awards having a lower exercise price or other more favorable
terms for the participant are substituted in their place, both the initial Stock
Options or other awards and the replacement Stock Options or other awards will
be deemed to be outstanding (although the canceled Stock Options or other awards
will not be exercisable or deemed outstanding for any other purposes).

SECTION 12. Unfunded Status of Plan.

         The Plan is intended to constitute an "unfunded" plan for incentive and
deferred compensation. With respect to any payments not yet made to a
participant or optionee by the Corporation, nothing contained herein shall give
any such participant or optionee any rights that are greater than those of a
general creditor of the Corporation. In its sole discretion, the Committee may
authorize the creation of trusts or other arrangements to meet the obligations
created under the Plan to deliver Common Stock or payments in lieu of or with
respect to awards hereunder; provided, however, that, unless the Committee
otherwise determines with the consent of the affected participant, the existence
of such trusts or other arrangements is consistent with the "unfunded" status of
the Plan.

SECTION 13. General Provisions.

                  (a)      The Committee may require each person purchasing
         shares pursuant to a Stock Option or other award under the Plan to
         represent to and agree with the Corporation in writing that the
         optionee or participant is acquiring the shares without a view to
         distribution thereof. The certificates for such shares may include any
         legend which the Committee deems appropriate to reflect any
         restrictions on transfer. All certificates for shares of Common Stock
         or other securities delivered under the Plan shall be subject to such
         stock-transfer orders and other restrictions as the Committee may deem
         advisable under the rules, regulations, and other requirements of the
         Commission, any stock

                                       21
<PAGE>
         exchange upon which the Common Stock is then listed, and any applicable
         Federal or state securities law, and the Committee may cause a legend
         or legends to be put on any such certificates to make appropriate
         reference to such restrictions.

                  (b)      Nothing contained in this Plan shall prevent the
         Board from adopting other or additional compensation arrangements,
         subject to shareholder approval if such approval is required; and such
         arrangements may be either generally applicable or applicable only in
         specific cases.

                  (c)      The adoption of the Plan shall not confer upon any
         employee of the Corporation or any Subsidiary or Affiliate any right to
         continued employment with the Corporation or a Subsidiary or Affiliate,
         as the case may be, nor shall it interfere in any way with the right of
         the Corporation or a Subsidiary or Affiliate to terminate the
         employment of any of its employees at any time.

                  (d)      No later than the date as of which an amount first
         becomes includible in the gross income of the participant for Federal
         income tax purposes with respect to any award under the Plan, the
         participant shall pay to the Corporation, or make arrangements
         satisfactory to the Committee regarding the payment of, any Federal,
         state, or local taxes of any kind required by law to be withheld with
         respect to such amount. The Committee may require withholding
         obligations to be settled with Common Stock, including Common Stock
         that is part of the award that gives rise to the withholding
         requirement. The obligations of the Corporation under the Plan shall be
         conditional on such payment or arrangements and the Corporation and its
         Subsidiaries or Affiliates shall, to the extent permitted by law, have
         the right to deduct any such taxes from any payment of any kind
         otherwise due to the participant.

                  (e)      The actual or deemed reinvestment of dividends or
         dividend equivalents in additional Restricted Stock (or other types of
         Plan awards) at the time of any dividend payment shall only be
         permissible if sufficient shares of Common Stock are available under
         Section 3 for such reinvestment (taking into account then outstanding
         Stock Options and other Plan awards).

                  (f)      The Plan and all awards made and actions taken
         thereunder shall be governed by and construed in accordance with the
         laws of the State of Tennessee.

                  (g)      The members of the Committee and the Board shall not
         be liable to any employee or other person with respect to any
         determination made hereunder in a manner that is not inconsistent with
         their legal obligations as members of the Board. In addition to such
         other rights of indemnification as they may have as directors or as
         members of the Committee, the members of the Committee shall be
         indemnified by the Corporation against the reasonable expenses,
         including attorneys' fees actually and necessarily incurred in
         connection with the defense of any action, suit or proceeding, or in
         connection with any

                                       22
<PAGE>
         appeal therein, to which they or any of them may be a party by reason
         of any action taken or failure to act under or in connection with the
         Plan or any option granted thereunder, and against all amounts paid by
         them in settlement thereof (provided such settlement is approved by
         independent legal counsel selected by the Corporation) or paid by them
         in satisfaction of a judgment in any such action, suit or proceeding,
         except in relation to matters as to which it shall be adjudged in such
         action, suit or proceeding that such Committee member is liable for
         negligence or misconduct in the performance of his duties; provided
         that within 60 days after institution of any such action, suit or
         proceeding, the Committee member shall in writing offer the Corporation
         the opportunity, at its own expense, to handle and defend the same.

                  (h)      In addition to any other restrictions on transfer
         that may be applicable under the terms of this Plan or the applicable
         award agreement, no Stock Option, Stock Appreciation Right, Restricted
         Stock award, or Other Stock-Based Award or other right issued under
         this Plan is transferable by the participant without the prior written
         consent of the Committee, or, in the case of an Outside Director, the
         Board, other than (i) transfers by an optionee to a member of his or
         her Immediate Family or a trust for the benefit of the optionee or a
         member of his or her Immediate Family or (ii) transfers by will or by
         the laws of descent and distribution. The designation of a beneficiary
         will not constitute a transfer.

                  (i)      The Committee may, at or after grant, condition the
         receipt of any payment in respect of any award or the transfer of any
         shares subject to an award on the satisfaction of a six-month holding
         period, if such holding period is required for compliance with Section
         16 under the Exchange Act.

SECTION 14. Effective Date of Plan.

         The Plan shall be effective upon the date of the closing of the
Corporation's initial public offering (the "Effective Date"), provided that it
has been approved by the Board of the Corporation and by a majority of the votes
cast by the holders of the Corporation's Common Stock.

SECTION 15. Term of Plan.

         No Stock Option, Stock Appreciation Right, Restricted Stock Award,
Other Stock-Based Award or Outside Director Option award shall be granted
pursuant to the Plan on or after the tenth anniversary of the Effective Date of
the Plan, but awards granted prior to such tenth anniversary may be extended
beyond that date.

                                       23

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