Document:

<PAGE>

                                 [FACE OF NOTE]

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY (THE "DEPOSITARY") (55 WATER STREET, NEW YORK, NEW
YORK) TO THE ISSUER HEREOF OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE &
CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITARY AND ANY PAYMENT IS MADE TO CEDE & CO., ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE
THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.(1)

UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN
CERTIFICATED FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE
DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY
TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY
OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR
DEPOSITARY.(2)

REGISTERED                   CUSIP No.:                PRINCIPAL AMOUNT:
No. SNR/FLR-

                           BOEING CAPITAL CORPORATION
                     Series XI SUBORDINATED MEDIUM-TERM NOTE
                                 (Floating Rate)

INTEREST RATE BASIS          ORIGINAL ISSUE DATE:      STATED MATURITY DATE:
OR BASES:

   IF LIBOR:                 IF CMT RATE:
      [ ] LIBOR Reuters          Designated CMT Telerate Page:
                  Page:          If Telerate Page 7052:
                                 [ ] Weekly Average
                                 [ ] Monthly Average

      [ ] LIBOR Telerate         Designated CMT Maturity Index:
                  Page:

   DESIGNATED LIBOR CURRENCY:

INDEX MATURITY:        INITIAL INTEREST RATE:   %   INITIAL INTEREST RESET DATE:

-------------------------------------
(1) This paragraph applies to global Notes only.

(2) This paragraph applies to global Notes only.

<PAGE>

SPREAD (PLUS OR        MINIMUM INTEREST RATE:   %   INTEREST PAYMENT DATE(S):
MINUS):

SPREAD MULTIPLIER:     MAXIMUM INTEREST RATE:   %   INTEREST RESET DATE(S):

INITIAL REDEMPTION     INITIAL REDEMPTION           ANNUAL REDEMPTION
DATE:                  PERCENTAGE:    %             PERCENTAGE REDUCTION:      %

OPTIONAL REPAYMENT                         CALCULATION AGENT:
DATE(S):                                   (if other than Bankers Trust Company)

INTEREST CATEGORY:                         DAY COUNT CONVENTION:
[ ] Regular Floating Rate Note             [ ] 30/360 for the period
[ ] Floating Rate/Fixed Rate Note          from            to            .
           Fixed Rate Commencement Date:   [ ] Actual/360 for the period
           Fixed Interest Rate:    %       from            to            .
[ ] Inverse Floating Rate Note             [ ] Actual/Actual for the period
           Fixed Interest Rate:    %       from            to            .
[ ] Original Issue Discount Note           Applicable Interest Rate Basis:
           Issue Price:    %

SPECIFIED CURRENCY:                        AUTHORIZED DENOMINATIONS:
[ ] United States dollars                  [ ] $100,000 and integral multiples
                                           of $1,000 in excess thereof
[ ] Other:                                 [ ] Other:

EXCHANGE RATE AGENT:

ADDENDUM ATTACHED
[ ] Yes
[ ] No

OTHER/ADDITIONAL PROVISIONS:

                                       2
<PAGE>

         Boeing Capital Corporation, a Delaware corporation (the "Company",
which term includes any successor corporation under the Subordinated Indenture
hereinafter referred to), for value received, hereby promises to pay to        ,
or registered assigns, the principal sum of             , on the Stated Maturity
Date specified above (or any Redemption Date or Repayment Date, each as defined
on the reverse hereof) (each such Stated Maturity Date, Redemption Date and
Repayment Date and any other date on which the principal or an installment of
principal of this Note shall become due and payable, whether by declaration of
acceleration or otherwise, being hereinafter referred to as the "Maturity Date"
with respect to the principal repayable on such date) and to pay interest
thereon, at a rate per annum equal to the Initial Interest Rate specified above
until the Initial Interest Reset Date specified above and thereafter at a rate
determined in accordance with the provisions specified above and on the reverse
hereof with respect to one or more Interest Rate Bases specified above until the
principal hereof is paid or duly made available for payment. The Company will
pay interest in arrears on each Interest Payment Date, if any, specified above
(each, an "Interest Payment Date"), commencing with the first Interest Payment
Date next succeeding the Original Issue Date specified above, and on the
Maturity Date; PROVIDED, HOWEVER, that if the Original Issue Date occurs between
a Record Date (as defined below) and the next succeeding Interest Payment Date,
interest payments will commence on the second Interest Payment Date next
succeeding the Original Issue Date to the holder of this Note on the Record Date
with respect to such second Interest Payment Date.

         References herein to "this Note", "hereof", "herein" and comparable
terms shall include an Addendum hereto if an Addendum is specified above.

         Notwithstanding anything else contained herein, if this Note is a
Global Security and is held in book-entry form through the facilities of the
Depositary, payments on this Note will be made to the Depositary or its nominee
in accordance with the arrangements then in effect between the Trustee and the
Depositary.

         Interest on this Note will accrue from, and including, the immediately
preceding Interest Payment Date to which interest has been paid or duly provided
for (or from, and including, the Original Issue Date if no interest has been
paid or duly provided for with respect to this Note) to, but excluding, the
applicable Interest Payment Date or the Maturity Date, as the case may be (each,
an "Interest Period"). The interest so payable, and punctually paid or duly
provided for, on any Interest Payment Date will, subject to certain exceptions
described herein, be paid to the person in whose name this Note (or one or more
predecessor Notes) is registered at the close of business on the fifteenth
calendar day (whether or not a Business Day, as defined on the reverse hereof)
immediately preceding such Interest Payment Date (the "Record Date"); PROVIDED,
HOWEVER, that interest payable on the Maturity Date will be payable to the
person to whom the principal hereof and premium, if any, hereon shall be
payable. Any such interest not so punctually paid or duly provided for
("Defaulted Interest") will forthwith cease to be payable to the holder on any
Record Date, and shall be paid to the person in whose name this Note is
registered at the close of business on a special record date (the "Special
Record Date") for the payment of such Defaulted Interest to be fixed by the
Trustee hereinafter referred to, notice whereof shall be given to the holder of
this Note by the Trustee not less than 10 calendar days prior to such Special
Record Date or may be paid at any time in any other lawful manner not
inconsistent with the requirements of any securities exchange on which this Note
may be listed,

                                       3
<PAGE>

and upon such notice as may be required by such exchange, all as more fully
provided for in the Subordinated Indenture.

         Payment of principal, premium, if any, and interest in respect of this
Note due on the Maturity Date will be made in immediately available funds upon
presentation and surrender of this Note (and, with respect to any applicable
repayment of this Note, a duly completed election form as contemplated on the
reverse hereof) at the corporate trust office of the Trustee maintained for that
purpose in The Borough of Manhattan, The City of New York, currently located at
Four Albany Street, New York, New York 10015, or at such other paying agency in
The Borough of Manhattan, The City of New York, as the Company may determine;
PROVIDED, HOWEVER, that if such payment is to be made in a Specified Currency
other than United States dollars as set forth below, such payment will be made
by wire transfer of immediately available funds to an account with a bank
designated by the holder hereof at least 15 calendar days prior to the Maturity
Date, provided that such bank has appropriate facilities therefor and that this
Note (and, if applicable, a duly completed election form) is presented and
surrendered at the aforementioned office of the Trustee in time for the Trustee
to make such payment in such funds in accordance with its normal procedures.
Payment of interest due on any Interest Payment Date other than the Maturity
Date will be made by check mailed to the address of the person entitled thereto
as such address shall appear in the Security Register maintained at the
aforementioned office of the Trustee; PROVIDED, HOWEVER, that a holder of
U.S.$10,000,000 (or, if the Specified Currency specified above is other than
United States dollars, the equivalent thereof in the Specified Currency) or more
in aggregate principal amount of Notes (whether having identical or different
terms and provisions) will be entitled to receive interest payments on such
Interest Payment Date by wire transfer of immediately available funds if
appropriate wire transfer instructions have been received in writing by the
Trustee not less than 15 calendar days prior to such Interest Payment Date. Any
such wire transfer instructions received by the Trustee shall remain in effect
until revoked by such holder.

         If any Interest Payment Date other than the Maturity Date would
otherwise be a day that is not a Business Day, such Interest Payment Date shall
be postponed to the next succeeding Business Day, except that if LIBOR is an
applicable Interest Rate Basis and such Business Day falls in the next
succeeding calendar month, such Interest Payment Date shall be the immediately
preceding Business Day. If the Maturity Date falls on a day that is not a
Business Day, the required payment of principal, premium, if any, and interest
shall be made on the next succeeding Business Day with the same force and effect
as if made on the date such payment was due, and no interest shall accrue with
respect to such payment for the period from and after the Maturity Date to the
date of such payment on the next succeeding Business Day.

         As used herein, "Business Day" means any day, other than a Saturday or
Sunday, that is neither a legal holiday nor a day on which commercial banks are
authorized or required by law, regulation or executive order to close in The
City of New York; PROVIDED, HOWEVER, that if the Specified Currency is other
than United States dollars, such day is also not a day on which commercial banks
are authorized or required by law, regulation or executive order to close in the
Principal Financial Center (as defined below) of the country issuing the
Specified Currency (or, if the Specified Currency is Euro, such day is also a
day on which the Trans-European Automated Real-Time Gross Settlement Express
Transfer (TARGET) System is open); PROVIDED, FURTHER, that if LIBOR is an
applicable Interest Rate Basis, such day is also a London Business

                                       4
<PAGE>

Day (as defined below). "London Business Day" means a day on which commercial
banks are open for business (including dealings in the Designated LIBOR Currency
(as defined on the reverse hereof)) in London. "Principal Financial Center"
means (i) the capital city of the country issuing the Specified Currency or (ii)
the capital city of the country to which the Designated LIBOR Currency relates,
as applicable, except, in the case of (i) or (ii), that with respect to United
States dollars, Australian dollars, Canadian dollars, Deutsche marks, Dutch
guilders, Portuguese escudos, South African rand and Swiss francs, the
"Principal Financial Center" shall be The City of New York, Sydney and (solely
with respect to the Specified Currency) Melbourne, Toronto, Frankfurt,
Amsterdam, London (solely in the case of the Designated LIBOR Currency),
Johannesburg and Zurich, respectively.

         The Company is obligated to make payments of principal, premium, if
any, and interest in respect of this Note in the Specified Currency (or, if the
Specified Currency is not at the time of such payment legal tender for the
payment of public and private debts, in such other coin or currency of the
country which issued the Specified Currency as at the time of such payment is
legal tender for the payment of such debts). If the Specified Currency is other
than United States dollars, any such amounts so payable by the Company will be
converted by the Exchange Rate Agent specified above into United States dollars
for payment to the holder of this Note.

         If the Specified Currency is other than United States dollars, the
holder of this Note may elect to receive any amount payable hereunder in such
Specified Currency. If the holder of this Note shall not have duly made an
election to receive all or a specified portion of any payment of principal,
premium, if any, and/or interest in respect of this Note in the Specified
Currency, any United States dollar amount to be received by the holder of this
Note will be based on the highest bid quotation in The City of New York received
by the Exchange Rate Agent at approximately 11:00 A.M., New York City time, on
the second Business Day preceding the applicable payment date from three
recognized foreign exchange dealers (one of whom may be the Exchange Rate Agent)
selected by the Exchange Rate Agent and approved by the Company for the purchase
by the quoting dealer of the Specified Currency for United States dollars for
settlement on such payment date in the aggregate amount of the Specified
Currency payable to all holders of Notes scheduled to receive United States
dollar payments and at which the applicable dealer commits to execute a
contract. All currency exchange costs will be borne by the holder of this Note
by deductions from such payments. If three such bid quotations are not
available, payments on this Note will be made in the Specified Currency.

         If the Specified Currency is other than United States dollars, the
holder of this Note may elect to receive all or a specified portion of any
payment of principal, premium, if any, and/or interest in respect of this Note
in the Specified Currency by submitting a written request for such payment to
the Trustee at its corporate trust office in The City of New York on or prior to
the applicable Record Date or at least 15 calendar days prior to the Maturity
Date, as the case may be. Such written request may be mailed or hand delivered
or sent by cable, telex or other form of facsimile transmission. The holder of
this Note may elect to receive all or a specified portion of all future payments
in the Specified Currency in respect of such principal, premium, if any, and/or
interest and need not file a separate election for each payment. Such election
will remain in effect until revoked by written notice to the Trustee, but
written notice of any such revocation must be received by the Trustee on or
prior to the applicable Record Date or at least 15 calendar days prior to the
Maturity Date, as the case may be.

                                       5
<PAGE>

         If the Specified Currency is other than United States dollars or a
composite currency and the holder of this Note shall have duly made an
election to receive all or a specified portion of any payment of principal,
premium, if any, and/or interest in respect of this Note in the Specified
Currency and if the Specified Currency is not available due to the imposition
of exchange controls or other circumstances beyond the control of the
Company, the Company will be entitled to satisfy its obligations to the
holder of this Note by making such payment in United States dollars on the
basis of the Market Exchange Rate (as defined below) on the second Business
Day prior to such payment date or, if such Market Exchange Rate is not then
available, on the basis of the most recently available Market Exchange Rate
or as otherwise specified on the face hereof. The "Market Exchange Rate" for
the Specified Currency means the noon dollar buying rate in The City of New
York for cable transfers for the Specified Currency as certified for customs
purposes by (or if not so certified, as otherwise determined by) the Federal
Reserve Bank of New York. Any payment made under such circumstances in United
States dollars will not constitute an Event of Default (as defined in the
Subordinated Indenture).

         If the Specified Currency is a composite currency and the holder of
this Note shall have duly made an election to receive all or a specified
portion of any payment of principal, premium, if any, and/or interest in
respect of this Note in the Specified Currency and if such composite currency
is unavailable due to the imposition of exchange controls or other
circumstances beyond the control of the Company, then the Company will be
entitled to satisfy its obligations to the holder of this Note by making such
payment in United States dollars. The amount of each payment in United States
dollars shall be computed by the Exchange Rate Agent on the basis of the
equivalent of the composite currency in United States dollars. The component
currencies of the composite currency for this purpose (collectively, the
"Component Currencies" and each, a "Component Currency") shall be the
currency amounts that were components of the composite currency as of the
last day on which the composite currency was used. The equivalent of the
composite currency in United States dollars shall be calculated by
aggregating the United States dollar equivalents of the Component Currencies.
The United States dollar equivalent of each of the Component Currencies shall
be determined by the Exchange Rate Agent on the basis of the most recently
available Market Exchange Rate for each such Component Currency, or as
otherwise specified on the face hereof.

         If the official unit of any Component Currency is altered by way of
combination or subdivision, the number of units of the currency as a
Component Currency shall be divided or multiplied in the same proportion. If
two or more Component Currencies are consolidated into a single currency, the
amounts of those currencies as Component Currencies shall be replaced by an
amount in such single currency equal to the sum of the amounts of the
consolidated Component Currencies expressed in such single currency. If any
Component Currency is divided into two or more currencies, the amount of the
original Component Currency shall be replaced by the amounts of such two or
more currencies, the sum of which shall be equal to the amount of the
original Component Currency.

                                       6
<PAGE>

         The Company agrees to indemnify the holder of any Note against any loss
incurred by such holder as a result of any judgment or order being given or made
against the Company for any amount due hereunder and such judgment or order
requiring payment in a currency (the "Judgment Currency") other than the
Specified Currency, and as a result of any variation between (i) the rate of
exchange at which the Specified Currency amount is converted into the Judgment
Currency for the purpose of such judgment or order, and (ii) the rate of
exchange at which such holder, on the date of payment of such judgment or order,
is able to purchase the Specified Currency with the amount of the Judgment
Currency actually received by such holder, as the case may be. The foregoing
indemnity constitutes a separate and independent obligation of the Company and
continues in full force and effect notwithstanding any such judgment or order as
aforesaid. The term "rate of exchange" includes any premiums and costs of
exchange payable in connection with the purchase of, or conversion into, the
relevant currency.

         All determinations referred to above made by the Exchange Rate Agent
shall be at its sole discretion and shall, in the absence of manifest error,
be conclusive for all purposes and binding on the holder of this Note.

         Reference is hereby made to the further provisions of this Note set
forth on the reverse hereof and, if so specified above, in the Addendum
hereto, which further provisions shall have the same force and effect as if
set forth on the face hereof.

         Notwithstanding any provisions to the contrary contained herein, if the
face of this Note specifies that an Addendum is attached hereto or that
"Other/Additional Provisions" apply, this Note shall be subject to the terms set
forth in such Addendum or such "Other/Additional Provisions".

         Unless the Certificate of Authentication hereon has been executed by
the Trustee by manual signature, this Note shall not be entitled to any benefit
under the Subordinated Indenture or be valid or obligatory for any purpose.

                                       7
<PAGE>

         IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed, manually or in facsimile, and an imprint or facsimile of its corporate
seal to be imprinted hereon.

[SEAL]                              BOEING CAPITAL CORPORATION

                                    By:________________________________
                                      Title:

Attest:

By:__________________________
         Title:

Dated:

TRUSTEE'S CERTIFICATE OF AUTHENTICATION:

This is one of the Debt Securities of
the series designated therein referred
to in the within-mentioned Subordinated Indenture.

BANKERS TRUST COMPANY,
as Trustee

By:___________________________
     Authorized Officer

                                       8
<PAGE>

                                [REVERSE OF NOTE]
                           BOEING CAPITAL CORPORATION
                     Series XI SUBORDINATED MEDIUM-TERM NOTE
                                 (Floating Rate)

         This Note is one of a duly authorized series of Debt Securities (the
"Debt Securities") of the Company issued and to be issued under a
Subordinated Indenture, dated as of July 10, 2000, and as amended, modified
or supplemented from time to time (the "Subordinated Indenture"), between the
Company and Bankers Trust Company, as successor Trustee (the "Trustee", which
term includes any successor trustee under the Subordinated Indenture), to
which Subordinated Indenture and all indentures supplemental thereto
reference is hereby made for a statement of the respective rights,
limitations of rights, duties and immunities thereunder of the Company, the
Trustee and the holders of the Debt Securities, and of the terms upon which
the Debt Securities are, and are to be, authenticated and delivered. This
Note is one of the series of Debt Securities designated as "Series XI
Subordinated Medium-Term Notes Due Nine Months or More From Date of Issue"
(the "Notes"). All terms used but not defined in this Note specified on the
face hereof or in an Addendum hereto shall have the meanings assigned to such
terms in the Subordinated Indenture.

         This Note is issuable only in registered form without coupons in
denominations of U.S.$100,000 and integral multiples of $1,000 in excess thereof
or the minimum Authorized Denomination specified on the face hereof.

         This Note will not be subject to any sinking fund and, unless otherwise
provided on the face hereof in accordance with the provisions of the following
two paragraphs, will not be redeemable or repayable prior to the Stated Maturity
Date.

         This Note will be subject to redemption at the option of the Company
on any date on and after the Initial Redemption Date, if any, specified on
the face hereof, in whole or from time to time in part in increments of
U.S.$1,000 or, if the Specified Currency is other than United States dollars,
the minimum Authorized Denomination specified on the face hereof (provided
that any remaining principal amount hereof shall be at least U.S.$100,000 or
such minimum Authorized Denomination), at the Redemption Price (as defined
below), together with unpaid interest accrued thereon to the date fixed for
redemption (each, a "Redemption Date"), on notice given no more than 60 nor
less than 30 calendar days prior to the Redemption Date and in accordance
with the provisions of the Indenture. The "Redemption Price" shall initially
be the Initial Redemption Percentage specified on the face hereof multiplied
by the unpaid principal amount of this Note to be redeemed. The Initial
Redemption Percentage shall decline at each anniversary of the Initial
Redemption Date by the Annual Redemption Percentage Reduction, if any,
specified on the face hereof until the Redemption Price is 100% of unpaid
principal amount to be redeemed. In the event of redemption of this Note in
part only, a new Note of like tenor for the unredeemed portion hereof and
otherwise having the same terms as this Note shall be issued in the name of
the holder hereof upon the presentation and surrender hereof.

         This Note will be subject to repayment by the Company at the option of
the holder hereof on the Optional Repayment Date(s), if any, specified on the
face hereof, in whole or in part in increments of U.S.$1,000 or, if the
Specified Currency is other than United States dollars, the

                                       9
<PAGE>

minimum Authorized Denomination specified on the face hereof (provided that
any remaining principal amount hereof shall be at least U.S.$100,000 or such
minimum Authorized Denomination), at a repayment price equal to 100% of the
unpaid principal amount to be repaid, together with unpaid interest accrued
thereon to the date fixed for repayment (each, a "Repayment Date"). For this
Note to be repaid, this Note must be received, together with the form hereon
entitled "Option to Elect Repayment" duly completed, by the Trustee at its
corporate trust office not more than 60 nor less than 30 calendar days prior
to the Repayment Date. Exercise of such repayment option by the holder hereof
will be irrevocable. In the event of repayment of this Note in part only, a
new Note of like tenor for the unrepaid portion hereof and otherwise having
the same terms as this Note shall be issued in the name of the holder hereof
upon the presentation and surrender hereof.

         If the Interest Category of this Note is specified on the face hereof
as an Original Issue Discount Note, the amount payable to the holder of this
Note in the event of redemption, repayment or acceleration of maturity of this
Note will be equal to the sum of (1) the Issue Price specified on the face
hereof (increased by any accruals of Discount, as defined below) and, in the
event of any redemption of this Note (if applicable), multiplied by the Initial
Redemption Percentage specified in the applicable Pricing Supplement (as
adjusted by the Annual Redemption Percentage Reduction, if applicable) and (2)
any accrued and unpaid interest on this Note from the Original Issue Date to the
Redemption Date, Repayment Date or date of acceleration of maturity, as the case
may be. The difference between the Issue Price and 100% of the principal amount
of this Note is referred to herein as the "Discount", and the Discount will be
ratably accrued over the term of this Note for purposes of determining the
amount payable upon redemption, repayment or acceleration of maturity of this
Note.

         For purposes of determining the amount of Discount that has accrued as
of any Redemption Date, Repayment Date or date of acceleration of maturity of
this Note, such Discount will be accrued so as to cause an assumed yield on the
Note to be constant. The assumed constant yield will be calculated using a
30-day month, 360-day year convention, a compounding period that, except for the
Initial Period (as defined below), corresponds to the shortest period between
Interest Payment Dates (with ratable accruals within a compounding period), a
coupon rate equal to the initial interest rate applicable to this Note and an
assumption that the maturity of this Note will not be accelerated. If the period
from the Original Issue Date to the initial Interest Payment Date (the "Initial
Period") is shorter than the compounding period for this Note, a proportionate
amount of the yield for an entire compounding period will be accrued. If the
Initial Period is longer than the compounding period, then such period will be
divided into a regular compounding period and a short period, with the short
period being treated as provided in the preceding sentence.

         The interest rate borne by this Note will be determined as follows:

                  (i) Unless the Interest Category of this Note is specified on
                  the face hereof as a "Floating Rate/Fixed Rate Note" or an
                  "Inverse Floating Rate Note", this Note shall be designated as
                  a "Regular Floating Rate Note" and, except as set forth below
                  or on the face hereof, shall bear interest at the rate
                  determined by reference to the applicable Interest Rate Basis
                  or Bases (a) plus or minus the Spread, if any, and/or (b)
                  multiplied by the Spread Multiplier, if any, in each case as
                  specified on

                                       10
<PAGE>

                  the face hereof. Commencing on the Initial Interest Reset
                  Date, the rate at which interest on this Note shall be payable
                  shall be reset as of each Interest Reset Date specified on the
                  face hereof; PROVIDED, HOWEVER, that the interest rate in
                  effect for the period, if any, from the Original Issue Date to
                  the Initial Interest Reset Date shall be the Initial Interest
                  Rate.

                  (ii) If the Interest Category of this Note is specified on
                  the face hereof as a "Floating Rate/Fixed Rate Note", then,
                  except as set forth below or on the face hereof, this Note
                  shall bear interest at the rate determined by reference to
                  the applicable Interest Rate Basis or Bases (a) plus or
                  minus the Spread, if any, and/or (b) multiplied by the
                  Spread Multiplier, if any in each case specified on the
                  face hereof. Commencing on the Initial Interest Reset Date,
                  the rate at which interest on this Note shall be payable
                  shall be reset as of each Interest Reset Date; PROVIDED,
                  HOWEVER, that (y) the interest rate in effect for the
                  period, if any, from the Original Issue Date to the Initial
                  Interest Reset Date shall be the Initial Interest Rate and
                  (z) the interest rate in effect for the period commencing
                  on the Fixed Rate Commencement Date specified on the face
                  hereof to the Maturity Date shall be the Fixed Interest
                  Rate specified on the face hereof or, if no such Fixed
                  Interest Rate is specified, the interest rate in effect
                  hereon on the day immediately preceding the Fixed Rate
                  Commencement Date.

                  (iii) If the Interest Category of this Note is specified on
                  the face hereof as an "Inverse Floating Rate Note", then,
                  except as set forth below or on the face hereof, this Note
                  shall bear interest at the Fixed Interest Rate minus the rate
                  determined by reference to the applicable Interest Rate Basis
                  or Bases (a) plus or minus the Spread, if any, and/or (b)
                  multiplied by the Spread Multiplier, if any; PROVIDED,
                  HOWEVER, that, unless otherwise specified on the face hereof,
                  the interest rate hereon shall not be less than zero.
                  Commencing on the Initial Interest Reset Date, the rate at
                  which interest on this Note shall be payable shall be reset as
                  of each Interest Reset Date; PROVIDED, HOWEVER, that the
                  interest rate in effect for the period, if any, from the
                  Original Issue Date to the Initial Interest Reset Date shall
                  be the Initial Interest Rate.

         Unless otherwise specified on the face hereof, the rate with respect
to each Interest Rate Basis will be determined in accordance with the
applicable provisions below. Except as set forth above or on the face hereof,
the interest rate in effect on each day shall be (i) if such day is an
Interest Reset Date, the interest rate determined as of the Interest
Determination Date (as hereinafter defined) immediately preceding such
Interest Reset Date or (ii) if such day is not an Interest Reset Date, the
interest rate determined as of the Interest Determination Date immediately
preceding the most recent Interest Reset Date. If any Interest Reset Date
would otherwise be a day that is not a Business Day, such Interest Reset Date
shall be postponed to the next succeeding Business Day, except that if LIBOR
is an applicable Interest Rate Basis and such Business Day falls in the next
succeeding calendar month, such Interest Reset Date shall be the immediately
preceding Business Day. In addition, if the Treasury Rate is an applicable
Interest Rate Basis, if the Interest Determination Date would otherwise fall
on an Interest Reset Date, the particular Interest Reset Date will be
postpone to the next succeeding Business Day.

         The interest rate applicable to each Interest Reset Period commencing
on the related Interest Reset Date will be determined by the Calculation Agent
as of the applicable Interest

                                       11
<PAGE>

Determination Date and will be calculated by the Calculation Agent on or
prior to the Calculation Date (as defined below), except with respect to
LIBOR and the Eleventh District Cost of Funds Rate, which will be calculated
on such Interest Determination Date. The "Interest Determination Date" with
respect to the Federal Funds Rate and the Prime Rate will be the Business Day
immediately preceding the Interest Reset Date; the "Interest Determination
Date" with respect to the CD Rate, the CMT Rate and the Commercial Paper Rate
will be the second Business Day immediately preceding the applicable Interest
Reset Date; the "Interest Determination Date" with respect to the Eleventh
District Cost of Funds Rate shall be the last working day of the month
immediately preceding the applicable Interest Reset Date on which the Federal
Home Loan Bank of San Francisco (the "FHLB of San Francisco") publishes the
Index (as defined below); and the "Interest Determination Date" with respect
to LIBOR shall be the second London Business Day immediately preceding the
applicable Interest Reset Date, unless the Designated LIBOR Currency is
British pounds sterling, in which case the "Interest Determination Date" will
be the applicable Interest Reset Date. The "Interest Determination Date" with
respect to the Treasury Rate shall be the day in the week in which the
applicable Interest Reset Date falls on which day Treasury Bills (as defined
below) are normally auctioned (Treasury Bills are normally sold at an auction
held on Monday of each week, unless such Monday is a legal holiday, in which
case the auction is normally held on the immediately succeeding Tuesday,
although such auction may be held on the preceding Friday); PROVIDED,
HOWEVER, that if an auction is held on the Friday of the week preceding the
applicable Interest Reset Date, the "Interest Determination Date" shall be
such preceding Friday. If the interest rate of this Note is determined with
reference to two or more Interest Rate Bases specified on the face hereof,
the "Interest Determination Date" pertaining to this Note shall be the most
recent Business Day which is at least two Business Days prior to the
applicable Interest Reset Date on which each Interest Rate Basis is
determinable. Each Interest Rate Basis shall be determined as of such date,
and the applicable interest rate shall take effect on the related Interest
Reset Date.

         Unless otherwise specified on the face hereof or in an Addendum hereto,
the rate with respect to each Interest Rate Basis will be determined in
accordance with the applicable provisions below.

         CD RATE. If an Interest Rate Basis for this Note is specified on the
face hereof as the CD Rate, the CD Rate shall be determined as of the applicable
Interest Determination Date (a "CD Rate Interest Determination Date") as the
rate on such date for negotiable United States dollar certificates of deposit
having the Index Maturity specified on the face hereof as published in H.15(519)
(as defined below) under the heading "CDs (secondary market)", or, if not
published by 3:00 P.M., New York City time, on the related Calculation Date, the
rate on such CD Rate Interest Determination Date for negotiable United States
dollar certificates of deposit of the Index Maturity as published in H.15 Daily
Update (as hereinafter defined), or such other recognized electronic source used
for the purpose of displaying such rate, under the caption "CDs (secondary
market)". If such rate is not yet published in H.15(519), H.15 Daily Update or
another recognized electronic source by 3:00 P.M., New York City time, on the
related Calculation Date, then the CD Rate on such CD Rate Interest
Determination Date will be calculated by the Calculation Agent specified on the
face hereof and will be the arithmetic mean of the secondary market offered
rates as of 10:00 A.M., New York City time, on such CD Rate Interest
Determination Date, of three leading nonbank dealers in negotiable United States
dollar certificates of deposit in The City of New York selected by the
Calculation Agent for negotiable United States dollar certificates of deposit of
major United States money center banks for

                                       12
<PAGE>

negotiable United States dollar certificates of deposit with a remaining
maturity closest to the Index Maturity in an amount that is representative for a
single transaction in that market at that time; PROVIDED, HOWEVER, that if the
dealers so selected by the Calculation Agent are not quoting as mentioned in
this sentence, the CD Rate determined as of such CD Rate Interest Determination
Date will be the CD Rate in effect on such CD Rate Interest Determination Date.

         "H.15(519)" means the weekly statistical release designated as such, or
any successor publication, published by the Board of Governors of the Federal
Reserve System.

         "H.15 Daily Update" means the daily update of H.15(519), available
through the world-wide-web site of the Board of Governors of the Federal Reserve
System at http://www.bog.frb.fed.us/releases/h15/update, or any successor site
or publication.

         CMT RATE. If an Interest Rate Basis for this Note is specified on the
face hereof as the CMT Rate, the CMT Rate shall be determined as of the
applicable Interest Determination Date (a "CMT Rate Interest Determination
Date") as the rate displayed on the Designated CMT Telerate Page (as defined
below) under the caption "...Treasury Constant Maturities...Federal Reserve
Board Release H.15...Mondays Approximately 3:45 P.M.", under the column for the
Designated CMT Maturity Index (as defined below) for (i) if the Designated CMT
Telerate Page is 7051, the rate on such CMT Rate Interest Determination Date and
(ii) if the Designated CMT Telerate Page is 7052, the weekly or monthly average,
as specified on the face hereof, for the week or month, as applicable, ended
immediately preceding the week or month, as applicable, in which the related CMT
Rate Interest Determination Date falls. If such rate is no longer displayed on
the relevant page or is not so displayed by 3:00 P.M., New York City time, on
the related Calculation Date, then the CMT Rate for such CMT Rate Interest
Determination Date will be such treasury constant maturity rate for the
Designated CMT Maturity Index as published in H.15(519). If such rate is no
longer published or is not so published by 3:00 P.M., New York City time, on the
related Calculation Date, then the CMT Rate on such CMT Rate Interest
Determination Date will be such treasury constant maturity rate for the
Designated CMT Maturity Index (or other United States Treasury rate for the
Designated CMT Maturity Index) for the CMT Rate Interest Determination Date with
respect to such Interest Reset Date as may then be published by either the Board
of Governors of the Federal Reserve System or the United States Department of
the Treasury that the Calculation Agent determines to be comparable to the rate
formerly displayed on the Designated CMT Telerate Page and published in
H.15(519). If such information is not so provided by 3:00 P.M., New York City
time, on the related Calculation Date, then the CMT Rate on the CMT Rate
Interest Determination Date will be calculated by the Calculation Agent and will
be a yield to maturity, based on the arithmetic mean of the secondary market
offered rates as of approximately 3:30 P.M., New York City time, on such CMT
Rate Interest Determination Date reported, according to their written records,
by three leading primary United States government securities dealers (each, a
"Reference Dealer") in The City of New York selected by the Calculation Agent
(from five such Reference Dealers selected by the Calculation Agent and
eliminating the highest quotation (or, in the event of equality, one of the
highest) and the lowest quotation (or, in the event of equality, one of the
lowest)), for the most recently issued direct noncallable fixed rate obligations
of the United States ("Treasury Notes") with an original maturity of
approximately the Designated CMT Maturity Index and a remaining term to maturity
of not less than such Designated CMT Maturity Index minus one year. If the
Calculation Agent is unable to obtain three such Treasury Note quotations, the
CMT

                                       13
<PAGE>

Rate on such CMT Rate Interest Determination Date will be calculated by the
Calculation Agent and will be a yield to maturity based on the arithmetic mean
of the secondary market offered rates as of approximately 3:30 P.M., New York
City time, on such CMT Rate Interest Determination Date of three Reference
Dealers in The City of New York (from five such Reference Dealers selected by
the Calculation Agent and eliminating the highest quotation (or, in the event of
equality, one of the highest) and the lowest quotation (or, in the event of
equality, one of the lowest)), for Treasury Notes with an original maturity of
the number of years that is the next highest to the Designated CMT Maturity
Index and a remaining term to maturity closest to the Designated CMT Maturity
Index and in an amount of at least U.S.$100 million. If three or four (and not
five) of such Reference Dealers are quoting as described above, then the CMT
Rate will be based on the arithmetic mean of the offered rates obtained and
neither the highest nor the lowest of such quotes will be eliminated; provided,
however, that if fewer than three Reference Dealers selected by the Calculation
Agent are quoting as mentioned herein, the CMT Rate determined as of such CMT
Rate Interest Determination Date will be the CMT Rate in effect on such CMT Rate
Interest Determination Date. If two Treasury Notes with an original maturity as
described in the second preceding sentence have remaining terms to maturity
equally close to the Designated CMT Maturity Index, the Calculation Agent will
obtain quotations for the Treasury Note with the shorter remaining term to
maturity.

         "Designated CMT Maturity Index" means the original period to maturity
of the United States Treasury securities (either 1, 2, 3, 5, 7, 10, 20 or 30
years) specified on the face hereof with respect to which the CMT Rate will be
calculated or, if no such maturity is specified on the face hereof, 2 years.

         "Designated CMT Telerate Page" means the display on Bridge Telerate,
Inc. (or any successor service) on the page specified on the face hereof (or any
other page as may replace such page on such service for the purpose of
displaying Treasury Constant Maturities as reported in H.15(519) or, if no such
page is specified on the face hereof, page 7052.

         COMMERCIAL PAPER RATE. If an Interest Rate Basis for this Note is
specified on the face hereof as the Commercial Paper Rate, the Commercial Paper
Rate shall be determined as of the applicable Interest Determination Date (a
"Commercial Paper Rate Interest Determination Date") as the Money Market Yield
(as defined below) on such date of the rate for commercial paper having the
Index Maturity as published in H.15(519) under the caption "Commercial
Paper-Nonfinancial" or, if not so published by 3:00 P.M., New York City time, on
the related Calculation Date, the rate on such Commercial Paper Rate Interest
Determination Date for commercial paper having the Index Maturity as published
in H.15 Daily Update, or such other recognized electronic source used for the
purpose of displaying such rate, under the caption "Commercial
Paper-Nonfinancial.". If such rate is not yet published in H.15(519), H.15 Daily
Update or another recognized electronic source by 3:00 P.M., New York City time,
on such Calculation Date, then the Commercial Paper Rate on such Commercial
Paper Rate Interest Determination Date will be calculated by the Calculation
Agent and shall be the Money Market Yield of the arithmetic mean of the offered
rates at approximately 11:00 A.M., New York City time, on such Commercial Paper
Rate Interest Determination Date of three leading dealers of United States
dollar commercial paper in The City of New York selected by the Calculation
Agent for commercial paper having the Index Maturity placed for industrial
issuers whose bond rating is "Aa", or the equivalent, from a nationally
recognized statistical rating organization;

                                       14
<PAGE>

PROVIDED, HOWEVER, that if the dealers so selected by the Calculation Agent
are not quoting as mentioned in this sentence, the Commercial Paper Rate
determined as of such Commercial Paper Rate Interest Determination Date will
be the Commercial Paper Rate in effect on such Commercial Paper Rate Interest
Determination Date.

         "Money Market Yield" means a yield (expressed as a percentage)
calculated in accordance with the following formula:

          Money Market Yield =              D X 360
                                --------------------------------- X 100
                                         360 - (D X M)

where "D" refers to the applicable per annum rate for commercial paper quoted on
a bank discount basis and expressed as a decimal, and "M" refers to the actual
number of days in the applicable Interest Reset Period.

         ELEVENTH DISTRICT COST OF FUNDS RATE. If an Interest Rate Basis for
this Note is specified on the face hereof as the Eleventh District Cost of Funds
Rate, the Eleventh District Cost of Funds Rate shall be determined as of the
applicable Interest Determination Date (an "Eleventh District Cost of Funds Rate
Interest Determination Date") as the rate equal to the monthly weighted average
cost of funds for the calendar month immediately preceding the month in which
such Eleventh District Cost of Funds Rate Interest Determination Date falls, as
set forth under the caption "11th District" on the display on Bridge Telerate,
Inc. (or any successor service) on page 7058 ("Telerate Page 7058") as of 11:00
A.M., San Francisco time, on such Eleventh District Cost of Funds Rate Interest
Determination Date. If such rate does not appear on Telerate Page 7058 on such
Eleventh District Cost of Funds Rate Interest Determination Date, then the
Eleventh District Cost of Funds Rate on such Eleventh District Cost of Funds
Rate Interest Determination Date shall be the monthly weighted average cost of
funds paid by member institutions of the Eleventh Federal Home Loan Bank
District that was most recently announced (the "Index") by the FHLB of San
Francisco as such cost of funds for the calendar month immediately preceding
such Eleventh District Cost of Funds Rate Interest Determination Date. If the
FHLB of San Francisco fails to announce the Index on or prior to such Eleventh
District Cost of Funds Rate Interest Determination Date for the calendar month
immediately preceding such Eleventh District Cost of Funds Rate Interest
Determination Date, the Eleventh District Cost of Funds Rate determined as of
such Eleventh District Cost of Funds Rate Interest Determination Date will be
the Eleventh District Cost of Funds Rate in effect on such Eleventh District
Cost of Funds Rate Interest Determination Date.

         FEDERAL FUNDS RATE. If an Interest Rate Basis for this Note is
specified on the face hereof as the Federal Funds Rate, the Federal Funds Rate
shall be determined as of the applicable Interest Determination Date (a "Federal
Funds Rate Interest Determination Date") as the rate on such date for United
States dollar federal funds as published in H.15(519) under the heading "Federal
Funds (Effective)", as such rate is displayed on Bridge Telerate, Inc. (or any
successor service) on page 120 (or any other page as may replace such page on
such service) ("Telerate Page 120"), or, if such rate does not appear on
Telerate page 120 or is not so published by 3:00 P.M., New York City time, on
the Calculation Date, the rate on such Federal Funds Rate Interest Determination
Date for United States dollar federal funds as published in H.15 Daily Update,
or such other recognized electronic source used for the purpose of displaying
such rate, under the caption "Federal Funds (Effective)." If such rate does not
appear on Telerate Page 120 or is not

                                       15
<PAGE>

yet published in H.15(519), H.15 Daily Update or another recognized electronic
source by 3:00 P.M., New York City time, on the related Calculation Date, then
the Federal Funds Rate on such Federal Funds Interest Determination Date shall
be calculated by the Calculation Agent and will be the arithmetic mean of the
rates for the last transaction in overnight United States dollar federal funds
arranged by three leading brokers of United States dollar federal funds
transactions in The City of New York selected by the Calculation Agent, prior to
9:00 A.M., New York City time, on such Federal Funds Rate Interest Determination
Date; PROVIDED, HOWEVER, that if the brokers so selected by the Calculation
Agent are not quoting as mentioned in this sentence, the Federal Funds Rate
determined as of such Federal Funds Rate Interest Determination Date will be the
Federal Funds Rate in effect on such Federal Funds Rate Interest Determination
Date.

         LIBOR. If an Interest Rate Basis for this Note is specified on the face
hereof as LIBOR, LIBOR shall be determined by the Calculation Agent as of the
applicable Interest Determination Date (a "LIBOR Interest Determination Date")
in accordance with the following provisions:

         (i) (a) if "LIBOR Telerate" is specified on the face hereof or if
neither "LIBOR Reuters" nor "LIBOR Telerate" is specified on the face hereof as
the method for calculating LIBOR, the rate for deposits in the Designated LIBOR
Currency having the Index Maturity specified in such Pricing Supplement,
commencing on such Interest Reset Date, that appears on the Designated LIBOR
Page (as defined below) as of 11:00 A.M., London time, on such LIBOR Interest
Determination Date; or (b) if "LIBOR Reuters" is specified on the face hereof,
the arithmetic mean of the offered rates (unless the Designated LIBOR Page (as
defined below) by its terms provides only for a single rate, in which case such
single rate will be used) for deposits in the Designated LIBOR Currency having
the Index Maturity, commencing on the applicable Interest Reset Date, that
appear (or, if only a single rate is required as aforesaid, appears) on the
Designated LIBOR Page as of 11:00 A.M., London time, on such LIBOR Interest
Determination Date. If fewer than two such offered rates so appear, or if no
such rate so appears, as applicable, LIBOR on such LIBOR Interest Determination
Date shall be determined in accordance with the provisions described in clause
(ii) below.

         (ii) With respect to a LIBOR Interest Determination Date on which fewer
than two offered rates appear, or no rate appears, as the case may be, on the
Designated LIBOR Page as specified in clause (i) above, the Calculation Agent
shall request the principal London offices of each of four major reference banks
in the London interbank market, as selected by the Calculation Agent, to provide
the Calculation Agent with its offered quotation for deposits in the Designated
LIBOR Currency for the period of the Index Maturity, commencing on the
applicable Interest Reset Date, to prime banks in the London interbank market at
approximately 11:00 A.M., London time, on such LIBOR Interest Determination Date
and in a principal amount that is representative for a single transaction in the
Designated LIBOR Currency in such market at such time. If at least two such
quotations are so provided, then LIBOR on such LIBOR Interest Determination Date
will be the arithmetic mean of such quotations. If fewer than two such
quotations are so provided, then LIBOR on such LIBOR Interest Determination Date
will be the arithmetic mean of the rates quoted at approximately 11:00 A.M., in
the applicable Principal Financial Center, on such LIBOR Interest Determination
Date by three major banks in such Principal Financial Center selected by the
Calculation Agent for loans in the Designated LIBOR Currency to leading European
banks, having the Index Maturity and in a principal amount that is
representative for a single transaction in the Designated LIBOR Currency in such
market at such

                                       16
<PAGE>

time; PROVIDED, HOWEVER, that if the banks so selected by the Calculation Agent
are not quoting as mentioned in this sentence, LIBOR determined as of such LIBOR
Interest Determination Date shall be LIBOR in effect on such LIBOR Interest
Determination Date.

         "Designated LIBOR Currency" means the currency specified on the face
hereof as to which LIBOR shall be calculated or, if no such currency is
specified on the face hereof, United States dollars.

         "Designated LIBOR Page" means (a) if "LIBOR Reuters" is specified on
the face hereof, the display on the Reuter Monitor Money Rates Service (or any
successor service) on the page specified on the face hereof (or any other page
as may replace such page on such service) for the purpose of displaying the
London interbank rates of major banks for the Designated LIBOR Currency, or (b)
if "LIBOR Telerate" is specified on the face hereof or neither "LIBOR Reuters"
nor "LIBOR Telerate" is specified on the face hereof as the method for
calculating LIBOR, the display on Bridge Telerate, Inc. (or any successor
service) on the page specified on the face hereof (or any other page as may
replace such page on such service) for the purpose of displaying the London
interbank rates of major banks for the Designated LIBOR Currency.

         PRIME RATE. If an Interest Rate Basis for this Note is specified on the
face hereto as the Prime Rate, the Prime Rate shall be determined as of the
applicable Interest Determination Date (a "Prime Rate Interest Determination
Date") as the rate on such date as such rate is published in H.15(519) under the
caption "Bank Prime Loan" or, if not published by 3:00 P.M., New York City time,
on the related Calculation Date, the rate on such Prime Rate Interest
Determination Date as published in H.15 Daily Update, or such other recognized
electronic source used for the purpose of displaying such rate, under the
caption "Bank Prime Loan." If such rate is not yet published in H.15(519), H.15
Daily Update or another recognized electronic source by 3:00 P.M., New York City
time, on the related Calculation Date, the Prime Rate shall be the arithmetic
mean of the rates of interest publicly announced by each bank that appears on
the Reuters Screen US PRIME 1 Page (as defined below) as such bank's prime rate
or base lending rate as of 11:00 A.M., New York City time, on such Prime Rate
Interest Determination. If fewer than four such rates so appear on the Reuters
Screen US PRIME 1 Page for such Prime Rate Interest Determination Date, then the
Prime Rate shall be the arithmetic mean of the prime rates or base lending
quoted on the basis of the actual number of days in the year divided by a
360-day year as of the close of business on such Prime Rate Interest
Determination Date by three major banks in The City of New York selected by the
Calculation Agent; PROVIDED, HOWEVER, that if the banks or trust companies so
selected by the Calculation Agent are not quoting as mentioned in this sentence,
the Prime Rate determined as of such Prime Rate Interest Determination Date will
be the Prime Rate in effect on such Prime Rate Interest Determination Date.

         "Reuters Screen US PRIME 1 Page" means the display on the Reuter
Monitor Money Rates Service (or any successor service) on the "US PRIME 1" Page
(or such other page as may replace the US PRIME 1 Page on such service) for the
purpose of displaying prime rates or base lending rates of major United States
banks.

         TREASURY RATE. If an Interest Rate Basis for this Note is specified on
the face hereof as the Treasury Rate, the Treasury Rate shall be determined as
of the applicable Interest Determination Date (a "Treasury Rate Interest
Determination Date") as the rate from the auction held on such Treasury Rate
Interest Determination Date (the "Auction") of direct obligations of

                                       17
<PAGE>

the United States ("Treasury Bills") having the Index Maturity under the
caption "INVESTMENT RATE" on the display on Bridge Telerate, Inc. (or any
successor service) on page 56 (or any other page as may replace such page on
such service) ("Telerate Page 56") or page 57 (or any other page as may
replace such page on such service) ("Telerate Page 57") or, if not so
published by 3:00 P.M., New York City time, on the related Calculation Date,
The Bond Equivalent Yield (as defined below) of the rate for such Treasury
Bills as published in H.15 Daily Update, or such other recognized electronic
source used for the purpose of displaying such rate, under the caption "U.S.
Government Securities/Treasury Bills/Auction High" or, if not so published by
3:00 P.M., New York City time, on the related Calculation Date, the Bond
Equivalent Yield of the auction rate of such Treasury Bills as announced by
the United States Department of the Treasury. In the event that the auction
rate of Treasury Bills having the Index Maturity is not so announced by the
United States Department of the Treasury, or if no such Auction is held, then
the Treasury Rate will be the Bond Equivalent Yield of the rate on such
Treasury Rate Interest Determination Date of Treasury Bills having the Index
Maturity published in H.15(519) under the caption "U.S. Government
Securities/Treasury Bills/Secondary Market" or, if not yet published by 3:00
P.M., New York City time, on the related Calculation Date, the rate on such
Treasury Rate Interest Determination Date of such Treasury Bills as published
in H.15 Daily Update, or such other recognized electronic source used for the
purpose of displaying such rate, under the caption "U.S. Government
Securities/Treasury Bills/Secondary Market." If such rate is not yet
published in H.15(519), H.15 Daily Update or another recognized electronic
source, then the Treasury Rate will be calculated by the Calculation Agent
and will be the Bond Equivalent Yield of the arithmetic mean of the secondary
market bid rates, as of approximately 3:30 P.M., New York City time, on such
Treasury Rate Interest Determination Date, of three primary United States
government securities dealers (which may include the Agents or their
affiliates) selected by the Calculation Agent, for the issue of Treasury
Bills with a remaining maturity closest to the Index Maturity; PROVIDED,
HOWEVER, that if the dealers so selected by the Calculation Agent are not
quoting as mentioned in this sentence, the Treasury Rate determined as of
such Treasury Rate Interest Determination Date will be the Treasury Rate in
effect on such Treasury Rate Interest Determination Date.

         "Bond Equivalent Yield" means a yield (expressed as a percentage)
calculated in accordance with the following formula:

                                                D x N
                  Bond Equivalent Yield=   ---------------- x 100
                                            360 - (D x M)

         where "D" refers to the applicable per annum rate for Treasury Bills
quoted on a bank discount basis, "N" refers to 365 or 366, as the case may
be, and "M" refers to the actual number of days in the applicable Interest
Reset Period.

         Notwithstanding the foregoing, the interest rate hereon shall not be
greater than the Maximum Interest Rate, if any, or less than the Minimum
Interest Rate, if any, in each case as specified on the face hereof. The
interest rate on this Note will in no event be higher than the maximum rate
permitted by New York law, as the same may be modified by United States law of
general application.

         The Calculation Agent shall calculate the interest rate hereon on or
before each Calculation Date. The "Calculation Date", if applicable, pertaining
to any Interest Determination Date shall be the earlier of (i) the tenth
calendar day after such Interest Determination Date or, if such day is not a
Business Day, the next succeeding Business Day or (ii) the Business Day
immediately preceding the applicable Interest Payment Date or the Maturity Date,
as the case may be. At the request of the holder hereof, the Calculation Agent
will provide to the holder hereof the interest rate hereon then in effect and,
if determined, the interest rate that will become effective as a result of a
determination made for the next succeeding Interest Reset Date.

         Accrued interest hereon shall be an amount calculated by multiplying
the principal amount hereof by an accrued interest factor. Such accrued interest
factor shall be computed by adding the interest factor calculated for each day
in the applicable Interest Period. Unless

                                       18
<PAGE>

otherwise specified as the Day Count Convention on the face hereof, the interest
factor for each such date shall be computed by dividing the interest rate
applicable to such day by 360 if the CD Rate, the Commercial Paper Rate, the
Eleventh District Cost of Funds Rate, the Federal Funds Rate, LIBOR or the Prime
Rate is an applicable Interest Rate Basis or by the actual number of days in the
year if the CMT Rate or the Treasury Rate is an applicable Interest Rate Basis.
Unless otherwise specified as the Day Count Convention on the face hereof, the
interest factor for this Note, if the interest rate is calculated with reference
to two or more Interest Rate Bases, shall be calculated in each period in the
same manner as if only the Applicable Interest Rate Basis specified on the face
hereof applied.

         All percentages resulting from any calculation on this Note shall be
rounded to the nearest one hundred-thousandth of a percentage point, with five
one-millionths of a percentage point rounded upwards, and all amounts used in or
resulting from such calculation on this Note shall be rounded, in the case of
United States dollars, to the nearest cent or, in the case of a Specified
Currency other than United States dollars, to the nearest unit (with one-half
cent or unit being rounded upwards).

         Subordinated Indebtedness evidenced by this Note is subordinate and
junior in right of payment to the prior payment in full of all Senior
Indebtedness (defined below) of the Company and each holder of this Note by
accepting the same agrees to and shall be bound by the provisions hereof, and
authorizes the Trustee on his behalf to take such action as may be necessary or
appropriate to effectuate the same and appoints the Trustee as his
attorney-in-fact for such purpose.

         For all purposes herein, the term "Senior Indebtedness" shall mean all
of the indebtedness of, or guaranteed by, the Company for borrowed money
(including the principal of, premium, if any, or interest on any such borrowed
money and any commitment fees for unborrowed amounts which, if borrowed, would
constitute Senior Indebtedness), whether currently outstanding or hereafter
incurred, unless, under the instrument evidencing the same or under which the
same is outstanding, it is expressly provided that such indebtedness is
subordinate to other indebtedness and obligations of the Company.

         In the event that the Company shall default in the payment of any
Senior Indebtedness, when the same becomes due and payable, whether at maturity
or on a date fixed for prepayment or by declaration or otherwise, then, unless
and until such default shall have been cured or waived or shall have ceased to
exist, no direct or indirect payment (in cash, property, or securities or by
set-off or otherwise) shall be made or agreed to be made on account of the
principal of, premium, if any, or interest or any Additional Amounts on this
Note, or in respect of any sinking fund for, or redemption, retirement or
purchase or other acquisition of this Note.

         Upon the happening of an event of default with respect to any Senior
Indebtedness permitting the holders thereof to accelerate the maturity thereof
(other than under the circumstances when the terms of the immediately preceding
paragraph are applicable), then, unless and until such event of default shall
have been cured or waived or shall have ceased to exist, no direct or indirect
payment (in cash, property, or securities or by set-off or otherwise) shall be
made or agreed to be made on account of the principal of, or premium, if any, or
interest or any Additional Amounts on this Note or in respect of any sinking
fund for, or redemption, retirement or purchase or other acquisition of this
Note during any period (i) of 90 days after

                                       19
<PAGE>

written notice of such default shall have been given to the Company by any
holder of Senior Indebtedness or (ii) in which any judicial proceeding shall be
pending in respect of such default and a notice of acceleration of the maturity
of such Senior Indebtedness shall have been transmitted to the Company in
respect of such default.

         In the event of (i) any insolvency, bankruptcy, receivership,
liquidation, reorganization, readjustment, composition or other similar
proceeding relating to the Company, its creditors or its property; (ii) any
proceeding for the liquidation, dissolution or other winding-up of the Company,
voluntary or involuntary, whether or not involving insolvency or bankruptcy
proceedings; (iii) any assignment by the Company for the benefit of creditors;
or (iv) any other marshalling of the assets of the Company, all Senior
Indebtedness (including any interest accruing after commencement of any such
proceedings) shall first be paid in full before any payment or distribution,
whether in cash, securities or other property, shall be made to any Holder of
this Note on account of this Note. Any payment or distribution, whether in cash,
securities or other property (other than securities of the Company or any other
corporation provided for by a plan of reorganization or readjustment the payment
of which is subordinate, at least to the extent provided herein with respect to
this Note, to the payment of all Senior Indebtedness at the time Outstanding and
to any securities issued in respect thereof under any such plan of
reorganization or readjustment), which would otherwise but for the foregoing be
payable or deliverable in respect of this Note shall be paid or delivered
directly to the holders of Senior Indebtedness in accordance with the priorities
then existing among such holders until all Senior Indebtedness (including any
interest thereon accruing after the commencement of any such proceedings) shall
have been paid in full.

         In the event that this Note shall be declared due and payable as a
result of the occurrence of any one or more defaults in respect thereof (under
circumstances when the terms of the immediately preceding paragraph are not
applicable), no payment shall be made in respect of this Note unless and until
all Senior Indebtedness shall have been paid in full or such declaration and its
consequences shall have been rescinded and all such defaults shall have been
remedied or waived.

         If any payment or distribution to be paid to the holders of Senior
Indebtedness shall be received by any holder of this Note in contravention of
the foregoing and before all the Senior Indebtedness shall have been paid in
full, such payment or distribution of any character or any security whether in
cash, securities or other property (other than securities of the Company or any
other corporation provided for by a plan of reorganization or readjustment the
payment of which is subordinate, at least to the extent provided in the
provisions of the Subordinated Indenture with respect to the Subordinated
Securities, to the payment of all Senior Indebtedness at the time outstanding
and to any securities issued in respect thereof under any such plan or
reorganization or readjustment), shall be received in trust for the benefit of,
and shall be paid over or delivered and transferred to, the holders of Senior
Indebtedness at the time Outstanding in accordance with the priorities then
existing among such holders for application to the payment of all Senior
Indebtedness remaining unpaid, to the extent necessary to pay all such Senior
Indebtedness in full. In the event of the failure of the holder of this Note to
endorse or assign any such payment, distribution or security, each holder of
Senior Indebtedness is hereby irrevocably authorized to endorse or assign the
same. Nothing contained herein shall impair, as between the Company and the
holder of this Note, the obligation of the Company to pay to the

                                       20
<PAGE>

holder thereof the principal thereof and interest thereon as and when the same
shall become due and payable in accordance with the terms of this Note, or
prevent the Holder of this Note from exercising all rights, powers and remedies
otherwise permitted by applicable law or pursuant to the terms of this Note or
the Subordinated Indenture upon a default or Event of Default under the
Subordinated Indenture, all subject to the rights of the holders of Senior
Indebtedness to receive cash, securities or other property otherwise payable or
deliverable to the Holder of this Note. Senior Indebtedness shall not be deemed
to have been paid in full unless the holders thereof shall have received cash
equal to the amount of such Senior Indebtedness then Outstanding. Upon the
payment in full of all Senior Indebtedness, the holder of this Note shall be
subrogated to all rights of any holders of Senior Indebtedness to receive any
further payments or distributions applicable to the Senior Indebtedness until
all amounts owing on this Note shall have been paid in full, and such payments
or distributions received by the holder of this Note by reason of such
subrogation, of cash, securities or other property which otherwise would be paid
or distributed to the holders of Senior Indebtedness, shall, as between the
Company and its creditors other than the holders of Senior Indebtedness, on the
one hand, and the Holder of this Note, on the other hand, be deemed to be a
payment by the Company on account of Senior Indebtedness and not on account of
this Note.

         If an Event of Default shall occur and be continuing, the principal of
all the Notes may be declared due and payable in the manner and with all the
effect provided in the Subordinated Indenture.

         If an Event of Default, as defined in the Subordinated Indenture, shall
occur and be continuing, the principal of the Notes may be declared due and
payable in the manner and with the effect provided in the Subordinated
Indenture.

         The Subordinated Indenture contains provisions for defeasance of the
entire indebtedness of the Notes upon compliance with certain conditions set
forth therein, which provisions apply to the Notes.

         The Subordinated Indenture permits, with certain exceptions as therein
provided, the amendment thereof and the modification of the rights and
obligations of the Company and the rights of the holders of the Debt Securities
at any time by the Company and the Trustee with the consent of the holders of
not less than 66% in principal amount of the Outstanding Debt Securities of
each series affected thereby. The Subordinated Indenture also contains
provisions permitting the holders of at least 66% in principal amount of the
Outstanding Debt Securities of any series, on behalf of the holders of all such
Debt Securities of such series, to waive compliance by the Company with certain
provisions of the Subordinated Indenture. Furthermore, provisions in the
Subordinated Indenture permit the holders of not less than a majority in
principal amount of the Outstanding Debt Securities of any series, in certain
instances, to waive, on behalf of all of the holders of Debt Securities of such
series, certain past defaults under the Subordinated Indenture and their
consequences. Any such consent or waiver by the holder of this Note shall be
conclusive and binding upon such holder and upon all future holders of this Note
and other Notes issued upon the registration of transfer hereof or in exchange
herefor or in lieu hereof, whether or not notation of such consent or waiver is
made upon this Note.

                                       21
<PAGE>

         No reference herein to the Subordinated Indenture and no provision of
this Note or of the Subordinated Indenture shall alter or impair the obligation
of the Company, which is absolute and unconditional, to pay principal, premium,
if any, and interest in respect of this Note at the times, places and rate or
formula, and in the coin or currency, herein prescribed.

         As provided in the Subordinated Indenture and subject to certain
limitations therein and herein set forth, the transfer of this Note is
registrable in the Security Register of the Company upon surrender of this Note
for registration of transfer at the office or agency of the Company in any place
where the principal hereof and any premium or interest hereon are payable, duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Company and the Security Registrar duly executed by, the
holder hereof or by his attorney duly authorized in writing, and thereupon one
or more new Notes, of authorized denominations and for the same aggregate
principal amount, will be issued to the designated transferee or transferees.

         As provided in the Subordinated Indenture and subject to certain
limitations therein and herein set forth, this Note is exchangeable for a like
aggregate principal amount of Notes of different authorized denominations but
otherwise having the same terms and conditions, as requested by the holder
hereof surrendering the same.

         No service charge shall be made for any such registration of transfer
or exchange, but the Company may require payment of a sum sufficient to cover
any tax or other governmental charge payable in connection therewith.

         Prior to due presentment of this Note for registration of transfer, the
Company, the Trustee and any agent of the Company or the Trustee may treat the
holder in whose name this Note is registered as the owner thereof for all
purposes, whether or not this Note be overdue, and neither the Company, the
Trustee nor any such agent shall be affected by notice to the contrary.

         THE SUBORDINATED INDENTURE AND THIS NOTE SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO
AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY IN SUCH STATE.

                                       22
<PAGE>

                                  ABBREVIATIONS

         The following abbreviations, when used in the inscription on the face
of this Note, shall be construed as though they were written out in full
according to applicable laws or regulations:

UNIF GIFT MIN ACT -     _____________ Custodian ______________
                          (Cust)                   (Minor)

under Uniform Gifts to Minors Act ________________
                                      (State)

TEN COM - as tenants in common
TEN ENT - as tenants by the entireties
JT TEN -  as joint tenants with right of survivorship and
          not as tenants in common

   Additional abbreviations may also be used though not in the above list.

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

  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
unto

PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE

|                              |
-------------------------------------------------------------------------
|______________________________|_________________________________________(Please
print or typewrite name and address including postal zip code of assignee)

______________________________________________________________________________
this Note and all rights thereunder hereby irrevocably constituting and
appointing __________________________________________________________ Attorney
to transfer this Note on the books of the Trustee, with full power of
substitution in the premises.

Dated:_____________________           _______________________________________

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

                               Notice: The signature(s) on this assignment must
                           correspond with the name(s) as written upon the face
                           of this Note in every particular, without alteration
                           or enlargement or any change whatsoever.

                                       23
<PAGE>

OPTION TO ELECT REPAYMENT

         The undersigned hereby irrevocably request(s) and instruct(s) the
Company to repay this Note (or portion hereof specified below) pursuant to its
terms at a price equal to 100% of the principal amount to be repaid, together
with unpaid interest accrued hereon to the Repayment Date, to the undersigned,
at ___________________

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

         (Please print or typewrite name and address of the undersigned)

         For this Note to be repaid, the Trustee must receive at its corporate
trust office, currently located at __________________________________________,
not more than 60 nor less than 30 calendar days prior to the Repayment Date,
this Note with this "Option to Elect Repayment" form duly completed.

         If less than the entire principal amount of this Note is to be repaid,
specify the portion hereof (which shall be increments of U.S.$1,000 (or, if the
Specified Currency is other than United States dollars, the minimum Authorized
Denomination specified on the face hereof)) which the holder elects to have
repaid and specify the denomination or denominations (each of which shall be an
Authorized Denomination) of the Notes to be issued to the holder for the portion
of this Note not being repaid (in the absence of any such specification, one
such Note will be issued for the portion not being repaid).

Principal Amount
to be Repaid:

                                     Notice:  The signature(s) on
Date:                                this Option to Elect Repayment
     ----------                      must correspond with the name(s)
                                     as written upon the face of this Note in
                                     every particular, without alteration
                                     or enlargement or any change whatsoever.

             --------------- COMPARISON OF FOOTNOTES ---------------

             - FOOTNOTE 1-

             (1) This paragraph applies to global Notes only .1

             - FOOTNOTE 2-

             (1) This paragraph applies to global Notes only .2

                                       24<PAGE>

                                                                     EXHIBIT 4.4

                                PERFICIENT, INC.

                      FLEXIBLE NONSTANDARDIZED SAFE HARBOR
                           401(k) PROFIT SHARING PLAN
                               ADOPTION AGREEMENT)

<PAGE>

<TABLE>
<CAPTION>

FLEXIBLE NONSTANDARDIZED SAFE HARBOR 401(k) PROFIT SHARING PLAN
ADOPTION AGREEMENT

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

                         SECTION 1. EMPLOYER INFORMATION

<S>     <C>              <C>               <C>               <C>                       <C>
Name of Employer Perficient, Inc.
                ---------------------------------------------------------------------------------------------------

Address  901 S. Mopac Expressway, Bldg. V, Suite 130
       ------------------------------------------------------------------------------------------------------------

City Austin                         State   TX       Zip      78746
     -------------------------------     ------------   -----------------------------------------------------------

Telephone         512-306-7337      Employer's Federal Tax Identification Number        74-2853258
         --------------------------                                              ----------------------------------

Type of Business (CHECK ONLY ONE)   / / Sole Proprietorship   / / Partnership   /X/ C Corporation
/ / S Corporation
/ / Other
(SPECIFY)
         ----------------------------------------------------------------------------------------------------------

/ / Check here if Related Employers may participate in this Plan and attach a Related Employer Participation
Agreement for each Related Employer who will participate in this Plan.

Business Code
             ---------

Name of Plan THE PERFICIENT 401(k) EMPLOYEE SAYINGS PLAN
             -----------------------------------------------------------------------------------------------------
Name of Trust (if DIFFERENT FROM PLAN
NAME)
     ---------------------------------------------------------------------------

Plan Sequence Number 001 (ENTER 001 IF THIS IS THE FIRST QUALIFIED PLAN THE EMPLOYER HAS EVER
                     ---
MAINTAINED, ENTER 002 IF IT IS THE SECOND, ETC.)

Trust Identification Number (IF APPLICABLE)            ACCOUNT NUMBER (OPTIONAL)  GA#6570
                                           ----------                           ---------
</TABLE>

                           SECTION 2. EFFECTIVE DATES
                             COMPLETE PARTS A AND B

PART A.  GENERAL EFFECTIVE DATES (CHECK AND COMPLETE OPTION 1  OR 2):

         Option 1:         /X/      This is the initial adoption of a profit
                                    sharing plan by the Employer.

                                    The Effective Date of this Plan is 10-01-98.
                                                                       ---------

<PAGE>

                                                                         Page 2

                                   NOTE: The EFFECTIVE DATE IS USUALLY THE
                                   FIRST DAY OF THE PLAN YEAR IN WHICH THIS
                                   ADOPTION AGREEMENT IS SIGNED.

        Option 2:         / /      This is an amendment and restatement of an
                                   existing profit sharing plan (a Prior Plan).
                                   The Prior Plan was initially effective on

                                   ------------------.
                                   The Effective Date of this amendment and
                                   restatement is

                                   --------------.

                                   NOTE: The EFFECTIVE DATE IS USUALLY THE
                                   FIRST DAY OF THE PLAN YEAR IN WHICH THIS
                                   ADOPTION AGREEMENT IS SIGNED.

PART B. COMMENCEMENT OF ELECTIVE DEFERRALS:

        Elective Deferrals may commence on              .
                                          ---------------

        NOTE: THIS DATE MAY BE NO EARLIER THAN THE DATE THIS ADOPTION AGREEMENT
              IS SIGNED BECAUSE ELECTIVE DEFERRALS CANNOT BE MADE RETROACTIVELY.

                        SECTION 3. RELEVANT TIME PERIODS
                           Complete parts A through C

PART A. EMPLOYER'S FISCAL YEAR:
        The Employer's fiscal year ends (SPECIFY MONTH AND DATE) 12-31 .
                                                                 -------

PART B. PLAN YEAR MEANS:

        Option 1:   /X/   The 12-consecutive month period which coincides with
                          the Employer's fiscal year.
        Option 2:   / /   The calendar year.
        Option 3:   / /   Other 12-consecutive month period
(SPECIFY)
         --------------------------------------

        NOTE: If NO OPTION IS SELECTED, OPTION 1 WILL BE DEEMED TO BE SELECTED.

        If the initial Plan Year is less than 12 months (a short Plan Year)
specify such Plan Year's beginning and ending dates October 1, 1998 to December
                                                    ----------------------------
31, 1998.
---------

PART C. LIMITATION YEAR MEANS:

        Option 1:   /X/   The Plan Year.

        Option 2:   / /   The calendar year.
<PAGE>

                                                                         Page 3

         Option 3:   / /   Other 12-consecutive month period (SPECIFY)

         NOTE:  IF NO OPTION IS SELECTED, OPTION 1 WILL BE DEEMED TO BE
                SELECTED.

                       SECTION 4. ELIGIBILITY REQUIREMENTS
                           COMPLETE PARTS A THROUGH G

PART A.  YEARS OF ELIGIBILITY SERVICE REQUIREMENT:

         1.       ELECTIVE DEFERRALS.

         An Employee will be eligible to become a Contributing Participant in
         the Plan (and thus be eligible to make Elective Deferrals) and receive
         Matching Contributions (including Qualified Matching Contributions, if
         applicable) after completing 0 (ENTER 0, 1 OR ANY FRACTION LESS THAN 1)
         Years of Eligibility Service.

         2.       EMPLOYER PROFIT SHARING CONTRIBUTIONS.

         An Employee will be eligible to become a Participant in the Plan for
         purposes of receiving an allocation of any Employer Profit Sharing
         Contribution made pursuant to Section 10 of the Adoption Agreement
         after completing 0 (ENTER 0, 1, 2 OR ANY FRACTION LESS THAN 2) Years of
         Eligibility Service.

         NOTE: IF MORE THAN 1 YEAR IS SELECTED FOR ITEM 2, THE IMMEDIATE 100%
         VESTING SCHEDULE OF SECTION 12 WILL AUTOMATICALLY APPLY FOR
         CONTRIBUTIONS DESCRIBED IN SUCH ITEM. IF EITHER ITEM IS LEFT BLANK, THE
         YEARS OF ELIGIBILITY SERVICE REQUIRED FOR SUCH ITEM WILL BE DEEMED TO
         BE 0. IF A FRACTION IS SELECTED, AN EMPLOYEE WILL NOT BE REQUIRED TO
         COMPLETE ANY SPECIFIED NUMBER OF HOURS OF SERVICE TO RECEIVE CREDIT FOR
         A FRACTIONAL YEAR. IF A SINGLE ENTRY DATE IS SELECTED IN SECTION 4,
         PART G FOR AN ITEM, THE YEARS OF ELIGIBILITY SERVICE REQUIRED FOR SUCH
         ITEM CANNOT EXCEED 1.5 (.5 FOR ELECTIVE DEFERRALS).

PART B.  AGE REQUIREMENT:

         1.       ELECTIVE DEFERRALS.

         An Employee will be eligible to become a Contributing Participant (and
         thus be eligible to make Elective Deferrals) and receive Matching
         Contributions (including Qualified Matching Contributions, if
         applicable) after attaining age 21 (NO MORE THAN 21).

         2.       EMPLOYER PROFIT SHARING CONTRIBUTIONS.

         An Employee will be eligible to become a Participant in the Plan for
         purposes of receiving an allocation of any Employer Profit Sharing
         Contribution made pursuant to Section 10 of the Adoption Agreement
         after attaining age 21 (NO MORE THAN 21).

<PAGE>

                                                                         Page 4

         NOTE: IF EITHER OF THE ABOVE ITEMS IN THIS SECTION 4, PART B IS LEFT
         BLANK, IT WILL BE DEEMED THERE IS NO AGE REQUIREMENT FOR SUCH ITEM. IF
         A SINGLE ENTRY DATE IS SELECTED IN SECTION 4, PART G FOR AN ITEM, NO
         AGE REQUIREMENT CAN EXCEED 20.5 FOR SUCH ITEM.

PART C.  EMPLOYEES EMPLOYED AS OF EFFECTIVE DATE:

         Will all Employees employed as of the Effective Date of this Plan who
         have not otherwise met the requirements of Part A or Part B above be
         considered to have met those requirements as of the Effective Date?
         /X/ Yes / / No.

         NOTE:  IF A BOX IS NOT CHECKED IN THIS SECTION 4, PART C, "NO" WILL BE
         DEEMED TO BE SELECTED.

PART D.  EXCLUSION OF CERTAIN CLASSES OF EMPLOYEES:

         All Employees will be eligible to become Participants in the Plan
except:

         a.  /X/  Those Employees included in a unit of Employees covered by a
                  collective bargaining agreement between the Employer and
                  Employee representatives, if retirement benefits were the
                  subject of good faith bargaining and if two percent or less of
                  the Employees who are covered pursuant to that agreement are
                  professionals as defined in Section 1.410(b)-9 of the
                  regulations. 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.

         b.  /X/  Those Employees who are non-resident aliens (within the
                  meaning of Section 7701(b)(1)(B) of the Code) and who received
                  no earned income (within the meaning of Section 911(d)(2) of
                  the Code) from the Employer which constitutes income from
                  sources within the United States (within the meaning of
                  Section 861(a)(3) of the Code).

         c.  / /  Those Employees of a Related Employer that has not executed a
                  Related Employer Participation Agreement.

         d.  / /  Other (DEFINE)
                                 -----------------------------------------------

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

PART E.  ELECTION NOT TO PARTICIPATE:

         May an Employee or a Participant elect not to participate in this Plan
         pursuant to Section 2.08 of the Plan?

<PAGE>

                                                                         Page 5

         Option 1:   / /   Yes.

         Option 2:   /X/   No.

         NOTE: If NO OPTION IS SELECTED, OPTION 2 WILL BE DEEMED TO BE SELECTED.

PART F.  HOURS REQUIRED FOR ELIGIBILITY PURPOSES:

         1.       _________         Hours of Service (NO MORE THAN 1,000) shall
                                    be required to constitute a Year of
                                    Eligibility Service.

         2.       _________         Hours of Service (NO MORE THAN 500 BUT LESS
                  THAN THE NUMBER SPECIFIED IN SECTION 4, PART F, ITEM 1, ABOVE)
                  must be exceeded to avoid a Break in Eligibility Service.

         3.       For purposes of determining Years of Eligibility Service,
                  Employees shall be given credit for Hours of Service with the
                  following predecessor employer(s):
                  (COMPLETE IF APPLICABLE)

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

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

PART G.  ENTRY DATES:

The Entry Dates for participation shall be (CHOOSE ONE):

         Option 1:   / /   The first day of the Plan Year and the first day of
                           the seventh month of the Plan Year.

         Option 2:   /X/   Other (SPECIFY) January 1, April 1, July 1 and
                                           -------------------------------
                           October 1.
                           ----------

NOTE: IF NO OPTION IS SELECTED, OPTION 1 WILL BE DEEMED TO BE SELECTED. OPTION 2
CAN BE SELECTED ONLY IF THE ELIGIBILITY REQUIREMENTS AND ENTRY DATES ARE
COORDINATED SUCH THAT EACH EMPLOYEE WILL BECOME A PARTICIPANT IN THE PLAN NO
LATER THAN THE EARLIER OF: (1) THE FIRST DAY OF THE PLAN YEAR BEGINNING AFTER
THE DATE THE EMPLOYEE SATISFIES THE AGE AND SERVICE REQUIREMENTS OF SECTION
410(a) OF THE CODE; OR (2) 6 MONTHS AFTER THE DATE THE EMPLOYEE SATISFIES SUCH
REQUIREMENTS.

<PAGE>

                                                                          Page 6

                    SECTION 5. METHOD OF DETERMINING SERVICE
                              COMPLETE PART A OR B

PART A.  HOURS OF SERVICE EQUIVALENCIES:

      Service 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. (CHOOSE ONE):

      Option 1:   /X/   On the basis of actual hours for which an Employee is
                        paid or entitled to payment.

      Option 2:   / /   On the basis of days worked. An Employee will be
                        credited with 10 Hours of Service if under Section
                        1.24 of the Plan such Employee would be, credited
                        with at least 1 Hour of Service during the day.

      Option 3:   / /   On the basis of weeks worked. An Employee will be
                        credited with 45 Hours of Service if under Section
                        1.24 of the Plan such Employee would be credited with
                        at least 1 Hour of Service during the week.

      Option 4:   / /   On the basis of months worked. An Employee will be
                        credited with 190 Hours of Service if under Section
                        1.24 of the Plan such Employee would be credited with
                        at least 1 Hour of Service during the month.

                        NOTE: IF NO OPTION IS SELECTED, OPTION 1 WILL BE
                        DEEMED TO BE SELECTED. THIS SECTION 5, PART A WILL
                        NOT APPLY IF THE ELAPSED TIME METHOD OF SECTION 5,
                        PART B IS SELECTED.

PART B.  ELAPSED TIME METHOD:

      In lieu of tracking Hours of Service of Employees, will the elapsed
      time method described in Section 2.07 of the Plan be used? (CHOOSE
      ONE).

      Option 1:   / /   No.

      Option 2:   / /   Yes.

      NOTE:  IF NO OPTION IS SELECTED, OPTION 1 WILL BE DEEMED TO BE SELECTED.

<PAGE>

                                                                          Page 7

                          SECTION 6. ELECTIVE DEFERRALS

PART A.  AUTHORIZATION OF ELECTIVE DEFERRALS:

      Will Elective Deferrals be permitted under this Plan? (CHOOSE ONE).

      Option 1:   /X/   Yes.

      Option 2:   / /   No.

      NOTE: IF NO OPTION IS SELECTED, OPTION 1 WILL BE DEEMED TO BE SELECTED.
      COMPLETE THE REMAINDER OF SECTION 6 ONLY IF OPTION 1 IS SELECTED.

PART B.  LIMITS ON ELECTIVE DEFERRALS:

      If Elective Deferrals are permitted under the Plan, a Contributing
      Participant may elect under a salary reduction agreement to have his or
      her Compensation reduced by an amount as described below (CHOOSE ONE):

      Option 1:   /X/   An amount equal to a percentage of the Contributing
                        Participant's Compensation from 1% to 20% in
                        increments of 1%.

      Option 2:   / /   An amount of the Contributing Participant's
                        Compensation not less than and not more than _______.

      The amount of such reduction shall be contributed to the Plan by the
      Employer on behalf of the Contributing Participant. For any taxable
      year, a Contributing Participant's Elective Deferrals shall not exceed
      the limit contained in Section 402(g) of the Code in effect at the
      beginning of such taxable year.

PART C.  ELECTIVE DEFERRALS BASED ON BONUSES:

Instead of or in addition to making Elective Deferrals through payroll
deduction, may a Contributing Participant elect to contribute to the Plan, as an
Elective Deferral, part or all of a bonus rather than receive such bonus in
cash? (CHOOSE ONE).

      Option 1:   / /   Yes.

      Option 2:   /X/   No.

      NOTE:  IF NO OPTION IS SELECTED, OPTION 2 WILL BE DEEMED TO BE SELECTED.

<PAGE>

                                                                          Page 8

PART D.  RETURN AS A CONTRIBUTING PARTICIPANT AFTER CEASING ELECTIVE DEFERRALS:

      A Participant who ceases Elective Deferrals by revoking a salary
      reduction agreement may return as a Contributing Participant as of such
      times established by the Plan Administrator in a uniform and
      nondiscriminatory manner.

PART E.  CHANGING ELECTIVE DEFERRAL AMOUNTS:

      A Contributing Participant may modify a salary reduction agreement to
      prospectively increase or decrease the amount of his or her Elective
      Deferrals as of such times established by the Plan Administrator in a
      uniform and nondiscriminatory manner.

PART F.  CLAIMING EXCESS ELECTIVE DEFERRALS:

      Participants who claim Excess Elective Deferrals for the preceding
      calendar year must submit their claims in writing to the Plan
      Administrator by (CHOOSE ONE):
      Option 1:   /X/   March 1.

      Option 2:   / /   Other (SPECIFY A DATE NOT LATER THAN APRIL 15) ________.

      NOTE:  IF NO OPTION IS SELECTED, OPTION 1 WILL BE DEEMED TO BE SELECTED.

                        SECTION 7. MATCHING CONTRIBUTIONS

PART A.  AUTHORIZATION OF MATCHING CONTRIBUTIONS:

      Will the Employer make Matching Contributions to the Plan on behalf of
      Qualifying Contributing Participants? (CHOOSE ONE).

      Option 1:   /X/   Yes, but only with respect to a Contributing
                        Participant's Elective Deferrals.

      Option 2:   / /   Yes, but only with respect to a Participant's
                        Nondeductible Employee Contributions.

      Option 3:   / /   Yes, with respect to both Elective Deferrals and
                        Nondeductible Employee Contributions.

      Option 4:   / /   No.

      NOTE: IF NO OPTION IS SELECTED, OPTION 4 WILL BE DEEMED TO BE SELECTED.
      COMPLETE THE REMAINDER OF SECTION 7 ONLY IF OPTION 1, 2 OR 3 IS
      SELECTED.

<PAGE>

                                                                          Page 9

PART B.  MATCHING CONTRIBUTION FORMULA:

      If the Employer will make Matching Contributions, then the amount of
      such Matching Contributions made on behalf of a Qualifying Contributing
      Participant each Plan Year shall be (CHOOSE ONE):

      Option 1:   / /   An amount equal to ___ % of such Contributing
                        Participant's  Elective Deferral (and/or
                        Nondeductible Employee Contribution, if applicable).

      Option 2:   / /   An amount equal to the sum of ___ % of the portion
                        of such Contributing Participant's Elective Deferral
                        (and/or Nondeductible Employee Contribution, if
                        applicable) which does not exceed ___ % of the
                        Contributing Participant's Compensation plus ___ % of
                        the portion of such Contributing Participant's
                        Elective Deferral (and/or Nondeductible Employee
                        Contribution, if applicable) which exceeds ___% of
                        the Contributing Participant's Compensation.

      Option 3:   /X/   Such amount, if any, equal to that percentage of each
                        Contributing Participant's Elective Deferral (and/or
                        Nondeductible Employee Contribution, if applicable)
                        which the Employer, in its sole discretion,
                        determines from year to year.

      Option 4:   / /   Other Formula.  (SPECIFY)
                                                  ---------------------------

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

      NOTE: IF OPTION 4 IS SELECTED, THE FORMULA SPECIFIED CAN ONLY ALLOW
      MATCHING CONTRIBUTIONS TO BE MADE WITH RESPECT TO A CONTRIBUTING
      PARTICIPANT'S ELECTIVE DEFERRALS (AND/OR NONDEDUCTIBLE EMPLOYEE
      CONTRIBUTION, IF APPLICABLE).

PART C.  LIMIT ON MATCHING CONTRIBUTIONS:

      Notwithstanding the Matching Contribution formula specified above, no
      Matching Contribution will be made with respect to a Contributing
      Participant's Elective Deferrals (and/or Nondeductible Employee
      Contributions, if applicable) in excess of _______ or ______ % of such
      Contributing Participant's Compensation.

PART D.  QUALIFYING CONTRIBUTING PARTICIPANTS:

      A Contributing Participant who satisfies the eligibility requirements
      described in Section 4 will be a Qualifying Contributing Participant
      and thus entitled to share in Matching Contributions for any Plan Year
      only if the Participant is a Contributing Participant and satisfies the
      following additional conditions (CHECK ONE OR MORE OPTIONS):

      Option 1:   /X/   No Additional Conditions.

<PAGE>

                                                                         Page 10

      Option 2:   / /   Hours of Service Requirement.  The Contributing
                        Participant completes at least ___ Hours of Service
                        during the Plan Year.  However, this condition will
                        be waived for the following reasons
                        (CHECK AT LEAST ONE):

                  / /   The Contributing Participant's Death.

                  / /   The Contributing Participant's Termination of
                        Employment after having incurred a Disability.

                  / /   The Contributing Participant's Termination of
                        Employment after having reached Normal Retirement Age.

                  / /   This condition will not be waived.

      Option 3:   / /   Last Day Requirement.  The Participant is an Employee
                        of the Employer on the last day of the Plan Year.
                        However, this condition will be waived for the following
                        reasons (CHECK AT LEAST ONE):

                  / /   The Contributing Participant's Death.

                  / /   The Contributing Participant's Termination of
                        Employment after having incurred a Disability.

                  / /   The Contributing Participant's Termination of
                        Employment after having reached Normal Retirement Age.

                  / /   This condition will not be waived.

      NOTE:  IF NO OPTION IS SELECTED, OPTION 1 WILL BE DEEMED TO BE SELECTED.

                 SECTION 8. QUALIFIED NONELECTIVE CONTRIBUTIONS

PART A.  AUTHORIZATION OF QUALIFIED NONELECTIVE CONTRIBUTIONS:

      Will the Employer make Qualified Nonelective Contributions to the Plan?
      (CHOOSE ONE)

      Option 1:   /X/   Yes.

      Option 2:   / /   No.

<PAGE>

                                                                         Page 11

      If the Employer elects to make Qualified Nonelective Contributions,
      then the amount, if any, of such contribution to the Plan for each Plan
      Year shall be an amount determined by the Employer.

      NOTE: IF NO OPTION IS SELECTED, OPTION 1 WILL BE DEEMED TO BE SELECTED.
      COMPLETE THE REMAINDER OF SECTION 8 ONLY IF OPTION 1 IS SELECTED.

PART B.  PARTICIPANTS ENTITLED TO QUALIFIED NONELECTIVE CONTRIBUTIONS:

      Allocation of Qualified Nonelective Contributions shall be made to the
      Individual Accounts of (CHOOSE ONE):

      Option 1:   /X/   Only Participants who are not Highly Compensated
                        Employees.

      Option 2:   / /   All Participants.

      NOTE:  IF NO OPTION IS SELECTED, OPTION 1 WILL BE DEEMED TO BE SELECTED.

PART C.  ALLOCATION OF QUALIFIED NONELECTIVE CONTRIBUTIONS:

      Allocation of Qualified Nonelective Contributions to Participants
      entitled thereto shall be made (CHOOSE ONE):

      Option 1:   /X/   In the ratio which each Participant's Compensation
                        for the Plan Year bears to the total Compensation of
                        all Participants for such Plan Year.

      Option 2:   / /   In the ratio which each Participant's Compensation
                        not in excess of ______ for the Plan Year bears to
                        the total Compensation of all Participants not in
                        excess of ______ for such Plan Year.

      NOTE: If NO OPTION IS SELECTED, OPTION 1 WILL BE DEEMED TO BE SELECTED.

                 SECTION 9. QUALIFIED NONELECTIVE CONTRIBUTIONS

PART A.  AUTHORIZATION OF QUALIFIED MATCHING CONTRIBUTIONS:

      Will the Employer make Qualified Matching Contributions to the Plan on
      behalf of Qualifying Contributing Participants?
      (CHOOSE ONE)

      Option 1:   / /   Yes, but only with respect to a Contributing
                        Participant's Elective Deferrals.

<PAGE>

                                                                         Page 12

      Option 2:   / /   Yes, but only with respect to a Participant's
                        Nondeductible Employee Contributions.

      Option 3:   / /   Yes, with respect to both Elective Deferrals and
                        Nondeductible Employee Contributions.

      Option 4:   /X/   No.

      NOTE: IF NO OPTION IS SELECTED, OPTION 3 WILL BE DEEMED TO BE SELECTED.
      COMPLETE THE REMAINDER OF SECTION 9 ONLY IF OPTION 1, 2 OR 3 IS
      SELECTED.

PART B.  QUALIFIED MATCHING CONTRIBUTION FORMULA:

      If the Employer will make Qualified Matching Contributions, then the
      amount of such Qualified Matching Contributions made on behalf of a
      Qualifying Contributing Participant each Plan Year shall be (CHOOSE
      ONE):

      Option 1:   / /   An amount equal to ___% of such Contributing
                        Participant's Elective Deferral (and/or Nondeductible
                        Employee Contribution, if applicable).

      Option 2:   / /   An amount equal to the sum of ___% of the portion of
                        such Contributing Participant's Elective Deferral
                        (and/or Nondeductible Employee Contribution, if
                        applicable) which does not exceed ___% of the
                        Contributing Participant's Compensation plus ___ % of
                        the portion of such Contributing Participant's
                        Elective Deferral (and/or Nondeductible Employee
                        Contribution, if applicable) which exceeds ___ % of
                        the Contributing Participant's Compensation.

      Option 3:   / /   Such amount, if any, as determined by the Employer in
                        its sole discretion, equal to that percentage of the
                        Elective Deferrals (and/or Nondeductible Employee
                        Contribution, if applicable) of each Contributing
                        Participant entitled thereto which would be
                        sufficient to cause the Plan to satisfy the Actual
                        Contribution Percentage tests (described in Section
                        11.402 of the Plan) for the Plan Year.

      Option 4:   / /   Other Formula.  (SPECIFY)
                                                  ---------------------------

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

NOTE:  IF NO OPTION IS SELECTED, OPTION 3 WILL BE DEEMED TO BE SELECTED.

PART C.  PARTICIPANTS ENTITLED TO QUALIFIED MATCHING CONTRIBUTIONS:

      Qualified Matching Contributions, if made to the Plan, will be made on
      behalf of (CHOOSE ONE):

<PAGE>

                                                                         Page 13

      Option 1:   / /   Only Contributing Participants who make Elective
                        Deferrals who are not Highly Compensated Employees.

      Option 2:   / /   All Contributing Participants who make Elective
                        Deferrals.

      NOTE: IF NO OPTION IS SELECTED, OPTION 1 WILL BE DEEMED TO BE SELECTED.

PART D.  LIMIT ON QUALIFIED MATCHING CONTRIBUTIONS:

      Notwithstanding the Qualified Matching Contribution formula specified
      above, the Employer will not match a Contributing Participant's
      Elective Deferrals (and/or Nondeductible Employee Contribution, if
      applicable) in excess of or ___% of such Contributing Participant's
      Compensation.

                SECTION:10. EMPLOYER PROFIT SHARING CONTRIBUTIONS
                            COMPLETE PARTS A, B AND C

PART A.  CONTRIBUTION FORMULA:

      For each Plan Year the Employer will contribute an Amount to be
      determined from year to year.

PART B.  ALLOCATION FORMULA (CHOOSE ONE):

      Option 1:   /X/   Pro Rata Formula. Employer Profit Sharing
                        Contributions shall be allocated to the Individual
                        Accounts of Qualifying Participants in the ratio that
                        each Qualifying Participant's Compensation for the
                        Plan Year bears to the total Compensation of all
                        Qualifying Participants for the Plan Year.

      Option 2:   / /   Integrated Formula.  Employer Profit Sharing
                        Contributions shall be allocated as follows (START
                        WITH STEP 3 IF THIS PLAN IS NOT A TOP-HEAVY PLAN):

                        Step 1.  Employer Profit Sharing Contributions
                                 shall first be allocated pro rata to
                                 Qualifying Participants in the manner
                                 described in Section 10, Part B, Option 1.
                                 The percent so allocated shall not exceed
                                 3% of each Qualifying Participant's
                                 Compensation.

                        Step 2.  Any Employer Profit Sharing Contributions
                                 remaining after the allocation in Step 1
                                 shall be allocated to each Qualifying
                                 Participant's Individual Account in the
                                 ratio that each Qualifying Participant's
                                 Compensation for the Plan Year in excess of
                                 the integration level bears to all
                                 Qualifying Participants'

<PAGE>

                                                                         Page 14

                                 Compensation in excess of the integration
                                 level, but not in excess of 3%.

                        Step 3.  Any Employer Profit Sharing Contributions
                                 remaining after the allocation in Step 2
                                 shall be allocated to each Qualifying
                                 Participant's Individual Account in the
                                 ratio that the sum of each Qualifying
                                 Participant's total Compensation and
                                 Compensation in excess of the integration
                                 level bears to the sum of all Qualifying
                                 Participants' total Compensation and
                                 Compensation in excess of the integration
                                 level, but not in excess of the profit
                                 sharing maximum disparity rate as described
                                 in Section 3.01(B)(3) of the Plan.

                        Step 4.  Any Employer Profit Sharing Contributions
                                 remaining after the allocation in Step 3
                                 shall be allocated pro rata to Qualifying
                                 Participants in the manner described in
                                 Section 10, Part B, Option 1.

                        The integration level shall be (CHOOSE ONE):

                        SUBOPTION (a):    / / The Taxable Wage Base.

                        SUBOPTION (b):    / / ___ (A DOLLAR AMOUNT LESS THAN
                        THE TAXABLE WAGE BASE).

                        SUBOPTION (c):    / / ___% (NOT MORE THAN 100%) of
                        the Taxable Wage Base.

                        NOTE: IF NO OPTION IS SELECTED, SUBOPTION (a) WILL BE
                        DEEMED TO BE SELECTED.

      NOTE: IF NO OPTION IS SELECTED, OPTION 1 WILL BE DEEMED TO BE SELECTED.

PART C.  QUALIFYING PARTICIPANTS:

      A Participant will be a Qualifying Participant and thus entitled to
      share in the Employer Profit Sharing Contribution for any Plan Year
      only if the Participant is a Participant on at least one day of such
      Plan Year and satisfies the following additional conditions (CHECK ONE
      OR MORE OPTIONS):

      Option 1:   / /   No Additional Conditions.

      Option 2:   / /   Hours of Service Requirement.  The Participant
                        completes at least ___ Hours of Service during the
                        Plan Year.  However, this condition will be waived
                        for the following reasons (CHECK AT LEAST ONE):

<PAGE>

                                                                         Page 15

                  / /   The Participant's Death.

                  / /   The Participant's Termination of Employment after
                        having incurred a Disability.

                  / /   The Participant's Termination of Employment after
                        having reached Normal Retirement Age.

                  / /   This condition will not be waived.

      Option 3:   /X/   Last Day Requirement.  The Participant is an Employee
                        of the Employer on the last day of the Plan Year.
                        However, this condition will be waived for the
                        following reasons (CHECK AT LEAST ONE):

                        /X/  The Participant's Death.

                        /X/  The Participant's Termination of Employment
                             after having incurred a Disability.

                        /X/  The Participant's Termination of Employment
                             after having reached Normal Retirement Age.

                        / /  This condition will not be waived.

      NOTE: IF NO OPTION IS SELECTED, OPTION 1 WILL BE DEEMED TO BE SELECTED.

                            SECTION 11. COMPENSATION
                           COMPLETE PARTS A THROUGH E

PART A.  BASIC DEFINITION:

      Compensation will mean all of each Participant's (CHOOSE ONE):

      Option 1:   /X/   W-2 wages.

      Option 2:   / /   Section 3401(a) wages.

      Option 3:   / /   415 safe-harbor compensation.

NOTE:  IF NO OPTION IS SELECTED, OPTION 1 WILL BE DEEMED TO BE SELECTED.

<PAGE>

                                                                         Page 16

PART B.  MEASURING PERIOD FOR COMPENSATION:

         Compensation shall be determined over the following applicable period
         (CHOOSE ONE):

         Option 1:   /X/   The Plan Year.

         Option 2:   / /   The calendar year ending with or within the Plan
                           Year.

         NOTE: IF NO OPTION IS SELECTED, OPTION 1 WILL BE DEEMED TO BE SELECTED.

PART C.  INCLUSION OF ELECTIVE DEFERRALS:

         Does Compensation include Employer Contributions made pursuant to a
         salary reduction agreement which are not includible in the gross income
         of the Employee under Sections 125, 402(e)(3), 402(h)(1)(B) and 403(b)
         of the Code?

         /X/  Yes            / /  No

         NOTE:  IF NEITHER BOX IS CHECKED, "YES" WILL BE DEEMED TO BE SELECTED.

PART D.  PRE-ENTRY DATE COMPENSATION:

         For the Plan Year in which an Employee enters the Plan, the Employee's
         Compensation which shall be taken into account for purposes of the Plan
         shall be (CHOOSE ONE):

         Option 1:   /X/   The Employee's Compensation only from the time the
                           Employee became a Participant in the Plan.
         Option 2:   / /   The Employee's Compensation for the whole of such
                           Plan Year.

         NOTE: IF NO OPTION IS SELECTED, OPTION 1 WILL BE DEEMED TO BE SELECTED.

PART E.  EXCLUSIONS FROM COMPENSATION:

         Compensation shall not include the following (CHECK ANY THAT APPLY):

         / / Bonuses                 / / Commissions

         / / Overtime                / / Other (SPECIFY)
                                                         -----------------------

         NOTE: NO EXCLUSIONS FROM COMPENSATION ARE PERMITTED IF THE INTEGRATED
         ALLOCATION FORMULA IN SECTION 10, PART B IS SELECTED.

<PAGE>

                                                                         Page 17
<TABLE>
<CAPTION>
                       SECTION 12. VESTING AND FORFEITURES
                           COMPLETE PARTS A THROUGH G

PART A.  VESTING SCHEDULE FOR EMPLOYER PROFIT SHARING CONTRIBUTIONS. A
         Participant shall become Vested in his or her Individual Account
         derived from Profit Sharing Contributions made pursuant to Section 10
         of the Adoption Agreement as follows (CHOOSE ONE):

------------------------------------------------------------------------------------------------------------------
YEARS OF                            VESTED PERCENTAGE
VESTING
SERVICE         Option 1          Option 2   Option 3   Option 4   Option 5  /X/ (COMPLETE IF CHOSEN)
------------------------------------------------------------------------------------------------------------------
<S>               <C>              <C>        <C>          <C>      <C>
    1             0%               0%         100%         0%       25%
    2             0%               20%        100%         0%       50%
    3             0%               40%        100%         20%      75% (not less than 20%)
    4             0%               60%        100%         40%      100% (not less than 40%)
    5             100%             80%        100%         60%       ___% (not less than 60%)
    6             100%             100%       100%         80%       ___% (not less than 80%)
    7             100%             100%       100%         100%      ___%(not less than 100%)

NOTE:  IF NO OPTION IS SELECTED, OPTION 3 WILL BE DEEMED TO BE SELECTED.

PART B.  VESTING SCHEDULE FOR MATCHING CONTRIBUTIONS. A Participant shall
         become Vested in his or her Individual Account derived from Matching
         Contributions made pursuant to Section 7 of the Adoption Agreement as
         follows (CHOOSE ONE):

------------------------------------------------------------------------------------------------------------------
YEARS OF                            VESTED PERCENTAGE
VESTING
SERVICE         Option 1          Option 2   Option 3   Option 4   Option 5  /X/ (COMPLETE IF CHOSEN)
------------------------------------------------------------------------------------------------------------------
    1             0%               0%         100%         0%       25%
    2             0%               20%        100%         0%       50%
    3             0%               40%        100%         20%      75% (not less than 20%)
    4             0%               60%        100%         40%      100% (not less than 40%)
    5             100%             80%        100%         60%       ___% (not less than 60%)
    6             100%             100%       100%         80%       ___% (not less than 80%)
    7             100%             100%       100%         100%      ___%(not less than 100%)

NOTE:  IF NO OPTION IS SELECTED, OPTION 3 WILL BE DEEMED TO BE SELECTED.

</TABLE>

<PAGE>

                                                                         Page 18

PART C.  HOURS REQUIRED FOR VESTING PURPOSES:

         1.       1,000 Hours of Service (NO MORE THAN 1,000) shall be required
                  -----
                  to constitute a Year of Vesting Service.

         2.       500 Hours of Service (NO MORE THAN 500 BUT LESS THAN THE
                  ---
                  NUMBER SPECIFIED IN SECTION 12, PART C, ITEM 1, ABOVE) must be
                  exceeded to avoid a Break in Vesting Service.

         3.       For purposes of determining Years of Vesting Service,
                  Employees shall be given credit for Hours of Service with the
                  following predecessor employer(s): (COMPLETE IF APPLICABLE)

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

PART D.  EXCLUSION OF CERTAIN YEARS OF VESTING SERVICE:

         All of an Employee's Years of Vesting Service with the Employer are
         counted to determine the vesting percentage in the Participant's
         Individual Account except (CHECK ANY THAT APPLY):

         / /      Years of Vesting Service before the Employee reaches age 18.

         / /      Years of Vesting Service before the Employer maintained this
                  Plan or a predecessor plan.

PART E.  ALLOCATION OF FORFEITURES OF EMPLOYER PROFIT SHARING CONTRIBUTIONS:

         Forfeitures of Employer Profit Sharing Contributions shall be
         (CHOOSE ONE):

         Option 1:   /X/   Allocated to the Individual Accounts of the
                           Participants specified below in the manner as
                           described in Section 10, Part B (for Employer Profit
                           Sharing Contributions)

                           The Participants entitled to receive allocations of
                           such Forfeitures shall be (CHOOSE ONE):

                           Suboption (a): /X/  Only Qualifying Participants.
                           Suboption (b): / /  All Participants.

         Option 2:   / /   Applied to reduce Employer Profit Sharing
                           Contributions (CHOOSE ONE):

                           Suboption (a): / /  For the Plan Year for which the
                                               Forfeiture arises.

<PAGE>

                                                                         Page 19

                           Suboption (b): / /  For any Plan Year subsequent to
                                               the Plan Year for which the
                                               Forfeiture arises.

         Option 3:   / /   Applied first to the payment of the Plan's
                           administrative expenses and any excess applied to
                           reduce Employer Profit Sharing Contributions
                           (CHOOSE ONE):

                           Suboption (a): / /  For the Plan Year for which the
                                               Forfeiture arises.
                           Suboption (b): / /  For any Plan Year subsequent to
                                               the Plan Year for which the
                                               Forfeitures arises.

NOTE: IF NO OPTION IS SELECTED, OPTION 1 AND SUBOPTION (a) WILL BE DEEMED TO BE
SELECTED.

PART F.  ALLOCATION OF FORFEITURES OF MATCHING CONTRIBUTIONS:

         Forfeitures of Matching Contributions shall be (CHOOSE ONE):

         Option 1:   /X/   Allocated, after all other Forfeitures under the
                           Plan, to each Participant's Individual Account in the
                           ratio which each Participant's Compensation for the
                           Plan Year bears to the total Compensation of all
                           Participants for such Plan Year.

                           The Participants entitled to receive allocations of
                           such Forfeitures shall be (CHOOSE ONE):

                           Suboption (a): /X/  Only Qualifying Contributing
                                               Participants.
                           Suboption (b)  / /  Only Qualifying Participants.
                           Suboption (c): / /  All Participants.

         Option 2:   / /   Applied to reduce Matching Contributions
                           (CHOOSE ONE):

                           Suboption (a): / /  For the Plan Year for which the
                                               Forfeiture arises.
                           Suboption (b): / /  For any Plan Year subsequent to
                                               the Plan Year for which the
                                               Forfeiture arises.

         Option 3:   / /   Applied first to the payment of the Plan's
                           administrative expenses and any excess applied to
                           reduce Matching Contributions (CHOOSE ONE):

                           Suboption (a): / /  For the Plan Year for which the
                                               Forfeiture arises.
                           Suboption (b): / /  For any Plan Year subsequent to
                                               the Plan Year for which the
                                               Forfeitures arises.

NOTE:  IF NO OPTION IS SELECTED, OPTION 1 AND SUBOPTION (a) WILL BE DEEMED TO BE
SELECTED.

<PAGE>

                                                                         Page 20

PART G.  ALLOCATION OF FORFEITURES OF EXCESS AGGREGATE CONTRIBUTIONS:

         Forfeitures of Excess Aggregate Contributions shall be (CHOOSE ONE):

         Option 1:   / /   Allocated, after all other Forfeitures under the
                           Plan, to each Contributing Participant's Matching
                           Contribution account in the ratio which each
                           Contributing Participant's Compensation for the Plan
                           Year bears to the total Compensation of all
                           Contributing Participants for such Plan Year. Such
                           Forfeitures will not be allocated to the account of
                           any Highly Compensated Employee.

         Option 2:   /X/   Applied to reduce Matching Contributions (CHOOSE
                           ONE):

                           Suboption (a): / /  For the Plan Year for which the
                                               Forfeiture arises.
                           Suboption (b): /X/  For any Plan Year subsequent to
                                               the Plan Year for which the
                                               Forfeiture arises.

         Option 3:   / /   Applied first to the payment of the Plan's
                           administrative expenses and any excess applied to
                           reduce Matching Contributions (CHOOSE ONE):

                           Suboption (a): / /  For the Plan Year for which the
                                               Forfeiture arises.
                           Suboption (b): / /  For any Plan Year subsequent to
                                               the Plan Year for which the
                                               Forfeitures arises.

         NOTE: IF NO OPTION IS SELECTED, OPTION 2 AND SUBOPTION (a) WILL BE
DEEMED TO BE SELECTED.

           SECTION 13. NORMAL RETIREMENT AGE AND EARLY RETIREMENT AGE

PART A. THE NORMAL RETIREMENT AGE UNDER THE PLAN SHALL BE (CHECK AND COMPLETE
        ONE OPTION):

        Option 1:    /X/   age 65.

        Option 2:    / /   Age ___ (NOT TO EXCEED 65).

        Option 3:    / /   The later of age ___ (NOT TO EXCEED 65) or the ___
                           (NOT TO EXCEED 5TH) anniversary of the first day of
                           the first Plan Year in which the Participant
                           commenced participation in the Plan.

        NOTE: IF NO OPTION IS SELECTED, OPTION 1 WILL BE DEEMED TO BE SELECTED.

<PAGE>

                                                                         Page 21

PART B.  EARLY RETIREMENT AGE (CHOOSE ONE OPTION):

         Option 1:   /X/   An Early Retirement Age is not applicable under the
                           Plan.

         Option 2:   / /   Age (NOT LESS THAN 55 NOR MORE THAN 65).

         Option 3:   / /   A Participant satisfies the Plan's Early Retirement
                           Age conditions by attaining age___ (NOT LESS THAN 55)
                           and completing __ Years of Vesting Service.

         NOTE: IF NO OPTION IS SELECTED, OPTION 1 WILL BE DEEMED TO BE SELECTED.

                            SECTION 14. DISTRIBUTIONS

DISTRIBUTABLE EVENTS.  Answer each of the following items.

A.       Termination of Employment Before Normal Retirement Age.  May
         A Participant who has not reached Normal Retirement Age request
         distribution from the Plan?               /X/ Yes    / / No

B.       Disability.  May a Participant who has incurred a Disability request
         a distribution from the Plan?             /X/ Yes    / / No

C.       Attainment of Normal Retirement Age.  May a Participant who
         has attained Normal Retirement Age but has not incurred a
         Termination of Employment request a distribution from the Plan?
                                                   /X/ Yes    / / No

D.       Attainment of Age 59 1/2.  Will Participants who have attained
         age 59 1/2 be permitted to withdraw Elective Deferrals while still
         employed by the Employer?                 /X/ Yes    / / No

E.       Hardship Withdrawals of Elective Deferrals.  Will Participants
         be permitted to withdraw Elective Deferrals on account of
         hardship pursuant to Section 11.503 of the Plan?
                                                   / / Yes    /X/ No

F.       In-Service Withdrawals.  Will Participants be permitted to request
         a distribution during service pursuant to Section 6.01(A)(3)
         of the Plan?                              / / Yes    /X/ No

G.       Hardship Withdrawals.  Will Participants be permitted to make
         hardship withdrawals pursuant to Section 6.01(A)(4) of the Plan?
                                                  / /  Yes    /X/ No

H.       Withdrawals of Rollover or Transfer Contributions.  Will
         Employees be permitted to withdraw their Rollover or Transfer
         Contributions at any time?               /X/  Yes    / / No

<PAGE>

                                                                         Page 22

         NOTE: IF A BOX IS NOT CHECKED FOR AN ITEM, "YES" WILL BE DEEMED TO BE
SELECTED FOR THAT ITEM. SECTION 411(d)(6) OF THE CODE PROHIBITS THE
ELIMINATION OF PROTECTED BENEFITS. IN GENERAL, PROTECTED BENEFITS INCLUDE THE
FORMS AND TIMING OF PAYOUT OPTIONS. IF THE PLAN IS BEING ADOPTED TO AMEND AND
REPLACE A PRIOR PLAN THAT PERMITTED A DISTRIBUTION OPTION DESCRIBED ABOVE, YOU
MUST ANSWER "YES" TO THAT ITEM.

                     SECTION 15. JOINT AND SURVIVOR ANNUITY.

PART A.           RETIREMENT EQUITY ACT SAFE HARBOR:
                  Will the safe harbor provisions of Section 6.05(F) of the Plan
                  apply? (CHOOSE ONLY ONE OPTION)

                  Option 1:   /X/   Yes.

                  Option 2:   / /   No.

                  NOTE: YOU MUST SELECT "NO" IF YOU ARE ADOPTING THIS PLAN AS AN
                  AMENDMENT AND RESTATEMENT OF A PRIOR PLAN THAT WAS SUBJECT TO
                  THE JOINT AND SURVIVOR ANNUITY REQUIREMENTS.

PART B.           SURVIVOR ANNUITY PERCENTAGE: (COMPLETE ONLY IF YOUR ANSWER IN
                  SECTION 15, PART A IS "NO.")

                  The survivor annuity portion of the Joint and Survivor Annuity
                  shall be a percentage equal to ___% (at LEAST 50% BUT NO MORE
                  THAN 100%) of the amount paid to the Participant prior to his
                  or her death.

                            SECTION 16. OTHER OPTIONS
 ANSWER "YES" OR "NO" TO EACH OF THE FOLLOWING QUESTIONS BY CHECKING THE
                                APPROPRIATE BOX.
IF A BOX IS NOT CHECKED FOR THE QUESTIONS, THE ANSWER WILL BE DEEMED TO BE "NO".

A.       Loans:  Will loans to Participants pursuant to Section 6.08 of the
         Plan be permitted?                          /X/ Yes    / / No

B.       Insurance:  Will the Plan allow for the investment in insurance
         policies pursuant to Section 5.13 of the Plan?
                                                     / / Yes    /X/ No

C.       Employer Securities: Will the Plan allow for the investment in
         qualifying Employer securities or qualifying Employer real property?
                                                    / /  Yes    /X/ No

D.       Rollover Contributions: Will Employees be permitted to make

<PAGE>

                                                                         Page 23

         rollover contributions to the Plan pursuant to Section 3.03
         of the Plan?                                     /X/ Yes    / / No
                                                          / / Yes, but only
                                                   after becoming a Participant.

E.       Transfer Contributions: Will Employees be permitted to make Transfer
         contributions to the Plan pursuant to Section 3.04 of the Plan?
                                                          /X/ Yes    / / No
                                                          / / Yes, but only
                                                   after becoming a Participant.

F.       Nondeductible Employee Contributions:  Will Employees be permitted
         to make Nondeductible Employee Contributions pursuant to Section
         11.305 of the Plan?                             / / Yes    /X/ No
         Check here if such contributions will be mandatory.  / /

G.       Will Participants be permitted to direct the investment of their
         Plan assets pursuant to Section 5.14 of the Plan?
                                                        /X/ Yes    / / No

                      SECTION 17. LIMITATION ON ALLOCATIONS
                               MORE THAN ONE PLAN

If you maintain or ever maintained another qualified plan in which any
Participant in this Plan is (or was) a Participant or could become a
Participant, you must complete this section. You must also complete this section
if you maintain a welfare benefit fund, as defined in Section 419(e) of the
Code, or an individual medical account, as defined in Section 415(l)(2) of the
Code, under which amounts are treated as annual additions with respect to any
Participant in this Plan.

PART A.    INDIVIDUALLY DESIGNED DEFINED CONTRIBUTION PLAN:

           If the Participant is covered under another qualified defined
           contribution plan MAINTAINED by the Employer, other than a master or
           prototype plan:

         1.  / /  The provisions of Section 3.05(B)(1) through 3.05(B)(6) of
                  the Plan will apply as if the other plan were a master or
                  prototype plan.

         2.  / /  Other method. (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.)

<PAGE>

                                                                         Page 24

PART B.  DEFINED BENEFIT PLAN:

         If the Participant is or has ever been a participant in a defined
         benefit plan maintained by the Employer, the Employer will provide
         below the language which will satisfy the 1.0 limitation of Section
         415(e) of the Code.

         1.  / /  If the projected annual addition to this Plan to the account
                  of a Participant for any limitation year would cause the 1.0
                  limitation of Section 415(e) of the Code to be exceeded, the
                  annual benefit of the defined benefit plan for such limitation
                  year shall be reduced so that the 1.0 limitation shall be
                  satisfied.

                  If it is not possible to reduce the annual benefit of the
                  defined benefit plan and the projected annual addition to this
                  Plan to the account of a Participant for a limitation year
                  would cause the 1.0 limitation to be exceeded, the Employer
                  shall reduce the Employer Contribution which is to be
                  allocated to this Plan on behalf of such Participant so that
                  the 1.0 limitation will be satisfied. (The provisions of
                  Section 415(e) of the Code are incorporated herein by
                  reference under the authority of Section 1106(h) of the Tax
                  Reform Act of 1986.)

         2.  / /  Other method. (PROVIDE LANGUAGE DESCRIBING ANOTHER METHOD.
                  SUCH LANGUAGE MUST PRECLUDE EMPLOYER DISCRETION.)

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

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

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

                          SECTION 18. TOP-HEAVY MINIMUM
                             COMPLETE PARTS A AND D

Part A.  Minimum Allocation or Benefit:

         For any Plan Year with respect to which this Plan is a Top-Heavy Plan,
         any minimum allocation required pursuant to Section 3.01(E) of the Plan
         shall be made (CHOOSE ONE):

         Option 1:   /X/   To this Plan.
         Option 2:   / /   To the following other plan maintained by the
                           Employer (SPECIFY NAME AND PLAN NUMBER OF PLAN)

         Option 3:   / /   In accordance with the method described on an
                           attachment to this Adoption Agreement. (ATTACH
                           LANGUAGE DESCRIBING THE METHOD THAT WILL BE USED TO
                           SATISFY SECTION 416 OF THE CODE. SUCH METHOD MUST
                           PRECLUDE EMPLOYER DISCRETION)

         NOTE: IF NO OPTION IS SELECTED, OPTION 1 WILL BE DEEMED TO BE SELECTED.

<PAGE>

                                                                         Page 25

PART B.  TOP-HEAVY VESTING SCHEDULE:

         Pursuant to Section 6.01(C) of the Plan, the vesting schedule that will
         apply when this Plan is a Top-Heavy Plan (unless the Plan's regular
         vesting schedule provides for more rapid vesting) shall be (CHOOSE
         ONE):

         Option 1:   / /   6 Year Graded.

         Option 2:   / /   3 Year Cliff.

         NOTE: IF NO OPTION IS SELECTED, OPTION 1 WILL BE DEEMED TO BE SELECTED.

                          SECTION 19. PROTOTYPE SPONSOR

Name of Prototype Sponsor:  Hartford Life Insurance Company
                            -------------------------------

Address:  200 Hopmeadow Street, Simsbury CT  06089
          ----------------------------------------

Telephone Number:  860-9434256
                   -----------

Permissible Investments

         The assets of the Plan shall be invested only in those investments
         described below (To BE COMPLETED BY THE PROTOTYPE SPONSOR):

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

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

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

                        SECTION 20. TRUSTEE OR CUSTODIAN

         Option A:   / /   Financial Organization as Trustee or Custodian

         Check One:  / /   Custodian,  / / Trustee without full trust powers, or
         / /   Trustee with full trust powers

Financial Organization
                      ----------------------------------------------------------

Signature
         -----------------------------------------------------------------------

Type Name
         -----------------------------------------------------------------------

<PAGE>

                                                                         Page 26

Collective or Commingled Funds

List any collective or commingled funds maintained by the financial organization
Trustee in which assets of the Plan may be invested (COMPLETE IF
APPLICABLE)
---------------------------------------------------------------------------

         Option B:   / /   Individual Trustee(s)

Signature   /s/Bryan Menell                Signature
         ---------------------------                ----------------------------

Type Name  Bryan Menell                    Type Name
         ---------------------------                ----------------------------

Signature                                  Signature
         ---------------------------                ----------------------------

Type Name                                  Type Name
         ---------------------------                ----------------------------

                              SECTION 21. RELIANCE

The Employer may not rely on an opinion letter issued by the National Office of
the Internal Revenue Service as evidence that the Plan is qualified under
Section 401 of the Internal Revenue Code. In order to obtain reliance with
respect to plan qualification, the Employer must apply to the appropriate Key
District office for a determination letter.

This Adoption Agreement may be used only in conjunction with Basic Plan Document
No.  04.

                         SECTION 22. EMPLOYER SIGNATURE
                      IMPORTANT: PLEASE READ BEFORE SIGNING

I am an authorized representative of the Employer named above and I state the
following:

1.       I acknowledge that I have relied upon my own advisors regarding the
         completion of this Adoption Agreement and the legal tax implications of
         adopting this Plan.

2.       I understand that my failure to properly complete this Adoption
         Agreement may result in disqualification of the Plan.

3.       I understand that the Prototype Sponsor will inform me of any
         amendments made to the Plan and will notify me should it discontinue or
         abandon the Plan.

4.       I have received a copy of this Adoption Agreement and the corresponding
         Basic Plan Document.

<PAGE>

                                                                         Page 27

Signature for Employer  /s/Bryan Menell             Date Signed 10/29/98
                      --------------------------               -----------------

Type Name  Bryan Menell                             Title   President
         ---------------------------------------         -----------------------

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