Document:

RELIV
      INTERNATIONAL, INC.

    EMPLOYEE
      STOCK OWNERSHIP PLAN AND TRUST

     

     

     

     

     

     

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    TABLE
      OF CONTENTS

    

    
      	
              ARTICLE
                I

            
	
              DEFINITIONS

            
	 	 	 
	 	 	 
	
              ARTICLE
                II

            
	
              ADMINISTRATION

            
	 	 	 
	
              2.1

            	
              POWERS
                AND RESPONSIBILITIES OF THE EMPLOYER

            	
              10

            
	
              2.2

            	
              DESIGNATION
                OF ADMINISTRATIVE AUTHORITY

            	
              11

            
	
              2.3

            	
              ALLOCATION
                AND DELEGATION OF RESPONSIBILITIES

            	
              11

            
	
              2.4

            	
              POWERS
                AND DUTIES OF THE ADMINISTRATOR

            	
              12

            
	
              2.5

            	
              RECORDS
                AND REPORTS

            	
              13

            
	
              2.6

            	
              APPOINTMENT
                OF ADVISERS

            	
              13

            
	
              2.7

            	
              PAYMENT
                OF EXPENSES

            	
              13

            
	
              2.8

            	
              CLAIMS
                PROCEDURE

            	
              13

            
	
              2.9

            	
              CLAIMS
                REVIEW PROCEDURE

            	
              14

            
	 	 	 
	
              ARTICLE
                III

            
	
              ELIGIBILITY

            
	 	 	 
	
              3.1

            	
              CONDITIONS
                OF ELIGIBILITY

            	
              14

            
	
              3.2

            	
              EFFECTIVE
                DATE OF PARTICIPATION

            	
              14

            
	
              3.3

            	
              DETERMINATION
                OF ELIGIBILITY

            	
              15

            
	
              3.4

            	
              TERMINATION
                OF ELIGIBILITY

            	
              15

            
	
              3.5

            	
              OMISSION
                OF ELIGIBLE EMPLOYEE

            	
              15

            
	
              3.6

            	
              INCLUSION
                OF INELIGIBLE EMPLOYEE

            	
              15

            
	
              3.7

            	
              REHIRED
                EMPLOYEES AND BREAKS IN SERVICE

            	
              16

            
	
              3.8

            	
              ELECTION
                NOT TO PARTICIPATE

            	
              16

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	 	 	 
	
              ARTICLE
                IV

            
	
              CONTRIBUTION
                AND ALLOCATION

            
	 	 	 
	
              4.1

            	
              FORMULA
                FOR DETERMINING EMPLOYER CONTRIBUTION

            	
              17

            
	
              4.2

            	
              TIME
                OF PAYMENT OF EMPLOYER CONTRIBUTION

            	
              17

            
	
              4.3

            	
              ALLOCATION
                OF CONTRIBUTION, FORFEITURES AND EARNINGS

            	
              17

            
	
              4.4

            	
              MAXIMUM
                ANNUAL ADDITIONS

            	
              22

            
	
              4.5

            	
              ADJUSTMENT
                FOR EXCESSIVE ANNUAL ADDITIONS

            	
              24

            
	
              4.6

            	
              DIRECTED
                INVESTMENT ACCOUNT

            	
              24

            
	
              4.7

            	
              QUALIFIED
                MILITARY SERVICE

            	
              25

            
	 	 	 
	
              ARTICLE
                V

            
	
              FUNDING
                AND INVESTMENT POLICY

            
	 	 	 
	
              5.1

            	
              INVESTMENT
                POLICY

            	
              26

            
	
              5.2

            	
              APPLICATION
                OF CASH

            	
              26

            
	
              5.3

            	
              LOANS
                TO THE TRUST

            	
              26

            
	 	 	 
	
              ARTICLE
                VI

            
	
              VALUATIONS

            
	 	 	 
	
              6.1

            	
              VALUATION
                OF THE TRUST FUND

            	
              28

            
	
              6.2

            	
              METHOD
                OF VALUATION

            	
              28

            
	 	 	 
	
              ARTICLE
                VII

            
	
              DETERMINATION
                AND DISTRIBUTION OF BENEFITS

            
	 	 	 
	
              7.1

            	
              DETERMINATION
                OF BENEFITS UPON RETIREMENT

            	
              28

            
	
              7.2

            	
              DETERMINATION
                OF BENEFITS UPON DEATH

            	
              28

            
	
              7.3

            	
              DETERMINATION
                OF BENEFITS IN EVENT OF DISABILITY

            	
              30

            
	
              7.4

            	
              DETERMINATION
                OF BENEFITS UPON TERMINATION

            	
              30

            
	
              7.5

            	
              DISTRIBUTION
                OF BENEFITS

            	
              32

            
	
              7.6

            	
              HOW
                PLAN BENEFIT WILL BE DISTRIBUTED

            	
              37

            
	
              7.7

            	
              DISTRIBUTION
                FOR MINOR OR INCOMPETENT BENEFICIARY

            	
              38

            
	
              7.8

            	
              LOCATION
                OF PARTICIPANT OR BENEFICIARY UNKNOWN

            	
              38

            
	
              7.9

            	
              RIGHT
                OF FIRST REFUSALS

            	
              39

            
	
              7.10

            	
              STOCK
                CERTIFICATE LEGEND

            	
              40

            
	
              7.11

            	
              NONTERMINABLE
                PROTECTIONS AND RIGHTS

            	
              40

            
	
              7.12

            	
              QUALIFIED
                DOMESTIC RELATIONS ORDER DISTRIBUTION

            	
              40

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	 	 	 
	
              ARTICLE
                VIII

            
	
              TRUSTEE

            
	 	 	 
	
              8.1

            	
              BASIC
                RESPONSIBILITIES OF THE TRUSTEE

            	
              41

            
	
              8.2

            	
              INVESTMENT
                POWERS AND DUTIES OF THE TRUSTEE

            	
              41

            
	
              8.3

            	
              OTHER
                POWERS OF THE TRUSTEE

            	
              42

            
	
              8.4

            	
              VOTING
                COMPANY STOCK

            	
              44

            
	
              8.5

            	
              DUTIES
                OF THE TRUSTEE REGARDING PAYMENTS

            	
              45

            
	
              8.6

            	
              TRUSTEES
                COMPENSATION AND EXPENSES AND TAXES

            	
              45

            
	
              8.7

            	
              ANNUAL
                REPORT OF THE TRUSTEE

            	
              45

            
	
              8.8

            	
              AUDIT

            	
              46

            
	
              8.9

            	
              RESIGNATION,
                REMOVAL AND SUCCESSION OF TRUSTEE

            	
              47

            
	
              8.10

            	
              TRANSFER
                OF INTEREST

            	
              47

            
	
              8.11

            	
              TRUSTEE
                INDEMNIFICATION

            	
              48

            
	
              8.12

            	
              DIRECT
                ROLLOVER

            	
              48

            
	 	 	 
	
              ARTICLE
                1X

            
	
              AMENDMENT,
                TERMINATION AND MERGERS

            
	 	 	 
	
              9.1

            	
              AMENDMENT

            	
              49

            
	
              9.2

            	
              TERMINATION

            	
              50

            
	
              9.3

            	
              MERGER,
                CONSOLIDATION OR TRANSFER OF ASSETS

            	
              50

            
	 	 	 
	
              ARTICLE
                X

            
	
              TOP
                HEAVY

            
	 	 	 
	
              10.1

            	
              TOP
                HEAVY PLAN REQUIREMENTS

            	
              51

            
	
              10.2

            	
              DETERMINATION
                OF TOP HEAVY STATUS

            	
              51

            
	 	 	 
	
              ARTICLE
                XI

            
	
              MISCELLANEOUS

            
	 	 	 
	
              11.1

            	
              PARTICIPANT’S
                RIGHTS

            	
              54

            
	
              11.2

            	
              ALIENATION

            	
              54

            
	
              11.3

            	
              CONSTRUCTION
                OF PLAN

            	
              55

            
	
              11.4

            	
              GENDER
                AND NUMBER

            	
              55

            
	
              11.5

            	
              LEGAL
                ACTION

            	
              55

            
	
              11.6

            	
              PROHIBITION
                AGAINST DIVERSION OF FUNDS

            	
              55

            
	
              11.7

            	
              EMPLOYER’S
                AND TRUSTEE’S PROTECTIVE CLAUSE

            	
              56

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    
      	
              11.8

            	
              INSURER’S
                PROTECTIVE CLAUSE

            	
              56

            
	
              11.9

            	
              RECEIPT
                AND RELEASE FOR PAYMENTS

            	
              56

            
	
              11.10

            	
              ACTION
                BY THE EMPLOYER

            	
              56

            
	
              11.11

            	
              NAMED
                FIDUCIARIES AND ALLOCATION OF RESPONSIBILITY

            	
              56

            
	
              11.12

            	
              HEADINGS

            	
              57

            
	
              11.13

            	
              APPROVAL
                BY INTERNAL REVENUE SERVICE

            	
              57

            
	
              11.14

            	
              UNIFORMITY

            	
              57

            
	
              11.15

            	
              SECURITIES
                AND EXCHANGE COMMISSION APPROVAL

            	
              57

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    RELIV
      INTERNATIONAL, INC.

    EMPLOYEE
      STOCK OWNERSHIP PLAN AND TRUST

    

    THIS
      AGREEMENT, hereby made and entered into this 29th day
      of
      August, 2006 by and between Reliv International, Inc. (herein referred to as
      the
AEmployer@)
      and
      Stephen M. Merrick, Robert L. Montgomery and R. Scott Montgomery (herein
      referred to as the ATrustee@).

    

    WITNESSETH:

    

    WHEREAS,
      the Employer desires an Employee Stock Ownership Plan so as to enable its
      eligible employees to acquire a proprietary interest in capital stock of the
      Employer; and

    

    WHEREAS,
      the Employer desires to recognize the contribution made to its successful
      operation by its employees and to reward such contribution by means of an
      Employee Stock Ownership Plan for those employees who shall qualify as
      Participants hereunder; and

    

    WHEREAS,
      contributions to the Plan will be made by the Employer and such contributions
      made to the trust will be invested primarily in the capital stock of the
      Employer;

    

    NOW,
      THEREFORE, effective September 1, 2006, (hereinafter called the AEffective
      Date@),
      the
      Employer hereby establishes an Employee Stock Ownership Plan (ESOP) and creates
      this trust (which plan and trust are
      hereinafter
      called the APlan@)
      for the
      exclusive benefit of the Participants and their Beneficiaries, which is intended
      to qualify as an AESOP@,
      and the
      Trustee hereby accepts the Plan on the following terms:

    

    ARTICLE
      I

    DEFINITIONS

    

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

    

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

    

    1.3 AAffiliated
      Employer@
      means
      any corporation which is a member of a controlled group of corporations (as
      defined in Code Section 4 14(b)) which includes the Employer; any trade or
      business (whether or not incorporated) which is under common control (as defined
      in Code Section 4 14(c)) with the Employer; any organization (whether or not
      incorporated) which is a member of an affiliated service group (as defined
      in
      Code Section 4 14(m)) which includes the Employer; and any other entity required
      to be aggregated with the Employer pursuant to Regulations under Code Section
      414(o).

    

    1.4 AAggregate
      Account@
      means,
      with respect to each Participant, the value of all accounts maintained on behalf
      of a Participant, whether attributable to Employer or Employee contributions,
      subject to the provisions of Section 10.2.

    

    1.5 AAnniversary
      Date@
      means
      the last day of the Plan Year.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    1.6 ABeneficiary@
      means
      the person (or entity) to whom the share of a deceased Participant=s
      total
      account is payable, subject to the restrictions of Sections 7.2 and 7.5. For
      purposes of Sections 7.5(f) and 7.5(g), Adesignate
      Beneficiary@
      is the
      person designated under Code Section 401 (a)(9) and Regulation 1.401
      (a)(9)-4.

    

    1.7 ACode@
      means
      the Internal Revenue Code of 1986, as amended or replaced from time to
      time.

    

    1.8 ACompany
      Stock@
      means
      common stock issued by the Employer (or by a corporation which is a member
      of
      the controlled group of corporations of which the Employer is a member) which
      is
      readily tradeable on an established securities market. If there is no common
      stock which meets the foregoing requirement, the term ACompany
      Stock@
      means
      common stock issued by the Employer (or by a corporation which is a member
      of
      the same controlled group) having a combination of voting power and dividend
      rights equal to or in excess of: (A) that class of common stock of the Employer
      (or of any other such corporation) having the greatest voting power, and (B)
      that class of common stock of the Employer (or of any other such corporation)
      having the greatest dividend rights. Noncallable preferred stock shall be deemed
      to be ACompany
      Stock@
      if such
      stock is convertible at any time into stock which constitutes ACompany
      Stock@
      hereunder and if such conversion is at a conversion price which (as of the
      date
      of the acquisition by the Trust) is reasonable. For purposes of the preceding
      sentence, pursuant to Regulations, preferred stock shall be treated as
      noncallable if after the call there will be a reasonable opportunity for a
      conversion which meets the requirements of the preceding sentence.

    

    1.9 ACompany
      Stock Account@
      means
      the account of a Participant which is credited with the shares of Company Stock
      purchased and paid for by the Trust Fund or contributed to the Trust
      Fund.

    

    A
      separate accounting shall be maintained with respect to that portion of the
      Company Stock Account attributable to a Participant=s
      or the
      Participant=s
      Beneficiary=s
      election pursuant to Section 7.5(d)(3) to reinvest cash dividends in Company
      Stock. Any such Company Stock allocated to the Company Stock Account shall
      be
      fully Vested at all times and shall not be subject to Forfeiture for any
      reason.

    

    1.10 ACompensation@
      with
      respect to any Participant means such Participant=s
      wages
      for the Plan Year within the meaning of Code Section 3401(a) (for the purposes
      of income tax withholding at the source) but determined without regard to any
      rules that limit the remuneration included in wages based on the nature or
      location of the employment or the services performed (such as the exception
      for
      agricultural labor in Code Section 3401(a)(2)).

    

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

    

    (a) excluding
      amounts which are contributed by the Employer pursuant to a salary reduction
      agreement and which are not includible in the gross income of the Participant
      under Code Sections 125, 132(f)(4), 402(e)(3), 402(h)(1)(B), 403(b) or
457(b),
      and
      Employee contributions described in Code Section 414(h)(2) that are treated
      as
      Employer contributions.

    

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

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Compensation
      in excess of $200,000 (or such other amount provided in the Code) shall be
      disregarded. Such amount shall be adjusted for increases in the cost of living
      in accordance with Code Section 401(a)(17)(B), except that the dollar increase
      in effect on January 1 of any calendar year shall be effective for the Plan
      Year
      beginning with or within such calendar year. For any short Plan Year the
      Compensation limit shall be an amount equal to the Compensation limit for the
      calendar year in which the Plan Year begins multiplied by the ratio obtained
      by
      dividing the number of full months in the short Plan Year by twelve
      (12).

    

    If
      any
      class of Employees is excluded from the Plan, then Compensation for any Employee
      who becomes eligible or ceases to be eligible to participate during a Plan
      Year
      shall only include Compensation while the Employee is an Eligible
      Employee.

    

    1.11 AContract@
      or
APolicy@
      means
      any life insurance policy, retirement income policy or annuity policy (group
      or
      individual) issued pursuant to the terms of the Plan. In the event of any
      conflict between the terms of this Plan and the terms of any contract purchased
      hereunder, the Plan provisions shall control.

    

    1.12 ACurrent
      Obligations@
      means
      Trust obligations arising from extension of credit to the Trust and payable
      in
      cash within (1) year from the date an Employer contribution is due.

    

    1.13 ADistribution
      Calendar Year@
      means a
      calendar year for which a minimum distribution pursuant to Sections 7.5(f)
      and
      7.5(g) is required. For distributions beginning before the
      Participant=s
      death,
      the first Distribution Calendar Year is the calendar year immediately preceding
      the calendar year which contains the Participant=s
      required beginning date under Section 7.5(1). For distributions beginning after
      the Participant=s
      death,
      the first Distribution Calendar Year is the calendar year in which distributions
      are
      required
      to begin under Section 7.5(g)(2). The required minimum distribution for the
      Participant=s
      first
      Distribution Calendar Year will be made on or before the Participant=s
      required beginning date. The required minimum distribution for other
      Distribution Calendar Years, including the required minimum distribution for
      the
      Distribution Calendar Year in which the Participant=s
      required beginning date occurs, will be made on or before December 31st of
      that
      Distribution Calendar Year.

    

    1.14 AEarly
      Retirement Date.@
      This
      Plan does not provide for a retirement date prior to Normal Retirement
      Date.

    

    1.15 AEligible
      Employee@
      means
      any Employee.

    

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

    

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

    

    Employees
      classified by the Employer as independent contractors who are subsequently
      determined by the Internal Revenue Service to be Employees shall not be Eligible
      Employees.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

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

    

    1.17 AEmployer@
      means
      Reliv International, Inc. and any successor which shall maintain this Plan;
      and
      any predecessor which has maintained this Plan. The Employer is a corporation
      with principal offices in the State of Missouri.

    

    1.18 AESOP@
      means an
      employee stock ownership plan that meets the requirements of Code Section
      4975(e)(7) and Regulation 54.4975-11.

    

    1.19 AExempt
      Loan@
      means a
      loan made to the Plan by a disqualified person or a loan to the Plan which
      is
      guaranteed by a disqualified person and which satisfies the requirements of
      Section 2550.408b-3 of the Department of Labor Regulations, Section 54.4975-7(b)
      of the Treasury Regulations and Section 5.3 hereof.

    

    1.20 AFiduciary@
      means
      any person who (a) exercises any discretionary authority or discretionary
      control respecting management of the Plan or exercises any authority or control
      respecting management or disposition of its assets, (b) renders investment
      advice for a fee or other compensation, direct or indirect, with respect to
      any
      monies or other property of the Plan or has any authority or responsibility
      to
      do so, or (c) has any discretionary authority or discretionary responsibility
      in
      the administration of the Plan.

    

    1.21 AFiscal
      Year@
      means
      the Employer=s
      accounting year of 12 months commencing on January 1st of each year and ending
      the following December 31st.

    

    1.22 AForfeiture@
      means
      that portion of a Participant=s
      Account
      that is not Vested, and occurs on the last day of the Plan Year in which the
      Participant incurs five (5) consecutive 1-Year Breaks in Service. In addition,
      the term Forfeiture shall also include amounts deemed to be Forfeitures pursuant
      to any other provision of this Plan.

    

    1.23 AFormer
      Participant@
      means a
      person who has been a Participant, but who has ceased to be a Participant for
      any reason.

    

    1.24 A415
      Compensation@
      with
      respect to any Participant means such Participant=s
      wages
      for the Plan Year within the meaning of Code Section 3401(a) (for the purposes
      of income tax withholding at the source) but determined without regard to any
      rules that limit the remuneration included in wages based on the nature or
      location of the employment or the services performed (such as the exception
      for
      agricultural labor in Code Section 3401(a)(2)).

    

    For
      purposes of this Section, the determination of A415
      Compensation@
      shall
      include any elective deferral (as defined in Code Section 402(g)(3)), and any
      amount which is contributed or deferred by the Employer at the election of
      the
      Participant and which is not includible in the gross income of the Participant
      by reason of Code Sections 125, 132(f)(4) and 457.

    

    1.25 AHighly
      Compensated Employee@
      means an
      Employee described in Code Section 414(q) and the Regulations thereunder, and
      generally means any Employee who:

    

    (a) was
      a
Afive
      percent owner@
      as
      defined in Section 1.29(b) at any time during the Adetermination
      year@
      or the
Alook-back
      year@;
      or

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (b) for
      the
Alook-back
      year@
      had
A415
      Compensation@
      from the
      Employer in excess of $80,000. The $80,000 amount is adjusted at the same time
      and in the same manner as under Code Section 415(d), except that the base period
      is the calendar quarter ending September 30, 1996.

    

    The
      Adetermination
      year@
      means
      the Plan Year for which testing is being performed, and the Alook
      back
      year@
      means
      the immediately preceding twelve (12) month period.

    

    A
      highly
      compensated former Employee is based on the rules applicable to determining
      Highly Compensated Employee status as in effect for the Adetermination
      year,@
      in
      accordance with Regulation 1.414(q)-1T, A-4 and IRS Notice 97-45 (or any
      superseding guidance).

    

    In
      determining who is a Highly Compensated Employee, Employees who are non-resident
      aliens and who received no earned income (within the meaning of Code Section
      911(d)(2)) from the Employer constituting United States source income within
      the
      meaning of Code Section 861(a)(3) shall not be treated as Employees.
      Additionally, all Affiliated Employers shall be taken into account as a single
      employer and Leased Employees within the

    meaning
      of Code Sections 414(n)(2) and 414(o)(2) shall be considered Employees unless
      such Leased Employees are covered by a plan described in Code Section 414(n)(5)
      and are not covered in any qualified plan maintained by the Employer. The
      exclusion of Leased Employees for this purpose shall be applied on a uniform
      and
      consistent basis for all of the Employer=s
      retirement plans. Highly Compensated Former Employees shall be treated as Highly
      Compensated Employees without regard to whether they performed services during
      the Adetermination
      year.@

    

    1.26 AHighly
      Compensated Participant@
      means
      any Highly Compensated Employee who is eligible to participate in the component
      of the Plan being tested.

    

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

    

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

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    For
      purposes of (2) above, a payment shall be deemed to be made by or due from
      the
      Employer regardless of whether such payment is made by or due from the Employer
      directly, or indirectly through, among others, a trust fund, or insurer, to
      which the Employer contributes or pays premiums and regardless of whether
      contributions made or due to the trust fund, insurer, or other entity are for
      the benefit of particular Employees or are on behalf of a group of Employees
      in
      the aggregate.

    

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

    

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

    

    1.29 AKey
      Employee@
      means an
      Employee as defined in Code Section 416(i) and the Regulations thereunder.
      Generally, any Employee or former Employee (as well as each of the
      Employee=s
      or
      former Employee=s
      Beneficiaries) is considered a Key Employee if the Employee=s
      or
      former Employee=s,
      at any
      time during the Plan Year that contains the Adetermination
      date,@
      has been
      included in one of the following categories:

    

    (a) an
      officer of the Employer (as that term is defined within the meaning of the
      Regulations under Code Section 416) having annual A415
      Compensation@
      greater
      than $130,000 adjusted at the same time and in the same manner as under Code
      Section 415(d).

    

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

    

    (c) a
      Aone
      percent owner@
      of the
      Employer having an annual A415
      Compensation@
      from the
      Employer of more than $150,000. AOne
      percent owner@
      means
      any person who owns (or is considered as owning within the meaning of Code
      Section 318) more than one percent (1%) of the outstanding stock of the Employer
      or stock possessing more than one percent (1%) of the total combined voting
      power of all stock of the Employer or, in the case of an unincorporated
      business, any person who owns more than one percent (1%) of the capital or
      profits interest in the Employer. In determining percentage ownership hereunder,
      employers that would otherwise be aggregated under Code Sections 414(b), (c),
      (m) and (o) shall be treated as separate employers. However, in determining
      whether an individual has A415
      Compensation@
      of more
      than $150,000, A415
      Compensation@
      from
      each employer required to be aggregated under Code Sections 414(b), (c), (m)
      and
      (o) shall be taken into account.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    For
      purposes of this Section, the determination of A415
      Compensation@
      shall be
      made by including amounts which are
      contributed
      by the Employer pursuant to a salary reduction agreement and which are not
      includible in the gross income of the Participant under Code Sections 125,
      132(f)(4), 402(e)(3), 402(h)(1)(B), 403(b) or 457(b), and Employee contributions
      described in Code Section 414(h)(2) that are treated as Employer
      contributions.

    

    1.30 ALate
      Retirement Date@
      means a
      Participant=s
      actual
      Retirement Date after having reached Normal Retirement Date.

    

    1.31 ALeased
      Employee@
      means
      any person (other than an Employee of the recipient Employer) who pursuant
      to an
      agreement between the recipient Employer and any other person or entity
      (Aleasing
      organization@)
      has
      performed services for the recipient (or for the recipient and related persons
      determined in accordance with Code Section 414(n)(6)) on a substantially full
      time basis for a period of at least one year, and such services are performed
      under primary direction or control by the recipient Employer. Contributions
      or
      benefits provided a Leased Employee by the leasing organization which are
      attributable to services performed for the recipient Employer shall be treated
      as provided by the recipient Employer. Furthermore, Compensation for a Leased
      Employee shall only include Compensation from the leasing organization that
      is
      attributable to services performed for the recipient Employer. A Leased Employee
      shall not be considered an Employee of the recipient Employer:

    

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

    

    (1) a
      nonintegrated employer contribution rate of at least 10% of compensation, as
      defined in Code Section 415(c)(3);

    

    (2) immediate
      participation;

    

    (3) full
      and
      immediate vesting; and

    

    (b) if
      Leased
      Employees do not constitute more than 20% of the recipient Employer=s
      nonhighly compensated work force.

    

    1.32 ALife
      Expectancy@
      computed, for purposes of Sections 7.5(f) and 7.5(g), using the Single Life
      Table in Regulation 1.401(a)(9)-9.

    

    1.33 ANon-Highly
      Compensated Participant@
      means
      any Participant who is not a Highly Compensated Employee.

    

    1.34 ANon-Key
      Employee@
      means
      any Employee or former Employee (and such Employee=s
      or
      former Employee=s
      Beneficiaries) who is not a Key Employee.

    

    1.35 ANormal
      Retirement Age@
      means
      the Participant=s
      65th
      birthday. A Participant shall become fully Vested in the Participant=s
      Account
      upon attaining Normal Retirement Age.

    

    1.36 ANormal
      Retirement Date@
      means
      the Participant=s
      Normal
      Retirement Age.

    

    1.37 A1-Year
      Break in Service@
      means
      the applicable computation period during which an Employee has not completed
      more than 500 Hours of Service with the Employer. Further, solely for the
      purpose of determining whether a Participant has incurred a 1-Year Break in
      Service, Hours of Service shall be recognized for Aauthorized
      leaves of absence@
      and
Amaternity
      and paternity leaves of absence.@
      Years of
      Service and 1-Year Breaks in Service shall be measured on the same computation
      period.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

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

    

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

    

    1.38 AOther
      Investments Account@
      means
      the account of a Participant which is credited with such Participant=s
      share
      of the net gain (or loss) of the Plan, Forfeitures and Employer contributions
      in
      other than Company Stock and which is debited with payments made to pay for
      Company Stock.

    

    1.39 AParticipant@
      means
      any Eligible Employee who participates in the Plan and has not for any reason
      become ineligible to participate further in the Plan.

    

    1.40 AParticipant=s
      Account@
      means
      the account established and maintained by the Administrator for each Participant
      with respect to such Participant=s
      total
      interest in the Plan and Trust resulting from the Employer
      contributions.

    

    1.41 AParticipant=s
      Account
      Balance@
      means
      the account balance as of the last Valuation
      Date in the calendar year immediately preceding the Distribution Calendar Year
      (valuation
      calendar year) increased by the amount of any contributions made and allocated
      or Forfeitures
      allocated to the account balance as of dates in the valuation calendar year
      after the Valuation
      Date and decreased by distributions made in the valuation calendar year after
      the Valuation
      Date. The account balance for the valuation calendar year includes any amounts
      rolled over
      or
      transferred to the Plan either in the valuation calendar year or in the
      Distribution Calendar
      Year if distributed or transferred in the valuation calendar year.

    

    1.42 APlan@
      means
      this instrument, including all amendments thereto.

    

    1.43 APlan
      Year@
      means
      the Plan=s
      accounting year of twelve (12) months commencing on January 1st of each year
      and
      ending the following December 31st.

    

    1.44 ARegulation@
      means
      the Income Tax Regulations as promulgated by the Secretary of the Treasury
      or a
      delegate of the Secretary of the Treasury, and as amended from time to
      time.

    

    1.45 ARetired
      Participant@
      means a
      person who has been a Participant, but who has become entitled to retirement
      benefits under the Plan.

    

    1.46 ARetirement
      Date@
      means
      the date as of which a Participant retires for reasons other than Total and
      Permanent Disability, whether such retirement occurs on a
      Participant=s
      Normal
      Retirement Date or Late Retirement Date (see Section 7.1).

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    1.47 ATerminated
      Participant@
      means a
      person who has been a Participant, but whose employment has been terminated
      other than by death, Total and Permanent Disability or retirement.

    

    1.48 ATop
      Heavy
      Plan@
      means a
      plan described in Section 10.2(a).

    

    1.49 ATop
      Heavy
      Plan Year@
      means a
      Plan Year during which the Plan is a Top Heavy Plan.

    

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

    

    1.51 ATrustee@
      means
      the person or entity named as trustee herein or in any separate trust forming
      a
part
      of
      this
      Plan, and any successors.

    

    1.52 ATrust
      Fund@
      means
      the assets of the Plan and Trust as the same shall exist from time to
      time.

    

    1.53 AUnallocated
      Company Stock Suspense Account@
      means an
      account containing Company Stock acquired with the proceeds of an Exempt Loan
      and which has not been released from such account and allocated to the
      Participants=
      Company
      Stock Accounts.

    

    1.54 AValuation
      Date@
      means
      the Anniversary Date and may include any other date or dates deemed necessary
      or
      appropriate by the Administrator for the valuation of the
      Participant=s
      accounts during the Plan Year, which may include any day that the Trustee,
      any
      transfer agent appointed by the Trustee or the Employer or any stock exchange
      used by such agent, are open for business.

    

    1.55 AVested@
      means
      the nonforfeitable portion of any account maintained on behalf of a
      Participant.

    

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

    

    For
      purposes of eligibility for participation, the initial computation period shall
      begin with the date on which the Employee first performs an Hour of Service.
      The
      participation computation period beginning after a 1-Year Break in Service
      shall
      be measured from the date on which an Employee again performs an Hour of
      Service. The participation computation period shall shift to the Plan Year
      which
      includes the anniversary of the date on which the Employee first performed
      an
      Hour of Service. An Employee who is credited with the required Hours of Service
      in both the initial computation period (or the computation period beginning
      after a 1-Year Break in Service) and the Plan Year which includes the
      anniversary of the date on which the Employee first performed an Hour of
      Service, shall be credited with two (2) Years of Service for purposes of
      eligibility to participate.

    

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

    

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

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

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

    

    Years
      of
      Service with any Affiliated Employer shall be recognized.

    

    ARTICLE
      II

    ADMINISTRATION

    

    2.1
       POWERS
      AND RESPONSIBILITIES OF THE EMPLOYER

    

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

    

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

    

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

    

    (d) The
      Employer will furnish Plan Fiduciaries and Participants with notices and
      information statements when voting rights must be exercised pursuant to Section
      8.4.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      
        2.2
          DESIGNATION
          OF ADMINISTRATIVE AUTHORITY

      

    

    

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

    

    2.3
       ALLOCATION
      AND DELEGATION OF RESPONSIBILITIES

    

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

    

    2.4
       POWERS
      AND DUTIES OF THE ADMINISTRATOR

    

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

    

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

    

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

    

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

    

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

    

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

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

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

    

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

    

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

    

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

    

    (i) to
      establish and communicate to Participants a procedure for allowing each
      Participant to direct the Trustee as to the distribution of such
      Participant=s
      Company
      Stock Account pursuant to Section 4.6;

    

    (j) to
      establish and communicate to Participants a procedure and method to insure
      that
      each Participant will vote Company Stock allocated to such
      Participant=s
      Company
      Stock Account pursuant to Section 8.4;

    

    (k) to
      determine the validity of, and take appropriate action with respect to, any
      qualified domestic relations order received by it; and

    

    (1) to
      assist
      any Participant regarding the Participant=s
      rights,
      benefits, or elections available under the Plan.

    

    2.5
       RECORDS
      AND REPORTS

    

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

    

    2.6
       APPOINTMENT
      OF ADVISERS

    

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

    

    2.7
       PAYMENT
      OF EXPENSES

    

    All
      expenses of administration may be paid out of the Trust Fund unless paid by
      the
      Employer. Such expenses shall include any expenses incident to the functioning
      of the Administrator, or any person or persons retained or appointed by any
      Named Fiduciary incident to the exercise of their duties under the Plan,
      including, but not limited to, fees of accountants, counsel, Investment
      Managers, and other specialists and their agents, the costs of any bonds
      required pursuant to Act Section 412, and other costs of administering the
      Plan.
      Until paid, the expenses shall constitute a liability of the Trust
      Fund.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    2.8
       CLAIMS
      PROCEDURE

    

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

    

    2.9
       CLAIMS
      REVIEW PROCEDURE

    

    Any
      Employee, former Employee, or Beneficiary of either, who has been denied a
      benefit by a decision of the Administrator pursuant to Section 2.8 shall be
      entitled to request the Administrator to give further consideration to a claim
      by filing with the Administrator a written request for a hearing. Such request,
      together with a written statement of the reasons why the claimant believes
      the
      claim should be allowed, shall be filed with the Administrator no later than
      60
      days after receipt of the written or electronic notification provided for in
      Section 2.8. The Administrator shall then conduct a hearing within the next
      60
      days, at which the claimant may be represented by an attorney or any other
      representative of such claimant=s
      choosing and expense and at which the claimant shall have an opportunity to
      submit written and oral evidence and arguments in support of the claim. At
      the
      hearing the claimant or the claimant=s
      representative shall have an opportunity to review all documents in the
      possession of the Administrator which are pertinent to the claim at issue and
      its disallowance. Either the claimant or the Administrator may cause a court
      reporter to attend the hearing and record the proceedings. In such event, a
      complete written transcript of the proceedings shall be furnished to both
      parties by the court reporter. The full expense of any such court reporter
      and
      such transcripts shall be borne by the party causing the court reporter to
      attend the hearing. A final decision as to the allowance of the claim shall
      be
      made by the Administrator within 60 days of receipt of the appeal (unless there
      has been an extension of 60 days due to special circumstances, provided the
      delay and the special circumstances occasioning it are communicated to the
      claimant within the 60 day period). Such communication shall be written in
      a
      manner calculated to be understood by the claimant and shall include specific
      reasons for the decision and specific references to the pertinent Plan
      provisions on which the decision is based.

    

    ARTICLE
      III

    ELIGIBILITY

    

    3.1
       CONDITIONS
      OF ELIGIBILITY

    

    Any
      Eligible Employee who has completed one (1) Year of Service and has attained
      age
      21 shall be eligible to participate hereunder as of the date such Employee
      has
      satisfied such requirements.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    3.2
       EFFECTIVE
      DATE OF PARTICIPATION

    

    An
      Eligible Employee shall become a Participant effective as of the first day
      of
      the Plan Year in which such Employee met the eligibility requirements of Section
      3.1 if such eligibility requirements were met during the first six months of
      that Plan Year, or, if such Employee met the eligibility requirements of Section
      3.1 during the last six months of a Plan Year, then the Employee shall become
      a
      Participant effective as of the first day of the next succeeding Plan Year,
      provided said Employee was still employed as of such date (or if not employed
      on
      such date, as of the date of rehire if a 1-Year Break in Service has not
      occurred or, if later, the date that the Employee would have otherwise entered
      the Plan had the Employee not terminated employment).

    

    If
      an
      Employee, who has satisfied the Plan=s
      eligibility requirements and would otherwise have become a Participant, shall
      go
      from a classification of a noneligible Employee to an Eligible Employee, such
      Employee shall become a Participant on the date such Employee becomes an
      Eligible Employee or, if later, the date that the Employee would have otherwise
      entered the Plan had the Employee always been an Eligible Employee.

    

    If
      an
      Employee, who has satisfied the Plan=s
      eligibility requirements and would otherwise become a Participant, shall go
      from
      a classification of an Eligible Employee to a noneligible class of Employees,
      such Employee shall become a Participant in the Plan on the date such Employee
      again becomes an Eligible Employee, or, if later, the date that the Employee
      would have otherwise entered the Plan had the Employee always been an Eligible
      Employee. However, if such Employee incurs a 1-Year Break in Service,
      eligibility will be determined under the Break in Service rules set forth in
      Section 3.7.

    

    3.3
       DETERMINATION
      OF ELIGIBILITY

    

    The
      Administrator shall determine the eligibility of each Employee for participation
      in the Plan based upon information furnished by the Employer. Such determination
      shall be conclusive and binding upon all persons, as long as the same is made
      pursuant to the Plan and the Act. Such determination shall be subject to review
      pursuant to Section 2.9.

    

    3.4
       TERMINATION
      OF ELIGIBILITY

    

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

    

    3.5
       OMISSION
      OF ELIGIBLE EMPLOYEE

    

    If,
      in
      any Plan Year, any Employee who should be included as a Participant in the
      Plan
      is erroneously omitted and discovery of such omission is not made until after
      a
      contribution by the Employer for the year has been made and allocated, then
      the
      Employer shall make a subsequent contribution, if necessary after the
      application of Section 4.3(1), so that the omitted Employee receives a total
      amount which the Employee would have received (including both Employer
      contributions and earnings thereon) had the Employee not been omitted. Such
      contribution shall be made regardless of whether it is deductible in whole
      or in
part
      in
      any
      taxable year under applicable provisions of the Code.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      
        3.6  INCLUSION
          OF INELIGIBLE EMPLOYEE

      

    

    

    If,
      in
      any Plan Year, any person who should not have been included as a Participant
      in
      the Plan is erroneously included and discovery of such inclusion is not made
      until after a contribution for the year has been made and allocated, the
      Employer shall be entitled to recover the contribution made with respect to
      the
      ineligible person provided the error is discovered within twelve (12) months
      of
      the date on which it was made. Otherwise, the amount contributed with respect
      to
      the ineligible person shall constitute a Forfeiture for the Plan Year in which
      the discovery is made.

    

    3.7
       REHIRED
      EMPLOYEES AND BREAKS IN SERVICE

    

    (a) If
      any
      Participant becomes a Former Participant due to severance from employment with
      the Employer and is redeployed by the Employer before a 1-Year Break in Service
      occurs, the Former Participant shall become a Participant as of the redeployment
      date.

    

    (b) If
      any
      Participant becomes a Former Participant due to severance from employment with
      the Employer and is redeployed after a 1-Year Break in Service has occurred,
      Years of Service shall include Years of Service prior to the 1-Year Break in
      Service subject to the following rules:

    

    (1) In
      the
      case of a Former Participant who under the Plan does not have a nonforfeitable
      right to any interest in the Plan resulting from Employer contributions, Years
      of Service before a period of 1-Year Break in Service will not be taken into
      account if the number of consecutive 1-Year Breaks in Service equal or exceed
      the greater of (A) five (5) or (B) the aggregate number of pre-break Years
      of
      Service. Such aggregate number of Years of Service will not include any Years
      of
      Service disregarded under the preceding sentence by reason of prior 1-Year
      Breaks in Service.

    

    (2) A
      Former
      Participant who has not had Years of Service before a 1-Year Break in Service
      disregarded pursuant to (1) above, and completes a Year of Service for
      eligibility purposes shall participate in the Plan as of the date immediately
      following completion of a Year of Service.

    

    (c) After
      a
      Former Participant who has severed employment with the Employer incurs five
      (5)
      consecutive 1-Year Breaks in Service, the Vested portion of said Former
      Participant=s
      Account
      attributable to pre-break service shall not be increased as a result of
      post-break service. In such case, separate accounts will be maintained as
      follows:

    

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

    

    (2) one
      account representing the Participant=s
      Employer derived account balance in the Plan attributable to post-break
      service.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      
        3.8  ELECTION
          NOT TO PARTICIPATE

      

    

    

    An
      Employee may, subject to the approval of the Employer, elect voluntarily not
      to
      participate in the Plan. The election not to participate must be communicated
      to
      the Employer, in writing, within a reasonable period of time before the
      beginning of a Plan Year.

    

    ARTICLE
      IV

    CONTRIBUTION
      AND ALLOCATION

    

    4.1
       FORMULA
      FOR DETERMINING EMPLOYER CONTRIBUTION

    

    (a) For
      each
      Plan Year, the Employer shall contribute to the Plan such amount as shall be
      determined by the Employer.

    

    (b) The
      Employer contribution shall not be limited to years in which the Employer has
      current or accumulated net profit. Additionally, to the extent necessary, the
      Employer shall contribute to the Plan the amount necessary to provide the top
      heavy minimum contribution. All contributions by the Employer shall be made
      in
      cash or in such property as is acceptable to the Trustee.

    

    4.2
       TIME
      OF
      PAYMENT OF EMPLOYER CONTRIBUTION

    

    The
      Employer may make its contribution to the Plan for a particular Plan Year at
      such time as the Employer, in its sole discretion, determines. If the Employer
      makes a contribution for a particular Plan Year after the close of that Plan
      Year, the Employer will designate to the Trustee the Plan Year for which the
      Employer is making its contribution.

    

    4.3 ALLOCATION
      OF CONTRIBUTION, FORFEITURES AND EARNINGS

    

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

    

    (b) The
      Employer shall provide the Administrator with all information required by the
      Administrator to make a proper allocation of the Employer contribution for
      each
      Plan Year. Within a reasonable period of time after the date of receipt by
      the
      Administrator of such information, the Administrator shall allocate such
      contribution to each Participant=s
      Account
      in the same proportion that each such Participant=s
      Compensation for the year bears to the total Compensation of all Participants
      for such year.

    

    Only
      Participants who have completed a Year of Service during the Plan Year and
      are
      actively employed on the last day of the Plan Year shall be eligible to share
      in
      the discretionary contribution for the year.

     

    (c) The
      Company Stock Account of each Participant shall be credited as of each
      Anniversary Date with Forfeitures of Company Stock and the
      Participant=s
      allocable share of Company Stock (including fractional shares) purchased and
      paid for by the Plan or contributed in kind by the Employer. Stock dividends
      on
      Company Stock held in the Participant=s
      Company
      Stock Account shall be credited to the Participant=s
      Company
      Stock Account when paid to the Plan. Cash dividends on Company Stock held in
      the
      Participant=s
      Company
      Stock Account shall, in the sole discretion of the Administrator, either be
      credited to the Participant=s
      Other
      Investments Account when paid to the Plan or be used to repay an Exempt Loan;
      provided, however, that when cash dividends are used to repay an Exempt Loan,
      Company Stock shall be released from the Unallocated Company Stock Suspense
      Account and allocated to the Participant=s
      Company
      Stock Account pursuant to Section 4.3(e) and, provided further, that Company
      Stock allocated to the Participant=s
      Company
      Stock Account shall have a fair market value not less than the amount of cash
      dividends which would have been allocated to such Participant=s
      Other
      Investments Account for the year.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Company
      Stock acquired by the Plan with the proceeds of an Exempt Loan shall only be
      allocated to each Participant=s
      Company
      Stock Account upon release from the Unallocated Company Stock Suspense Account
      as provided in Section 4.3(e) herein. Company Stock acquired with the proceeds
      of an Exempt Loan shall be an asset of the Trust Fund and maintained in the
      Unallocated Company Stock Suspense Account.

    

    (d) As
      of
      each Valuation Date, before the current valuation period allocation
      of Employer contributions and Forfeitures, any earnings or losses (net
appreciation
      or net depreciation) of the Trust Fund shall be allocated in the same
proportion
      that each Participant=s
      and
      Former Participant=s
      nonsegregated accounts
      (other than each Participant=s
      Company
      Stock Account) bear to the total of
      all
      Participants=
      and
      Former Participants=
      nonsegregated accounts (other than each
      Participant=s
      Company
      Stock Account) as of such date.

    

    Earnings
      or losses do not include the interest paid under any installment contract for
      the purchase of Company Stock by the Trust Fund or on any loan used by the
      Trust
      Fund to purchase Company Stock, nor does it include income received by the
      Trust
      Fund with respect to Company Stock acquired with the proceeds of an Exempt
      Loan;
      all income received by the Trust Fund from Company Stock acquired with the
      proceeds of an Exempt Loan may, at the discretion of the Administrator, be
      used
      to repay such loan.

    (e) All
      Company Stock acquired by the Plan with the proceeds of an Exempt
      Loan must be added to and maintained in the Unallocated Company Stock
      Suspense Account. Such Company Stock shall be released and withdrawn
from
      that
      account as if all Company Stock in that account were encumbered. For
each
      Plan
      Year during the duration of the loan, the number of shares of Company
Stock
      released shall equal the number of encumbered shares held immediately
before
      release for the current Plan Year multiplied by a fraction, the numerator of
      which
      is
      the amount of principal and interest paid for the Plan Year and the denominator
      of which is the sum of the numerator plus the principal and interest
to
      be
      paid for all future Plan Years. As of each Anniversary Date, the Plan must
      consistently
      allocate to each Participant=s
      Account, in the same manner as Employer
      discretionary contributions pursuant to Section 4.1(a) are allocated,
non-monetary
      units (shares and fractional shares of Company Stock) representing each
      Participant=s
      interest in Company Stock withdrawn from the Unallocated Company
      Stock Suspense Account. However, Company Stock released from the Unallocated
      Company Stock Suspense Account with cash dividends pursuant to Section
      4.3(c) shall be allocated to each Participant=s
      Company
      Stock Account in the
      same
      proportion that each such Participant=s
      number
      of shares of Company Stock
      sharing in such cash dividends bears to the total number of shares of all
Participant=s
      Company
      Stock sharing in such cash dividends. Income earned with respect
      to Company Stock in the Unallocated Company Stock Suspense Account shall
      be
      used, at the discretion of the Administrator, to repay the Exempt Loan
used
      to
      purchase such Company Stock. Company Stock released from the Unallocated
      Company Stock Suspense Account with such income, and any income
      which is not so used, shall be allocated as of each Anniversary Date in the
      same
      proportion that each Participant=s
      and
      Former Participant=s
      nonsegregated accounts
      after the allocation of any earnings or losses pursuant to Section 4.3(d)
bear
      to
      the total of all Participants=
      and
      Former Participants=
      nonsegregated accounts
      after the allocation of any earnings or losses pursuant to Section
      4.3(d).

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (f) On
      or
      before each Anniversary Date any amounts which became Forfeitures
      since the last Anniversary Date may be used to satisfy any contribution
      that may be required pursuant to Section 3.5 and/or 7.8, or used to pay
      any
      administrative expenses of the Plan. The remaining Forfeitures, if any,
shall
      be
      allocated each year among the Participants=
      Accounts
      of Participants otherwise
      eligible to share in the allocation of discretionary contributions in the
same
      proportion that each such Participant=s
      Compensation for the year bears to the
      total
      Compensation of all such Participants for the year.

    

    Provided,
      however, that in the event the allocation of Forfeitures provided herein shall
      cause the Aannual
      addition@
      (as
      defined in Section 4.4) to any Participant=s
      Account
      to exceed the amount allowable by the Code, the excess shall be reallocated
      in
      accordance with Section 4.5.

    

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

     

    (h) Notwithstanding
      the foregoing, Participants who are not actively employed
      on the last day of the Plan Year due to Retirement (Normal or Late),
Total
      and
      Permanent Disability or death shall share in the allocation of contributions
      and Forfeitures for that Plan Year.

    

    (i) Minimum
      Allocations Required for Top Heavy Plan Years: Notwithstanding
      the foregoing, for any Top Heavy Plan Year, the sum of the Employer
      contributions and Forfeitures allocated to the Participant=s
      Account
      of each
      Employee shall be equal to at least three percent (3%) of such
      Employee=s
      A415
      Compensation@
      (reduced
      by contributions and forfeitures, if any, allocated to
      each
      Employee in any defined contribution plan included with this Plan in a
Required
      Aggregation Group). However, if (1) the sum of the Employer contributions
      and Forfeitures allocated to the Participant=s
      Account
      of each Key Employee
      for such Top Heavy Plan Year is less than three percent (3%) of each
      Key
      Employee=s
      A415
      Compensation@
      and (2)
      this Plan is not required to be included
      in an Aggregation Group to enable a defined benefit plan to meet the
requirements
      of Code Section 401(a)(4) or 410, then the sum of the Employer contributions
      and Forfeitures allocated to the Participant=s
      Account
      of each Employee
      shall be equal to the largest percentage allocated to the
      Participant=s
      Account
      of any Key Employee.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    However,
      no such minimum allocation shall be required in this Plan for any Employee
      who
      participates in another defined contribution plan subject to Code Section 412
      included with this Plan in a Required Aggregation Group.

    

    (j) For
      purposes of the minimum allocations set forth above, the percentage
      allocated to the Participant=s
      Account
      of any Key Employee shall be equal
      to
      the ratio of the sum of the Employer contributions and Forfeitures allocated
      on behalf of such Key Employee divided by the A415
      Compensation@for
      such
      Key Employee.

    

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

    

    (1) For
      the
      purposes of this Section, A415
      Compensation@
      in
      excess of $150,000 (or such other amount provided in the Code) shall be
      disregarded. Such amount shall be adjusted for increases in the cost of living
      in accordance with Code Section 401(a)(17)(B), except that the dollar increase
      in effect on January 1 of any calendar year shall be effective for the Plan
      Year
      beginning with or within such calendar year. if A415
      Compensation@
      for any
      prior determination period is taken into account in determining a
      Participant=s
      minimum
      benefit for the current Plan Year, the A415
      Compensation@
      for such
      determination period is subject to the applicable annual A415
      Compensation@
      limit in
      effect for that prior period. For this purpose, in determining the minimum
      benefit in Plan Years beginning on or after January 1, 1989, the annual
A415
      Compensation@
      limit in
      effect for determination periods beginning before that date is $200,000 (or
      such
      other amount as adjusted for increases in the cost of living in accordance
      with
      Code Section 415(d) for determination periods beginning on or after January
      1,
      1989, and in accordance with Code Section 401(a)(17)(B) for determination
      periods beginning on or after January 1, 1994). For determination periods
      beginning prior to January 1, 1989, the $200,000 limit shall apply only for
      Top
      Heavy Plan Years and shall not be adjusted. For any short Plan Year the
A415
      Compensation@
      limit
      shall be an amount equal to the A415
      Compensation@
      limit
      for the calendar year in which the Plan Year begins multiplied by the ratio
      obtained by dividing the number of full months in the short Plan Year by twelve
      (12).

    

    (m) Notwithstanding
      anything in this Section to the contrary, all information necessary to properly
      reflect a given transaction may not be available until after the date specified
      herein for processing such transaction, in which case the transaction will
      be
      reflected when such information is received and processed. Subject to express
      limits that may be imposed under the Code, the processing of any contribution,
      distribution or other transaction may be delayed for any legitimate business
      reason (including, but not limited to, failure of systems or computer programs,
      failure of the means of the transmission of data, force majeure, the failure
      of
      a service provider to timely receive values or prices, and the correction for
      errors or omissions or the errors or 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    omissions
      of any service provider). The processing date of a transaction will be binding
      for all purposes of the Plan.

    

    (n) Notwithstanding
      anything to the contrary, if this is a Plan that would otherwise fail to meet
      the requirements of Code Section 410(b)(1)(B) and the Regulations thereunder
      because Employer contributions would not be allocated to a sufficient number
      or
      percentage of Participants for a Plan Year, then the following rules shall
      apply:

    

    (1) The
      group
      of Participants eligible to share in the Employer=s
      contribution and Forfeitures for the Plan Year shall be expanded to include
      the
      minimum number of Participants who would not otherwise be eligible as are
      necessary to satisfy the applicable test specified above. The specific
      Participants who shall become eligible under the terms of this paragraph shall
      be those who have not separated from service prior to the last day of the Plan
      Year and have completed the greatest number of Hours of Service in the Plan
      Year.

    

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

    

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

    

    (4) Notwithstanding
      the foregoing, if the portion of the Plan which is not a Code Section 401(k)
      plan would fail to satisfy Code Section 410(b) if the coverage tests were
      applied by treating those Participants whose only allocation would otherwise
      be
      provided under the top heavy formula as if they were not currently benefiting
      under the Plan, then, for purposes of this Section 4.3(n), such Participants
      shall be treated as not benefiting and shall therefore be eligible to be
      included in the expanded class of Participants who will share in the allocation
      provided under the Plan=s
      non top
      heavy formula.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    4.4 MAXIMUM
      ANNUAL ADDITIONS

    

    (a) Notwithstanding
      the foregoing, the maximum Aannual
      additions@
      credited
      to a Participant=s
      accounts for any Alimitation
      year@
      shall
      equal the lesser of: (1) $40,000 adjusted annually as provided in Code Section
      415(d) pursuant to the Regulations, or (2) one-hundred percent (100%) of the
      Participant=s
      A415
      Compensation@
      for such
Alimitation
      year.@
      If the
      Employer contribution that would otherwise be contributed or allocated to the
      Participant=s
      accounts would cause the Aannual
      additions@
      for the
Alimitation
      year@
      to
      exceed the maximum Aannual
      additions,@
      the
      amount contributed or allocated will be reduced so that the Aannual
      additions@
      for the
Alimitation
      year@
      will
      equal the maximum Aannual
      additions,@
      and any
      amount in excess of the maximum Aannual
      additions,@
      which
      would have been allocated to such Participant may be allocated to other
      Participants. For any short Alimitation
      year,@
      the
      dollar limitation in (1) above shall be reduced by a fraction, the numerator
      of
      which is the number of full months in the short Alimitation
      year@
      and the
      denominator of which is twelve (12).

    

    (b) For
      purposes of applying the limitations of Code Section 415, Aannual
      additions@
      means
      the sum credited to a Participant=s
      accounts for any Alimitation
      year@
      of (1)
      Employer contributions, (2) Employee contributions, (3) forfeitures, (4) amounts
      allocated, after March 31, 1984, to an individual medical account, as defined
      in
      Code Section 415(l)(2) which is part of a pension or annuity plan maintained
      by
      the Employer, (5) amounts derived from contributions paid or accrued after
      December 31, 1985, in taxable years ending after such date, which are
      attributable to post-retirement medical benefits allocated to the separate
      account of a key employee (as defined in Code Section 419A(d)(3)) under a
      welfare benefit plan (as defined in Code Section 419(e)) maintained by the
      Employer and (6) allocations under a simplified employee pension plan. Except,
      however, the A415
      Compensation@
      percentage limitation referred to in paragraph (a)(2) above shall not apply
      to:
      (1) any contribution for medical benefits after separation from service (within
      the meaning of Code Sections 401(h) or 419A(f)(2)) which is otherwise treated
      as
      an Aannual
      addition,@
      or (2)
      any amount otherwise treated as an Aannual
      addition@
      under
      Code Section 415(l)(1).

    

    (c) For
      purposes of applying the limitations of Code Section 415, the following are
      not
Aannual
      additions@:
      (1) the
      transfer of funds from one qualified plan to another and (2) provided no more
      than one-third of the Employer contributions for the year are allocated to
      Highly Compensated Participants, Forfeitures of Company Stock purchased with
      the
      proceeds of an Exempt Loan and Employer contributions applied to the payment
      of
      interest on an Exempt Loan. In addition, the following are not Employee
      contributions for the purposes of Section 4.4(b): (1) rollover contributions
      (as
      defined in Code Sections 402(c), 403(a)(4), 403(b)(8), 408(d)(3) and
      457(e)(16)); (2) repayments of loans made to a Participant from the Plan; (3)
      repayments of distributions received by an Employee pursuant to Code Section
      411(a)(7)(B) (cash-outs); (4) repayments of distributions received by an
      Employee pursuant to Code Section 411(a)(3)(D) (mandatory contributions); and
      (5) Employee contributions to a simplified employee pension excludable from
      gross income under Code Section 408(k)(6).

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

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

    

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

    

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

    

    (g) If
      this
      is a plan described in Code Section 413(c) (other than a plan described in
      Code
      Section 413(1)), then all of the benefits or contributions attributable to
      a
      Participant from all of the Employers maintaining this Plan shall be taken
      into
      account in applying the limits of this Section with respect to such Participant.
      Furthermore, in applying the limitations of this Section with respect to such
      a
      Participant, the total A415
      Compensation@
      received
      by the Participant from all of the Employers maintaining the Plan shall be
      taken
      into account.

    

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

    

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

    

    (3) If
      a
      Participant participates in more than one defined contribution plan not subject
      to Code Section 412 maintained by the Employer which have the same Anniversary
      Date, the maximum Aannual
      additions@
      under
      this Plan shall equal the product of (A) the maximum Aannual
      additions@
      for the
Alimitation
      year@
      minus
      any Aannual
      additions@
      previously credited under subparagraphs (1) or (2) above, multiplied by (B)
      a
      fraction (i) the numerator of which is the Aannual
      additions@
      which
      would be credited to such Participant=s
      accounts under this Plan without regard to the limitations of Code Section
      415
      and (ii) the denominator of which is such Aannual
      additions@
      for all
      plans described in this subparagraph.

    

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

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    4.5 ADJUSTMENT
      FOR EXCESSIVE ANNUAL ADDITIONS

    

    (a) If,
      as a
      result of the allocation of Forfeitures, a reasonable error in estimating a
      Participant=s
      Compensation, a reasonable error in determining the amount of elective deferrals
      (within the meaning of Code Section 402(g)(3)) that may be made with respect
      to
      any Participant under the limits of Section 4.4 or other facts and circumstances
      to which Regulation 1.415-6(b)(6) shall be applicable, the Aannual
      additions@
      under
      this Plan would cause the maximum Aannual
      additions@
      to be
      exceeded for any Participant, the Aexcess
      amount@
      will be
      disposed of in one of the following manners, as uniformly determined by the
      Administrator for all Participants similarly situated.

    

    (1) if
      the
      Participant is covered by the Plan at the end of the Alimitation
      year,@
      then the
Aexcess
      amount@
      will be
      used to reduce the Employer contribution (including allocation of any
      Forfeitures) for such Participant in the next Alimitation
      year,@
      and each
      succeeding Alimitation
      year@
      if
      necessary;

    

    (2) If,
      after
      the application of subparagraph (1) above, an Aexcess
      amount@
      still
      exists, and the Participant is not covered by the Plan at the end of the
Alimitation
      year,@
      then the
Aexcess
      amount@
      will be
      held unallocated in a ASection
      415 suspense account.@
      The
ASection
      415 suspense account@
      will be
      applied to reduce future Employer contributions (including allocation of any
      Forfeitures) for all remaining Participants in the next Alimitation
      year,@
      and each
      succeeding Alimitation
      year@
      if
      necessary;

    

    (3) If
      a
ASection
      415 suspense account@
      is in
      existence at any time during the Alimitation
      year@
      pursuant
      to this Section, it will not participate in the allocation of investment gains
      and losses of the Trust Fund. if a ASection
      415 suspense account@
      is in
      existence at any time during a particular Alimitation
      year,@
      all
      amounts in the ASection
      415 suspense account@
      must be
      allocated and reallocated to Participants=
      accounts
      before any Employer contributions or any Employee contributions may be made
      to
      the Plan for that Alimitation
      year.@ AExcess
      amounts@
      may not
      be distributed to Participants or Former Participants.

    

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

    

    (c) For
      purposes of this Section, ASection
      415 suspense account@
      shall
      mean an unallocated account equal to the sum of Aexcess
      amounts@
      for all
      Participants in the Plan during the Alimitation
      year.@

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    4.6 DIRECTED
      INVESTMENT ACCOUNT

    

    (a) Each
      AQualified
      Participant@
      may
      elect within ninety (90) days after the close of each Plan Year during the
      AQualified
      Election Period@
      to
      direct the Trustee in writing as to the distribution in cash and/or Company
      Stock of 25 percent of the total number of shares of Company Stock acquired
      by
      or contributed to the Plan that have ever been allocated to such AQualified
      Participant=s@
      Company
      Stock Account (reduced by the number of shares of Company Stock previously
      distributed in cash and/or Company Stock pursuant to a prior election). In
      the
      case of the election year in which the last election can be made by the
      Participant, the preceding sentence shall be applied by substituting
A50
      percent@
      for
A25
      percent.@
      If the
AQualified
      Participant@
      elects
      to direct the Trustee as to the distribution of the Participant=s
      Company
      Stock Account, such direction shall be effective no later than 180 days after
      the close of the Plan Year to which such direction applies.

    

    Notwithstanding
      the above, if the fair market value (determined pursuant to Section 6.1 at
      the
      Plan Valuation Date immediately preceding the first day on which a AQualified
      Participant@
      is
      eligible to make an election) of Company Stock acquired by or contributed to
      the
      Plan and allocated to a AQualified
      Participant=s@
      Company
      Stock Account is $500 or less, then such Company Stock shall not be subject
      to
      this paragraph. For purposes of determining whether the fair market value
      exceeds $500, Company Stock held in accounts of all employee stock ownership
      plans (as defined in Code Section 4975(e)(7)) and tax credit employee stock
      ownership plans (as defined in Code Section 409(a)) maintained by the Employer
      or any Affiliated Employer shall be considered as held by the Plan.

    

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

    

    (1) AQualified
      Participant@
      means
      any Participant or Former Participant who has completed ten (10) Years of
      Service as a Participant and has attained age 55.

    

    (2) AQualified
      Election Period@
      means
      the six (6) Plan Year period beginning with the first Plan Year in which the
      Participant first became a AQualified
      Participant.@

    

    4.7 QUALIFIED
      MILITARY SERVICE

    

    Notwithstanding
      any provision of this Plan to the contrary, contributions, benefits and service
      will be provided in accordance with Code Section 414(u).

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    ARTICLE
      V

    FUNDING
      AND INVESTMENT POLICY

    

    5.1
       INVESTMENT
      POLICY

    

    (a) The
      Plan
      is designed to invest primarily in Company Stock.

    

    (b) With
      due
      regard to subparagraph (a) above, the Administrator may also direct the Trustee
      to invest funds under the Plan in other property described in the Trust or
      in
      life insurance policies to the extent permitted by subparagraph (c) below,
      or
      the Trustee may hold such funds in cash or cash equivalents.

    

    (c) With
      due
      regard to subparagraph (a) above, the Administrator may also direct the Trustee
      to invest funds under the Plan in insurance policies on the life of any
Akeyman@
      Employee. The proceeds of a Akeyman@
      insurance policy may not be used for the repayment of any indebtedness owed
      by
      the Plan which is secured by Company Stock. In the event any Akeyman@
      insurance is purchased by the Trustee, the premiums paid thereon during any
      Plan
      Year, net of any policy dividends and increases in cash surrender values, shall
      be treated as the cost of Plan investment and any death benefit or cash
      surrender value received shall be treated as proceeds from an investment of
      the
      Plan.

    

    (d) The
      Plan
      may not obligate itself to acquire Company Stock from a particular holder
      thereof at an indefinite time determined upon the happening of an event such
      as
      the death of the holder.

    

    (e) The
      Plan
      may not obligate itself to acquire Company Stock under a put option binding
      upon
      the Plan. However, at the time a put option is exercised, the Plan may be given
      an option to assume the rights and obligations of the Employer under a put
      option binding upon the Employer.

    

    (f) All
      purchases of Company Stock shall be made at a price which, in the judgment
      of
      the Administrator, does not exceed the fair market value thereof. All sales
      of
      Company Stock shall be made at a price which, in the judgment of the
      Administrator, is not less than the fair market value thereof. The valuation
      rules set forth in Article VI shall be applicable.

    

    5.2
       APPLICATION
      OF CASH

    

    Employer
      contributions in cash, and any earnings on such contributions, shall first
      be
      applied to pay any Current Obligations of the Trust Fund.

    

    5.3
       LOANS
      TO
      THE TRUST

    

    (a) The
      Plan
      may borrow money for any lawful purpose, provided the proceeds of an Exempt
      Loan
      are used within a reasonable time after receipt only for any or all of the
      following purposes:

    

    (1) To
      acquire Company Stock.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (2) To
      repay
      such loan.

    

    (3) To
      repay
      a prior Exempt Loan.

    

    (b) All
      loans
      to the Trust which are made or guaranteed by a disqualified person must satisfy
      all requirements applicable to Exempt Loans including but not limited to the
      following:

    

    (1) The
      loan
      must be at a reasonable rate of interest;

    

    (2) Any
      collateral pledged to the creditor by the Plan shall consist only of the Company
      Stock purchased with the borrowed funds;

    

    (3) Under
      the
      terms of the loan, any pledge of Company Stock shall provide for the release
      of
      shares so pledged on a pro-rata basis pursuant to Section 4.3(e);

    

    (4) Under
      the
      terms of the loan, the creditor shall have no recourse against the Plan except
      with respect to such collateral, earnings attributable to such collateral,
      Employer contributions (other than contributions of Company Stock) that are
      made
      to meet Current Obligations and earnings attributable to such
      contributions;

    

    (5) The
      loan
      must be for a specific term and may not be payable at the demand of any person,
      except in the case of default;

    

    (6) In
      the
      event of default upon an Exempt Loan, the value of the Trust Fund transferred
      in
      satisfaction of the Exempt Loan shall not exceed the amount of default. If
      the
      lender is a disqualified person, an Exempt Loan shall provide for a transfer
      of
      Trust Funds upon default only upon and to the extent of the failure of the
      Plan
      to meet the payment schedule of the Exempt Loan;

    

    (7) Exempt
      Loan payments during a Plan Year must not exceed an amount equal to: (A) the
      sum, over all Plan Years, of all contributions and cash dividends paid by the
      Employer to the Plan with respect to such Exempt Loan and earnings on such
      Employer contributions and cash dividends, less (B) the sum of the Exempt Loan
      payments in all preceding Plan Years. A separate accounting shall be maintained
      for such Employer contributions, cash dividends and earnings until the Exempt
      Loan is repaid.

    

    (c) For
      purposes of this Section, the term Adisqualified
      person@
      means a
      person who is a Fiduciary, a person providing services to the Plan, an Employer
      any of whose Employees are
      covered
      by the Plan, an employee organization any of whose members are
      covered
      by the Plan, an owner, direct or indirect, of 50% or more of the total combined
      voting power of all classes of voting stock or of the total value of all classes
      of the stock, or an officer, director, 10% or more shareholder, or a highly
      compensated Employee.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    ARTICLE
      VI

    VALUATIONS

    

    6.1 VALUATION
      OF THE TRUST FUND

    

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

    

    6.2 METHOD
      OF
      VALUATION

    

    Valuations
      must be made in good faith and based on all relevant factors for determining
      the
      fair market value of securities. In the case of a transaction between a Plan
      and
      a disqualified person, value must be determined as of the date of the
      transaction. For all other Plan purposes, value must be determined as of the
      most recent Valuation Date under the Plan. An independent appraisal will not
      in
      itself be a good faith determination of value in the case of a transaction
      between the Plan and a disqualified person. However, in other cases, a
      determination of fair market value based on at least an annual appraisal
      independently arrived at by a person who customarily makes such appraisals
      and
      who is independent of any party to the transaction will be deemed to be a good
      faith determination of value. Company Stock not readily tradeable on an
      established securities market shall be valued by an independent appraiser
      meeting requirements similar to the requirements of the Regulations prescribed
      under Code Section 170(a)(1).

    

    ARTICLE
      VII

    DETERMINATION
      AND DISTRIBUTION OF BENEFITS

    

    7.1 DETERMINATION
      OF BENEFITS UPON RETIREMENT

    

    Every
      Participant may terminate employment with the Employer and retire for the
      purposes hereof on the Participant=s
      Normal
      Retirement Date. However, a Participant may postpone the termination of
      employment with the Employer to a later date, in which event the participation
      of such Participant in the Plan, including the right to receive allocations
      pursuant to Section 4.3, shall continue until such Participant=s
      Late
      Retirement Date. Upon a Participant=s
      Retirement Date or attainment of Normal Retirement Date without termination
      of
      employment with the Employer, or as soon thereafter as is practicable, the
      Trustee shall distribute, at the election of the Participant, all amounts
      credited to such Participant=s
      Account
      in accordance with Sections 7.5 and 7.6.

    

    7.2 DETERMINATION
      OF BENEFITS UPON DEATH 

    

    (a) Upon
      the
      death of a Participant before the Participant=s
      Retirement date or other termination of employment, all amounts credited to
      such
      Participant=s
      Account
      shall become fully Vested. If elected, distribution of the
      Participant=s
      Account
      shall commence not later than one (1) year after the close of the Plan Year
      in
      which such Participant=s
      death
      occurs. The Administrator shall direct the Trustee, in accordance with the
      provisions of Sections 7.5 and 7.6, to distribute the value of the deceased
      Participant=s
      accounts to the Participant=s
      Beneficiary.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (b) Upon
      the
      death of a Former Participant, the Administrator shall direct the Trustee,
      in
      accordance with the provisions of Sections 7.5 and 7.6, to distribute any
      remaining Vested amounts credited to the accounts of a deceased Former
      Participant to such Former Participant=s
      Beneficiary.

    

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

    (d) The
      Beneficiary of the death benefit payable pursuant to this Section shall be
      the
      Participant=s
      spouse.
      Except, however, the Participant may designate a Beneficiary other than the
      spouse if:

    

    (1) the
      spouse has waived the right to be the Participant=s
      Beneficiary, or

    

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

    

    (3) the
      Participant has no spouse, or

    

    
      
        (4)
          the
          spouse cannot be located.

      

    

    

    In
      such
      event, the designation of a Beneficiary shall be made on a form satisfactory
      to
      the Administrator. A Participant may at any time revoke a designation of a
      Beneficiary or change a Beneficiary by filing written (or in such other form
      as
      permitted by the Internal Revenue Service) notice of such revocation or change
      with the Administrator. However, the Participant=s
      spouse
      must again consent in writing (or in such other form as permitted by the
      Internal Revenue Service) to any change in Beneficiary unless the original
      consent acknowledged that the spouse had the right to limit consent only to
      a
      specific Beneficiary and that the spouse voluntarily elected to relinquish
      such
      right.

    

    (e) In
      the
      event no valid designation of Beneficiary exists, or if the Beneficiary is
      not
      alive at the time of the Participant=s
      death,
      the death benefit will be paid in the following order of priority
      to:

    

    (1) the
      Participant=s
      surviving spouse;

    

    (2) the
      Participant=s
      children, including adopted children, per stirpes;

    

    (3) the
      Participant=s
      surviving parents in equal shares; or

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (4) the
      Participant=s
      estate.

    

    If
      the
      Beneficiary does not predecease the Participant, but dies prior to distribution
      of the death benefit, the death benefit will be paid to the
      Beneficiary=s
      estate.

    

    (f) Notwithstanding
      anything in this Section to the contrary, if a Participant has designated the
      spouse as a Beneficiary, then a divorce decree or a legal separation that
      relates to such spouse shall revoke the Participant=s
      designation of the spouse as a Beneficiary unless the decree or a qualified
      domestic relations order (within the meaning of Code Section 414(p)) provides
      otherwise.

    

    (g) Any
      consent by the Participant=s
      spouse
      to waive any rights to the death benefit must be in writing (or in such other
      form as permitted by the Internal Revenue Service), must acknowledge the effect
      of such waiver, and be witnessed by a Plan representative or a notary public.
      Further, the spouse=s
      consent
      must be irrevocable and must acknowledge the specific nonspouse
      Beneficiary.

    

    7.3 DETERMINATION
      OF BENEFITS IN EVENT OF DISABILITY

    

    In
      the
      event of a Participant=s
      Total
      and Permanent Disability prior to the Participant=s
      Retirement Date or other termination of employment, all amounts credited to
      such
      Participant=s
      Account
      shall become fully Vested. In the event of a Participant=s
      Total
      and Permanent Disability, the Administrator, in accordance with the provisions
      of Sections 7.5 and 7.6, shall direct the distribution to such Participant
      of
      all Vested amounts credited to such Participant=s
      Account. if such Participant elects, distribution shall commence not later
      than
      one (1) year after the close of the Plan Year in which Total and Permanent
      Disability occurs.

    

    7.4 DETERMINATION
      OF BENEFITS UPON TERMINATION

    

    (a) If
      a
      Participant=s
      employment with the Employer is terminated for any
      reason other than death, Total and Permanent Disability or retirement, then
      such
      Participant shall be entitled to such benefits as are provided hereinafter
      pursuant
      to this Section 7.4.

    

    If
      a
      portion of a Participant=s
      Account
      is forfeited, Company Stock allocated to the Participant=s
      Company
      Stock Account must be forfeited only after the Participant=s
      Other
      Investments Account has been depleted. If interest in more than one class of
      Company Stock has been allocated to a Participant=s
      Account, the Participant must be treated as forfeiting the same proportion
      of
      each such class.

    

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

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Trustee
      that the entire Vested portion of the Terminated Participant=s
      Account
      attributable to Company Stock to be payable to such Terminated Participant
      one
      (1) year after the close of the Plan Year which is the fifth Plan Year following
      the Plan Year in which the Participant otherwise separates from service.
      However, if such Terminated Participant is redeployed by the Employer before
      distribution is required to commence under this paragraph, such distribution
      shall be postponed. Distribution to a Participant shall not include any Company
      Stock acquired with the proceeds of an Exempt Loan until the close of the Plan
      Year in which such loan is repaid in full. Any distribution under this paragraph
      shall be made in a manner which is consistent with and satisfies the provisions
      of Sections 7.5 and 7.6, including, but not limited to, all notice and consent
      requirements of Code Section 411(a)(11) and the Regulations
      thereunder.

    

    If
      the
      value of a Terminated Participant=s
      Vested
      benefit derived from Employer and Employee contributions does not exceed $5,000,
      then the Participant=s
      Vested
      benefit shall be paid to such Participant in a single lump sum as soon as
      administratively feasible after termination of employment.

    

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

    

      
        	
                Vesting
                  Schedule

              
	
                Years
                  of Service

              	 	
                Percentage

              	 
	
                 

              	 	 	 
	
                Less
                  than 2

              	 	 	
                0%

              	
                 

              
	
                2

              	 	 	
                20%

              	
                 

              
	
                3

              	 	 	
                40%

              	
                 

              
	
                4

              	 	 	
                60%

              	
                 

              
	
                5

              	 	 	
                80%

              	
                 

              
	
                6

              	 	 	
                100%

              	
                 

              

      

    

    (c) Notwithstanding
      the above, Company Stock allocated to each Participant=s
      Company
      Stock Account pursuant to Section 4.3(e) must be forfeited only after other
      assets.

    

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

    

    (e) The
      computation of a Participant=s
      nonforfeitable percentage of such Participant=s
      interest in the Plan shall not be reduced as the result of any direct or
      indirect amendment to this Plan. In the event that the Plan is amended to change
      or modify any vesting schedule, or if the Plan is amended in any way that
      directly or indirectly affects the computation of the Participant=s
      nonforfeitable percentage, or if the Plan is deemed amended by an automatic
      change to a top heavy vesting schedule, then each Participant with at least
      three (3) Years of

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Service
      as of the expiration date of the election period may elect to have such
      Participant=s
      nonforfeitable percentage computed under the Plan without regard to such
      amendment or change. If a Participant fails to make such election, then such
      Participant shall be subject to the new vesting schedule. The
      Participant=s
      election period shall commence on the adoption date of the amendment and shall
      end sixty (60) days after the latest of:

    

    (1) the
      adoption date of the amendment,

    

    (2) the
      effective date of the amendment, or

    

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

    

    (f) In
      determining Years of Service for purposes of vesting under the Plan, Years
      of
      Service prior to the Effective Date of the Plan and prior to the vesting
      computation period in which an Employee attains age eighteen shall be excluded.
      

    

    7.5
       DISTRIBUTION
      OF BENEFITS

    

    (a) The
      Administrator, pursuant to the election of the Participant, shall direct
      the Trustee to distribute to a Participant or such Participant=s
      Beneficiary any
      amount, subject to Section 7.5(b), to which the Participant is entitled under
      the
      Plan
      in one or more of the following methods:

    

    (1) One
      lump-sum payment.

    

    (2) Payments
      over a period certain in monthly, quarterly, semiannual, or annual installments.
      The period over which such payment is to be made shall not extend beyond the
      earlier of the Participant=s
      life
      expectancy (or the joint life expectancy of the Participant and the
      Participant=s
      Adesignated
      Beneficiary@)
      or the
      limited distribution period provided for in Section 7.5(b).

    

    (b) Unless
      the Participant elects in writing (or such other form as permitted by the
      Internal Revenue Service) a longer distribution period, distributions to a
      Participant or the Participant=s
      Beneficiary attributable to Company Stock shall be in substantially equal
      monthly, quarterly, semiannual, or annual installments over a period not longer
      than five (5) years. In the case of a Participant with an account balance
      attributable to Company Stock in excess of $800,000, the five (5)
      year
      period shall be extended one (1) additional year (but not more than five (5)
      additional years) for each $160,000 or fraction thereof by which such balance
      exceeds $800,000. The dollar limits shall be adjusted at the same time and
      in
      the same manner as provided in Code Section 415(d).

    

    (c) Any
      distribution to a Participant who has a benefit which exceeds $1,000, shall
      require such Participant=s
      written
      (or in such other form as permitted by the Internal Revenue Service) consent
      if
      such distribution is to commence prior to the time the benefit is Aimmediately
      distributable.@
      A
      benefit is Aimmediately
      distributable@
      if any
      part of the benefit could be distributed to the Participant (or surviving
      spouse) before the Participant attains (or would have attained if not deceased)
      the later of the Participant=s
      Normal
      Retirement Age or age 62. With regard to this required consent:

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (1) The
      Participant must be informed of the right to defer receipt of the distribution,
      if a Participant fails to consent, it shall be deemed an election to defer
      the
      commencement of payment of any benefit. However, any election to defer the
      receipt of benefits shall not apply with respect to distributions which are
      required under Section 7.5(f).

    

    (2) Notice
      of
      the rights specified under this paragraph shall be provided no less than thirty
      (30) days and no more than ninety (90) days before the date the distribution
      commences.

    

    (3) Written
      (or such other form as permitted by the Internal Revenue Service) consent of
      the
      Participant to the distribution must not be made before the Participant receives
      the notice and must not be made more than ninety (90) days before the date
      the
      distribution commences.

    

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

    

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

    

    (d) Notwithstanding
      anything herein to the contrary, the Administrator may direct that cash
      dividends on shares of Company Stock allocable to Participants=
      Company
      Stock Accounts be:

    

    (1) Paid
      by
      the Employer directly in cash to the Participants in the Plan or their
      Beneficiaries.

    

    (2) Paid
      to
      the Plan and distributed in cash to Participants in the Plan or their
      Beneficiaries no later than ninety (90) days after the close of the Plan Year
      in
      which paid.

    

    (3) At
      the
      election of Participants or their Beneficiaries, paid in accordance with
      paragraph (1) or (2) above, or paid to the Plan and reinvested in Company Stock;
      provided, however, that if cash dividends are reinvested in Company Stock,
      then
      Company Stock allocated to the Participant=s
      Company
      Stock Account shall have a fair market value not less than the amount of cash
      dividends which would have been allocated to such Participant=s
      Other
      Investment Account for the year.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (4) Used
      to
      make payments on an Exempt Loan the proceeds of which were used to acquire
      Company Stock (whether or not allocated to Participants=
      Company
      Stock Accounts) with respect to which the cash dividend is paid.

    

    (5) Allocated
      to Participants=
      Other
      Investment Accounts.

    

    (e) Any
      part
      of a Participant=s
      benefit
      which is retained in the Plan after
      the
      Anniversary Date on which the Participant=s
      participation ends will continue
      to be treated as a Company Stock Account or as an Other Investments Account
      (subject to Section 7.4(a)) as provided in Article IV. However, neither
account
      will be credited with any further Employer contributions or
      Forfeitures.

    

    (f) Notwithstanding
      any provision in the Plan to the contrary, the distribution
      of a Participant=s
      benefits will be made in accordance with the following
      requirements and will otherwise comply with Code Section 401(a)(9) and
      the
      Regulations thereunder, the provisions of which are incorporated herein
by
      reference:

    

    (1) A
      Participant=s
      benefits will be distributed not later than April 1st of the calendar year
      following the later of (i) the calendar year in which the Participant attains
      age 70 2
      or (ii)
      the calendar year in which the Participant retires, provided, however, that
      this
      clause (ii) shall not apply in the case of a Participant who is a Afive
      (5)
      percent owner@
      at any
      time during the Plan Year ending with or within the calendar year in which
      such
      owner attains age 70 2.
      Such
      distribution shall be equal to or greater than any required
      distribution.

    

    Alternatively,
      distributions to a Participant must begin no later than the applicable April
      1st
      as determined above and must be made over a period
      certain
      measured by the Life Expectancy of the Participant (or joint Life Expectancies
      of the Participant and the Participant=s
      Adesignated
      Beneficiary@)
      in
      accordance with Regulations. Such distributions will be equal to or greater
      than
      any required distribution.

    

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

    

    (3) Unless
      the Participant=s
      interest is distributed in a single sum on or before the required beginning
      date
      specified in (1) above, the minimum amount that will be distributed for each
      Distribution Calendar Year (including the first Distribution Calendar Year
      and
      the Distribution Calendar Year that includes the Participant=s
      date of
      death) is the lesser of:

    

    (i) the
      quotient obtained by dividing the Participant=s
      Account
      Balance by the distribution period in the Uniform Lifetime Table set forth
      in
      Regulation 1.401(a)(9)-9, using the Participant=s
      age as
      of the Participant=s
      birthday in the Distribution Calendar Year; or

    

    (ii) if
      the
      Participant=s
      sole
Adesignated
      Beneficiary@
      for the
      Distribution Calendar Year is the Participant=s
      spouse,
      the quotient obtained by dividing the Participant=s
      Account
      Balance by the number in the Joint and Last Survivor Table set forth in
      Regulation 1.401(a)(9)-9, using the Participant=s
      and
      spouse=s
      attained ages as of the Participant=s
      and
      spouse=s
      birthdays in the Distribution Calendar Year.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (g) Notwithstanding
      any provision in the Plan to the contrary, distributions upon the death of
      a
      Participant will be made in accordance with the following requirements and
      will
      otherwise comply with Code Section 401(a)(9) and the Regulations thereunder,
      the
      provisions of which are incorporated by reference.

    

    (1) If
      the
      Participant dies on or after the date distributions begin and there is a
      "designated Beneficiary," then the minimum amount that will be distributed
      for
      each Distribution Calendar Year after the year of the Participant's death is
      the
      quotient obtained by dividing the Participant's Account Balance by the longer
      of
      the remaining Life Expectancy of the Participant or the remaining Life
      Expectancy of the Participant's "designated Beneficiary," determined as
      follows:

    

    (i) The
      Participant's remaining Life Expectancy is calculated using the age of the
      Participant in the year of death, reduced by one for each subsequent
      year.

    

    (ii) If
      the
      Participant's surviving spouse is the Participant's sole "designated
      Beneficiary," then the remaining Life Expectancy of the surviving spouse is
      calculated for each Distribution Calendar Year after the year of the
      Participant's death using the surviving spouse's age as of the spouse's birthday
      in that year. For Distribution Calendar Years after the year of the surviving
      spouse's death, the remaining Life Expectancy of the surviving spouse is
      calculated using the age of the surviving spouse as of the spouse's birthday
      in
      the calendar year of the spouse's death, reduced by one for each subsequent
      calendar year.

    

    (iii)
       If
      the
      Participant's surviving spouse is not the Participant's sole "designated
      Beneficiary," then the "designated Beneficiary's" remaining Life Expectancy
      is
      calculated using the age of the beneficiary in the year following the year
      of
      the Participant's death, reduced by one for each subsequent year.

    

    However,
      if there is no "designated Beneficiary" as of September 30th of the year after
      the year of the Participant's death, then the minimum amount that will be
      distributed for each Distribution Calendar Year after the year of the
      Participant's death is the quotient obtained by dividing the Participant's
      Account Balance by the Participant's remaining Life Expectancy calculated using
      the age of the Participant in the year of death, reduced by one for each
      subsequent year.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (2)
       If
      a
      Participant dies before the date distributions begin, then the Participant's
      entire interest will be distributed, or begin to be distributed, no later than
      as follows:

    

    (i) If
      the
      Participant's surviving spouse is the Participant's sole "designated
      Beneficiary," then distributions to the surviving spouse will begin by December
      31st of the calendar year immediately following the calendar year in which
      the
      Participant died, or by December 31st of the calendar year in which the
      Participant would have attained age 70 2,
      if
      later.

    

    (ii) If
      the
      Participant's surviving spouse is not the Participant's sole "designated
      Beneficiary," then the Participant's entire interest will be distributed to
      the
      "designated Beneficiary," by December 31st of the calendar year containing
      the
      fifth anniversary of the Participant's death (the "5-year rule").

    

    (iii)
       If
      there
      is no "designated Beneficiary" as of September 30th of the year following the
      year of the Participant's death, the Participant's entire interest will be
      distributed by December 31st of the calendar year containing the fifth
      anniversary of the Participant's death.

    

    (iv)
       If
      the
      Participant is survived by a "designated Beneficiary," then the minimum amount
      that will be distributed for each Distribution Calendar Year after the year
      of
      the Participant's death is the quotient obtained by dividing the Participant's
      Account Balance by the remaining Life Expectancy of the Participant's
      "designated Beneficiary," determined as provided in Section
      7.5(g)(1).

    

    (v) if
      the
      Participant's surviving spouse is the Participant's sole "designated
      Beneficiary" and the surviving spouse dies after the Participant but before
      distributions to the surviving spouse begin, then this Section 7.5(g)(2), other
      than Section 7.5(g)(2)(i), will apply as if the surviving spouse were the
      Participant. 

    

    (3)
       For
      purposes of this Section 7.5(g), the Participant's death benefit will be
      distributed to the Participant's Beneficiaries subject to the following
      rules:

    

    (i) Distributions
      are considered to begin on the Participant's required beginning date. However,
      if Section 7.5(g)(2)(v) applies, distributions are considered to begin on the
      date distributions are required to begin to the surviving spouse.

    

    (ii) Unless
      the Participant's interest is distributed in a single sum on or before the
      required beginning date, as of the first Distribution Calendar Year
      distributions will be made in accordance with Section 7.5(g).

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (h) Except
      as
      limited by Sections 7.5 and 7.6, whenever the Trustee is to make a distribution
      or to commence a series of payments, the distribution or series of payments
      may
      be made or begun on such date or as soon thereafter as is practicable. However,
      unless a Former Participant elects in writing to defer the receipt of benefits
      (such election may not result in a death benefit that is more than incidental),
      the payment of benefits shall begin not later than the sixtieth (60th) day
      after
      the close of the Plan Year in which the latest of the following events
      occurs:

    

    (1) the
      date
      on which the Participant attains the earlier of age 65 or the Normal Retirement
      Age specified herein;

    

    (2) the
      tenth
      (10th) anniversary of the year in which the Participant commenced participation
      in the Plan; or

    

    (3) the
      date
      the Participant terminates his service with the Employer.

    

    (i) If
      a
      distribution is made to a Participant who has not severed employment and who
      is
      not fully Vested in the Participant's Account and the Participant may increase
      the Vested percentage in such account, then, at any relevant time the
      Participant's Vested portion of the account will be equal to an amount ("X")
      determined by the formula:

    

    X
      equals
      P(AB plus D) - D

    

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

    

    7.6
       HOW
      PLAN
      BENEFIT WILL BE DISTRIBUTED

    

    (a) Distribution
      of a Participant's benefit may be made in cash or Company Stock or both,
      provided, however, that if a Participant or Beneficiary so demands, such benefit
      shall be distributed only in the form of Company Stock. Prior to making a
      distribution of benefits, the Administrator shall advise the Participant or
      the
      Participant's Beneficiary, in writing (or such other form as permitted by the
      Internal Revenue Service), of the right to demand that benefits be distributed
      solely in Company Stock.

    

    (b) If
      a
      Participant or Beneficiary demands that benefits be distributed solely in
      Company Stock, distribution of a Participant's benefit will be made entirely
      in
      whole shares or other units of Company Stock. Any balance in a Participant's
      Other Investments Account will be applied to acquire for distribution the
      maximum number of whole shares or other units of Company Stock at the then
      fair
      market value. Any fractional unit value unexpended will be distributed in cash.
      If Company Stock is not available for purchase by the Trustee, then the Trustee
      shall hold such balance until Company Stock is acquired and then make such
      distribution, subject to Sections 7.5(h) and 7.5(f).

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (c) The
      Trustee will make distribution from the Trust only on instructions from the
      Administrator.

    

    (d) Notwithstanding
      anything contained herein to the contrary, if the Employer charter or by-laws
      restrict ownership of substantially all shares of Company Stock to Employees
      and
      the Trust Fund, as described in Code Section 409(h)(2)(B)(ii)(I), then the
      Administrator shall distribute a Participant's Account entirely in cash without
      granting the Participant the right to demand distribution in shares of Company
      Stock.

    

    (e) Except
      as
      otherwise provided herein, Company Stock distributed by the Trustee may be
      restricted as to sale or transfer by the by-laws or articles of incorporation
      of
      the Employer, provided restrictions are applicable to all Company Stock of
      the
      same class. If a Participant is required to offer the sale of Company Stock
      to
      the Employer before offering to sell Company Stock to a third party, in no
      event
      may the Employer pay a price less than that offered to the distributee by
      another potential buyer making a bona fide offer and in no event shall the
      Trustee pay a price less than the fair market value of the Company
      Stock.

    

    (f) If
      Company Stock acquired with the proceeds of an Exempt Loan (described in Section
      5.3 hereof) is available for distribution and consists of more than one class,
      a
      Participant or the Participant's Beneficiary must receive substantially the
      same
      proportion of each such class.

    

    7.7
       DISTRIBUTION
      FOR MINOR OR INCOMPETENT BENEFICIARY

    

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

    

    7.8
       LOCATION
      OF PARTICIPANT OR BENEFICIARY UNKNOWN

    

    In
      the
      event that all, or any portion, of the distribution payable to a Participant
      or
      Beneficiary hereunder shall, at the later of the Participant's attainment of
      age
      62 or Normal Retirement Age, remain unpaid solely by reason of the inability
      of
      the Administrator, after sending a registered letter, return receipt requested,
      to the last known address, and after further diligent effort, to ascertain
      the
      whereabouts of such Participant or Beneficiary, the amount so distributable
      may
      either, at the discretion of the Administrator, treated as a Forfeiture or
      paid
      directly to an individual retirement account described in Code Section 408(a)
      or
      individual retirement annuity described in Code Section 408(b) pursuant to
      the
      Plan. However, the foregoing shall also apply prior to the later of a
      Participant's attainment of age 62 or Normal Retirement Age if, pursuant to
      the
      terms of the Plan, a mandatory distribution may be made to the
      Participant without the Participant's consent and the amount of such
      distribution is not more 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    than
      $1,000. In the event a Participant or Beneficiary is located subsequent to
      a
      Forfeiture, such benefit shall be restored, first from Forfeitures, if any,
      and
      then from an additional Employer contribution if necessary. However, regardless
      of the preceding, a benefit which is lost by reason of escheat under applicable
      state law is not treated as a Forfeiture for purposes of this Section nor as
      an
      impermissible forfeiture under the Code.

    

    7.9
       RIGHT
      OF
      FIRST REFUSALS

    

    (a) If
      any
      Participant, the Participant's Beneficiary or any other person to whom shares
      of
      Company Stock are distributed from the Plan (the "Selling Participant") shall,
      at any time, desire to sell some or all of such shares (the "Offered Shares")
      to
      a third party (the "Third Party"), the Selling Participant shall give written
      notice of such desire to the Employer and the Administrator, which notice shall
      contain the number of shares offered for sale, the proposed terms of the sale
      and the names and addresses of both the Selling Participant and Third Party.
      Both the Trust Fund and the Employer shall each have the right of first refusal
      for a period of fourteen (14) days from the date the Selling Participant gives
      such written notice to the Employer and the Administrator (such fourteen (14)
      day period to run concurrently against the Trust Fund and the Employer) to
      acquire the Offered Shares. As between the Trust Fund and the Employer, the
      Trust Fund shall have priority to acquire the shares pursuant to the right
      of
      first refusal. The selling price and terms shall be the same as offered by
      the
      Third Party.

    

    (b) If
      the
      Trust Fund and the Employer do not exercise their right of first refusal within
      the required fourteen (14) day period provided above, the Selling Participant
      shall have the right, at any time following the expiration of such fourteen
      (14)
      day period, to dispose of the Offered Shares to the Third Party; provided,
      however, that (i) no disposition shall be made to the Third Party on terms
      more
      favorable to the Third Party than those set forth in the written notice
      delivered by the Selling Participant above, and (ii) if such disposition shall
      not be made to a third party on the terms offered to the Employer and the Trust
      Fund, the offered Shares shall again be subject to the right of first refusal
      set forth above.

    

    (c) The
      closing pursuant to the exercise of the right of first refusal under Section
      7.9(a) above shall take place at such place agreed upon between the
      Administrator and the Selling Participant, but not later than ten (10) days
      after the Employer or the Trust Fund shall have notified the Selling Participant
      of the exercise of the right of first refusal. At such closing, the Selling
      Participant shall deliver certificates representing the Offered Shares duly
      endorsed in blank for transfer, or with stock powers attached duly executed
      in
      blank with all required transfer tax stamps attached or provided for, and the
      Employer or the Trust Fund shall deliver the purchase price, or an appropriate
      portion thereof, to the Selling Participant.

    

    (d) Except
      as
      provided in this paragraph (d), no Company Stock acquired with the proceeds
      of
      an Exempt Loan complying with the requirements of Section 5.3 hereof shall
      be
      subject to a right of first refusal. Company Stock acquired with the proceeds
      of
      an Exempt Loan, which is distributed to a Participant or Beneficiary, shall
      be
      subject to the right of first refusal provided for in paragraph (a) of this
      Section only so long as the Company Stock is not publicly traded. The term
      "publicly traded" refers to a securities exchange registered under Section
      6 of
      the Securities Exchange Act of 1934 (15 U.S.C. 781) or that is quoted on a
      system sponsored by a national securities association registered under Section
      15A(b) of the Securities Exchange Act (15 U.S.C. 780). In addition, in the
      case
      of Company Stock which was acquired with the proceeds of a loan described in
      Section 5.3, the selling price and other terms under the right must not be
      less
      favorable to the seller than the greater of the value of the security determined
      under Section 6.2, or the purchase price and other terms offered by a buyer
      (other than the Employer or the Trust Fund), making a good faith offer to
      purchase the security. The right of first refusal must lapse no later than
      fourteen (14) days after the security holder gives notice to the holder of
      the
      right that an offer by a third party to purchase the security has been made.
      The
      right of first refusal shall comply with the provisions of paragraphs (a),
      (b)
      and (c) of this Section, except to the extent those provisions may conflict
      with
      the provisions of this paragraph.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    7.10
       STOCK
      CERTIFICATE LEGEND

    

    Certificates
      for shares distributed pursuant to the Plan shall contain the following
      legend:

    

    "The
      shares represented by this certificate are transferable only upon compliance
      with the terms of RELIV INTERNATIONAL, INC. EMPLOYEE STOCK OWNERSHIP PLAN AND
      TRUST effective as of September 1, 2006, which grants to Reliv International,
      Inc. a right of first refusal, a copy of said Plan being on file in the office
      of the Company."

    

    7.11
       NONTERMINABLE
      PROTECTIONS AND RIGHTS

    

    No
      Company Stock, except as provided in Section 7.9, acquired with the proceeds
      of
      a loan described in Section 5.3 hereof may be subject to a put, call, or other
      option, or buy-sell or similar arrangement when held by and when distributed
      from the Trust Fund, whether or not the Plan is then an ESOP. The protections
      and rights granted in this Section are nonterminable, and such protections
      and
      rights shall continue to exist under the terms of this Plan so long as any
      Company Stock acquired with the proceeds of a loan described in Section 5.3
      hereof is held by the Trust Fund or by any Participant or other person for
      whose
      benefit such protections and rights have been created, and neither the repayment
      of such loan nor the failure of the Plan to be an ESOP, nor an amendment of
      the
      Plan shall cause a termination of said protections and rights.

    

    7.12 QUALIFIED
      DOMESTIC RELATIONS ORDER DISTRIBUTION

    

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

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    ARTICLE
      VIII

    TRUSTEE

    

    8.1
       BASIC
      RESPONSIBILITIES OF THE TRUSTEE

    

    (a) The
      Trustee shall have the following categories of responsibilities:

    

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

     

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

    

    (3) To
      maintain records of receipts and disbursements and furnish to the Employer
      and/or Administrator for each Plan Year a written annual report pursuant to
      Section 8.7.

    

    (b) In
      the
      event that the Trustee shall be directed by the Employer, or an Investment
      Manager with respect to the investment of any or all Plan assets, the Trustee
      shall have no liability with respect to the investment of such assets, but
      shall
      be responsible only to execute such investment instructions as so
      directed.

    

    (1) The
      Trustee shall be entitled to rely fully on the written (or other form acceptable
      to the Administrator and the Trustee, including, but not limited to, voice
      recorded) instructions of the Employer, or any Fiduciary or nonfiduciary agent
      of the Employer, in the discharge of such duties, and shall not be liable for
      any loss or other liability, resulting from such direction (or lack of
      direction) of the investment of any part of the Plan assets.

    

    (2) The
      Trustee may delegate the duty of executing such instructions to any nonfiduciary
      agent, which may be an affiliate of the Trustee or any Plan
      representative.

    

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

    

    8.2
       INVESTMENT
      POWERS AND DUTIES OF THE TRUSTEE

    

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

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

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

    

    (c) In
      the
      event the Trustee invests any part of the Trust Fund, pursuant to the directions
      of the Administrator, in any shares of stock issued by the Employer, and the
      Administrator thereafter directs the Trustee to dispose of such investment,
      or
      any part thereof, under circumstances which, in the opinion of counsel for
      the
      Trustee, require registration of the securities under the Securities Act of
      1933
      and/or qualification of the securities under the Blue Sky laws of any state
      or
      states, then the Employer at its own expense, will take or cause to be taken
      any
      and all such action as may be necessary or appropriate to effect such
      registration and/or qualification. 

    

    8.3
       OTHER
      POWERS OF THE TRUSTEE

    

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

    

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

    

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

    

    (c) To
      vote
      upon any stocks, bonds, or other securities; to give general or special proxies
      or powers of attorney with or without power of substitution; to exercise any
      conversion privileges, subscription rights or other options, and to make any
      payments incidental thereto; to oppose, or to consent to, or otherwise
      participate in, corporate reorganizations or other changes affecting corporate
      securities, and to delegate discretionary powers, and to pay any assessments
      or
      charges in connection therewith; and generally to exercise any of the powers
      of
      an owner with respect to stocks, bonds, securities, or other property. However,
      the Trustee shall not vote proxies relating to securities for which it has
      not
      been assigned full investment management responsibilities. In those cases where
      another party has such investment authority or discretion, the Trustee will
      deliver all proxies to said party who will then have full responsibility for
      voting those proxies;

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

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

    

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

    

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

    

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

    

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

    

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

    

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

    

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

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (l) To
      invest
      funds of the Trust in time deposits or savings accounts bearing a reasonable
      rate of interest or in cash or cash balances without liability for interest
      thereon;

    

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

    

    (n) To
      invest
      in shares of investment companies registered under the Investment Company Act
      of
      1940;

    

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

    

    (p) To
      vote
      Company Stock as provided in Section 8.4;

    

    (q) To
      consent to or otherwise participate in reorganizations, recapitalizations,
      consolidations, mergers and similar transactions with respect to Company Stock
      or any other securities and to pay any assessments or charges in connection
      therewith;

    

    (r) To
      deposit such Company Stock (but only if such deposit does not violate the
      provisions of Section 8.4 hereof) or other securities in any voting trust,
      or
      with any protective or like committee, or with a trustee or with depositories
      designated thereby;

    

    (s) To
      sell
      or exercise any options, subscription rights and conversion privileges and
      to
      make any payments incidental thereto;

    

    (t) To
      exercise any of the powers of an owner, with respect to such Company Stock
      and
      other securities or other property comprising the Trust Fund. The Administrator,
      with the Trustee's approval, may authorize the Trustee to act on any
      administrative matter or class of matters with respect to which direction or
      instruction to the Trustee by the Administrator is called for hereunder without
      specific direction or other instruction from the Administrator;

    

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

    

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

    

    8.4
       VOTING
      COMPANY STOCK

    

    The
      Trustee shall vote all Company Stock held by it as part of the Plan assets.
      Provided, however, that if any agreement entered into by the Trust provides
      for
      voting of any shares of Company Stock pledged as security for any obligation
      of
      the Plan, then such shares of Company Stock shall be voted in accordance with
      such agreement. If the Trustee does not timely receive voting directions from
      a
      Participant or Beneficiary with respect to any Company Stock allocated to that
      Participant's or Beneficiary's Company Stock Account, the Trustee shall vote
      such Company Stock.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Notwithstanding
      the foregoing, if the Employer has a registration-type class of securities,
      each
      Participant or Beneficiary shall be entitled to direct the Trustee as to the
      manner in which the Company Stock which is entitled to vote and which is
      allocated to the Company Stock Account of such Participant or Beneficiary is
      to
      be voted. If the Employer does not have a registration-type class of securities,
      each Participant or Beneficiary in the Plan shall be entitled to direct the
      Trustee as to the manner in which voting rights on shares of Company Stock
      which
      are allocated to the Company Stock Account of such Participant or Beneficiary
      are to be exercised with respect to any corporate matter which involves the
      voting of such shares with respect to the approval or disapproval of any
      corporate merger or consolidation, recapitalization, reclassification,
      liquidation, dissolution, sale of substantially all assets of a trade or
      business, or such similar transaction as prescribed in Regulations. For purposes
      of this Section the term "registration-type class of securities" means: (A)
      a
      class of securities required to be registered under Section 12 of the Securities
      Exchange Act of 1934; and (B) a class of securities which would be required
      to
      be so registered except for the exemption from registration provided in
      subsection (g)(2)(H) of such Section 12.

    If
      the
      Employer does not have a registration-type class of securities and the by-laws
      of the Employer require the Plan to vote an issue in a manner that reflects
      a
      one-man, one-vote philosophy, each Participant or Beneficiary shall be entitled
      to cast one vote on an issue and the Trustee shall vote the shares held by
      the
      Plan in proportion to the results of the votes cast on the issue by the
      Participants and Beneficiaries.

    

    8.5
       DUTIES
      OF
      THE TRUSTEE REGARDING PAYMENTS

    

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

    

    8.6
       TRUSTEE'S
      COMPENSATION AND EXPENSES AND TAXES

    

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

    

    8.7
       ANNUAL
      REPORT OF THE TRUSTEE

    

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

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

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

    

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

    

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

    

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

    

    (5) such
      further information as the Trustee and/or Administrator deems
      appropriate.

    

    (b) The
      Employer, promptly upon its receipt of each such statement of account, shall
      acknowledge receipt thereof in writing and advise the Trustee and/or
      Administrator of its approval or disapproval thereof. Failure by the Employer
      to
      disapprove any such statement of account within thirty (30) days after its
      receipt thereof shall be deemed an approval thereof. The approval by the
      Employer of any statement of account shall be binding on the Employer and the
      Trustee as to all matters contained in the statement to the same extent as
      if
      the account of the Trustee had been settled by judgment or decree in an action
      for a judicial settlement of its account in a court of competent jurisdiction
      in
      which the Trustee, the Employer and all persons having or claiming an interest
      in the Plan were parties. However, nothing contained in this Section shall
      deprive the Trustee of its right to have its accounts judicially settled if
      the
      Trustee so desires.

    

    8.8
       AUDIT

    

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

    

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

    

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

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    8.9 RESIGNATION,
      REMOVAL AND SUCCESSION OF TRUSTEE

    

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

    

    (b) Unless
      otherwise agreed to by both the Trustee and the Employer, the Employer may
      remove a Trustee at any time by delivering to the Trustee, at least thirty
      (30)
      days before its effective date, a written notice of such Trustee's
      removal.

    

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

    

    (d) The
      Employer may designate one or more successors prior to the death, resignation,
      incapacity, or removal of a Trustee. In the event a successor is so designated
      by the Employer and accepts such designation, the successor shall, without
      further act, become vested with all the powers and responsibilities of the
      predecessor as if such successor had been named as Trustee herein immediately
      upon the death, resignation, incapacity, or removal of the
      predecessor.

    

    (e) Whenever
      any Trustee hereunder ceases to serve as such, the Trustee shall furnish to
      the
      Employer and Administrator a written statement of account with respect to the
      portion of the Plan Year during which the individual or entity served as
      Trustee. This statement shall be either (i) included as part of the annual
      statement of account for the Plan Year required under Section 8.7 or (ii) set
      forth in a special statement. Any such special statement of account should
      be
      rendered to the Employer no later than the due date of the annual statement
      of
      account for the Plan Year. The procedures set forth in Section 8.7 for the
      approval by the Employer of annual statements of account shall apply to any
      special statement of account rendered hereunder and approval by the Employer
      of
      any such special statement in the manner provided in Section 8.7 shall have
      the
      same effect upon the statement as the Employer's approval of an annual statement
      of account. No successor to the Trustee shall have any duty or responsibility
      to
      investigate the acts or transactions of any predecessor who has rendered all
      statements of account required by Section 8.7 and this
      subparagraph.

    

    8.10 TRANSFER
      OF INTEREST

    

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

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    8.11
       TRUSTEE
      INDEMNIFICATION

    

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

    

    8.12
       DIRECT
      ROLLOVER

    

    (a) Notwithstanding
      any provision of the Plan to the contrary that would otherwise limit a
      "distributee's" election under this Section, a "distributee" may elect, at
      the
      time and in the manner prescribed by the Administrator, to have any portion
      of
      an "eligible rollover distribution" that is equal to at least $500 paid directly
      to an "eligible retirement plan" specified by the "distributee" in a "direct
      rollover."

    

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

    

    (1) An
      "eligible rollover distribution" is any distribution of all or any portion
      of
      the balance to the credit of the "distributee," except that an "eligible
      rollover distribution" does not include: any distribution that is one of a
      series of substantially equal periodic payments (not less frequently than
      annually) made for the life (or life expectancy) of the "distributee" or the
      joint lives (or joint life expectancies) of the "distributee" and the
      "distributee's" designated beneficiary, or for a specified period of ten years
      or more; any distribution to the extent such distribution is required under
      Code
      Section 401(a)(9); the portion of any other distribution that is not includible
      in gross income (determined without regard to the exclusion for net unrealized
      appreciation with respect to employer securities); any hardship distribution
      described in Code Section 401(k)(2)(B)(i)(IV); and any other distribution that
      is reasonably expected to total less than $200 during a year.

    

    (2) An
      "eligible retirement plan" is an individual retirement account described in
      Code
      Section 408(a), an individual retirement annuity described in Code Section
      408(b), (other than an endowment contract), a qualified trust (an employees'
      trust) described in Code Section 401(a) which is exempt from tax under Code
      Section 501(a), an annuity plan described in Code Section 403(a), an eligible
      deferred compensation plan described in Code Section 457(b) which is maintained
      by an eligible employer described in Code Section 457(e)(1)(A), and an annuity
      contract described in Code Section 403(b), that accepts the "distributee's"
      "eligible rollover distribution." However, in the case of an "eligible rollover
      distribution" to the surviving spouse, an "eligible retirement plan" is an
      individual retirement account or individual retirement annuity.

    

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

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

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

     

    ARTICLE
      IX

    AMENDMENT,
      TERMINATION AND MERGERS

    

    9.1
       AMENDMENT

    

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

    

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

    

    (c) Except
      as
      permitted by Regulations (including Regulation 1.411(d)-4) or other IRS
      guidance, no Plan amendment or transaction having the effect of a Plan amendment
      (such as a merger, plan transfer or similar transaction) shall be effective
      if
      it eliminates or reduces any "Section 411(d)(6) protected benefit" or adds
      or
      modifies conditions relating to "Section 411(d)(6) protected benefits" which
      results in a further restriction on such benefit unless such "Section 411(d)(6)
      protected benefits" are preserved with respect to benefits accrued as of the
      later of the adoption date or effective date of the amendment. "Section
      411(d)(6) protected benefits" are benefits described in Code Section
      411(d)(6)(A), early retirement benefits and retirement-type subsidies, and
      optional forms of benefit. A Plan amendment that eliminates or restricts the
      ability of a Participant to receive payment of the Participant's interest in
      the
      Plan under a particular optional form of benefit will be permissible if the
      amendment satisfies the conditions in (1) and (2) below:

    

    (1) The
      amendment provides a single-sum distribution form that is otherwise
      identical to the optional form of benefit eliminated or restricted. For
      purposes of this condition (1), a single-sum distribution form is otherwise
      identical only if it is identical in all respects to the eliminated or
      restricted optional form of benefit (or would be identical except that it
      provides greater rights to the Participant) except with respect to the timing
      of
      payments after commencement.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (2) The
      amendment is not effective unless the amendment provides that the amendment
      shall not apply to any distribution with an annuity starting date earlier than
      the earlier of: (i) the ninetieth (90th) day after the date the Participant
      receiving the distribution has been furnished a summary that reflects the
      amendment and that satisfies the Act requirements at 29 CFR 2520.104b-3
      (relating to a summary of material modifications) or (ii) the first day of
      the
      second Plan Year following the Plan Year in which the amendment is
      adopted.

    

    In
      addition, no such amendment shall have the effect of terminating the protections
      and rights set forth in Section 7.11, unless such termination shall then be
      permitted under the applicable provisions of the Code and Regulations; such
      a
      termination is currently expressly prohibited by Regulation
      54.4975-11(a)(3)(ii).

    

    9.2
       TERMINATION

    

    (a) The
      Employer shall have the right at any time to terminate the Plan by delivering
      to
      the Trustee and Administrator written notice of such termination. Upon any
      full
      or partial termination, all amounts credited to the affected Participants'
      Accounts shall become 100% Vested as provided in Section 7.4 and shall not
      thereafter be subject to forfeiture, and all unallocated amounts, including
      Forfeitures, shall be allocated to the accounts of all Participants in
      accordance with the provisions hereof.

    

    (b) Upon
      the
      full termination of the Plan, the Employer shall direct the distribution of
      the
      assets of the Trust Fund to Participants in a manner which is consistent with
      and satisfies the provisions of Sections 7.5 and 7.6. Except as permitted by
      Regulations, the termination of the Plan shall not result in the reduction
      of
      "Section 411(d)(6) protected benefits" in accordance with Section
      9.1(c).

    

    9.3
       MERGER,
      CONSOLIDATION OR TRANSFER OF ASSETS

    

    This
      Plan
      and Trust may be merged or consolidated with, or its assets and/or liabilities
      may be transferred to any other plan and trust only if the benefits which would
      be received by a Participant of this Plan, in the event of a termination of
      the
      Plan immediately after such transfer, merger or consolidation, are at least
      equal to the benefits the Participant would have received if the Plan had
      terminated immediately before the transfer, merger or consolidation, and such
      transfer, merger or consolidation does not otherwise result in the elimination
      or reduction of any "Section 411(d)(6) protected benefits" in accordance with
      Section 9.1(c).

     

    ARTICLE
      X

    TOP
      HEAVY

    

    10.1
       TOP
      HEAVY
      PLAN REQUIREMENTS

    

    For
      any
      Top Heavy Plan Year, the Plan shall provide the special vesting requirements
      of
      Code Section 416(b) pursuant to Section 7.4 of the Plan and the special minimum
      allocation requirements of Code Section 416(c) pursuant to Section 4.3 of the
      Plan.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    10.2
       DETERMINATION
      OF TOP HEAVY STATUS

    

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

    

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

    

    (b) Aggregate
      Account: A Participant's Aggregate Account as of the "determination date" is
      the
      sum of:

    

    (1) the
      Participant's Account balance as of the most recent valuation occurring within
      a
      twelve (12) month period ending on the "determination date." However, with
      respect to Employees not performing services for the Employer during the year
      ending on the "determination date," the Participant's Account balance as of
      the
      most recent valuation occurring within a twelve (12) month period ending on
      the
      "determination date" shall not be taken into account for purposes of this
      Section.

    

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

    

    (3) any
      Plan
      distributions made within the Plan Year that includes the "determination date"
      or, with respect to distributions made for a reason other than separation from
      service, disability or death, within the five (5) preceding Plan Years. The
      preceding sentence shall also apply to distributions under a terminated plan
      which, had it not been terminated, would have been aggregated with the Plan
      under Code Section 416(g)(2)(A)(i). In the case of distributions made after
      the
      Valuation Date and prior to the "determination date," such distributions are
      not
      included as distributions for top heavy purposes to the extent that such
      distributions are already included in the Participant's Aggregate Account
      balance as of the Valuation Date.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

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

    

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

    

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

    

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

    

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

    

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

    

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

    

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

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

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

    

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

    

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

    

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

    

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

    

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

    

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

    

    (2) the
      Aggregate Accounts of Key Employees under all defined contribution plans
      included in the group exceeds sixty percent (60%) of a similar sum determined
      for all Participants.

    

    ARTICLE
      XI

    MISCELLANEOUS

    

    11.1 PARTICIPANT=S
      RIGHTS

    

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

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    11.2 ALIENATION

    

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

    

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

    

    (c)
       Subsection
      (a) shall not apply to an offset to a Participant=s
      accrued
      benefit against an amount that the Participant is ordered or required to pay
      the
      Plan with respect to a judgment, order, or decree issued, or a settlement
      entered into in accordance with Code Sections 401(a)(13)(C) and
      (D).

    

    11.3
       CONSTRUCTION
      OF PLAN

    

    This
      Plan
      and Trust shall be construed and enforced according to the Code, the Act and
      the
      laws of the State of Missouri, other than its laws respecting choice of law,
      to
      the extent not pre-empted by the Act.

    

    11.4
       GENDER
      AND NUMBER

    

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

    

    11.5
       LEGAL
      ACTION

    

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

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    11.6
       PROHIBITION
      AGAINST DIVERSION OF FUNDS

    

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

    

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

    

    (c) Except
      for Sections 3.5, 3.6, and 4.1(b), any contribution by the Employer to the
      Trust
      Fund is conditioned upon the deductibility of the contribution by the Employer
      under the Code and, to the extent any such deduction is disallowed, the Employer
      may, within one (1) year following the final determination of the disallowance,
      whether by agreement with the Internal Revenue Service or by final decision
      of a
      competent jurisdiction, demand repayment of such disallowed contribution and
      the
      Trustee shall return such contribution within one (1) year following the
      disallowance. Earnings of the Plan attributable
      to the contribution may not be returned to the Employer, but any losses
      attributable thereto must reduce the amount so returned.

    

    11.7 EMPLOYER'S
      AND TRUSTEE'S PROTECTIVE CLAUSE

    

    The
      Employer, Administrator and Trustee, and their successors, shall not be
      responsible for the validity of any Contract issued hereunder or for the failure
      on the part of the insurer to make payments provided by any such Contract,
      or
      for the action of any person which may delay payment or render a Contract null
      and void or unenforceable in whole or in part.

    

    11.8 INSURER'S
      PROTECTIVE CLAUSE

    

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

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    11.9 RECEIPT
      AND RELEASE FOR PAYMENTS

    

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

    

    11.10 ACTION
      BY
      THE EMPLOYER

    

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

    

    11.11 NAMED
      FIDUCIARIES AND ALLOCATION OF RESPONSIBILITY

    

    The
      "named Fiduciaries" of this Plan are (1) the Employer, (2) the Administrator
      and
      (3) the Trustee, and (4) any Investment Manager appointed hereunder. The named
      Fiduciaries shall have only those specific powers, duties, responsibilities,
      and
      obligations as are specifically given them under the Plan including, but not
      limited to, any agreement allocating or delegating their responsibilities,
      the
      terms of which are incorporated herein by reference. In general, the Employer
      shall have the sole responsibility for making the contributions provided for
      under Section 4.1; and shall have the authority to appoint and remove the
      Trustee and the Administrator; to formulate the Plan's "funding policy and
      method;" and to amend or terminate, in whole or in part, the Plan. The
      Administrator shall have the sole responsibility for the administration of
      the
      Plan, including, but not limited to, the items specified in Article II of the
      Plan, as the same may be allocated or delegated thereunder. The Trustee shall
      have the sole responsibility of management of the assets held under the Trust,
      except to the extent directed pursuant to Article II or with respect to those
      assets, the management of which has been assigned to an Investment Manager,
      who
      shall be solely responsible for the management of the assets assigned to it,
      all
      as specifically provided in the Plan. Each named Fiduciary warrants that any
      directions given, information furnished, or action taken by it shall be in
      accordance with the provisions of the Plan, authorizing or providing for such
      direction, information or action. Furthermore, each named Fiduciary may rely
      upon any such direction, information or action of another named Fiduciary as
      being proper under the Plan, and is not required under the Plan to inquire
      into
      the propriety of any such direction, information or action. It is intended
      under
      the Plan that each named Fiduciary shall be responsible for the proper exercise
      of its own powers, duties, responsibilities and obligations under the Plan
      as
      specified or allocated herein. No named Fiduciary shall guarantee the Trust
      Fund
      in any manner against investment loss or depreciation in asset value. Any person
      or group may serve in more than one Fiduciary capacity.

    

    11.12
       HEADINGS

    

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

    

    11.13 APPROVAL
      BY INTERNAL REVENUE SERVICE

    

    Notwithstanding
      anything herein to the contrary, if, pursuant to an application for
      qualification filed by or on behalf of the Plan by the time prescribed by law
      for filing the Employer's return for the taxable year in which the Plan is
      adopted, or such later date that the Secretary of the Treasury may prescribe,
      the Commissioner of Internal Revenue Service or the Commissioner's delegate
      should determine that the Plan does not initially qualify as a tax-exempt plan
      under Code Sections 401 and 501, and such determination is not contested, or
      if
      contested, is finally upheld, then if the Plan is a new plan, it shall be void
      ab initio and all amounts contributed to the Plan by the Employer, less expenses
      paid, shall be returned within one (1) year and the Plan shall terminate, and
      the Trustee shall be discharged from all further obligations, if the
      disqualification relates to an amended plan, then the Plan shall operate as
      if
      it had not been amended.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    11.14
       UNIFORMITY

    

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

    

    11.15
       SECURITIES
      AND EXCHANGE COMMISSION APPROVAL

    

    The
      Employer may request an interpretative letter from the Securities and Exchange
      Commission stating that the transfers of Company Stock contemplated hereunder
      do
      not involve transactions requiring a registration of such Company Stock under
      the Securities Act of 1933. In the event that a favorable interpretative letter
      is not obtained, the Employer reserves the right to amend the Plan and Trust
      retroactively to their Effective Dates in order to obtain a favorable
      interpretative letter or to terminate the Plan.

    

    

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

    
       

      
        	 	
                Reliv
                  International, Inc.

                

                

                By:
                  /s/ Steven D. Albright, Vice-President

                EMPLOYER

                

                 

                TRUSTEES:

                

                 /s/
                  Stephen M. Merrick

                TRUSTEE

                

                /s/
                  Robert L. Montgomery

                TRUSTEE

                

                /s/
                  R. Scott Montgomery 

                TRUSTEESTOCK PURCHASE AGREEMENT

         AGREEMENT dated as of the 18th day of August, 2006 (this "Agreement"),
by and between _________________________, with an address at
_________________________ ("Investor"), and Magnitude Information Systems, Inc.,
a Delaware corporation with an address at 401 Route 24, Chester, NJ 07930
("Magnitude").

                                   WITNESSETH:

     WHEREAS, Magnitude desires to sell and Investor desires to purchase (i)
     twelve million five hundred thousand (12,500,000) shares (the "Shares") of
     common stock, par value $.0001 ("Common Stock") of Magnitude, and (ii)
     warrants (the "Warrants") to purchase an additional six million two hundred
     fifty thousand (6,250,000) shares of Magnitude's Common Stock (the "Warrant
     Shares") pursuant to the terms and conditions of this Agreement.

         NOW, THEREFORE, in consideration of the mutual covenants herein
contained and for other good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged,

         IT IS AGREED:

1. Recitals. The parties hereby adopt as part of this Agreement each of the
recitals which is set forth above in the WHEREAS clauses, and agree that such
recitals shall be binding upon the parties hereto by way of contract and not
merely by way of recital or inducement and such WHEREAS clauses are hereby
confirmed and ratified as being accurate by each party as to itself.

2. Securities.

         Simultaneously with the execution of this Agreement, Magnitude shall
issue and deliver the Shares to Investor. On February 18, 2007, Magnitude shall
issue to Investor the Warrants in the form annexed hereto and made a part hereof
as Exhibit "A". If the Investor has not received the Warrants on or prior to
March 5, 2007, Magnitude agrees to increase the number of shares of Common Stock
which may be purchased pursuant to the exercise of the Warrants by one (1%)
percent for each business day that said issuance and delivery is delayed.

3. Purchase Price.

         The total aggregate purchase price for the Shares and the Warrants (the
"Purchase Price") shall be two hundred fifty thousand ($250,000.00) dollars.

4. Magnitude's Representations, Warranties and Covenants. Magnitude represents,
warrants and covenants that:
<PAGE>

      A. Corporate Status. Magnitude is a corporation duly organized, validly
existing and in good standing pursuant to the laws of the State of Delaware,
with all requisite power and authority to carry on its business as presently
conducted in all jurisdictions where presently conducted, to enter into this
Agreement and to consummate the transactions set forth in this Agreement.

      B. Authority. Magnitude has the full right, power and legal capacity to
enter into this Agreement and to consummate the transactions contemplated
hereby. This Agreement constitutes the valid and legally binding obligation of
Magnitude, enforceable in accordance with its terms and conditions. The
execution and delivery of this Agreement by Magnitude and the consummation by it
of the transactions contemplated hereby have been duly approved and authorized
by all necessary action of the Board of Directors of Magnitude, and no further
authorization shall be necessary on the part of Magnitude for the performance
and consummation by Magnitude of the transactions contemplated hereby. The
execution, delivery and performance of this Agreement in accordance with its
terms does not and shall not require approval, consent or authorization of any
third party, including any governmental agency or authority or any political
subdivision thereof.

      C. Compliance with the Law and Other Instruments. The business and
operations of Magnitude have been and are being conducted in accordance with all
applicable laws, rules, and regulations of all authorities which affect
Magnitude or its properties, assets, businesses or prospects. The performance of
this Agreement shall not result in any breach of, or constitute a default under,
or result in the imposition of any lien or encumbrance upon any property of
Magnitude or cause an acceleration under any arrangement, agreement or other
instrument to which Magnitude is a party or by which any of its assets are
bound. In addition, the performance of this Agreement shall not trigger
additional rights in any third parties, including, but not limited to, any
anti-dilution rights in Magnitude. Magnitude has performed all of its
obligations which are required to be performed by it pursuant to the terms of
any such agreement, contract, or commitment.

      D. No Approval. No approval of any third party including, but not limited
to, any governmental authority is required in connection with the consummation
of the transactions set forth in this Agreement.

      E. Survival. The covenants, representations and warranties made by
Magnitude in or in connection with this Agreement shall survive the execution
and delivery of this Agreement and the consummation of the transactions
described herein, it being agreed and understood that each of such covenants,
representations and warranties is of the essence to this Agreement and the same
shall be binding upon Magnitude and inure to Investor and its successors and
assigns.

      F. Complete Disclosure. Magnitude has no knowledge that any covenant,
representation or warranty of Magnitude which is contained in this Agreement or
in a writing furnished or to be furnished pursuant to this Agreement or in
Magnitude's filings with the Securities and Exchange Commission contains or
shall contain any untrue statement of a material fact, omits or shall omit to
state any material fact which is required to make the statements which are
contained herein or therein, not misleading.

      G. Notification of an Event. If, any event occurs or any event known to
Magnitude relating to or affecting Magnitude shall occur as a result of which
(i) any provision of this Article "4" of this Agreement at that time shall
include an untrue statement of a fact, or (ii) this Article "4" of this
Agreement shall omit to state any fact necessary to make the statements herein,
in light of the circumstances under which they were made, not misleading,
Magnitude shall immediately notify Magnitude pursuant to Paragraph "C" of
Article "10" of this Agreement.
<PAGE>

      H. No Defense. It shall not be a defense to a suit for damages for any
misrepresentation or breach of a covenant, representation or warranty that
Investor knew or had reason to know that any covenant, representation or
warranty in this Agreement contained untrue statements.

5. Investor's Representations, Warranties and Covenants. Investor represents,
warrants and covenants that:

      A. Status. Investor is a limited liability company duly organized, validly
existing and in good standing pursuant to the laws of the State of Florida, with
all requisite power and authority to carry on its business as presently
conducted in all jurisdictions where presently conducted, to enter into this
Agreement and to consummate the transactions set forth in this Agreement.

      B. Authority. Investor has the full right, power and legal capacity to
enter into this Agreement and to consummate the transactions contemplated
hereby. This Agreement constitutes the valid and legally binding obligation of
Investor, enforceable in accordance with its terms and conditions. The execution
and delivery of this Agreement by Investor and the consummation by it of the
transactions contemplated hereby have been duly approved and authorized by all
necessary action of the Board of Directors of Investor, and no further
authorization shall be necessary on the part of Investor for the performance and
consummation by Investor of the transactions contemplated hereby. The execution,
delivery and performance of this Agreement in accordance with its terms does not
and shall not require approval, consent or authorization of any third party,
including any governmental agency or authority or any political subdivision
thereof.

      C. Compliance with the Law and Other Instruments. The performance of this
Agreement shall not result in any breach of, or constitute a default under, or
result in the imposition of any lien or encumbrance upon any property of
Investor or cause an acceleration under any arrangement, agreement or other
instrument to which Investor is a party or by which any of its assets are bound.
Investor has performed all of its obligations which are required to be performed
by it pursuant to the terms of any such agreement, contract, or commitment.

      D. Accredited Investor. Investor is an "accredited investor" as that term
is defined in Rule 501(a) of Regulation D promulgated under the Securities Act
of 1933, as amended (the "Act"), including, but not limited to, an entity in
which each of the equity owners qualifies under one or more of the following:
(1) a net worth exceeding one million ($1,000,000) dollars, either individually
or jointly with his or her spouse, (2) an income exceeding two hundred thousand
($200,000) dollars in each of the two most recent years, with a reasonable
expectation of reaching the same income level in the current year, or (3) a
joint income with his or her spouse exceeding three hundred thousand ($300,000)
dollars in each of the two most recent years, with a reasonable expectation of
reaching the same joint income level in the current year.
<PAGE>

      E. Securities. Investor acknowledges that the receipt of the Shares by
Investor is for its own account, is for investment purposes only, and is not
with a view to, nor for offer or sale in connection with, the distribution of
the Shares. Investor understands that none of the Shares have been registered
under the Act or the securities laws of any state and, therefore, cannot be sold
unless they are subsequently registered under the Act and any applicable state
securities laws or exemptions from registration thereunder are available.
Investor further understands that only Magnitude can take action to register the
Shares.

      F. Economic Risk. The Investor is able to bear the economic risk of an
investment in the Shares, Warrants and Warrant Shares (the "Securities") for an
indefinite period of time, including the risk of total loss of such investment,
and the Investor recognizes that an investment in the Securities involves a high
degree of risk. The Investor understands that the Securities have not been
registered under the Act, or the securities laws of any state and, therefore,
cannot be sold unless they are subsequently registered under the Act and any
applicable state securities laws or exemptions from registration thereunder are
available. The Investor further understands that only Magnitude can take action
to register the Securities.

      G. Restrictive Legend. Investor understands that the Shares shall bear the
following restrictive legend until the Shares are registered pursuant to
Paragraph "A" of Article "6" of this Agreement:

            "These Shares have not been registered under the Securities Act of
      1933, as Amended, having been acquired for investment purposes only and
      not with a view to distribute. They may not be sold or offered for in
      absence of an effective registration statement as to the Shares under the
      Securities Act of 1933, as Amended, or an opinion of counsel satisfactory
      to the corporation and an exemption from the Securities Act of 1933, as
      Amended, is available and that such registration is not required, or in
      the alternative that such Shares may be sold under Rule 144, as
      promulgated by the Securities and Exchange Commission of the United
      States."

      H. No Approvals. No approval of any third party including, but not limited
to, any governmental authority is required in connection with the consummation
of the transactions set forth in this Agreement.

      I. Survival. The covenants, representations and warranties made by
Investor in or in connection with this Agreement shall survive the execution and
delivery of this Agreement and the consummation of the transactions described
herein, it being agreed and understood that each of such covenants,
representations and warranties is of the essence to this Agreement and the same
shall be binding upon Investor and inure to Magnitude and its successors and
assigns.

      J. Complete Disclosure. Investor has no knowledge that any covenant,
representation or warranty of Investor which is contained in this Agreement or
in a writing furnished or to be furnished pursuant to this Agreement contains or
shall contain any untrue statement of a material fact, omits or shall omit to
state any material fact which is required to make the statements which are
contained herein or therein, not misleading.
<PAGE>

      K. Notification of an Event. If, any event occurs or any event known to
Investor relating to or affecting Investor shall occur as a result of which (i)
any provision of this Article "5" of this Agreement at that time shall include
an untrue statement of a fact, or (ii) this Article "5" of this Agreement shall
omit to state any fact necessary to make the statements herein, in light of the
circumstances under which they were made, not misleading, Investor shall
immediately notify Magnitude pursuant to Paragraph "C" of Article "10" of this
Agreement.

      L. No Defense. It shall not be a defense to a suit for damages for any
misrepresentation, or breach of, a covenant, representation or warranty that
Magnitude knew or had reason to know that any covenant, representation or
warranty in this Agreement contained untrue statements.

      M. No Reliance. The Investor's decision to enter into this Agreement was
based entirely upon its own research, and not upon any representations made to
the Investor by Magnitude.

6. Registration.

      A. Magnitude shall, without cost or expense to the Investor, file for the
registration of all of Investor's Shares and Warrant Shares within ninety (90)
days after the date of execution of this Agreement. If Magnitude has not filed
for the registration of the Investor's Shares and Warrant Shares within ninety
(90) days after the date of execution of this Agreement, Magnitude shall issue
an additional forty five thousand (45,000) shares of Common Stock to the
Investor for each subsequent business day until such filing is made. Once such
filing is made, Magnitude shall use good faith efforts to make the registration
effective. If the registration is not effective within ninety (90) days after
filing, Magnitude shall issue an additional forty five thousand (45,000) shares
of Common Stock to the Investor for each subsequent business day until the
registration becomes effective.

Subject to filing post-effective amendments, updating its financial statement
disclosures, Magnitude shall utilize its best efforts to keep the registration
effective until such time as Investor has sold its Shares and Warrant Shares or
the Shares and Warrant Shares are eligible to be transferred without restriction
pursuant to the provisions of Rule 144(k) which was promulgated by the
Securities and Exchange Commission pursuant to ss.4(1) of the Act. Magnitude
agrees to provide an opinion of counsel within five (5) business days with
respect to any sales of the Shares by Investor if such sale is permissible under
Rule 144(k). If Magnitude fails to timely provide or approve a legal opinion
pursuant to this Paragraph "A" of this Article "6" of this Agreement, Magnitude
agrees to pay Investor five hundred ($500.00) dollars per day for each day that
said opinion or approval is delayed. Magnitude acknowledges that it would be
extremely difficult or impracticable to determine Investor's actual damages and
costs resulting from the delay in providing an opinion or approval for said sale
of securities and the inclusion herein of any such late charges or fees are the
agreed upon liquidated damages representing a reasonable estimate of those
damages and costs and do not constitute a penalty.
<PAGE>

      B. All expenses in connection with preparing and filing any registration
statement under Paragraph "A" of this Article "6" of this Agreement shall be
borne in full by Magnitude; provided, however, that Investor shall pay any and
all underwriting commissions and expenses and the fees and expenses of any legal
counsel selected by Investor to represent it with respect to the sale of
Securities.

7. Covenants of Magnitude. Magnitude covenants and agrees as follows:

      A. Magnitude shall continuously remain a reporting company under the
Securities Exchange Act of 1934, as amended (the "Exchange Act") and will file
with the SEC on a timely basis all reports, statements and other materials
required to be filed by Magnitude to remain a reporting company under the
Exchange Act.

      B. The Common Stock of Magnitude shall continuously be listed on a
national securities exchange, or traded on the NASDAQ National Market, the
NASDAQ Small Cap Market, or the Over the Counter Bulletin Board (the "OTCBB").

      C. Magnitude shall, at its cost, provide the appropriate opinion letters
to be issued by Magnitude's counsel in compliance with the provisions of Rule
144 which was promulgated by the Securities and Exchange Commission pursuant to
ss.4(1) of the Act, as amended, with respect to the transfer or sale of the
securities of Magnitude owned by Investor, if such transfer or sale is
permissible under Rule 144. Magnitude shall provide the appropriate opinion
letters within five (5) business days of request via e-mail notification or
facsimile notification by Investor. Magnitude shall also promptly provide any
and all necessary information and authorization to said transfer agent so that
said transfer agent may immediately honor such opinion and permit the transfer
or sale of such securities.

      D. If Magnitude fails to timely provide or approve a legal opinion
pursuant to Paragraph "C" of this Article "7" of this Agreement, Magnitude
agrees to pay Investor five hundred ($500.00) dollars per day for each day that
said opinion or approval is delayed. Magnitude acknowledges that it would be
extremely difficult or impracticable to determine Investor's actual damages and
costs resulting from the delay in providing an opinion or approval for said sale
of securities and the inclusion herein of any such late charges or fees are the
agreed upon liquidated damages representing a reasonable estimate of those
damages and costs and do not constitute a penalty.

      E. Magnitude shall increase its number of authorized shares within six (6)
months after the date of execution of this Agreement, so that it shall have
sufficient authorized and unissued shares to issue all of the Warrant Shares.

8. Legal Fees. Magnitude shall pay to Mintz & Fraade, P.C., the Investor's
counsel, all of its legal fees and expenses with respect to representing the
Investor with respect to the stock purchase which is the subject of this
Agreement. Mintz & Fraade, P.C. has agreed with Magnitude to accept, and
Magnitude has agreed to pay to Mintz & Fraade, P.C. for its services, the
following:

      (A). Magnitude shall issue a warrant to Mintz & Fraade, P.C. to acquire
one hundred eighty seven thousand five hundred (187,500) shares of Common Stock
of Magnitude, with such warrant having an exercise price of $.0001 per share.
<PAGE>

      (B). Magnitude shall issue a warrant to Mintz & Fraade, P.C. to acquire
ninety three thousand seven hundred fifty (93,750) shares of Common Stock of
Magnitude, in the same form as the Warrants, with such warrant having an
exercise price of $.05 per share.

9. Finder's Fee. Magnitude shall pay a finder's fee of twenty five thousand
($25,000) dollars to H.I.S. LLC in connection with this transaction pursuant to
a separate agreement. This finder's fee may only be paid out of (A) Magnitude's
proceeds from subsequent sales of its Common Stock, (B) exercise prices paid to
Magnitude by holders of warrants to acquire its Common Stock and/or (C) future
profits of Magnitude, and may not be paid out of any funds which Magnitude
receives pursuant to this Agreement, including, but not limited to, exercise
prices paid to Magnitude by the Investor for the exercise of Warrants.

10. Miscellaneous.

      A. Headings. Headings contained in this Agreement are for reference
purposes only and shall not affect in any way the meaning or interpretation of
this Agreement.

      B. Enforceability. If any provision which is contained in this Agreement
should, for any reason, be held to be invalid or unenforceable in any respect
under the laws of any jurisdiction, such invalidity or unenforceability shall
not affect any other provision of this Agreement and this Agreement shall be
construed as if such invalid or unenforceable provision had not been contained
herein.

      C. Notices. Any notice or other communication required or permitted
hereunder shall be sufficiently given if sent by (i) mail by (a) certified mail,
postage prepaid, return receipt requested and (b) first class mail, postage
prepaid (ii) overnight delivery with confirmation of delivery or (iii) facsimile
transmission with an original mailed by first class mail, postage prepaid,
addressed as follows:

To Investor:

                                       Attn:
                                       Fax No:

With a copy to:
                                       Attn:
                                       Fax No.

To Magnitude:                          Magnitude Information Systems, Inc.
                                       401 Route 24
                                       Chester, NJ  07930
                                       Attn: Steven Gray
                                       Fax No.: (908) 879-7006

With a copy to:                        Joseph J. Tomasek, Esq.
                                       75-77 N Bridge St.
                                       Somerville, NJ 08876
                                       Fax No: (908) 429-0040
<PAGE>

or in each case to such other address and facsimile number as shall have last
been furnished by like notice. If all of the methods of notice set forth in this
Paragraph "C" of this Article "10" of this Agreement are impossible for any
reason, notice shall be in writing and personally delivered to the aforesaid
addresses. Each notice or communication shall be deemed to have been given as of
the date so mailed or delivered as the case may be; provided, however, that any
notice sent by facsimile shall be deemed to have been given as of the date so
sent if a copy thereof is also mailed by first class mail on the date sent by
facsimile. If the date of mailing is not the same as the date of sending by
facsimile, then the date of mailing by first class mail shall be deemed to be
the date upon which notice is given; provided further, however, that any notice
sent by overnight delivery shall be deemed to have been given as of the date of
delivery.

      D. Governing Law; Disputes. This Agreement shall in all respects be
construed, governed, applied and enforced in accordance with the laws of the
State of New York applicable to contracts made and to be performed therein,
without giving effect to the principles of conflicts of law. The parties hereby
consent to and irrevocably and exclusively submit to personal jurisdiction over
each of them by the Courts of the State of New York in any action or proceeding,
irrevocably waive trial by jury and personal service of any and all process and
specifically consent that in any such action or proceeding, any service of
process may be effectuated upon any of them by certified mail, return receipt
requested, in accordance with Paragraph "C" of this Article "10" of this
Agreement. In the event Investor commences legal action to enforce any of the
terms of this Agreement, Magnitude shall pay all legal fees and costs incurred
by Investor with respect to this Agreement.

      E. Construction. Each of the parties hereto hereby further acknowledges
and agrees that (i) each has been advised by counsel during the course of
negotiations; (ii) each counsel has had significant input in the development of
this Agreement and (iii) this Agreement shall not, therefore, be construed more
strictly against any party responsible for its drafting regardless of any
presumption or rule requiring construction against the party whose attorney
drafted this agreement.

      F. Entire Agreement. This Agreement and all documents and instruments
referred to herein (i) constitute the entire agreement and supersede all prior
agreements and understandings, both written and oral, among the parties with
respect to the subject matter hereof and thereof, and (ii) are not intended to
confer upon any person other than the parties hereto any rights or remedies
hereunder. Each party hereto agrees that, except for the representations and
warranties contained in this Agreement, neither party makes any other
representations or warranties, and each hereby disclaims any other
representations and warranties made by itself or any of its officers, directors,
employees, agents, financial and legal advisors or other representatives, with
respect to the execution and delivery of this Agreement or the transactions
contemplated hereby, notwithstanding the delivery or disclosure of any
documentation or other information with respect to any one or more of the
foregoing.

      G. Further Assurances. The parties agree to execute any and all such other
further instruments and documents, and to take any and all such further actions
which are reasonably required to effectuate this Agreement and the intents and
purposes hereof.
<PAGE>

      H. Binding Agreement. This Agreement shall be binding upon and inure to
the benefit of the parties hereto and their heirs, executors, administrators,
personal representatives, successors and assigns.

      I. Non-Waiver. Except as otherwise expressly provided herein, no waiver of
any covenant, condition, or provision of this Agreement shall be deemed to have
been made unless expressly in writing and signed by the party against whom such
waiver is charged; and (i) the failure of any party to insist in any one or more
cases upon the performance of any of the provisions, covenants or conditions of
this Agreement or to exercise any option herein contained shall not be construed
as a waiver or relinquishment for the future of any such provisions, covenants
or conditions, (ii) the acceptance of performance of anything required by this
Agreement to be performed with knowledge of the breach or failure of a covenant,
condition or provision hereof shall not be deemed a waiver of such breach or
failure, and (iii) no waiver by any party of one breach by another party shall
be construed as a waiver of any other or subsequent breach.

      J. Counterparts. This Agreement may be executed simultaneously in one or
more counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

      K. Facsimile Signatures. Any signature which is delivered via facsimile
shall be deemed to be an original and have the same force and effect as if such
facsimile signature were the original thereof.

      L. Modifications. This Agreement may not be changed, modified, extended,
terminated or discharged orally, except by a written agreement specifically
referring to this Agreement which is signed by all of the parties to this
Agreement.

      M. Exhibits. All Exhibits annexed or attached to this Agreement are
incorporated into this Agreement by reference thereto and constitute an integral
part of this Agreement.

      N. Severability. The provisions of this Agreement shall be deemed
separable. Therefore, if any part of this Agreement is rendered void, invalid or
unenforceable, such rendering shall not affect the validity or enforceability of
the remainder of this Agreement; provided, however, that if the part or parts
which are void, invalid or unenforceable as aforesaid shall substantially impair
the value of this whole Agreement to any party, that party may cancel, and
terminate this Agreement by giving written notice to the other party.

      IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the date first above written.

                                           By: _________________________
                                               Name:
                                               Title:

                                           Magnitude Information Systems, Inc.

                                           By: _______________________________
                                               Name:
                                               Title:

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