Document:

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                                  Exhibit 10.1
           NBT BANCORP INC. 401(K) and Employee Stock Ownership Plan
                           made as of January 1, 2001
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           NBT BANCORP, INC. 401(K) AND EMPLOYEE STOCK OWNERSHIP PLAN

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                                TABLE OF CONTENTS

                                    ARTICLE I
                                   DEFINITIONS

                                   ARTICLE II
                                 ADMINISTRATION

<S>        <C>                                                                                      <C>
2.1        POWERS AND RESPONSIBILITIES OF THE EMPLOYER............................................ 25
2.2        DESIGNATION OF ADMINISTRATIVE AUTHORITY................................................ 26
2.3        ALLOCATION AND DELEGATION OF RESPONSIBILITIES.......................................... 26
2.4        POWERS AND DUTIES OF THE ADMINISTRATOR................................................. 26
2.5        RECORDS AND REPORTS.................................................................... 27
2.6        APPOINTMENT OF ADVISERS................................................................ 28
2.7        PAYMENT OF EXPENSES.................................................................... 28
2.8        CLAIMS PROCEDURE....................................................................... 28

                                   ARTICLE III
                                   ELIGIBILITY

3.1        INITIAL ELIGIBILITY TO BECOME PARTICIPANT.............................................  30
3.2        DETERMINATION OF ELIGIBILITY........................................................... 30
3.3        TERMINATION OF ELIGIBILITY............................................................. 30
3.4        ERRONEOUS OMISSION OF ELIGIBLE EMPLOYEE................................................ 31
3.5        ERRONEOUS INCLUSION OF INELIGBLE EMPLOYEE.............................................. 31
3.6        ELECTION NOT TO PARTICIPATE............................................................ 31
3.7        COMPLIANCE WITH USERRA................................................................. 31

                                       2
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                                   ARTICLE IV
                           CONTRIBUTION AND ALLOCATION

4.1        FORMULA FOR DETERMINING EMPLOYER CONTRIBUTION.......................................... 32
4.2        PARTICIPANT'S SALARY REDUCTION ELECTION................................................ 33
4.3        TIME OF PAYMENT OF EMPLOYER CONTRIBUTION............................................... 36
4.4        ALLOCATION OF CONTRIBUTION, FORFEITURES AND EARNINGS................................... 36
4.5        ACTUAL DEFERRAL PERCENTAGE TESTS....................................................... 40
4.6        ADJUSTMENT TO ACTUAL DEFERRAL PERCENTAGE TESTS......................................... 41
4.7        ACTUAL CONTRIBUTION PERCENTAGE TESTS................................................... 42
4.8        ADJUSTMENT TO ACTUAL CONTRIBUTION PERCENTAGE TESTS..................................... 44
4.9        MAXIMUM ANNUAL ADDITIONS............................................................... 46
4.10       ADJUSTMENT FOR EXCESSIVE ANNUAL ADDITIONS.............................................. 49
4.11       TRANSFERS FROM QUALIFIED PLANS......................................................... 51
4.12       DIRECTED INVESTMENT ACCOUNT............................................................ 52

                                    ARTICLE V
                          FUNDING AND INVESTMENT POLICY

5.1        INVESTMENT POLICY...................................................................... 54
5.2        TRANSACTIONS INVOLVING COMPANY STOCK................................................... 54

                                       3
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                                   ARTICLE VI
                                   VALUATIONS

6.1        VALUATION OF THE TRUST FUND............................................................ 56
6.2        METHOD OF VALUATION.................................................................... 56

                                   ARTICLE VII
                   DETERMINATION AND DISTRIBUTION OF BENEFITS

7.1        DETERMINATION OF BENEFITS UPON RETIREMENT.............................................. 57
7.2        DETERMINATION OF BENEFITS UPON DEATH................................................... 57
7.3        DETERMINATION OF BENEFITS IN EVENT OF DISABILITY....................................... 58
7.4        DETERMINATION OF BENEFITS UPON TERMINATION............................................. 58

                                  ARTICLE VIII
                       PAYMENT OR DISTRIBUTION OF BENEFIT

8.1        TIME FOR DISTRIBUTION OF BENEFITS...................................................... 63
8.2        MANNER OF DISTRIBUTION................................................................. 63
8.3        DEFERRED DISTRIBUTION;  ALTERNATIVE METHODS OF DISTRIBUTION............................ 65
8.4        DISTRIBUTIONS TO MARRIED PARTICIPANTS.................................................. 67
8.5        TRANSITIONAL RULE...................................................................... 68
8.6        NOTICE OF DEATH RETIREMENTS OF TERMINATION OF SERVICES................................. 68

                                       4
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8.7        PAYMENT OF LUMP SUM ................................................................... 68
8.8        PAYMENT OF INSTALLMENTS................................................................ 68
8.9        DISTRIBUTION OF ANNUITY CONTRACTS...................................................... 68
8.10       DISTRIBUTION TO QUALIFIED RETIRMENT PLAN............................................... 69
8.11       CESSATION OF INTEREST.................................................................. 69
8.12       MISSING PERSONS........................................................................ 69
8.13       MAILING OF BENEFITS.....................................................................69
8.14       MINORS OF INCOPETENTS...................................................................69
8.15       HOW PLAN BENEFIT WILL BE DISTRIBUTED....................................................70
8.16       RIGHT OF FIRST REFUSALS.................................................................71
8.17       STOCK CERTIFICATE LEGEND................................................................71
8.18       PUT OPINION.............................................................................72
8.19       QUALIFIED DOMESTIC RELATIONS ORDER DISTRIBUTION.........................................73

                                   ARTICLE IX
                     WITHDRAWALS AND TRANSFERS FROM ACCOUNTS

9.1        ADVANCE DISTRIBUTION FOR HARDSHIP...................................................... 74
9.2        WITHDRAWALS FROM ROLLOVER CONTRIBUTION ACCOUNT......................................... 75
9.3        WITHDRAWALS FROM EMPLOYER CONTRIBUTION ACCOUNTS AFTER AGE FIFTY-NINE AND ONE-HALF...... 75

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                                    ARTICLE X
                                     TRUSTEE

10.1       BASIC RESPONSIBILITES OF THE TRUSTEE................................................... 77
10.2       INVESTMENT POWERS AND DUTIES OF THE TRUSTEE.............................................78
10.3       OTHER POWERS OF THE TRUSTEE.............................................................79
10.4       LOAN TO PARTICIPANTS....................................................................81
10.5       VOTING COMPANY STOCK....................................................................83
10.6       DUTIES OF THE TRUSTEE REGARDING PAYMENTS................................................84
10.7       TRUSTEE'S COMPENSATION AND EXPENSES AND TAXES...........................................84
10.8       ANNUAL REPORT OF THE TRUSTEE............................................................85
10.9       AUDIT...................................................................................85
10.10      RESIGNATION, REMOVAL AND SUCCESSION OF TRUSTEE..........................................86
10.11      TRANSFER OF INTEREST....................................................................87
10.12      DIRECT ROLLOVER.........................................................................87

                                   ARTICLE XI
                        AMENDMENT, TERMINATION & MERGERS

11.1       AMENDMENT.............................................................................. 89
11.2       TERMINATION............................................................................ 89
11.3       MERGER OF CONSOLIDATION................................................................ 90

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                                   ARTICLE XII
                                    TOP HEAVY

12.1     TOP HEAVY PLAN EQUIRMENTS.................................................................91
12.2     DETERMINATION OF TOP HEAVY STATUS.........................................................91

                                  ARTICLE XIII
                                  MISCELLANEOUS

13.1     PARTICIPANT RIGHTS.......................................................................95
13.2     ALIENATION...............................................................................95
13.3     CONSTRICTION OF PLAN.....................................................................96
13.4     GENDER & NUMBER..........................................................................96
13.5     LEGAL ACTION.............................................................................96
13.6     PROHIBITION AGAINST DIVERSION OF FUND....................................................96
13.7     BONDING..................................................................................97
13.8     EMPLOYEE'S & TRUSTEE'S PROTECTIVE CLAUSE.................................................97
13.9     INSURER'S PROTECTIVE CLAUSE..............................................................97
13.10    RECEIPT & RELEASE FOR PAYMENTS...........................................................97
13.11    ACTION BY THE EMPLOYER...................................................................98
13.12    NAMED FIDUCIARIES & ALLOCATION OF RESPONSIBILITY.........................................98
13.13    HEADINGS.................................................................................98
13.14    APPROVAL BY INTERNAL REVENUE SERVICE.....................................................99
13.15    UNIFORMITY...............................................................................99
13.16    SECURITIES & EXCHANGE COMMISSION APPROVAL................................................99

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13.17    SPECIAL DISTRIBUTION FORMS...............................................................99

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NBT BANCORP, INC. 401(K) AND EMPLOYEE STOCK OWNERSHIP PLAN

           THIS AGREEMENT, hereby made and entered into as of the 1st day of
January,  2001,  by and between NBT  Bancorp,  Inc.  (herein  referred to as the
"Employer") and NBT Bank, N.A. (herein referred to as the "Trustee").

                               W I T N E S E T H:

           WHEREAS,  the  Employer  heretofore  established  an  Employee  Stock
Ownership  Plan and Trust  effective  January  1, 1979  (hereinafter  called the
"Effective Date"), known as the NBT Bancorp,  Inc. Employee Stock Ownership Plan
and, effective April 1, 1994,  established a tax deferred savings plan, known as
the NBT Bancorp  401(k)  Retirement  Plan.  Effective  January 1, 1997,  the NBT
Bancorp 401(k)  Retirement Plan was merged into the NBT Bancorp,  Inc.  Employee
Stock Ownership Plan in conjunction with this merger in order to comply with the
Uniformed  Services  Employment and Reemployment  Rights Act of 1994 ("USERRA"),
the Uruguay Round Agreements Act ("GATT"), the Small Business Job Protection Act
of 1996  ("SBJPA"),  the Taxpayer  Relief Act of 1997 ("TRA  `97"),  and the IRS
Restructuring and Reform Act of 1998 ("IRRA") the plan was amend and restated to
incorporate all necessary language and changes. That plan was thereinafter known
as the NBT Bancorp,  Inc. 401(k) and Employee Stock Ownership Plan (the "Plan").
This Plan is now being amended to incorporate the merger of the BSB Bank & Trust
Company 401(k) Savings Plan, LA Bank, N.A. Profit  Sharing/401(k)  Plan, Pioneer
American Bank N.A. 401(k) Plan and the M. Griffith,  Inc. Employee Savings Plan.
Further, in order to comply with legislative and regulatory requirements imposed
subsequent to LA Bank, N.A. Profit Sharing/401(k)  Plan's, Pioneer American Bank
N.A.  401(k)  Plan's and the M.  Griffith,  Inc.  Employee  Savings  Plan's last
restatement the effective date with regard to such merged plans shall be January
1, 1997. The Plan contains trust provisions  which were formerly  contained in a
separate  trust  document.   This  Plan  was  established  by  the  Employer  in
recognition  of  the  contribution  made  to  its  successful  operation  by its
employees and for the exclusive benefit of its eligible employees; 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, and in other investments,  where applicable,  as directed
by the Employee.

           NOW,  THEREFORE,  effective  January  1,  2001,  except as  otherwise
provided,  the Employer and the Trustee in accordance with the provisions of the
Plan pertaining to amendments thereof, hereby amend the Plan in its entirety and
restate the Plan to provide as follows:

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                                    ARTICLE I
                                   DEFINITIONS

1.1  "Account"  means the account  maintained  on the books of the Plan for each
Participant  and  includes  the  Participating  Elective  Contribution  Account,
Participating  Employer  Non-Elective  Contribution  Account, and if applicable,
Rollover Account

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

1.3 "Administrator"  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.

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

1.5 "Aggregate  Account" means, with respect to each  Participant,  the value of
all accounts  maintained on behalf of a  Participant,  whether  attributable  to
Participating Employer or Employee  contributions,  subject to the provisions of
Section 12.2.

1.6      "Annuity Starting Date" means the first day of the first period for
which an amount is received as an annuity.

1.7      "Anniversary Date" means December 31.

1.8 "Beneficiary" means the person to whom the share of a deceased Participant's
total  account is  payable,  subject to the  restrictions  of  Sections  7.2 and
Article 8.

1.9 "Board of Directors"  means the Board of Directors of the Employer,  as from
time to time constituted, or any committee thereof which is authorized to act on
behalf of the Board of Directors.

1.10     "Claimant" has the meaning set forth in Section 2.8.

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

1.12  "Company  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 "Company Stock" means common stock issued by the Employer
(or by a corporation  which is a member of the same  controlled  group) having a

                                       10
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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 "Company Stock" if such stock
is  convertible  at any  time  into  stock  which  constitutes  "Company  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.

1.13  "Company  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 Elective  Contributions  and Non-Elective
Contributions.

1.14  "Compensation"  with respect to any Participant means remuneration paid by
the Participating Employer to a Participant in the form of base salary or wages,
commissions,   overtime,   and  cash  bonuses,   excluding   distributions  from
non-qualified  plans,  income from the exercise of stock options,  and severance
payments. Compensation must be determined without regard to any rules under Code
Section  3401(a)  that limit the  remuneration  included  in wages  based on the
nature or location of the  employment  or the  services  performed  (such as the
exception for agricultural labor in Code Section 3401(a)(2)).

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

         (a)      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,  123(f),  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 as of such  Employee's  effective date of  participation  pursuant to
Section 3.2.

Compensation  in excess of $170,000 shall be  disregarded.  Such amount shall be
adjusted  for  increases in the cost of living in  accordance  with Code Section
401(a)(17),  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, in  connection  with the adoption of this  amendment  and  restatement,  the
definition of Compensation has been modified,  then, for Plan Years prior to the

                                       11
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Plan Year which  includes the adoption date of this  amendment and  restatement,
Compensation means compensation determined pursuant to the Plan then in effect.

1.15 "Deferred Compensation" with respect to any Participant means the amount of
the Participant's  total  Compensation which has been contributed to the Plan in
accordance  with the  Participant's  deferral  election  pursuant to Section 4.2
excluding any such amounts  distributed as excess "annual additions" pursuant to
Section 4.10(a).

1.16  "Early  Retirement  Date"  means the first day of the month  (prior to the
Normal  Retirement  Date)  coinciding  with or  following  the  date on  which a
Participant or Former  Participant  attains age 55, and has completed at least 5
Years of Service  with the  Participating  Employer  (Early  Retirement  Age). A
Participant  shall become fully Vested upon satisfying this requirement if still
employed at his Early Retirement Age.

For Participants in the L.A. Bank, N.A.,  401(k) Profit Sharing Plan on December
31, 2000,  "Early  Retirement  Date" means the first day of the month coinciding
with or following the date on which a Participant or Former Participant  attains
age 60.

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

1.17 "Elective  Contribution" means the Participating  Employer contributions to
the Plan of Deferred  Compensation  excluding  any such amounts  distributed  as
excess "annual additions" pursuant to Section 4.10(a). In addition, any Employer
Qualified  Non-Elective  Contribution  made pursuant to Section  4.6(b) which is
used to satisfy the "Actual  Deferral  Percentage"  tests shall be considered an
Elective  Contribution for purposes of the Plan. Any contributions  deemed to be
Elective  Contributions  (whether or not used to satisfy  the  "Actual  Deferral
Percentage"  tests) shall be subject to the  requirements of Sections 4.2(b) and
4.2(c)  and  shall   further  be  required  to  satisfy  the   nondiscrimination
requirements  of  Regulation  1.401(k)-1(b)(5),  the  provisions  of  which  are
specifically incorporated herein by reference.

1.18     "Eligible Distribution" has the meaning set forth in Section 8.12.

1.19     "Eligible Employee" means any Employee except as provided below.

Employees who are Leased Employees within the meaning of Code Sections 414(n)(2)
and 414(o)(2) shall not be eligible to participate in this Plan.

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 Participating 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  who are  nonresident  aliens  (within  the  meaning  of Code  Section
7701(b)(1)(B))  and who  receive no earned  income  (within  the meaning of Code

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Section 911(d)(2)) from the Participating Employer which constitutes income from
sources within the United States (within the meaning of Code Section  861(a)(3))
shall not be eligible to participate 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
accordance with Article XIV and are Participating Employers and then only to the
extent  provided  in  the  Adoption  Agreement  applicable  to  such  Affiliated
Employer.

1.20     "Eligible Plan" has the meaning set forth in Section 10.12.

1.21     "Eligible Recipient" has the meaning set forth in Section 10.12.

1.22 "Employee" means any person who is employed by a Participating  Employer or
other  Affiliated  Employer,  but  excludes  any  person  who is 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.

1.23 "Employer"  means NBT Bancorp,  Inc. and any successor which shall maintain
this Plan. The Employer is a corporation with principal  offices in the state of
New York. For purposes of applying Code Sections 401, 410, 411, 415 and 416, all
employees of the Participating Employers and all Affiliated Employers whether or
not they have  adopted  the  Plan,  shall be  treated  as  employed  by a single
employer

1.24 "Excess Aggregate  Contributions" means, with respect to any Plan Year, the
excess  of  the  aggregate  amount  of  the   Participating   Employer  matching
contributions  made pursuant to Section  4.1(b) and any  qualified  non-elective
contributions  or  elective  deferrals  taken into  account  pursuant to Section
4.7(c) on behalf of Highly Compensated Participants for such Plan Year, over the
maximum amount of such contributions  permitted under the limitations of Section
4.7(a).

1.25 "Excess  Contributions"  means,  with respect to a Plan Year, the excess of
Elective  Contributions  used to satisfy the "Actual Deferral  Percentage" tests
made on  behalf of Highly  Compensated  Participants  for the Plan Year over the
maximum amount of such  contributions  permitted  under Section  4.5(a).  Excess
Contributions  shall be  treated  as an "annual  addition"  pursuant  to Section
4.9(b).

1.26 "Excess Deferred Compensation" means, with respect to any taxable year of a
Participant,  the excess of the aggregate amount of such Participant's  Deferred
Compensation and the elective deferrals pursuant to Section 4.2(f) actually made
on behalf of such Participant for such taxable year, over the dollar  limitation
provided for in Code Section 402(g),  which is incorporated herein by reference.
Excess Deferred  Compensation  shall be treated as an "annual addition" pursuant
to  Section  4.9(b)  when  contributed  to the Plan  unless  distributed  to the
affected  Participant not later than the first April 15th following the close of
the Participant's taxable year. Additionally,  for purposes of Sections 12.2 and
4.4(h),   Excess  Deferred   Compensation   shall  continue  to  be  treated  as

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Participating  Employer  contributions  even if distributed  pursuant to Section
4.2(f).   However,   Excess  Deferred  Compensation  of  Non-Highly  Compensated
Participants  is not taken into  account for  purposes of Section  4.5(a) to the
extent such Excess Deferred Compensation occurs pursuant to Section 4.2(d).

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

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

1.29 "Fiscal  Year" means the  Participating  Employer's  accounting  year of 12
months commencing on January 1st of each year and ending the following  December
31st.

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

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

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

Furthermore,  for purposes of paragraph  (a) above,  in the case of a Terminated
Participant  whose Vested benefit is zero, such Terminated  Participant shall be
deemed  to  have  received  a  distribution  of  his  Vested  benefit  upon  his
termination of  employment.  Restoration of such amounts shall occur pursuant to
Section 7.4(f)(2).  In addition,  the term Forfeiture shall also include amounts
deemed to be Forfeitures pursuant to any other provision of this Plan.

1.31     "Former Participant" means a person who has been a Participant, but who
has ceased to be a Participant for any reason.

1.32 "415 Compensation" with respect to any Participant means such Participant's
wages as defined in Code Section  3401(a) and all other payments of compensation
by the  Participating  Employer (in the course of the  Participating  Employer's
trade or  business)  for a Plan  Year for which the  Participating  Employer  is
required to furnish the  Participant  a written  statement  under Code  Sections
6041(d),  6051(a)(3) and 6052.  "415  Compensation"  must be determined  without
regard to any rules  under Code  Section  3401(a)  that  limit the  remuneration
included  in wages  based on the nature or  location  of the  employment  or the
services performed (such as the exception for agricultural labor in Code Section
3401(a)(2)).

                                       14
<PAGE>

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

Effective January 1, 1998, the determination of "415 Compensation" shall be made
by  including  amounts  which  are  contributed  by the  Participating  Employer
pursuant to a salary  reduction  agreement  and which are not  includible in the
gross  income  of  the   Participant   under  Code  Sections   125,   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 Participating Employer contributions.

1.33  "414(s)   Compensation"   with  respect  to  any  Participant  means  such
Participant's  "415 Compensation" paid during a Plan Year. The amount of "414(s)
Compensation"   with  respect  to  any   Participant   shall   include   "414(s)
Compensation"  for the entire twelve (12) month period ending on the last day of
such Plan Year, except that "414(s)  Compensation"  shall only be recognized for
that portion of the Plan Year during which an Employee was a Participant  in the
Plan.

For purposes of this Section,  the determination of "414(s)  Compensation" shall
be made by including amounts which are contributed by the Participating Employer
pursuant to a salary  reduction  agreement  and which are not  includible in the
gross  income  of  the   Participant   under  Code  Sections   125,   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 Participating Employer contributions.

"414(s)  Compensation"  in excess of $150,000 shall be disregarded.  Such amount
shall be adjusted for  increases in the cost of living in  accordance  with Code
Section  401(a)(17),  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 "414(s)  Compensation"  limit
shall be an amount  equal to the "414(s)  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, in  connection  with the adoption of this  amendment  and  restatement,  the
definition of "414(s)  Compensation"  has been  modified,  then,  for Plan Years
prior to the Plan Year which  includes the adoption  date of this  amendment and
restatement, "414(s) Compensation" means compensation determined pursuant to the
Plan then in effect.

1.34 "Highly  Compensated  Employee" means an Employee described in Code Section
414(q) and the  Regulations  thereunder,  and  generally  means an Employee  who
performed  services for the  Participating  Employer  during the  "determination
year" and is in one or more of the following groups:

         (a)  Employees  who at any  time  during  the  "determination  year" or
"look-back year" were "five percent owners" of the Participating Employer.

                                       15
<PAGE>

         (b)  Employees who received "415  Compensation"  during the  "look-back
year" from the Participating Employer in excess of $80,000.

             The  "determination  year" shall be the Plan Year for which testing
is being performed,  and the "look-back year" shall be the immediately preceding
twelve-month period.

             For  purposes  of  this   Section,   the   determination   of  "415
Compensation"  shall be made by including  amounts which are  contributed by the
Participating  Employer  pursuant to a salary reduction  agreement and which are
not includible in the gross income of the  Participant  under Code Sections 125,
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   Participating   Employer
contributions.  Additionally, the dollar threshold amount specified in (b) above
shall be  adjusted  at such time and in the same  manner as under  Code  Section
415(d),  except  that  the base  period  shall be the  calendar  quarter  ending
September 30, 1996.

             In determining who is a Highly Compensated Employee, 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
"determination year."

1.35 "Highly  Compensated  Former  Employee"  means a former  Employee who had a
separation year prior to the  "determination  year" and was a Highly Compensated
Employee in the year of separation from service or in any  "determination  year"
after attaining age 55. Notwithstanding the foregoing, an Employee who separated
from  service  prior to 1987  will be  treated  as a Highly  Compensated  Former
Employee only if during the  separation  year (or year  preceding the separation
year) or any year after the  Employee  attains  age 55 (or the last year  ending
before  the  Employee's  55th  birthday),  the  Employee  either  received  "415
Compensation"  in excess of $50,000 or was a "five percent  owner." For purposes
of this  Section,  "determination  year," "415  Compensation"  and "five percent
owner" shall be determined in accordance with Section 1.30.  Highly  Compensated
Former Employees shall be treated as Highly  Compensated  Employees.  The method
set forth in this Section for  determining who is a "Highly  Compensated  Former
Employee"  shall be applied on a uniform and  consistent  basis for all purposes
for which the Code Section 414(q) definition is applicable.

1.36     "Highly Compensated Participant" means any Highly Compensated Employee
who is eligible to participate in the Plan.

1.37 "Hour of Service"  means (1) each hour for which an Employee is directly or
indirectly compensated or entitled to compensation by the Participating 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

                                       16
<PAGE>

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

For  purposes of this  Section,  a payment  shall be deemed to be made by or due
from the Participating Employer regardless of whether such payment is made by or
due from the  Participating  Employer  directly,  or indirectly  through,  among
others,  a  trust  fund,  or  insurer,  to  which  the  Participating   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.

1.38  "Income"  means  the  income  or  losses   allocable  to  Excess  Deferred
Compensation,  Excess  Contributions  or Excess  Aggregate  Contributions  which
amount shall be  allocated in the same manner as income or losses are  allocated
pursuant to Section 4.4(d).

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

                                       17
<PAGE>

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

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

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

         (c)      a "five percent owner" of the  Participating  Employer.  "Five
                  percent  owner" means any person who owns (or is considered as
                  owning  within the meaning of Code Section 318) more than five
                  percent  (5%) of the  outstanding  stock of the  Participating
                  Employer or stock  possessing  more than five  percent (5%) of
                  the  total   combined   voting  power  of  all  stock  of  the
                  Participating  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 Participating 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.

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

For purposes of this Section,  the determination of "415 Compensation"  shall be
made by including  amounts which are contributed by the  Participating  Employer
pursuant to a salary  reduction  agreement  and which are not  includible in the
gross  income  of  the   Participant   under  Code  Sections   125,   402(e)(3),

                                       18
<PAGE>

402(h)(1)(B),  403(b) or 457(b),  and Employee  contributions  described in Code
Section 414(h)(2) that are treated as Participating Employer contributions.

1.41 "Late  Retirement Date" means the first day of the month coinciding with or
next following a Participant's  actual  Retirement Date after having reached his
Normal Retirement Date.

1.42  "Leased  Employee"  means  any  person  (other  than  an  Employee  of the
recipient)  who pursuant to an  agreement  between the  recipient  and any other
person ("leasing organization") has performed services for the recipient (or for
the recipient  and related  persons  determined in accordance  with Code Section
414(n)(6)) on a substantially full time basis for a period of at least one year,
and such  services  are of a type  historically  performed  by  employees in the
business field of the recipient  employer.  Contributions or benefits provided a
Leased Employee by the leasing  organization  which are attributable to services
performed  for the  recipient  employer  shall be  treated  as  provided  by the
recipient employer. A Leased Employee shall not be considered an Employee of the
recipient:

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

                  (1)      a  non-integrated  employer  contribution  rate of at
                           least 10% of compensation, as defined in Code Section
                           415(c)(3),    but   including   amounts   which   are
                           contributed by the Participating Employer pursuant to
                           a  salary  reduction  agreement  and  which  are  not
                           includible  in the gross  income  of the  Participant
                           under Code  Sections  125,  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 Participating Employer contributions.

                  (2)      immediate participation; and

                  (3)      full and immediate vesting; and

         (b)      if Leased Employees do not constitute more than 20% of the
                  recipient's non-highly compensated work force.

1.43 "Non-Elective  Contribution" means the Participating Employer contributions
to the Plan excluding, however, contributions made pursuant to the Participant's
deferral  election  provided for in Section 4.2 and any  Qualified  Non-Elective
Contribution used in the "Actual Deferral Percentage" tests.

1.44     "Non-Highly Compensated Participant" means any Participant who is not a
Highly Compensated Employee.

1.45     "Non-Key Employee" means any Employee or former Employee (and his
Beneficiaries) who is not a Key Employee.

                                       19
<PAGE>

1.46  "Normal  Retirement  Age"  means  the  Participant's   65th  birthday.   A
Participant  shall  become  fully  Vested  in  his  Participant's  Account  upon
attaining his Normal Retirement Age.

1.47 "Normal  Retirement  Date" means the first day of the month coinciding with
or next following the Participant's Normal Retirement Age.

1.48 "1-Year Break in Service"  means the applicable  computation  period during
which an  Employee  has not  completed  more than 500 Hours of Service  with the
Participating Employer. Further, solely for the purpose of determining whether a
Participant  has incurred a 1-Year Break in Service,  Hours of Service  shall be
recognized  for  "authorized  leaves of absence" and  "maternity  and  paternity
leaves of  absence."  Years of  Service  and 1-Year  Breaks in Service  shall be
measured on the same computation period.

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

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

1.49 "Other  Investments  Account"  means the account of a Participant  which is
credited with his share of the net gain (or loss) of the Plan,  Forfeitures  and
Participating  Employer  contributions  in other than Company Stock and which is
debited with payments made to pay for Company Stock.

A separate  accounting  shall be maintained  with respect to that portion of the
Other   Investments   Account   attributable  to  Elective   Contributions   and
Non-Elective Contributions.

1.50 "Participant"  means any Eligible Employee who participates in the Plan and
has not for any reason become ineligible to participate further in the Plan.

1.51 "Participant  Direction Procedures" means such instructions,  guidelines or
policies,  the terms of which are incorporated  herein,  as shall be established

                                       20
<PAGE>

pursuant  to Section  4.12 and  observed  by the  Administrator  and  applied to
Participants who have Participant Directed Accounts.

1.52 "Participant's Account" means the account established and maintained by the
Administrator  for each  Participant  with respect to his total  interest in the
Plan  and  Trust  resulting  from  the   Participating   Employer   Non-Elective
Contributions.

A separate  accounting  shall be maintained  with respect to that portion of the
Participant's   Account   attributable  to   Participating   Employer   matching
contributions   made  pursuant  to  Section   4.1(b),   Participating   Employer
discretionary   contributions   made   pursuant   to  Section   4.1(c)  and  any
Participating Employer Qualified Non-Elective Contributions.

1.53  "Participant's  Combined Account" means the total aggregate amount of each
Participant's Elective Account and Participant's Account.

1.54  "Participant's  Directed  Account"  means that portion of a  Participant's
interest in the Plan with  respect to which the  Participant  has  directed  the
investment in accordance with the Participant Direction Procedure.

1.55  "Participant's   Elective  Account"  means  the  account  established  and
maintained by the  Administrator  for each Participant with respect to his total
interest  in the Plan  and  Trust  resulting  from  the  Participating  Employer
Elective Contributions used to satisfy the "Actual Deferral Percentage" tests. A
separate  accounting  shall be  maintained  with  respect to that portion of the
Participant's  Elective  Account  attributable  to such  Elective  Contributions
pursuant to Section 4.2 and any Participating  Employer  Qualified  Non-Elective
Contributions.

1.56     Participating Employer" means NBT Bancorp Inc., NBT Bank, N.A. and any
Affiliated Employer that adopts the Plan and Inst in accordance with the
provisions of Article XIV.

1.57     "Plan" means this instrument, including any and all supplements and
amendments hereto which may be in effect.

1.58  "Plan  Year"  means  the  Plan's  accounting  year of twelve  (12)  months
commencing on January 1st of each year and ending the following December 31st.

1.59  "Qualified  Military  Service"  means  service  entitling an individual to
reemployment  rights under the Uniformed  Services  Employment and  Reemployment
Rights Act of 1994,  as amended from time to time,  provided the  individual  is
reemployed within the period prescribed by the act.

1.60 "Qualified  Non-Elective  Contribution"  means any  Participating  Employer
contributions  made  pursuant  to  Section  4.6(b)  and  Section  4.8(h).   Such
contributions  shall be considered an Elective  Contribution for the purposes of
the Plan and used to  satisfy  the  "Actual  Deferral  Percentage"  tests or the
"Actual Contribution Percentage" tests.

                                       21
<PAGE>

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

1.62 "Retired  Participant"  means a person who has been a Participant,  but who
has become entitled to retirement benefits under the Plan.

1.63  "Retirement  Date"  means the date as of which a  Participant  retires for
reasons  other than Total and  Permanent  Disability,  whether  such  retirement
occurs on a Participant's Normal Retirement Date, Early or Late Retirement Date.

1.64     "Super Top Heavy Plan" means a plan described in Section 12.2(b).

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

1.66     "Top Heavy Plan" means a plan described in Section 12.2(a).

1.67     "Top Heavy Plan Year" means a Plan Year during which the Plan is a Top
Heavy Plan.

1.68 "Top Paid  Group"  means the top 20  percent  of  Employees  who  performed
services for the  Participating  Employer  during the  applicable  year,  ranked
according to the amount of "415  Compensation"  (determined  for this purpose in
accordance  with Section 1.30) received from the  Participating  Employer during
such year.  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  Participating  Employer.  Employees who are
non-resident  aliens and who  received no earned  income  (within the meaning of
Code Section  911(d)(2)) from the  Participating  Employer  constituting  United
States source income within the meaning of Code Section  861(a)(3)  shall not be
treated as Employees. Additionally, for the purpose of determining the number of
active Employees in any year, the following  additional  Employees shall also be
excluded;  however,  such Employees shall still be considered for the purpose of
identifying the particular Employees in the Top Paid Group:

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

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

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

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

In  addition,  if 90  percent  or more  of the  Employees  of the  Participating
Employer  are  covered  under  agreements  the  Secretary  of Labor  finds to be
collective  bargaining  agreements  between  Employee  representatives  and  the
Participating  Employer,  and the Plan covers only Employees who are not covered

                                       22
<PAGE>

under  such  agreements,  then  Employees  covered by such  agreements  shall be
excluded  from both the total  number  of active  Employees  as well as from the
identification of particular Employees in the Top Paid Group.

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

1.69 "Total and Permanent  Disability" means a physical or mental condition of a
Participant  resulting from bodily  injury,  disease,  or mental  disorder which
renders him incapable of continuing his usual and customary  employment with the
Participating  Employer.  The disability of a Participant shall be determined a)
by a licensed  physician  chosen by the  Administrator  or, b) by a  Participant
becoming  entitled to receive long term  disability  benefits  under a long term
disability  program sponsored by the Participating  Employer.  The determination
shall be applied uniformly to all Participants.

1.70  "Trustee"  means the person or entity  named as  trustee  herein or in any
separate trust forming a part of this Plan, and any successors.

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

1.72 "Valuation Date" means the last day of March, June, September, and December
in  each  year,   and  such  other  date  or  dates  deemed   necessary  by  the
Administrator.  The Valuation Date may include any day during the Plan Year that
the Trustee,  any transfer agent  appointed by the Trustee or the  Participating
Employer and any stock exchange used by such agent are open for business.

1.73     "Vested" means the nonforfeitable portion of any account maintained on
behalf of a Participant.

1.74 "Year 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.

                                       23
<PAGE>

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

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 1000 hours  requirement  shall be prorated based on
the number of full months in the short Plan Year.

Years of  Service  with  any  employer  who was  acquired  by the  Participating
Employer  shall be  recognized  for  purposes  of  determining  eligibility  and
vesting.

Years of Service with any Affiliated Employer shall be recognized.

                                       24
<PAGE>

                                   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 may, by written agreement or designation, appoint
                  at its  option  an  Investment  Manager  (qualified  under the
                  Investment  Company  Act  of  1940  as  amended),   investment
                  adviser,  or other agent to provide  direction  to the Trustee
                  with  respect  to  any  or  all  of  the  Plan  assets.   Such
                  appointment  shall be given by the  Employer  in  writing in a
                  form acceptable to the Trustee and shall specifically identify
                  the Plan assets with respect to which the  Investment  Manager
                  or other agent shall have authority to direct the investment.

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

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

                                       25
<PAGE>

           (e)    The Employer will furnish Plan  Fiduciaries  and  Participants
                  with notices and  information  statements  when voting  rights
                  must be exercised pursuant to Section 8.5.

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  his
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 his duties under this Plan.

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

                                       26
<PAGE>

           (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 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;

           (g)    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;

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

           (i)    to establish  and  communicate  to  Participants  a procedure,
                  which includes at least three (3) investment  options pursuant
                  to  Regulations,  for allowing each  Participant to direct the
                  Trustee as to the  investment  of his  Company  Stock  Account
                  pursuant to Section 4.12;

           (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 8.5;

           (k)    to assist any Participant regarding his 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.

                                       27
<PAGE>

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 and to
Plan Participants.

2.7        PAYMENT OF EXPENSES

All expenses of administration  may be paid out of the Trust Fund unless paid by
the Participating 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,  agents (including  nonfiduciary agents) appointed for the
purpose of  assisting  the  Administrator  or the  Trustee in  carrying  out the
instructions of Participants as to the directed investment of their accounts and
other  specialists and their agents,  and other costs of administering the Plan.
Until paid, the expenses shall constitute a liability of the Trust Fund.

2.8        CLAIMS PROCEDURE

         (a) If a Participant,  Former Participant or Beneficiary (a "Claimant")
asserts a right to any benefit under the Plan which he has not received, he must
file  a  written  claim  for  such  benefit  with  the  Administrator.   If  the
Administrator  wholly or partially  denies such claim,  it shall provide  within
ninety  days of the  receipt  of the claim  written  notice of the denial to the
Claimant setting forth:

                  (1)      Specific reasons for the denial of the claim;

                  (2)      Specific reference to pertinent provisions of the
                           Plan on which the denial is based;

                  (3)      A description of any additional material or
                           information necessary to perfect the claim and an
                           explanation of why such material or information is
                           necessary; and

                  (4)      An explanation of the Plan's claims review procedure.

         (b) A Claimant  whose  application  for  benefits  is denied or who has
         received  neither an  affirmative  reply nor a notice of denial  within
         ninety  days after  filing his claim may request a full and fair review
         of the decision  denying the claim. The request must be made in writing
         to the  Administrator  within sixty days after receipt of the notice of

                                       28
<PAGE>

         the denial  (or,  if no notice of denial is issued,  within  sixty days
         after the  expiration of ninety days from the filing of the claim).  In
         connection with the review, the Claimant may:

                  (1)      Request a hearing by the Administrator upon written
                  application to the Administrator;

                  (2)      Review pertinent documents in the possession of the
                  Administrator; or

                  (3)      Submit issues and comments in writing to the
                  Administrator for review.

         (c) A decision on review by the  Administrator  shall be made  promptly
         and not later than sixty days after the receipt by the Administrator of
         a request for review, unless special circumstances (such as the need to
         hold a hearing)  require an extension of time for processing,  in which
         case the Claimant will be so notified of the extension,  and a decision
         shall be  rendered  as soon as  possible,  and not later  than 120 days
         after the receipt of the request for review.  The decision  shall be in
         writing and shall include  specific reasons for the decision written in
         a manner  calculated to be  understood  by the  Claimant,  and specific
         reference to the pertinent provisions of the Plan on which the decision
         is based.  The  Administrator  shall have  discretionary  authority  to
         interpret  and apply  the  provisions  with  respect  to,  and make any
         factual  determination  in connection  with, any benefit claim, and the
         decision  of the  Administrator  shall be final  and  binding  upon all
         parties.

                                       29
<PAGE>

                                   ARTICLE III
                                   ELIGIBILITY

3.1        INITIAL ELIGIBILITY TO BECOME A PARTICIPANT

         (a) Each person who was a Participant in the Plan on December 31, 2000,
         shall  continue to be eligible to participate in the Plan as of January
         1, 2001.

Each other Eligible Employee shall become a Participant in the Plan on the first
day of the month  coinciding with or next following his attainment of age 21 and
completion of one Year of Service.

However,  an Eligible Employee who is scheduled to work 1,000 or more hours in a
computation period shall be eligible to make Elective  Contributions pursuant to
Section 4.2 on the first day of the month  coincident with or next following his
date of hire.

In addition,  an Eligible  Employee who is scheduled to work 1,000 or more hours
in a  computation  period  shall  be  eligible  to make  Rollover  Contributions
pursuant to Section 4.11 on the first day of the month  coincident  with or next
following his date of hire.

           (b)  Notwithstanding  any  provision  of this Plan to the contrary an
         ineligible  employee or Leased  Employee  who  subsequently  becomes an
         Eligible Employee,  shall become eligible to participate in the Plan as
         of the later of the date he becomes as Eligible Employee or the date he
         fulfills  the age and service  requirements  set forth in this  Section
         3.1.

3.2        DETERMINATION OF ELIGIBILITY

The  Administrator   shall  determine  the  eligibility  of  each  Employee  for
participation in the Plan based upon information  furnished by the Participating
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. The  Administrator
shall have full  discretionary  authority to interpret and apply the eligibility
provisions  of the Plan  and to make  any  factual  determination  necessary  in
connection therewith.  Such determination shall be subject to review per Section
2.8.

3.3        TERMINATION OF ELIGIBILITY

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

                                       30
<PAGE>

         (b) In the event a  Participant  is no  longer a member of an  eligible
         class of Employees and becomes  ineligible to  participate  but has not
         incurred a 1-Year  Break in Service,  such  Employee  will  participate
         immediately  upon returning to an eligible class of Employees.  If such
         Participant  incurs a  1-Year  Break in  Service,  eligibility  will be
         determined under the break in service rules of the Plan.

3.4        ERROEOUS OMISSION OF ELIGIBLE EMPLOYEE

If, in any Plan Year,  any Employee who should be included as a  Participant  in
the Plan is erroneously omitted and discovery of such omission is not made until
after a contribution by his  Participating  Employer for the year has been made,
the Participating Employer shall make a subsequent  contribution with respect to
the omitted Employee in the amount which the said  Participating  Employer would
have contributed with respect to him had he not been omitted.  Such contribution
shall be made  regardless of whether or not it is deductible in whole or in part
in any taxable year under applicable provisions of the Code.

3.5        ERRONEOUS INCLUSION OF INELIGIBLE EMPLOYEE

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

3.6        ELECTION NOT TO PARTICIPATE

An Employee may, subject to the approval of the  Participating  Employer,  elect
voluntarily not to participate in the Plan. The election not to participate must
be communicated to the Participating  Employer, in writing, at least thirty (30)
days before the beginning of a Plan Year.

3.7        COMPLIANCE WITH USERRA

Notwithstanding  any  provision  of this  Plan to the  contrary,  contributions,
benefits,  and service credit with respect to qualified military service will be
provided in accordance  with Section 414(u) of the Code. This provision shall be
effective as of the effective  date of the  Uniformed  Services  Employment  and
Reemployment  Rights Act of 1994, as amended from time to time,  with respect to
the Plan.

                                       31
<PAGE>

                                   ARTICLE IV
                           CONTRIBUTION AND ALLOCATION

4.1        FORMULA FOR DETERMINING EMPLOYER CONTRIBUTION

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

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

         (b) On behalf of each  Participant who is eligible to share in matching
         contributions for the Plan Year, a matching  contribution  equal to 100
         percent of each such Participant's Deferred Compensation,  which amount
         shall be deemed an Participating  Employer  Non-Elective  Contribution.
         Matching  contributions  shall be made in Company  Stock or, if made in
         cash,  shall be converted to Company Stock, and shall be subject to the
         diversification requirements of Section 4.12.

          Except,  however, in applying the matching percentage specified above,
          only salary reductions up to 3 percent of eligible  Compensation shall
          be  considered.  For an  Employee's  initial  year  of  participation,
          Compensation  shall be counted from his date of  participation  in the
          Plan.

          Not withstanding  paragraph one above, the Participating  Employer may
          make an additional Non-Elective matching contribution which amount, if
          any   shall  be   deemed  an   Participating   Employer   Non-Elective
          Contribution  on behalf of  Participants  who are employed on the last
          day of the Plan Year and who  completed  a Year of Service  during the
          Plan Year.

         (c) A  discretionary  amount,  which amount,  if any, shall be deemed a
         Participating Employer Non-Elective Contribution. 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
         this discretionary contribution.

         (d) Additionally,  to the extent necessary,  the Participating Employer
         shall  contribute  to the Plan the amount  necessary to provide the top
         heavy minimum  contribution.  All  contributions  by the  Participating
         Employer  shall be made in cash or in such property as is acceptable to
         the Trustee.

                                       32
<PAGE>

4.2        PARTICIPANT'S SALARY REDUCTION ELECTION

         (a) Each  Participant  may elect to defer  from one  percent  to twenty
         percent of his Compensation  which would have been received in the Plan
         Year,  but  for  the  deferral   election.   A  deferral  election  (or
         modification  of an earlier  election)  may not be made with respect to
         Compensation  which is  currently  available  on or before the date the
         Participant  executed  such  election.  For  purposes of this  Section,
         Compensation  shall be determined prior to any reductions made pursuant
         to Code Sections 125,  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 Participating Employer contributions.

         The amount by which Compensation is reduced shall be that Participant's
         Deferred  Compensation  and be  treated  as an  Participating  Employer
         Elective  Contribution  and  allocated to that  Participant's  Elective
         Account.

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

         (c) Notwithstanding anything in the Plan to the contrary,  amounts held
         in  the  Participant's   Elective  Account  may  not  be  distributable
         (including any offset of loans) earlier than:

                  (1) A Participant's separation from service, Total and
                  Permanent Disability, or death;

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

                  (3) The termination of the Plan without the  establishment  or
                  existence of a "successor  plan," as that term is described in
                  Regulation 1.401(k)-1(d)(3);

                  (4) The date of disposition by the  Participating  Employer to
                   an entity that is not an Affiliated Employer of substantially
                   all of  the  assets  (within  the  meaning  of  Code  Section
                   409(d)(2)) used in a trade or business of such corporation if
                   such  corporation  continues to maintain  this Plan after the
                   disposition  with  respect  to a  Participant  who  continues
                   employment with the corporation acquiring such assets;

                  (5) The date of disposition by the  Participating  Employer or
                  an Affiliated  Employer who maintains the Plan of its interest
                  in a subsidiary (within the meaning of Code Section 409(d)(3))
                  to an entity which is not an Affiliated Employer but only with
                  respect to a Participant  who continues  employment  with such
                  subsidiary; or

                  (6) The proven financial hardship of a Participant, subject to
                  the limitations of Section 9.1.

                                       33
<PAGE>

           (d) For each Plan Year, a Participant's  Deferred  Compensation  made
           under this Plan and all other plans, contracts or arrangements of the
           Participating Employer maintaining this Plan shall not exceed, during
           any taxable year of the Participant,  the limitation  imposed by Code
           Section  402(g),  as in effect at the beginning of such taxable year.
           If such dollar  limitation is exceeded,  a Participant will be deemed
           to have notified the  Administrator of such excess amount which shall
           be distributed in a manner consistent with Section 4.2(f). The dollar
           limitation shall be adjusted annually pursuant to the method provided
           in Code Section 415(d) in accordance with Regulations.

           (e) In the event a Participant  has received a hardship  distribution
           from his Participant's Elective Account pursuant to Section 9.1(b) or
           pursuant to  Regulation  1.401(k)-1(d)(2)(iv)(B)  from any other plan
           maintained by the Participating Employer, then such Participant shall
           not be permitted to elect to have Deferred  Compensation  contributed
           to the Plan on his behalf for a period of twelve months following the
           receipt of the distribution. Furthermore, the dollar limitation under
           Code  Section   402(g)   shall  be  reduced,   with  respect  to  the
           Participant's  taxable year  following  the taxable year in which the
           hardship  distribution was made, by the amount of such  Participant's
           Deferred  Compensation,  if any, pursuant to this Plan (and any other
           plan maintained by the  Participating  Employer) for the taxable year
           of the hardship distribution.

           (f) If a Participant's Deferred Compensation under this Plan together
           with any elective deferrals (as defined in Regulation  1.402(g)-1(b))
           under another  qualified cash or deferred  arrangement (as defined in
           Code Section  401(k)),  a simplified  employee pension (as defined in
           Code Section  408(k)),  a salary  reduction  arrangement  (within the
           meaning of Code Section 3121(a)(5)(D)),  a deferred compensation plan
           under Code  Section  457(b),  or a trust  described  in Code  Section
           501(c)(18) cumulatively exceed the limitation imposed by Code Section
           402(g) (as adjusted  annually in accordance  with the method provided
           in  Code   Section   415(d)   pursuant  to   Regulations)   for  such
           Participant's taxable year, the Participant may, not later than March
           1 following the close of the  Participant's  taxable year, notify the
           Administrator in writing of such excess and request that his Deferred
           Compensation under this Plan be reduced by an amount specified by the
           Participant.  In such event, the Administrator may direct the Trustee
           to distribute  such excess  amount (and any Income  allocable to such
           excess amount) to the Participant not later than the first April 15th
           following  the  close  of  the   Participant's   taxable  year.   Any
           distribution  of less  than the  entire  amount  of  Excess  Deferred
           Compensation  and Income shall be treated as a pro rata  distribution
           of Excess Deferred  Compensation and Income.  The amount  distributed
           shall not exceed the Participant's  Deferred  Compensation  under the
           Plan for the taxable  year (and any Income  allocable  to such excess
           amount).   Any  distribution  on  or  before  the  last  day  of  the
           Participant's  taxable  year  must  satisfy  each  of  the  following
           conditions:

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

                                       34
<PAGE>

                  (2)  The Participant shall designate the distribution as
                  Excess Deferred Compensation; and

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

                  Any distribution made pursuant to this Section 4.2(f) shall be
                  made  first  from   unmatched   Deferred   Compensation   and,
                  thereafter,  from  Deferred  Compensation  which  is  matched.
                  Matching   contributions   which   relate  to  such   Deferred
                  Compensation shall be forfeited.

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

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

           (i) The Participating  Employer and the Administrator shall implement
           the salary reduction elections provided for herein in accordance with
           the following:

                  (1) A  Participant  must  make  his  initial  salary  deferral
                  election within a reasonable  time, not to exceed thirty days,
                  after  entering  the Plan  pursuant  to  Section  3.2.  If the
                  Participant  fails to make an initial salary deferral election
                  within such time, then such Participant may thereafter make an
                  election in accordance with the rules governing modifications.
                  The Participant shall make such an election by entering into a
                  written  salary  reduction  agreement  with the  Participating
                  Employer  and filing such  agreement  with the  Administrator.
                  Such election shall initially be effective  beginning with the
                  pay period  following the  acceptance of the salary  reduction
                  agreement  by the  Administrator,  shall not have  retroactive
                  effect and shall remain in force until revoked.

                  (2) A Participant  may modify a prior election during the Plan
                  Year and concurrently  make a new election by filing a written
                  notice with the Administrator  within a reasonable time before
                  the first day of the month for which such  modification  is to
                  be  effective.  Any  modification  shall not have  retroactive
                  effect and shall remain in force until revoked.

                  (3) A Participant may elect to prospectively revoke his salary
                  reduction  agreement  in its  entirety  at any time during the
                  Plan Year by  providing  the  Administrator  with  thirty days
                  written notice of such revocation (or upon such shorter notice
                  period  as  may be  acceptable  to  the  Administrator).  Such

                                       35
<PAGE>

                  revocation  shall become  effective as of the beginning of the
                  first  pay  period  coincident  with  or  next  following  the
                  expiration of the notice period. Furthermore,  the termination
                  of  the   Participant's   employment,   or  the  cessation  of
                  participation  for any  reason,  shall be deemed to revoke any
                  salary   reduction   agreement   then  in  effect,   effective
                  immediately following the close of the pay period within which
                  such termination or cessation occurs.

4.3        TIME OF PAYMENT OF PARTICIPATING EMPLOYER CONTRIBUTION

Participating  Employer  contributions  will be paid in cash,  Company  Stock or
other property as the  Participating  Employer may from time to time  determine.
Company Stock and other property will be valued at their then fair market value.
The  Participating  Employer shall generally pay to the Trustee its contribution
to the Plan for each Plan Year,  within the time  prescribed  by law,  including
extensions of time, for the filing of the Participating  Employer federal income
tax return for the Fiscal Year.

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

4.4        ALLOCATION OF CONTRIBUTION, FORFEITURES AND EARNINGS

           (a) The Administrator  shall establish and maintain an account in the
           name of each Participant to which the  Administrator  shall credit no
           later than as of each Anniversary Date all amounts  allocated to each
           such Participant as set forth herein.

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

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

                                       36
<PAGE>

                  (2) With respect to the  Participating  Employer  Non-Elective
                  Contribution   made  pursuant  to  Section  4.1(b),   to  each
                  Participant's Account in accordance with Section 4.1(b).

                  (3) With respect to the  Participating  Employer  Non-Elective
                  Contribution   made  pursuant  to  Section  4.1(c),   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.

           (c) The Company Stock Account of each  Participant  shall be credited
           as of each Anniversary Date with Forfeitures of Company Stock and his
           allocable  share  of  Company  Stock  (including  fractional  shares)
           purchased  and  paid for by the  Plan or  contributed  in kind by the
           Participating Employer.  Stock dividends on Company Stock held in his
           Company  Stock Account shall be credited to his Company Stock Account
           when paid.  Cash dividends on Company Stock held in his Company Stock
           Account shall be credited to his Other Investments Account when paid.

           (d)  As  of  each  Valuation   Date,  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  time weighted  average  (based on beginning year base)
           nonsegregated  accounts (other than each Participant's  Company Stock
           Account)  bear  to  the  total  of  all   Participants'   and  Former
           Participants'  time weighted  average  (based on beginning year base)
           nonsegregated   accounts  (other  than  Participants'  Company  Stock
           Accounts)  as of such  date.  Earnings  or losses  with  respect to a
           Participant's  Directed Account shall be allocated in accordance with
           Section 4.12.

           Participants'  transfers from other  qualified plans deposited in the
           general  Trust  Fund shall  share in any  earnings  and  losses  (net
           appreciation  or net  depreciation)  of the  Trust  Fund in the  same
           manner provided above. Each segregated  account  maintained on behalf
           of a  Participant  shall be  credited  or charged  with its  separate
           earnings and losses.

           (e) As of each Anniversary Date any amounts which became  Forfeitures
           since the last  Anniversary  Date shall  first be made  available  to
           reinstate   previously   forfeited   account   balances   of   Former
           Participants,  if any, in  accordance  with  Section  7.4(f)(2).  The
           remaining  Forfeitures,  if any, shall be allocated to  Participants'
           Accounts  and used to reduce the  contribution  of the  Participating
           Employer  hereunder for the Plan Year in which such Forfeitures occur
           in the following manner:

                  (1)  Forfeitures   attributable  to   Participating   Employer
                  matching  contributions  made pursuant to Section 4.1(b) shall
                  be used to reduce the Participating  Employer contribution for
                  the Plan Year in which such Forfeitures occur.

                                       37
<PAGE>

                  (2)  Forfeitures   attributable  to   Participating   Employer
                  discretionary  contributions  made pursuant to Section  4.1(c)
                  shall  be added to any  Participating  Employer  discretionary
                  contribution for the Plan Year in which such Forfeitures occur
                  and  allocated  among the  Participants'  Accounts in the same
                  manner   as   any   Participating    Employer    discretionary
                  contribution.

                  Provided,  however,  that  in  the  event  the  allocation  of
                  Forfeitures  provided herein shall cause the "annual addition"
                  (as defined in Section  4.9) to any  Participant's  Account to
                  exceed the amount  allowable by the Code,  the excess shall be
                  reallocated in accordance with Section 4.10.

           (f) 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
           4.4(h) if eligible pursuant to the provisions of Section 4.4(j).

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

           (h)  Minimum   Allocations   Required   for  Top  Heavy  Plan  Years:
           Notwithstanding  the foregoing,  for any Top Heavy Plan Year, the sum
           of the Participating Employer contributions and Forfeitures allocated
           to the Participant's Combined Account of each Employee shall be equal
           to at least  three  percent  of such  Employee's  "415  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
           Participating Employer contributions and Forfeitures allocated to the
           Participant's  Combined  Account  of each Key  Employee  for such Top
           Heavy  Plan Year is less than three  percent  of each Key  Employee's
           "415  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,  the  sum of the
           Participating Employer contributions and Forfeitures allocated to the
           Participant's Combined Account of each Employee shall be equal to the
           largest percentage allocated to the Participant's Combined Account of
           any Key Employee.  However, in determining whether a Non-Key Employee
           has received the required minimum allocation, such Non-Key Employee's
           Deferred  Compensation and matching  contributions  needed to satisfy
           the "Actual Contribution Percentage" tests pursuant to Section 4.7(a)
           shall not be taken into account.

           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.

                                       38
<PAGE>

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

           (j) For any Top Heavy Plan Year,  the minimum  allocations  set forth
           above shall be allocated to the Participant's Combined Account of all
           Employees  who  are   Participants   and  who  are  employed  by  the
           Participating  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) or, in the
           case of a cash or deferred arrangement, elective contributions to the
           Plan.

           (k) In lieu of the above,  in any Plan Year in which an Employee is a
           Participant  in both  this Plan and a defined  benefit  pension  plan
           included  in a Required  Aggregation  Group  which is top heavy,  the
           Participating Employer shall not be required to provide such Employee
           with both the full separate  defined benefit plan minimum benefit and
           the full separate defined contribution plan minimum allocation.

           Therefore,  for any Plan Year when the Plan is a Top Heavy  Plan,  an
           Employee who is participating in this Plan and a defined benefit plan
           maintained  by the  Participating  Employer  shall  receive a minimum
           monthly  accrued  benefit in the  defined  benefit  plan equal to the
           product of (1)  one-twelfth of "415  Compensation"  averaged over the
           five consecutive "limitation years" (or actual "limitation years," if
           less) which produce the highest average and (2) the lesser of (i) two
           percent  multiplied by years of service when the plan is top heavy or
           (ii) twenty percent.

           (l) For the purposes of this  Section,  "415  Compensation"  shall be
           limited to $150,000.  Such amount shall be adjusted for  increases in
           the cost of living in accordance with Code Section 401(a)(17), 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 "415  Compensation"  limit
           shall be an  amount  equal to the "415  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 herein to the contrary, Participants who
           terminated employment for any reason during the Plan Year shall share
           in the  salary  reduction  contributions  made  by the  Participating
           Employer for the year of  termination  without regard to the Hours of
           Service credited.

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

                                       39
<PAGE>

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

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

4.5        ACTUAL DEFERRAL PERCENTAGE TESTS

           (a)  Maximum  Annual  Allocation:  For each  Plan  Year,  the  annual
           allocation derived from Participating Employer Elective Contributions
           to  a  Participant's  Elective  Account  shall  satisfy  one  of  the
           following tests:

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

                  (2) The excess of the  "Actual  Deferral  Percentage"  for the
                  Highly Compensated Participant group over the "Actual Deferral
                  Percentage" for the NonHighly  Compensated  Participant  group
                  shall not be more than two  percentage  points.  Additionally,
                  the "Actual  Deferral  Percentage" for the Highly  Compensated
                  Participant  group  shall  not  exceed  the  "Actual  Deferral
                  Percentage" for the NonHighly  Compensated  Participant  group
                  multiplied by 2. The provisions of Code Section  401(k)(3) and
                  Regulation 1.401(k)-1(b) are incorporated herein by reference.

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

           (b) For the purposes of this  Section  "Actual  Deferral  Percentage"
           means, with respect to the Highly  Compensated  Participant group and
           NonHighly Compensated  Participant group for a Plan Year, the average
           of the ratios,  calculated  separately  for each  Participant in such
           group, of the amount of Participating Employer Elective Contributions
           allocated to each Highly Compensated  Participant's  Elective Account
           for  such  Plan  Year  and  to  each   such   NonHighly   Compensated
           Participant's  Elective  Account for the preceding Plan Year, to such
           Participant's "414(s) Compensation" for the applicable Plan Year. The
           actual deferral ratio for each  Participant and the "Actual  Deferral
           Percentage"  for  each  group  shall  be  calculated  to the  nearest
           one-hundredth  of  one  percent.   Participating   Employer  Elective
           Contributions  allocated to each NonHighly Compensated  Participant's

                                       40
<PAGE>

           Elective  Account  for the  preceding  Plan Year  shall be reduced by
           Excess  Deferred  Compensation  for the  preceding  Plan  Year to the
           extent such excess amounts are made under this Plan or any other plan
           maintained by the Participating Employer.

           (c) For the purposes of Sections 4.5(a) and 4.6, a Highly Compensated
           Participant and a NonHighly Compensated Participant shall include any
           Employee  eligible  to make a deferral  election  pursuant to Section
           4.2,  whether or not such  deferral  election  was made or  suspended
           pursuant to Section 4.2.

           (d) For purposes of this Section and Code Sections 401(a)(4),  410(b)
           and 401(k), this Plan may not be combined with any other plan.

4.6        ADJUSTMENT TO ACTUAL DEFERRAL PERCENTAGE TESTS

In the event that the initial allocations of the Participating Employer Elective
Contributions  made  pursuant to Section 4.4 do not satisfy one of the tests set
forth in Section 4.5(a),  the  Administrator  shall adjust Excess  Contributions
pursuant to the options set forth below:

           (a) On or before the fifteenth  day of the third month  following the
           end of each Plan Year, the Highly Compensated  Participant having the
           greatest  actual  deferral ratio shall have his actual deferral ratio
           reduced  until  one of the  tests  set  forth in  Section  4.5(a)  is
           satisfied,  or until his  actual  deferral  ratio  equals  the actual
           deferral  ratio of the  Highly  Compensated  Participant  having  the
           second largest  actual  deferral  ratio.  This process shall continue
           until one of the tests set forth in Section 4.5(a) is satisfied. Once
           one of the tests set forth in Section 4.5(a) is satisfied,  the total
           dollar amount of Elective Contributions represented by such reduction
           or reductions in actual  deferral ratio or ratios shall be identified
           as the total amount of Excess Contributions to be distributed.  These
           Excess  Contributions  will be attributed to and distributed from the
           accounts of Highly  Compensated  Employees  as follows.  The Elective
           Contribution  for the Highly  Compensated  Employee  with the largest
           Elective  Contribution  shall be  reduced  until  either a) the total
           amount of Excess  Contributions  is distributed,  or (b) the Elective
           Contribution  for the Highly  Compensated  Employee with the greatest
           Elective  Contribution  is  reduced  to the  level  of  the  Elective
           Contribution  for the  Highly  Compensated  Employee  with  the  next
           greatest Elective Contribution. This process shall continue until the
           total amount of Excess Contributions is distributed.

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

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

                             (ii)    shall be adjusted for Income; and

                                       41
<PAGE>

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

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

                  (3)   Matching    contributions   which   relate   to   Excess
                  Contributions  shall be forfeited  unless the related matching
                  contribution   is   distributed   as   an   Excess   Aggregate
                  Contribution pursuant to Section 4.8.

           (b) Within  twelve  (12) months  after the end of the Plan Year,  the
           Participating  Employer  may make a  special  Qualified  Non-Elective
           Contribution on behalf of NonHighly Compensated Participants electing
           salary reductions  pursuant to Section 4.2 in an amount sufficient to
           satisfy  one  of  the  tests  set  forth  in  Section  4.5(a).   Such
           contribution shall be allocated to the Participant's Elective Account
           of each Non-Highly Compensated Participant electing salary reductions
           pursuant  to  Section  4.2 in the  same  proportion  that  each  such
           NonHighly  Compensated  Participant's  Deferred  Compensation for the
           year bears to the total Deferred  Compensation  of all such NonHighly
           Compensated Participants.

           (c) If during a Plan Year the projected  aggregate amount of Elective
           Contributions to be allocated to all Highly Compensated  Participants
           under  this Plan  would,  by virtue of the tests set forth in Section
           4.5(a), cause the Plan to fail such tests, then the Administrator may
           automatically  reduce  proportionately  or in the order  provided  in
           Section  4.6(a)  each  affected  Highly   Compensated   Participant's
           deferral election made pursuant to Section 4.2 by an amount necessary
           to satisfy one of the tests set forth in Section 4.5(a).

4.7        ACTUAL CONTRIBUTION PERCENTAGE TESTS

           (a) The "Actual  Contribution  Percentage" for the Highly Compensated
Participant group shall not exceed the greater of:

                  (1)  125 percent of such percentage for the NonHighly
                  Compensated Participant group; or

                  (2) The  lesser  of 200  percent  of such  percentage  for the
                  NonHighly  Compensated  Participant  group, or such percentage
                  for  the  NonHighly  Compensated   Participant  group  plus  2
                  percentage points. However, to prevent the multiple use of the
                  alternative  method  described  in  this  paragraph  and  Code
                  Section  401(m)(9)(A),   any  Highly  Compensated  Participant
                  eligible to make elective deferrals pursuant to Section 4.2 or
                  any  other  cash or  deferred  arrangement  maintained  by the
                  Participating  Employer or an Affiliated  Employer and to make
                  Employee  contributions or to receive  matching  contributions
                  under  this  Plan or under any other  plan  maintained  by the
                  Participating  Employer or an Affiliated Employer shall have a
                  combination  of his  actual  deferral  ratio  and  his  actual

                                       42
<PAGE>

                  contribution ratio reduced pursuant to Regulation  1.401(m)-2.
                  The  provisions  of  Code  Section   401(m)  and   Regulations
                  1.401(m)-1(b)  and  1.401(m)-2  are  incorporated   herein  by
                  reference.

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

                  (1) The sum of Participating  Employer matching  contributions
                  made pursuant to Section  4.1(b) on behalf of each such Highly
                  Compensated participant for such Plan Year and each Non-Highly
                  Compensated Participant for the preceding Plan Year; to

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

           (c) For purposes of determining the "Actual Contribution  Percentage"
           and the amount of Excess Aggregate  Contributions pursuant to Section
           4.8(d),   only   Participating    Employer   matching   contributions
           contributed to the Plan prior to the end of the succeeding  Plan Year
           shall be considered. In addition, the Administrator may elect to take
           into   account,   with   respect  to   Employees   eligible  to  have
           Participating  Employer  matching  contributions  pursuant to Section
           4.1(b) allocated to their accounts, elective deferrals (as defined in
           Regulation  1.402(g)-1(b)) and qualified  non-elective  contributions
           (as defined in Code  Section  401(m)(4)(C))  contributed  to any plan
           maintained by the Participating Employer. Such elective deferrals and
           qualified   non-elective    contributions   shall   be   treated   as
           Participating  Employer matching  contributions subject to Regulation
           1.401(m)-1(b)(5) which is incorporated herein by reference.  However,
           the Plan  Year must be the same as the plan year of the plan to which
           the elective deferrals and the qualified  non-elective  contributions
           are made.

           (d) For purposes of this Section and Code Sections 401(a)(4),  410(b)
           and 401(m), this Plan may not be combined with any other plan.

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

                                       43
<PAGE>

4.8        ADJUSTMENT TO ACTUAL CONTRIBUTION PERCENTAGE TESTS

           (a) In the event that the "Actual  Contribution  Percentage"  for the
           Highly Compensated Participant group exceeds the "Actual Contribution
           Percentage" for the Non-Highly Compensated Participant group pursuant
           to Section  4.7(a),  the Highly  Compensated  Participant  having the
           greatest actual contribution ratio shall have his actual contribution
           ratio reduced  until one of the tests set forth in Section  4.7(a) is
           satisfied,  or until his actual  contribution ratio equals the actual
           contribution ratio of the Highly  Compensated  Participant having the
           second largest actual contribution ratio. This process shall continue
           until one of the tests set forth in Section 4.7(a) is satisfied. Once
           one of the tests set forth in Section 4.7(a) is satisfied,  the total
           dollar  amount  of  aggregate   contributions   represented  by  such
           reduction or reductions in actual  contribution ratio or ratios shall
           be identified as the total amount of Excess  Aggregate  Contributions
           to  be  distributed   and/or   forfeited.   These  Excess   Aggregate
           Contributions will be attributed to and distributed (with income), if
           vested,  or forfeited (with income),  if not vested from the accounts
           of Highly Compensated Employees as follows. The matching contribution
           for  the  Highly  Compensated  Employee  with  the  largest  matching
           contribution  shall be reduced  until  either a) the total  amount of
           Excess  Aggregate  Contributions  is distributed,  or b) the matching
           contributions for the Highly  Compensated  Employee with the greatest
           matching  contributions  is  reduced  to the  level  of the  matching
           contributions  for the  Highly  Compensated  Employee  with  the next
           greatest  matching  contributions.  This process shall continue until
           all Excess Aggregate  Contributions are eliminated.  Excess Aggregate
           Contributions   shall  be  distributed  to  or  forfeited  by  Highly
           Compensated  Participants on or before the fifteenth day of the third
           month  following the end of the Plan Year, but in no event later than
           the close of the following Plan Year.

           To the  extent  necessary  to affect  correction,  distributions  and
           forfeitures shall occur  proportionately from the vested portion of a
           Highly  Compensated  Employee's  aggregate  contributions (and Income
           allocable  to such  contributions)  and,  if  forfeitable,  from  the
           non-Vested   Excess   Aggregate    Contributions    attributable   to
           Participating  Employer matching  contributions (and Income allocable
           to such forfeitures).

           If the correction of Excess Aggregate  Contributions  attributable to
           Participating Employer matching contributions is not in proportion to
           the Vested and  non-Vested  portion of such  contributions,  then the
           Vested  portion  of  the   Participant's   Account   attributable  to
           Participating  Employer matching  contributions  after the correction
           shall be subject to Section 7.5(h).

           (b) Any distribution and/or Forfeiture of less than the entire amount
           of Excess Aggregate  Contributions (and Income) shall be treated as a
           pro  rata   distribution   and/or   Forfeiture  of  Excess  Aggregate
           Contributions   and   Income.   Distribution   of  Excess   Aggregate
           Contributions shall be designated by the Participating  Employer as a
           distribution  of  Excess   Aggregate   Contributions   (and  Income).

                                       44
<PAGE>

           Forfeitures  of Excess  Aggregate  Contributions  shall be treated in
           accordance with Section 4.4.

           (c) Excess  Aggregate  Contributions,  including  forfeited  matching
           contributions,   shall   be   treated   as   Participating   Employer
           contributions  for  purposes  of Code  Sections  404 and 415  even if
           distributed from the Plan.

           Forfeited   matching    contributions   that   are   reallocated   to
           Participants'  Accounts  for the Plan  Year in which  the  forfeiture
           occurs shall be treated as an "annual  addition"  pursuant to Section
           4.9(b) for the  Participants  to whose Accounts they are  reallocated
           and for the Participants from whose Accounts they are forfeited.

           (d) For each  Highly  Compensated  Participant,  the amount of Excess
           Aggregate  Contributions  is  equal  to  the  Participating  Employer
           matching  contributions  made  pursuant  to Section  4.1(b),  and any
           qualified non-elective contributions or elective deferrals taken into
           account   pursuant  to  Section   4.7(c)  on  behalf  of  the  Highly
           Compensated  Participant (determined prior to the application of this
           paragraph)  minus the amount  determined  by  multiplying  the Highly
           Compensated Participant's actual contribution ratio (determined after
           application  of this  paragraph)  by his "414(s)  Compensation."  The
           actual   contribution   ratio  must  be   rounded   to  the   nearest
           one-hundredth  of one percent.  In no case shall the amount of Excess
           Aggregate   Contribution  with  respect  to  any  Highly  Compensated
           Participant  exceed the  amount of  Participating  Employer  matching
           contributions  made  pursuant to Section  4.1(b),  and any  qualified
           non-elective  contributions or elective  deferrals taken into account
           pursuant  to  Section  4.7(c) on behalf  of such  Highly  Compensated
           Participant for such Plan Year.

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

           (f)  If  during  a  Plan  Year  the  projected  aggregate  amount  of
           Participating  Employer matching contributions to be allocated to all
           Highly  Compensated  Participants under this Plan would, by virtue of
           the tests set forth in  Section  4.7(a),  cause the Plan to fail such
           tests,   then   the    Administrator    may   automatically    reduce
           proportionately  or in the order  provided  in  Section  4.8(a)  each
           affected  Highly  Compensated  Participant's  projected share of such
           contributions  by an amount necessary to satisfy one of the tests set
           forth in Section 4.7(a).

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

                                       45
<PAGE>

           allocated to the Participant's Account of each Non-Highly Compensated
           Participant in the same proportion  that each Non-Highly  Compensated
           Participant's   Compensation   for  the  year   bears  to  the  total
           Compensation of all Non-Highly Compensated  Participants.  A separate
           accounting of any special Qualified  Non-Elective  Contribution shall
           be maintained in the Participant's Account.

4.9        MAXIMUM ANNUAL ADDITIONS

           (a)  Notwithstanding  the foregoing,  the maximum "annual  additions"
           credited to a Participant's  accounts for any "limitation year" shall
           equal the lesser of: (1) $30,000  (or such lerger  amount as shall be
           in effect as a result of  adjustments  pursuant to Section  415(d) of
           the  Code),  or (2)  twenty-five  percent of the  Participant's  "415
           Compensation"  for such "limitation  year." For any short "limitation
           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 "limitation year" and the denominator of which is twelve.

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

           (c) For purposes of applying the limitations of Code Section 415, the
           transfer  of  funds  from one  qualified  plan to  another  is not an
           "annual  addition."  In  addition,  the  following  are not  Employee
           contributions  for the  purposes of Section  4.9(b)(2):  (1) rollover
           contributions  (as  defined in Code  Sections  402(e)(6),  403(a)(4),
           403(b)(8)  and  408(d)(3));   (2)  repayments  of  loans  made  to  a
           Participant from the Plan; (3) repayments of  distributions  received
           by an Employee pursuant to Code Section 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).

                                       46
<PAGE>

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

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

          (f) For the purpose of this Section, if the Participating  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  Participating  Employers  shall be considered to be
          employed by a single Participating Employer.

           (g) For the purpose of this  Section,  if this Plan is a Code Section
           413(c) plan, each Participating Employer who maintains this Plan will
           be considered to be a separate Participating Employer.

           (h)(1) If  a  Participant  participates  in  more  than  one  defined
                  contribution  plan  maintained by the  Participating  Employer
                  which have different  Anniversary  Dates,  the maximum "annual
                  additions"  under this Plan shall  equal the  maximum  "annual
                  additions"  for  the  "limitation   year"  minus  any  "annual
                  additions" previously credited to such Participant's  accounts
                  during the "limitation 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
                  Participating  Employer which have the same Anniversary  Date,
                  "annual  additions"  will  be  credited  to the  Participant's
                  accounts under the defined  contribution  plan subject to Code
                  Section  412  prior to  crediting  "annual  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 Participating  Employer which have the same Anniversary
                  Date,  the maximum  "annual  additions"  under this Plan shall
                  equal the product of (A) the maximum  "annual  additions"  for
                  the "limitation year" minus any "annual additions"  previously
                  credited under  subparagraphs (1) or (2) above,  multiplied by
                  (B) a  fraction  (i) the  numerator  of which  is the  "annual
                  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
                  "annual   additions"   for  all   plans   described   in  this
                  subparagraph.

                                       47
<PAGE>

           (i)    For  Plan  Years  beginning  before  January  1,  2000,  if an
                  Employee is (or has been) a Participant in one or more defined
                  benefit  plans  and one or  more  defined  contribution  plans
                  maintained  by  the  Participating  Employer,  the  sum of the
                  defined  benefit plan  fraction  and the defined  contribution
                  plan fraction for any "limitation year" may not exceed 1.0.

           (j)    The defined  benefit plan fraction for any  "limitation  year"
                  prior to January 1, 2000 is a fraction, the numerator of which
                  is the  sum of the  Participant's  projected  annual  benefits
                  under  all  the  defined   benefit   plans   (whether  or  not
                  terminated) maintained by the Participating  Employer, and the
                  denominator  of  which is the  lesser  of 125  percent  of the
                  dollar  limitation  determined for the "limitation year" under
                  Code  Sections  415(b) and (d) or 140  percent of the  highest
                  average  compensation,  including any  adjustments  under Code
                  Section 415(b).

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

           (k)    For Plan Years beginning prior to January 1, 2000, the defined
                  contribution plan fraction for any "limitation year"
                  is a fraction, the numerator of which is the sum of the annual
                  additions to the Participant's Account under all the
                  defined contribution plans (whether or not terminated)
                  maintained by the Participating Employer for the current and
                  all prior "limitation years" (including the annual additions
                  attributable to the Participant's nondeductible
                  Employee contributions to all defined benefit plans, whether
                  or not terminated, maintained by the Participating
                  Employer, and the annual additions attributable to all welfare
                  benefit funds, as defined in Code Section 419(e), and
                  individual medical accounts, as defined in Code Section 415(l)
                  (2), maintained by the Participating Employer), and
                  the denominator of which is the sum of the maximum aggregate
                  amounts for the current and all prior "limitation
                  years" of service with the Participating Employer (regardless
                  of whether a defined contribution plan was maintained
                  by the Participating Employer). The maximum aggregate amount
                  in any "limitation year" is the lesser of 125 percent
                  of the dollar limitation determined under Code Sections 415(b)
                  and (d) in effect under Code Section 415(c)(1)(A) or
                  35 percent of the Participant's Compensation for such year.

                                       48
<PAGE>

                  If the Employee was a  Participant  as of the end of the first
                  day of the first  "limitation  year"  beginning after December
                  31, 1986, in one or more defined contribution plans maintained
                  by the  Participating  Employer which were in existence on May
                  6, 1986,  the  numerator of this  fraction will be adjusted if
                  the sum of this  fraction  and the  defined  benefit  fraction
                  would otherwise exceed 1.0 under the terms of this Plan. Under
                  the  adjustment,  an amount  equal to the  product  of (1) the
                  excess  of the sum of the  fractions  over 1.0  times  (2) the
                  denominator of this fraction,  will be permanently  subtracted
                  from  the  numerator  of  this  fraction.  The  adjustment  is
                  calculated using the fractions as they would be computed as of
                  the end of the last "limitation year" beginning before January
                  1,  1987,  and  disregarding  any  changes  in the  terms  and
                  conditions  of the Plan made after May 5, 1986,  but using the
                  Code   Section  415   limitation   applicable   to  the  first
                  "limitation  year"  beginning on or after January 1, 1987. The
                  annual  addition for any "limitation  year"  beginning  before
                  January 1, 1987 shall not be  recomputed to treat all Employee
                  contributions as annual additions.

           (l)    Notwithstanding  the foregoing,  for any "limitation  year" in
                  which the Plan is a Top Heavy  Plan  prior to January 1, 2000,
                  100 percent shall be  substituted  for 125 percent in Sections
                  4.9(j) and 4.9(k).

           (m)    For Plan Years  prior to  January  1, 2000,  if the sum of the
                  defined  benefit plan  fraction  and the defined  contribution
                  plan fraction  shall exceed 1.0 in any  "limitation  year" for
                  any Participant in this Plan, the  Administrator  shall adjust
                  the numerator of the defined benefit plan fraction so that the
                  sum of both fractions  shall not exceed 1.0 in any "limitation
                  year" for such Participant.

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

                                       49
<PAGE>

4.10       ADJUSTMENT FOR EXCESSIVE ANNUAL ADDITIONS

            (a)   If, as a result of the allocation of Forfeitures, a reasonable
                  error in estimating a Participant's Compensation, a
                  reasonable error in determining the amount of elective
                  deferrals (within the meaning of Code Section 402(g)(3)) that
                  may be made with respect to any Participant under the limits
                  of Section 4.9 or other facts and circumstances to
                  which Regulation 1.415-6(b)(6) shall be applicable, the
                  "annual additions" under this Plan would cause the maximum
                  "annual additions" to be exceeded for any Participant, the
                  Administrator shall (1) distribute any elective deferrals
                  (within the meaning of Code Section 402(g)(3)) or return any
                  Employee contributions (whether voluntary or mandatory), and
                  for the distribution of gains attributable to those elective
                  deferrals and Employee contributions, to the extent that the
                  distribution or return would reduce the "excess amount" in the
                  Participant's accounts (2) hold any "excess amount" remaining
                  after the return of any elective deferrals or voluntary
                  Employee contributions in a "Section 415 suspense account" (3)
                  use the "Section 415 suspense account" in the next "limitation
                  year" (and succeeding "limitation years" if necessary) to
                  reduce Participating Employer contributions for that
                  Participant if that Participant is covered by the Plan as of
                  the end of the "limitation year," or if the Participant
                  is not so covered, allocate and reallocate the "Section 415
                  suspense account" in the next "limitation year" (and
                  succeeding "limitation years" if necessary) to all
                  Participants in the Plan before any Participating Employer or
                  Employee contributions which would constitute
                  "annual additions" are made to the Plan for such "limitation
                  year" (4) reduce Participating Employer contributions to the
                  Plan for such "limitation year" by the amount of the "Section
                  415 suspense account" allocated and reallocated during such
                  "limitation year."

           (b)    For  purposes  of  this  Article,   "excess  amount"  for  any
                  Participant for a "limitation  year" shall mean the excess, if
                  any, of (1) the "annual  additions" which would be credited to
                  his account under the terms of the Plan without  regard to the
                  limitations  of Code Section 415 over (2) the maximum  "annual
                  additions" determined pursuant to Section 4.9.

           (c)    For purposes of this Section,  "Section 415 suspense  account"
                  shall mean an unallocated  account equal to the sum of "excess
                  amounts"  for  all   Participants   in  the  Plan  during  the
                  "limitation  year." The "Section 415 suspense  account"  shall
                  not share in any earnings or losses of the Trust Fund.

                                       50
<PAGE>

4.11       TRANSFERS FROM QUALIFIED PLANS

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

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

           (c)    Except  as  permitted  by  Regulations  (including  Regulation
                  1.411(d)-4),  amounts  attributable to elective  contributions
                  (as defined in Regulation 1.401(k)-1(g)(3)), including amounts
                  treated as elective contributions,  which are transferred from
                  another  qualified  plan in a  plan-to-plan  transfer shall be
                  subject  to  the  distribution  limitations  provided  for  in
                  Regulation 1.401(k)-1(d).

           (d)    The  Administrator  may direct that  employee  transfers  made
                  after a valuation date be segregated  into a separate  account
                  for each  Participant in a federally  insured savings account,
                  certificate   of  deposit  in  a  bank  or  savings  and  loan
                  association,  money  market  certificate,  or other short term
                  debt security acceptable to the Trustee until such time as the
                  allocations  pursuant  to this Plan have been  made,  at which
                  time they may remain  segregated or be invested as part of the
                  general Trust Fund, to be determined by the Administrator.

           (e)    For purposes of this Section, the term "qualified plan" shall
                  mean any tax qualified plan under Code Section 401(a).
                  The term "amounts transferred from other qualified plans"
                  shall mean: (i) amounts transferred to this Plan directly
                  from another qualified plan; (ii) distributions from another
                  qualified plan which are eligible rollover
                  distributions and which are either transferred by the Employee
                  to this Plan within sixty days following his receipt
                  thereof or are transferred pursuant to a direct rollover;
                  (iii) amounts transferred to this Plan from a conduit
                  individual retirement account provided that the conduit
                  individual retirement account has no assets other than
                  assets which (A) were previously distributed to the Employee
                  by another qualified plan as a lump-sum distribution
                  (B) were eligible for tax-free rollover to a qualified plan
                  and (C) were deposited in such conduit individual
                  retirement account within sixty days of receipt thereof and
                  other than earnings on said assets; and (iv) amounts
                  distributed to the Employee from a conduit individual
                  retirement account meeting the requirements of clause
                  (iii) above, and transferred by the Employee to this Plan
                  within sixty days of his receipt thereof from such conduit
                  individual retirement account.

                                       51
<PAGE>

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

           (h)    This Plan shall not accept  any direct or  indirect  transfers
                  (as that term is defined and  interpreted  under Code  Section
                  401(a)(11)  and the  Regulations  thereunder)  from a  defined
                  benefit plan,  money purchase plan (including a target benefit
                  plan),   stock  bonus  or  profit  sharing  plan  which  would
                  otherwise  have provided for a life annuity form of payment to
                  the Participant.

           (i)    Notwithstanding  anything  herein to the contrary,  a transfer
                  directly  to this  Plan  from  another  qualified  plan  (or a
                  transaction  having the effect of such a transfer)  shall only
                  be  permitted  if it will not  result  in the  elimination  or
                  reduction  of any  "Section  411(d)(6)  protected  benefit" as
                  described in Section 9.1.

4.12       DIRECTED INVESTMENT ACCOUNT

           (a)    Participants  may,  subject to Section 4.12(c) and a procedure
                  established by the  Administrator  (the Participant  Direction
                  Procedures) and applied in a uniform nondiscriminatory manner,
                  direct  the  Trustee  to  invest  all or a  portion  of  their
                  Participant's   Elective   Account  (and  such  other  account
                  balances as specified in the  Procedures) in specific  assets,
                  specific funds or other  investments  permitted under the Plan
                  and the Participant Direction Procedures.  That portion of the
                  interest of any  Participant  so directing  will  thereupon be
                  considered a Participant's Directed Account.

           (b)    As of each Valuation Date, all Participant  Directed  Accounts
                  shall be charged or  credited  with the net  earnings,  gains,
                  losses  and   expenses   as  well  as  any   appreciation   or
                  depreciation  in the market value using  publicly  listed fair
                  market values when available or appropriate.

                  (1)        To the extent  that the  assets in a  Participant's
                             Directed Account are accounted for as pooled assets
                             or investments,  the allocation of earnings,  gains
                             and losses of each  Participant's  Directed Account
                             shall be based  upon the  total  amount of funds so
                             invested,   in  a  manner   proportionate   to  the
                             Participant's share of such pooled investment.

                                       52
<PAGE>

                  (2)        To the extent that the assets in the  Participant's
                             Directed  Account are  accounted  for as segregated
                             assets,  the  allocation  of  earnings,  gains  and
                             losses from such assets shall be made on a separate
                             and distinct basis.

           (c)    Each "Qualified Participant" may elect within ninety days
                  after the close of each Plan Year during the "Qualified
                  Election Period" to direct the Trustee in writing as to the
                  investment 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 "Qualified
                  Participant's" Company Stock Account (reduced by the number
                  of shares of Company Stock previously invested pursuant
                  to a prior election). In the case of the election year in
                  which the Participant can make his last election, the
                  preceding sentence shall be applied by substituting "50
                  percent" for "25 percent." If the "Qualified Participant"
                  elects to direct the Trustee as to the investment of his
                  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. In lieu of directing the
                  Trustee as to the investment of his Company Stock Account, the
                  "Qualified Participant" may elect a distribution in
                  cash or Company Stock of the portion of his Company Stock
                  Account covered by the election within ninety days after
                  the last day of the period during which the election can be
                  made. Any such distribution of Company Stock shall be
                  subject to Section 8.18. Furthermore, the Participant must
                  be given a choice of at least three distinct investment
                  options.

                  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  "Qualified
                  Participant" is eligible to make an election) of Company Stock
                  acquired  by or  contributed  to the Plan and  allocated  to a
                  "Qualified  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
                  Participating  Employer or any  Affiliated  Employer  shall be
                  considered as held by the Plan.

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

                  (1)        "Qualified Participant" means any Participant or
                             Former Participant who has completed ten years as a
                             Participant and has attained age fifty-five.

                  (2)        "Qualified  Election Period" means the six (6) Plan
                             Year  period  beginning  with the  later of (i) the
                             first  Plan  Year in which  the  Participant  first
                             became a "Qualified Participant," or (ii) the first
                             Plan Year beginning after December 31, 1986.

                                       53
<PAGE>

                                    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 the Trustee may hold
                  such funds in cash or cash equivalents.

           (c)    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.

           (d)    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   Participating
                  Employer  under a put option  binding  upon the  Participating
                  Employer.

           (e)    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        TRANSACTIONS INVOLVING COMPANY STOCK

           (a)    No portion of the Trust Fund  attributable to (or allocable in
                  lieu of) Company Stock acquired by the Plan in a sale to which
                  Code Section 1042 applies may accrue or be allocated  directly
                  or indirectly  under any plan maintained by the  Participating
                  Employer meeting the requirements of Code Section 401(a):

                  (1)  During the "Nonallocation Period," for the benefit of

                             (i)     any taxpayer who makes an election under
                                     Code Section 1042(a) with respect to
                                     Company Stock,

                             (ii)    any individual who is related to the
                                     taxpayer (within the meaning of Code
                                     Section 267(b)), or

                  (2)   For the  benefit  of any other  person  who owns  (after
                        application  of  Code  Section  318(a)  applied  without
                        regard to the employee  trust  exception in Code Section
                        318(a)(2)(B)(i)) more than 25 percent of

                                       54
<PAGE>

                             (i)     any class of outstanding stock of the
                                     Participating Employer or Affiliated
                                     Employer which issued
                                     such Company Stock, or

                             (ii)    the total value of any class of outstanding
                                     stock  of  the  Participating  Employer  or
                                     Affiliated Employer.

           (b)    Except, however, subparagraph (a)(1)(ii) above shall not apply
                  to  lineal  descendants  of the  taxpayer,  provided  that the
                  aggregate  amount  allocated to the benefit of all such lineal
                  descendants during the "Nonallocation  Period" does not exceed
                  more than five (5)  percent of the  Company  Stock (or amounts
                  allocated  in  lieu  thereof)  held  by  the  Plan  which  are
                  attributable  to a sale to the Plan by any  person  related to
                  such   descendants   (within  the  meaning  of  Code   Section
                  267(c)(4))  in a  transaction  to which Code  Section  1042 is
                  applied.

           (c)    A person  shall  be  treated  as  failing  to meet  the  stock
                  ownership  limitation  under  paragraph  (a)(2)  above if such
                  person fails such limitation:

                  (1)        at any time during the one (1) year period ending
                             on the date of sale of Company Stock to the Plan,
                             or

                  (2)        on the date as of which Company Stock is allocated
                             to Participants in the Plan.

           (d)    For purposes of this Section, "Nonallocation Period" means the
                  period  beginning on the date of the sale of the Company Stock
                  and ending on the date which is ten (10) years  after the date
                  of sale.

                                       55
<PAGE>

                                   ARTICLE IV
                                   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 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.  The Trustee may update the
value of any shares held in the Participant Directed Account by reference to the
number of shares held by that Participant,  priced at the market value as of the
Valuation Date.

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  Plan  distribution  purposes,  value  will  be
determined as of the date of the transaction. For all other Plan purposes, value
will 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).

                                       56
<PAGE>

                                   ARTICLE VII
                   DETERMINATION AND DISTRIBUTION OF BENEFITS

7.1        DETERMINATION OF BENEFITS UPON RETIREMENT

Every Participant may terminate his employment with the  Participating  Employer
and  retire  for the  purposes  hereof on his  Normal  Retirement  Date or Early
Retirement  Date.  However,  a Participant  may postpone the  termination of his
employment with the  Participating  Employer to a later date, in which event the
participation  of such  Participant in the Plan,  including the right to receive
allocations  pursuant to Section 4.4, shall  continue until his Late  Retirement
Date.  Upon  a  Participant's  Retirement  Date,  or as  soon  thereafter  as is
practicable,  the Trustee shall, at the election of the Participant,  distribute
all amounts credited to such  Participant's  Combined Account in accordance with
Article 8.

7.2        DETERMINATION OF BENEFITS UPON DEATH

           (a)    Upon the death of a Participant  before his Retirement Date or
                  other  termination of his employment,  all amounts credited to
                  such Participant's Combined Account shall become fully Vested.
                  If elected, distribution of the Participant's Combined 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  Article  8, 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
                  Article 8, to distribute any remaining Vested amounts credited
                  to the  accounts  of a  deceased  Former  Participant  to such
                  Former Participant's Beneficiary.

           (c)    Any  security  interest  held  by the  Plan  by  reason  of an
                  outstanding  loan to the  Participant  or  Former  Participant
                  shall be taken into account in  determining  the amount of the
                  death benefit.

           (d)    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.

           (e)    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 his
                  spouse if:

                                       57
<PAGE>

                  (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 "qualified domestic relations order" as
                             defined  in  Code  Section  414(p)  which  provides
                             otherwise), or

                  (3)        the Participant has no spouse, or

                  (4)        the spouse cannot be located.

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

           (f)    Any consent by the Participant's spouse to waive any rights to
                  the death  benefit must be in writing,  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 his
Retirement Date or other termination of his employment,  all amounts credited to
such Participant's Combined Account shall become fully Vested. In the event of a
Participant's  Total and Permanent  Disability,  the Trustee, in accordance with
the provisions of Article 8, shall  distribute to such  Participant  all amounts
credited to such  Participant's  Combined  Account as though he had retired.  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 Participating Employer
                  is  terminated  for any  reason  other than  death,  Total and
                  Permanent Disability or retirement,  such Participant shall be
                  entitled to such benefits as are provided hereinafter pursuant
                  to this Section 7.4.

                                       58
<PAGE>

                  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   Participating   Employer   (upon  the
                  Participant's death, Total and Permanent Disability,  Early or
                  Normal   Retirement).   However,   at  the   election  of  the
                  Participant,  the  Administrator  shall  direct the Trustee to
                  cause   the   entire   Vested   portion   of  the   Terminated
                  Participant's   Combined   Account   to  be  payable  to  such
                  Terminated  Participant as soon as  administratively  feasible
                  following  termination of employment.  Any distribution  under
                  this  paragraph  shall be made in a manner which is consistent
                  with and satisfies the provisions of Article 8, 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 Participating Employer and Employee contributions
                  does not  exceed  $5,000  for  distributions  occurring  after
                  December 31,1997,  the Administrator  shall direct the Trustee
                  to  cause  the  entire  Vested  benefit  to be  paid  to  such
                  Participant in a single lump sum.

           (b)    The Vested  portion of any  Participant's  Account  shall be a
                  percentage of the total amount  credited to his  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 1                             0 %
                                        1                            20 %
                                        2                            40 %
                                        3                            60 %
                                        4                            80 %
                                5 or more                           100 %

           For Participants in the Pioneer  American Bank, N.A.,  401(k) Plan on
December 31, 2000, the Vested portion of their account for subsequent Plan Years
shall be determined according to the following schedule:

Less than 1       0%
1                 20%
2                 40%
3                100%

                                       59
<PAGE>

For Participants in the M. Griffith,  Inc. Employee Savings Plan on December 31,
2000,  the Vested  portion of their account for  subsequent  Plan Years shall be
determined according to the following schedule:

Less than 1       0%
1                 0%
2               100%

           (c)    Notwithstanding   the  vesting   schedule  above,  the  Vested
                  percentage of a  Participant's  Account shall not be less than
                  the  Vested  percentage  attained  as  of  the  later  of  the
                  effective   date  or  adoption  date  of  this  amendment  and
                  restatement.

           (d)    The computation of a Participant's nonforfeitable percentage
                  of his interest in the Plan shall not be reduced as the
                  result of any direct or indirect amendment to this Plan.
                  For this purpose, the Plan shall be treated as having been
                  amended if the Plan provides for an automatic change in
                  vesting due to a change in top heavy status. In the event
                  that the Plan is amended to change or modify any vesting
                  schedule, a Participant with at least three Years of
                  Service as of the expiration date of the election period may
                  elect to have his nonforfeitable percentage computed
                  under the Plan without regard to such amendment. 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 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 Participating Employer or
                             Administrator.

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

                (2) If  any  Former  Participant  shall  be  reemployed  by  the
                  Participating  Employer before five consecutive  1-Year Breaks
                  in  Service,  and  such  Former  Participant  had  received  a
                  distribution  of  his  entire  Vested  interest  prior  to his
                  reemployment,  his forfeited  account shall be reinstated only
                  if he repays  the full  amount  distributed  to him before the
                  earlier  of five  years  after  the  first  date on which  the

                                       60
<PAGE>

                  Participant is  subsequently  reemployed by the  Participating
                  Employer  or the  close  of  the  first  period  of  five  (5)
                  consecutive  1-Year  Breaks in  Service  commencing  after the
                  distribution.  In the event the Former  Participant does repay
                  the full amount distributed to him, the undistributed  portion
                  of  the  Participant's  Account  must  be  restored  in  full,
                  unadjusted by any gains or losses occurring  subsequent to the
                  Valuation Date coinciding  with or preceding his  termination.
                  The  source  for  such   reinstatement   shall  first  be  any
                  Forfeitures  occurring  during  the  year.  If such  source is
                  insufficient, then the Participating Employer shall contribute
                  an amount which is  sufficient  to restore any such  forfeited
                  Accounts   provided,   however,   that   if  a   discretionary
                  contribution is made for such year pursuant to Section 4.1(c),
                  such  contribution  shall first be applied to restore any such
                  Accounts and the  remainder  shall be allocated in  accordance
                  with Section 4.4.

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

                             (i)     If a Former  Participant has a 1-Year Break
                                     in Service,  his pre-break  and  post-break
                                     service shall be used for  computing  Years
                                     of Service for  eligibility and for vesting
                                     purposes  only  after he has been  employed
                                     for one Year of Service  following the date
                                     of his reemployment  with the Participating
                                     Employer;

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

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

                             (iv)    If a Former Participant who has not had his
                                     Years of Service  before a 1-Year  Break in
                                     Service disregarded  pursuant to (ii) above
                                     completes a Year of Service for eligibility
                                     purposes  following his  reemployment  with
                                     the   Participating   Employer,   he  shall
                                     participate in the Plan  retroactively from
                                     his date of reemployment;

                             (v)     If a Former Participant who has not had his
                                     Years of Service  before a 1-Year  Break in
                                     Service disregarded  pursuant to (ii) above
                                     completes a Year of Service (a 1-Year Break

                                       61
<PAGE>

                                     in   Service   previously   occurred,   but
                                     employment  had not  terminated),  he shall
                                     participate in the Plan  retroactively from
                                     the first day on which he is credited  with
                                     an  Hour  of   Service   after   the  first
                                     eligibility  computation period in which he
                                     incurs a 1-Year Break in Service.

                                       62
<PAGE>

                                  ARTICLE VIII
                       PAYMENT OR DISTRIBUTION OF BENEFIT

8.1      TIME FOR DISTRIBUTION OF BENEFITS

Distribution of benefits under the Plan shall be made or commence not later than
the sixtieth day following  the close of the Plan Year in which a  Participant's
Retirement occurs, subject, however, to Sections 8.3, 9.1, 9.2 and 9.3.

Subject to Sections 8.3 and 8.4,  distribution  of severance  benefits under the
Plan  shall be made as  promptly  as  practicable  upon the  request of a Former
Participant who has terminated  employment with a Participating  Employer (or of
the  Beneficiary  of a deceased  Former  Participant).  If the value of a Former
Participant's   Combined  Account  does  not  exceed  $5,000  for  distributions
occurring after December 31, 1997, the combined  Account shall be distributed to
him as promptly as practicable  following the close of the Plan Year in which he
first incurs a One-Year  Break in Service.  If the value of a  Participant's  or
Former Participant's Combined Account exceeds $5,000 for distributions occurring
after December 31, 1997,  distribution of the combined Account shall not be made
or commence  without the consent of the Participant or Former  Participant  (and
his spouse,  if he is married)  before the earlier of (a) the  Participant's  or
Former  Participant's  sixty-fifth  birthday or (b) the  Participant's or Former
Participant's  death.  Subject to 8.3  distribution of a Participant's or Former
Participant's  combined  Account  shall  commence no later than the sixtieth day
following the close of the Plan Year described in the preceding sentence.

A distribution to which Sections 401(a)(11) and 417 of the Code do not apply may
commence  less than  thirty  days after the  notice  required  under  Income Tax
Regulations  Section  1.411(a)-11(c)  is given,  provided that the Administrator
informs the distributee  that he has a right to a period of at least thirty days
after  receiving the notice to consider  whether or not to elect a  distribution
and if so, what form of distribution, and the Participant, Former Participant or
Beneficiary thereafter affirmatively elects a distribution.

8.2      MANNER OF DISTRIBUTION

Effective May 1, 2001  distributions  to a  Participant,  Former  Participant or
Beneficiary  shall  be  distributed  in one  lump sum  payment,  subject  to the
provisions of Section 13.17.

Effective  for  distributions  occurring  prior to May 1,  2001 and  subject  to
Section 8.3, Section 8.4,  Section 9.1, Section 9.2 and Section 9.3,  retirement
and severance  benefits  determined under Article 7 shall be distributed in cash
or kind,  in one or any  combination  of the following  manners  selected by the
Participant  (which term shall,  for  purposes of this  Section  8.2,  include a
Former Participant):

         (a)      In a lump sum distribution or in one or more partial
                  distributions in such amount as the Participant may from time
                  to time elect;

                                       63
<PAGE>

         (b)      In substantially  equal installments over a period certain not
                  to exceed the life  expectancy of the Participant or the joint
                  life and last survivor  expectancy of the  Participant and his
                  Designated Beneficiary;

         (c)      By purchase from an insurance  company and distribution to the
                  Participant  of a  nontransferable  fixed or variable  annuity
                  contract,  other than a life annuity  contract,  providing for
                  payments  over  a  period  certain  not  to  exceed  the  life
                  expectancy  of the  Participant  or the  joint  life  and last
                  survivor  expectancy  of the  Participant  and his  Designated
                  Beneficiary; or

         (d)      By purchase from an insurance  company and distribution to the
                  Participant  of  a   nontransferable   life  annuity  contract
                  providing for payments over a period not to exceed the life of
                  the  Participant  (with or without a joint and survivor 50, 75
                  or  100  percent  or  period  certain  or  guaranteed   refund
                  feature).

         If distribution  is made under Paragraph (b), (c) or (d) above,  unless
distribution is made in the form of a Qualified Joint and Survivor Annuity,  the
distribution must be made in a manner that satisfies the requirements of Section
8.3

         Subject to Section 8.4, in the event of the death of a Participant  who
had begun to receive a distribution of benefits in installments or as an annuity
under the foregoing provisions of this Section 8.2, distribution of installments
shall continue after his death to his Beneficiary,  over a period no longer than
that   contemplated  at  the   commencement  of  distribution  to  the  deceased
Participant. In the event of the death of a Participant who had not received any
distribution of benefits, distribution to his Beneficiary of benefits determined
under Article 7 shall be made or commence  promptly  after his death,  and in no
event later than the sixtieth day  following the close of the Plan Year in which
his  death  occurred;  provided,  however,  that the  Beneficiary  may  elect to
postpone the  commencement of benefit  distributions  until any date which meets
the requirements stated in the following paragraphs:

         (e)      If the spouse of the deceased  Participant  is his  Designated
                  Beneficiary  for any portion of his  Account,  payment of such
                  portion must  commence no later than the later of (i) December
                  31 of the calendar  year  immediately  following  the calendar
                  year in which the  Participant  died,  and (ii) December 31 of
                  the calendar year in which the deceased Participant would have
                  attained age seventy and one-half.

         (f)      If  any  portion  of the  deceased  Participant's  Account  is
                  payable to a  Designated  Beneficiary  other than his  spouse,
                  payment of such portion must commence on or before December 31
                  of the calendar year  immediately  following the calendar year
                  in which he died.

         (g)      Prior to May 1, 2001,  Distributions  under Paragraphs (e) and
                  (f)  may be  made  (i) in a lump  sum,  (ii)  in a  series  of
                  substantially  equal  annual (or more  frequent)  installments
                  over a period not exceeding the Designated  Beneficiary's life

                                       64
<PAGE>

                  expectancy; or (iii) an annuity.  Distribution occurring on or
                  after May 1, 2001 will be made in a lump sum.

         (h)      In any case other than those  described in Paragraphs  (e) and
                  (f), the entire  Account of the deceased  Participant  must be
                  distributed  by December 31 of the calendar year including the
                  fifth  anniversary of the  Participant's  date of death,  in a
                  lump sum or in such installments as the Beneficiary elects.

         (i)      If the Designated  Beneficiary of a deceased  Participant  who
                  had not received any distribution of benefits from the Plan at
                  the  time  of his  death  is his  surviving  spouse,  and  his
                  surviving spouse dies before payment of benefits from the Plan
                  commences,  then the rule stated in Paragraph  (h) shall apply
                  as though the surviving spouse were the Participant.

         Life  expectancy  and  joint  and  last  survivor  expectancy  shall be
computed by use of the  expected  return  multiples in Tables V and VI of Income
Tax  Regulations  Section  1.72-9.  The life  expectancy  or  expectancies  of a
Participant  and his  spouse  shall  be  redetermined  every  year,  unless  the
Participant  has  elected in writing on or before his  required  beginning  date
specified  in  Section  11.3  that  one or  both  of  such  expectancies  not be
recalculated.  The life  expectancy of a Designated  Beneficiary  who is not the
Participant's spouse shall not be recalculated.

         For  purposes of this  Section  8.2,  distribution  of a  Participant's
benefit is considered to begin on the Participant's required beginning date (or,
if  applicable,  the date  distribution  is required  to begin to the  surviving
spouse pursuant to Paragraph (e)). Any amount paid to a child of the Participant
will be  treated  as if it had been paid to the  surviving  spouse if the amount
becomes  payable  to the  surviving  spouse  when the child  reaches  the age of
majority.

8.3      DEFERRED DISTRIBUTION; ALTERNATIVE METHODS OF DISTRIBUTION

Notwithstanding  Section 8.1, a Participant  (which term shall,  for purposes of
this  Section  8.3,  include a Former  Participant)  may elect to  postpone  the
commencement   of  benefit   distributions   until  any  date  which  meets  the
requirements stated in this Section 8.3. (The failure of a Participant to make a
written request for distribution of his benefit (with the written consent of his
spouse,  if he is married) shall be deemed to be an election to postpone benefit
distributions under this Section 8.3).  Distributions must in all events satisfy
the minimum  distribution  requirements in Section 401(a)(9) of the Code and any
proposed, temporary or final regulation promulgated thereunder.

         The entire  interest of a Participant  or Former  Participant,  must be
distributed,  or  begin to be  distributed,  no  later  than  the  Participant's
required beginning date, determined as follows:

         (a)      GENERAL RULE. The required  beginning date of a Participant is
                  the  first day of April of the  calendar  year  following  the

                                       65
<PAGE>

                  later of the calendar  year in which the  Participant  attains
                  age seventy and  one-half  or the  calendar  year in which the
                  Participant's Retirement occurs.

         (b)      FORMER  PARTICIPANTS  AND FIVE  PERCENT  OWNERS.  The required
                  beginning date of a Former  Participant,  or a Participant who
                  is a five percent owner (all such  categories of persons being
                  referred to in this Section 8.3(b) as  "Participants")  is the
                  first day of April  following  the calendar  year in which the
                  Participant attains age seventy and one-half.

         (c)      RULES FOR FIVE PERCENT  OWNERS.  A Participant is treated as a
                  five percent owner for purposes of this Section 8.3 if he is a
                  "5-percent  owner" as defined in Section 416(i) of the Code at
                  any time  during  the Plan  Year  ending  with or  within  the
                  calendar  year in which he attains age sixty-six and one-half,
                  or any subsequent Plan Year. Once  distributions have begun to
                  a five  percent  owner  under  this  Section  8.3,  they  must
                  continue,  even if the Participant  thereafter  ceases to be a
                  five percent owner.

         Commencing with the calendar year immediately preceding a Participant's
or Former Participant's  required beginning date, the minimum amount required to
be distributed with respect to each calendar year is the Participant's or Former
Participant's applicable Account balance divided by the life expectancy or joint
life and last  survivor  expectancy  that  measures  the  period  certain of the
distribution.  The  applicable  Account  balance  is the  credit  balance of the
Participant's or Former Participant's Account as of the last day of the calendar
year immediately  preceding the calendar year for which the minimum distribution
amount is determined; provided, however, that any distribution made on or before
the Participant's or Former Participant's  required beginning date, with respect
to the first calendar year in which minimum distributions are required, shall be
treated for this purpose as if it had been made in the calendar year immediately
preceding the Participant's or Former  Participant's  required beginning date. A
Participant's or Former  Participant's first minimum required  distribution must
be  made  on or  before  the  Participant's  or  Former  Participant's  required
beginning date. The minimum required  distribution for each subsequent  calendar
year,  including  the minimum  distribution  for the calendar  year in which the
Participant's or Former  Participant's  required beginning date occurs,  must be
made on or before  December 31 of the calendar  year with respect to which it is
made.  Notwithstanding  the  foregoing  provisions  of  this  paragraph,  if the
Participant's or Former  Participant's  interest is to be paid in the form of an
annuity,  payments under the annuity shall satisfy the  requirements  of Section
401(a)(9)  of the Code and Income Tax  Regulations  Sections  1.401(a)(9)-1  and
1.401(a)(9)-2 and any additional  benefits accruing to the Participant after his
required  beginning  date shall be  distributed  as a separate and  identifiable
component of the annuity,  beginning with the first payment  interval  ending in
the  calendar  year  immediately  following  the  calendar  year  in  which  the
additional benefits accrue.

         For purposes of this Section 8.3,  life  expectancy  and joint and last
survivor expectancy shall be computed by use of the expected return multiples in
Tables V and VI of Income Tax Regulations Section 1.72-9. The life expectancy or
expectancies  of a  Participant  or Former  Participant  and his spouse shall be

                                       66
<PAGE>

redetermined every year, unless the Participant or Former Participant explicitly
elects otherwise in writing not later than his required beginning date.

         Distributions  made to satisfy  the  requirements  of this  Section 8.3
shall be made from all Accounts on a pro-rata basis.

8.4      DISTRIBUTIONS TO MARRIED PARTICIPANTS

         Notwithstanding  the  foregoing  provisions of this Article 8, unless a
married  Participant  elects  otherwise  in  accordance  with this  Section 8.4,
distribution of his Account  commencing during his lifetime shall be made in the
form of a fifty  percent  Qualified  Joint and Survivor  Annuity for him and his
spouse, and distribution of his Account commencing after his death shall be made
in the form of a Survivor Annuity for his spouse.

         A  married  Participant  may  elect,  within  the  periods  hereinafter
described,  not to have  distribution  of his Account  made as  described in the
preceding paragraph. The election period with respect to the Qualified Joint and
Survivor  Annuity shall be the ninety days ending on the Annuity  Starting Date,
and the election period with respect to the Survivor Annuity shall be the period
commencing on the first day of his  participation  in the Plan and ending at his
death;  provided,  however,  that  when  a  Participant's  employment  with  the
Affiliated Companies terminates, the election period for the Qualified Joint and
Survivor  Annuity shall commence on the date of such  termination.  The election
shall be made in writing in a form acceptable to the Administrator and shall not
take effect unless either (a) the  Participant's  spouse  consents in writing to
the election,  and the spouse's consent  acknowledges the effect of the election
and is witnessed by a notary public or a  representative  of the Plan, or (b) it
is established to the satisfaction of the Administrator that the Participant has
no spouse,  or that the spouse's  consent cannot be obtained  because the spouse
cannot be located,  or because of such other  circumstances as may be prescribed
in  regulations  pursuant to Section 417 of the Code.  An election  shall not be
effective unless it designates (i) a specific  Beneficiary,  including any class
of  beneficiaries  or any  contingent  beneficiaries,  which may not be  changed
without  spousal  consent  (unless  the  spouse's  consent   expressly   permits
designations by the Participant without any further spousal consent), and (ii) a
form of benefit payment which may not be changed without spousal consent (unless
the spouse's consent expressly permits  designations by the Participant  without
any further spousal consent). Any election may be revoked at any time during the
period in which such an election may be made; such  revocation  shall be made in
writing by the  Participant or Former  Participant  in a form  acceptable to the
Administrator.  No election or revocation  shall be effective until its delivery
to the Administrator.

         The   Administrator   shall  furnish  to  each  Participant  or  Former
Participant,  within a reasonable time before the commencement of the applicable
election periods described in the preceding paragraph (or, if later, the date on
which this Section 8.4 becomes applicable to him), a written explanation of: the
terms and  conditions  of the  Qualified  Joint  and  Survivor  Annuity  and the
Survivor  Annuity;  the  Participant's  right to make,  and the  effect  of,  an
election to waive either or both of the Qualified Joint and Survivor Annuity and
the  Survivor  Annuity,  and to revoke  such an  election;  and the right of the

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Participant's  spouse to prevent such an election by  withholding  the necessary
consent.

         Notwithstanding  the  foregoing,  in the case of a married  Participant
whose Account  balance at the time of  distribution  is not more than $5,000 for
distributions  occurring  after  December  31,  1997,  or any case in which  the
Participant  (if  living) and his spouse,  if any,  consent  thereto in writing,
distribution shall be made in a lump sum in accordance with Section 8.2.

8.5      TRANSITIONAL RULE

Notwithstanding  the  other  requirements  of  this  Article  8,  if  a  written
designation of a method of  distribution  of his benefits,  whether  relating to
benefits  under Article 8 or Article 9, was executed by a Participant  or Former
Participant  prior to January 1, 1984 and such designated method of distribution
was  permissible  under the provisions of the Code in effect prior to January 1,
1984, such Participant's  benefits shall be distributed in the manner and to the
person or persons so  specified,  provided  that the  Participant  may cause any
payment or payments under such method to be accelerated and distributed.

8.6      NOTICE OF DEATH, RETIREMENT OR TERMIATION OF SERVICES

As soon as possible after the death,  Retirement or other termination of service
of a Participant or Former  Participant,  the Administrator shall deliver to the
Trustee a notice  specifying  the name and address of the  Participant or Former
Participant (including, if applicable, any designated or contingent Beneficiary)
who is entitled  to receive  benefits  under the Plan,  the manner in which such
benefits are to be received and the medium of payment.

8.7      PAYMENT IN A LUMP SUM

If a Participant,  Former  Participant or Beneficiary elects to receive benefits
in the form of a lump sum  distribution,  the  Administrator  shall  notify  the
Trustee to make such distribution in accordance with the Administrator's notice.

8.8      PAYMENT IN INSTALLMENTS

If a part  or all  of the  benefits  of a  Participant,  Former  Participant  or
Beneficiary  are to be deferred and  distributed in  installments  over a period
certain,  the  Administrator  shall  direct the  Trustee to make annual (or more
frequent) distributions in accordance with the Administrator's notice.

8.9      DISTRIBUTION OF ANNUITY CONTRACTS

If a part  or all  of the  benefits  of a  Participant,  Former  Participant  or
Beneficiary  are to be  distributed  in the  form of an  annuity  contract,  the
Administrator shall notify the Trustee to purchase from an insurance company and
distribute  an annuity  contract  containing  such terms and  conditions  as the
Administrator shall specify in its notice.

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8.10     DISTRIBUTION TO QUALIFIED RETIREMENT PLAN

Any other provision hereof to the contrary  notwithstanding,  the  Administrator
may, but shall not be required to, direct that any portion or all of the Account
otherwise  distributable  to such  Participant  be  transferred  directly to the
trustee or other  fiduciary of a  Tax-Qualified  Retirement  Plan of a successor
employer of the Participant.  If a distribution shall be made in accordance with
this  Section  8.10,  the  Administrator  shall  notify the Trustee to make such
distribution in accordance with the Administrator's notice.

8.11     CESSATION OF INTEREST

Upon the delivery to a Participant,  Former Participant or Beneficiary of a lump
sum  distribution or an annuity  contract or the sum of all  installments or the
transfer  of  his  entire  Account  to  the  trustee  or  other  fiduciary  of a
Tax-Qualified  Retirement Plan, as directed by the  Administrator in its notice,
the interest of such Participant,  Former Participant or Beneficiary in the Plan
and Trust shall thereupon cease.

8.12     MISSING PERSONS

If a person entitled to benefits under the Plan cannot be located after diligent
search by the  Administrator  or the Trustee and the  whereabouts of such person
continues  to be  unknown  for a period of three  years,  the  Administrator  or
Trustee may determine that such person has died whereupon such benefits shall be
distributed to the  Beneficiary or  Beneficiaries  determined in accordance with
Article  7 or if no such  Beneficiary  or  Beneficiaries  can be  determined  or
located after  reasonable  efforts,  the  Administrator  may determine that such
benefits are forfeited and the amount  thereof shall be allocated as provided in
Section 4.1;  provided,  however,  that such  benefits  shall be restored to the
Former  Participant  or  Beneficiary  upon the filing of a claim within the time
prescribed by applicable law or regulations.

8.13     MAILING OF BENEFITS

Whenever  the  Trustee is  directed  to make  payment or delivery of benefits in
accordance with a notice of the  Administrator,  mailing a check in the required
amount to the person or persons  entitled  thereto at the address  designated in
such notice shall be adequate delivery by the Trustee for all purposes.

8.14     MINORS AND INCOMPETENTS

In the event  that any  benefit  hereunder  becomes  payable  to a minor or to a
person under legal disability or to a person not judicially declared incompetent
but who,  by reason of  illness  or mental or  physical  disability,  is, in the
opinion of the Administrator,  unable properly to administer such benefit,  then
the same shall be paid out in such of the  following  ways as the  Administrator
deems best, and the Trustee,  the Administrator and the Firm shall not incur any
liability  therefore:  (a) directly to such person; (b) to the legally appointed
guardian or  conservator  of such person;  or (c) to some relative or friend for
the care and support of such person.

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8.15     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 (other
                  than Company  Stock  reinvested  pursuant to Section  4.12(c))
                  shall be distributed only in the form of Company Stock.  Prior
                  to making a distribution of benefits,  the Administrator shall
                  advise the Participant or his Beneficiary,  in writing, 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
                  8.1 and 8.3.

           (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),  the
                  Administrator   shall  distribute  a  Participant's   Combined
                  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 his
                  Company  Stock to the  Employer  before  offering  to sell his
                  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.

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 8.16      RIGHT OF FIRST REFUSALS

           (a)    If any Participant, his 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 days from the date the Selling
                  Participant gives such written notice to the Employer and the
                  Administrator (such fourteen 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  day period
                  provided above, the Selling  Participant shall have the right,
                  at any time  following  the  expiration  of such  fourteen 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  8.16(a) above shall take place at such
                  place  agreed upon between the  Administrator  and the Selling
                  Participant, but not later than ten 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.

8.17       STOCK CERTIFICATE LEGEND

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

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"The  shares   represented  by  this  certificate  are  transferable  only  upon
compliance  with the  terms of NBT  Bancorp,  Inc.  401(k)  and  Employee  Stock
Ownership  Plan  effective  as of January 1, 2001,  which grants to NBT Bancorp,
Inc.  and the trust for the Plan a right of first  refusal,  a copy of said Plan
being on file in the office of NBT Bancorp, Inc."

 8.18      PUT OPTION

           (a)    If Company  Stock is  distributed  to a  Participant  and such
                  Company  Stock  is not  readily  tradeable  on an  established
                  securities  market,  a Participant  has a right to require the
                  Employer to repurchase  the Company Stock  distributed to such
                  Participant under a fair valuation  formula.  Such Stock shall
                  be subject to the provisions of Section 8.18(b).

           (b)    The put option must be exercisable only by a Participant, by
                  the Participant's donees, or by a person (including an
                  estate or its distributee) to whom the Company Stock passes by
                  reason of a Participant's death. (Under this
                  paragraph Participant or Former Participant means a
                  Participant or Former Participant and the beneficiaries of the
                  Participant or Former Participant under the Plan.) The put
                  option must permit a Participant to put the Company Stock
                  to the Employer. Under no circumstances may the put option
                  bind the Plan. However, it shall grant the Plan an option
                  to assume the rights and obligations of the Employer at the
                  time that the put option is exercised. If it is known at
                  the time a loan is made that Federal or State law will be
                  violated by the Employer honoring such put option, the put
                  option must permit the Company Stock to be put, in a manner
                  consistent with such law, to a third party (e.g., an
                  affiliate of the Employer or a shareholder other than the
                  Plan) that has substantial net worth at the time the loan
                  is made and whose net worth is reasonably expected to remain
                  substantial.

                  The put option shall commence as of the day following the date
                  the Company Stock is distributed to the Former Participant and
                  end 60 days thereafter and if not exercised within such 60-day
                  period,  an  additional  60-day  option shall  commence on the
                  first day of the fifth  month of the Plan Year next  following
                  the date the stock was  distributed to the Former  Participant
                  (or such other  60-day  period as  provided  in  Regulations).
                  However,  in the case of Company Stock that is publicly traded
                  without  restrictions  when  distributed  but  ceases to be so
                  traded within either of the 60-day  periods  described  herein
                  after  distribution,  the Employer  must notify each holder of
                  such Company Stock in writing on or before the tenth day after
                  the date the Company Stock ceases to be so traded that for the
                  remainder of the applicable 60-day period the Company Stock is
                  subject  to the put  option.  The number of days  between  the
                  tenth day and the date on which notice is actually  given,  if
                  later than the tenth day, must be added to the duration of the
                  put option.  The notice must inform distributes of the term of
                  the put options that they are to hold.  The terms must satisfy
                  the requirements of this paragraph.

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<PAGE>

                  The put  option  is  exercised  by the  holder  notifying  the
                  Employer  in writing  that the put option is being  exercised;
                  the notice  shall state the name and address of the holder and
                  the number of shares to be sold. The period during which a put
                  option  is  exercisable  does  not  include  any  time  when a
                  distributee  is unable to  exercise it because the party bound
                  by the put option is prohibited from honoring it by applicable
                  Federal or State law.  The price at which a put option must be
                  exercisable  is the value of the Company  Stock  determined in
                  accordance  with  Section  6.2.  Payment  under the put option
                  involving   a   "Total   Distribution"   shall   be   paid  in
                  substantially equal monthly,  quarterly,  semiannual or annual
                  installments  over a period  certain  beginning not later than
                  thirty  days  after the  exercise  of the put  option  and not
                  extending  beyond years. The deferral of payment is reasonable
                  if adequate  security  and a reasonable  interest  rate on the
                  unpaid  amounts are provided.  The amount to be paid under the
                  put option involving  installment  distributions  must be paid
                  not later  than  thirty  days  after the  exercise  of the put
                  option.  Payment  under a put option must not be restricted by
                  the provisions of a loan or any other  arrangement,  including
                  the terms of the Employer articles of incorporation, unless so
                  required by applicable state law.

                  For purposes of this  Section,  "Total  Distribution"  means a
                  distribution  to a Participant or his  Beneficiary  within one
                  taxable  year  of the  entire  Vested  Participant's  Combined
                  Account.

           (a)    An  arrangement  involving  the Plan that creates a put option
                  must not provide for the issuance of put options other than as
                  provided  under this  Section.  The Plan (and the Trust  Fund)
                  must not otherwise  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.

8.19       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 QDRO,
notwithstanding that the QDRO provides for payments to an alternate payee before
the  Participant  reaches the  "earliest  retirement  age" within the meaning of
Section  414(p)(4)(B)  of the Code,  and  before any  distribution  other than a
hardship distribution may be made to the Participant pursuant to the Plan.

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                                    ARTICLE 9
                     WITHDRAWALS AND TRANSFERS FROM ACCOUNTS

9.1        ADVANCE DISTRIBUTION FOR HARDSHIP

           (a)    The Administrator,  at the election of the Participant,  shall
                  direct the Trustee to distribute to any  Participant  from the
                  Participant's Account in an amount not in excess of the amount
                  required to meet the immediate  financial  need created by the
                  hardship.  The  Participant's  Account shall be reduced by the
                  amount   of  such   hardship   distribution   accordingly.   A
                  distribution  will be  considered  to be made on account of an
                  immediate  and  heavy  financial  need  for  purposes  of this
                  Section 9.1 if it is made on account of:

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

                  (2)        The costs directly related to the purchase of a
                             dwelling unit to be used as a principal residence
                             for the Participant (excluding mortgage payments);

                  (3)        Payment of tuition,  related  educational fees, and
                             room and board  expenses for the next twelve months
                             of  post-secondary  education for the  Participant,
                             his spouse, children, or dependents; or

                  (4)        Payments  necessary  to prevent the eviction of the
                             Participant   from  his   principal   residence  or
                             foreclosure  on the  mortgage of the  Participant's
                             principal residence.

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

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

                  (2)        The Plan,  and all other  plans  maintained  by the
                             Participating    Employer,    provide    that   the
                             Participant's   elective  deferrals  and  voluntary
                             Employee  contributions  will be  suspended  for at
                             least twelve  months after  receipt of the hardship
                             distribution  or, the  Participant,  pursuant  to a
                             legally  enforceable  agreement,  will  suspend his

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<PAGE>

                             elective    deferrals   and   voluntary    Employee
                             contributions  to the  Plan  and  all  other  plans
                             maintained  by the  Participating  Employer  for at
                             least twelve  months after  receipt of the hardship
                             distribution; and

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

           (c)    Notwithstanding    the   above,    distributions    from   the
                  Participant's  Elective Account pursuant to this Section shall
                  be  limited,   as  of  the  date  of   distribution,   to  the
                  Participant's  Elective Account as of the end of the last Plan
                  Year ending before July 1, 1989, plus the total  Participant's
                  Deferred  Compensation  after such date, reduced by the amount
                  of any previous distributions pursuant to this Section.

           (d)    Any  distribution  made pursuant to this Section shall be made
                  in a  manner  which  is  consistent  with  and  satisfies  the
                  provisions  of Article 8,  including,  but not limited to, all
                  notice and consent requirements of Code Section 411(a)(11) and
                  the Regulations thereunder.

9.2      WITHDRAWALS FROM ROLLOVER CONTRIBUTION ACCOUNT

The Administrator,  at the election of the Participant, shall direct the Trustee
to  distribute  all or a portion of the  amount  credited  to the  Participant's
Rollover Account. Any distributions of amounts held in a Participant's  Rollover
Account  shall be made in a manner which is  consistent  with and  satisfies the
provisions of Article 8,  including,  but not limited to, all notice and consent
requirements  of  Code  Section  411(a)(11)  and  the  Regulations   thereunder.
Furthermore, such amounts shall be considered as part of a Participant's benefit
in determining  whether an involuntary  cash-out of benefits without Participant
consent may be made.

9.3        WITHDRAWALS FROM EMPLOYER CONTRIBUTION ACCOUNTS AFTER AGE FIFTY-NINE
           AND ONE-HALF

Notwithstanding  Section 8.1, but subject to  reasonable  and  nondiscriminatory
rules  as the  Administrator  may  establish  from  time to  time to  facilitate
administration of the Plan, a Participant or Former Participant who has attained
age  fifty-nine and one-half may, by giving notice to the  Administrator  of his
intention  to  withdraw,  at any time and from time to time,  withdraw  from his
Elective  Contribution  Account and Non-Elective  Contribution Account an amount
not in excess of the Vested  balance of such accounts as of the  Valuation  Date
preceding  such  withdrawal  (adjusted  as  necessary  to reflect  contributions
allocated and  distributions  made since the Valuation Date). The  Administrator
shall direct the Trustee to make the  distribution  requested by the Participant
or Former Participant as promptly as practicable.

                                       75
<PAGE>

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                                    ARTICLE X
                                     TRUSTEE

 10.1      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  Participating   Employer,   to
                             invest,   manage,   and  control  the  Plan  assets
                             subject, however, to the direction of a Participant
                             with respect to his Participant  Directed Accounts,
                             the Participating Employer or an Investment Manager
                             appointed  by  the  Participating  Employer  or any
                             agent of the Participating Employer;

                  (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  Participating  Employer  and/or
                             Administrator  for each Plan Year a written  annual
                             report per Section 8.8.

           (b)    In  the  event  that  the  Trustee  shall  be  directed  by  a
                  Participant    (pursuant   to   the   Participant    Direction
                  Procedures),  or the Participating  Employer, or an Investment
                  Manager or other agent appointed by the Participating Employer
                  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 instructions of a Participant  (pursuant to
                             the  Participant  Direction  Procedures),   or  the
                             Participating   Employer,   or  any   Fiduciary  or
                             nonfiduciary  agent of the Participating  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 to execute such
                             instructions to any nonfiduciary  agent,  which may
                             be  an   affiliate  of  the  Trustee  or  any  Plan
                             representative.

                  (3)        The Trustee may refuse to comply with any direction
                             from the  Participant in the event the Trustee,  in
                             its  sole  and  absolute  discretion,   deems  such
                             directions  improper by virtue of  applicable  law.
                             The Trustee shall not be  responsible or liable for

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<PAGE>

                             any  loss or  expense  which  may  result  from the
                             Trustee's  refusal or  failure  to comply  with any
                             directions from the Participant.

                  (4)        Any costs and expenses  related to compliance  with
                             the Participant's  directions shall be borne by the
                             Participant's Directed Account,  unless paid by the
                             Participating Employer.

           (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.

10.2       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, 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)    The  Trustee  may  from  time to time  transfer  to a  common,
                  collective,  pooled trust fund or money market fund maintained
                  by any corporate Trustee or affiliate thereof  hereunder,  all
                  or  such  part  of the  Trust  Fund as the  Trustee  may  deem
                  advisable,  and  such  part  or  all  of  the  Trust  Fund  so
                  transferred  shall be subject to all the terms and  provisions
                  of the common,  collective,  pooled trust fund or money market
                  fund which contemplate the commingling for investment purposes
                  of such trust  assets with trust assets of other  trusts.  The
                  Trustee  may,  from time to time,  withdraw  from such common,
                  collective, pooled trust fund or money market fund all or such
                  part of the Trust Fund as the Trustee may deem advisable.

           (d)    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,

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<PAGE>

                  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.

10.3       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,  and to hold any  investments  in  bearer
                  form,  but the books and records of the  Trustee  shall at all
                  times  show  that all such  investments  are part of the Trust
                  Fund;

           (e)    To borrow or raise money for the  purposes of the Plan in such
                  amount,  and upon such terms and  conditions,  as the  Trustee
                  shall deem advisable;  and for any sum so borrowed, to issue a
                  promissory  note  as  Trustee,  and to  secure  the  repayment

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<PAGE>

                  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
                  Participating Employer;

           (k)    To invest funds of the Trust in time deposits or savings
                  accounts bearing a reasonable rate of interest;

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

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

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

           (o)    To vote Company Stock as provided in Section 8.5;

           (p)    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;

           (q)    To deposit such  Company  Stock (but only if such deposit does
                  not  violate  the  provisions  of Section 8.5 hereof) or other
                  securities in any voting trust, or with any protective or like
                  committee,  or with a trustee or with depositories  designated
                  thereby;

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<PAGE>

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

           (s)    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;

           (t)    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;

           (u)    To  appoint a  nonfiduciary  agent or  agents  to  assist  the
                  Trustee  in  carrying  out  any  investment   instructions  of
                  Participants and of any Investment  Manager or Fiduciary,  and
                  to  compensate  such  agent(s) from the assets of the Plan, to
                  the extent not paid by the Participating Employer;

           (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.

10.4       LOANS TO PARTICIPANTS

           (a)    The Trustee may, in the  Trustee's  discretion,  make loans to
                  Participants   and    Beneficiaries    under   the   following
                  circumstances:  (1)  loans  shall  be  made  available  to all
                  Participants  and  Beneficiaries  on a  reasonably  equivalent
                  basis;  (2)  loans  shall  not be  made  available  to  Highly
                  Compensated  Employees  in an amount  greater  than the amount
                  made available to other  Participants and  Beneficiaries;  (3)
                  loans  shall bear a  reasonable  rate of  interest;  (4) loans
                  shall be adequately  secured;  and (5) loans shall provide for
                  repayment over a reasonable period of time.

                                       81
<PAGE>

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

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

                  (2)        one-half   (1/2)  of  the  present   value  of  the
                             non-forfeitable  accrued benefit of the Participant
                             under the Plan (excluding the Participant's Company
                             Stock Account).

                  For purposes of this limit, all plans of the Employer shall be
                  considered one plan.

           (c)    Loans shall provide for level amortization with payments to be
                  made not less  frequently  than quarterly over a period not to
                  exceed five years. However, loans used to acquire any dwelling
                  unit  which,   within  a  reasonable   time,  is  to  be  used
                  (determined  at the time  the  loan is  made)  as a  principal
                  residence  of  the  Participant  shall  provide  for  periodic
                  repayment  over a  reasonable  period of time that may  exceed
                  five years.  For this purpose,  a principal  residence has the
                  same meaning as a principal residence under Code Section 1034.

           (d)    Any loans  granted  or renewed on or after the last day of the
                  first Plan Year  beginning  after  December  31, 1988 shall be
                  made pursuant to a Participant loan program. Such loan program
                  shall be established in writing and must include, but need not
                  be limited to, the following:

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

                  (2)        a procedure for applying for loans;

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

                  (4)        limitations, if any, on the types and amounts of
                             loans offered;

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

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

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

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<PAGE>

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

10.5       VOTING COMPANY STOCK

The Trustee, as directed by the Administrator, 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,  as directed by the
Administrator.

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.

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<PAGE>

 10.6      DUTIES OF THE TRUSTEE REGARDING PAYMENTS

           (a)    The Trustee shall make distributions from the Trust Fund at
                  such times and in such numbers of shares or other units
                  of Company Stock and amounts of cash to or for the benefit of
                  the person entitled thereto under the Plan as the
                  Administrator directs in writing. Any undistributed part of a
                  Participant's interest in his accounts shall be
                  retained in the Trust Fund until the Administrator directs its
                  distribution. Where distribution is directed in
                  Company Stock, the Trustee shall cause an appropriate
                  certificate to be issued to the person entitled thereto and
                  mailed to the address furnished it by the Administrator. Any
                  portion of a Participant's Combined Account to be
                  distributed in cash shall be paid by the Trustee mailing its
                  check to the same person at the same address. If a
                  dispute arises as to who is entitled to or should receive any
                  benefit or payment, the Trustee may withhold or cause
                  to be withheld such payment until the dispute has been
                  resolved.

           (b)    As  directed  by the  Administrator,  the  Trustee  shall make
                  payments   out  of  the  Trust  Fund.   Such   directions   or
                  instructions  need not specify the purpose of the  payments so
                  directed and the Trustee shall not be  responsible  in any way
                  respecting the purpose or propriety of such payments except as
                  mandated by the Act.

           (c)    In the event that any distribution or payment directed by the
                  Administrator shall be mailed by the Trustee to the
                  person specified in such direction at the latest address of
                  such person filed with the Administrator, and shall be
                  returned to the Trustee because such person cannot be located
                  at such address, the Trustee shall promptly notify the
                  Administrator of such return. Upon the expiration of sixty
                  days after such notification, such direction shall become
                  void and unless and until a further direction by the
                  Administrator is received by the Trustee with respect to such
                  distribution or payment, the Trustee shall thereafter continue
                  to administer the Trust as if such direction had not
                  been made by the Administrator. The Trustee shall not be
                  obligated to search for or ascertain the whereabouts of any
                  such person.

10.7       TRUSTEE'S COMPENSATION AND EXPENSES AND TAXES

The Trustee  shall be paid such  reasonable  compensation  as shall from time to
time be agreed upon in writing by the Participating Employer and the Trustee. An
individual  serving as  Trustee  who  already  receives  full-time  pay from the
Participating  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
Participating  Employer. All taxes of any kind and all kinds whatsoever that may
be levied or assessed  under existing or future laws upon, or in respect of, the
Trust Fund or the income thereof, shall be paid from the Trust Fund.

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<PAGE>

10.8       ANNUAL REPORT OF THE TRUSTEE

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

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

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

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

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

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

10.9       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 his
                  audit setting forth his opinion as to whether any
                  statements, schedules or lists that are required by Act
                  Section 103 or the Secretary of Labor to be filed with the
                  Plan's annual report, are presented fairly in conformity with
                  generally accepted accounting principles applied
                  consistently. All auditing and accounting fees shall be an
                  expense of and may, at the election of the Administrator,
                  be paid from the Trust Fund.

                                       85
<PAGE>

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

10.10             RESIGNATION, REMOVAL AND SUCCESSION OF TRUSTEE

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

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

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

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

           (e)    Whenever any Trustee hereunder ceases to serve as such, he
                  shall furnish to the Employer and Administrator a written
                  statement of account with respect to the portion of the Plan
                  Year during which he served as Trustee. This statement
                  shall be either (i) included as part of the annual statement
                  of account for the Plan Year required under Section
                  10.8 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 10.8 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 10.8 shall have the same effect upon the
                  statement as the Employer's approval of an annual

                                       86
<PAGE>

                  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 10.8 and this
                  subparagraph.

10.11      TRANSFER OF INTEREST

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

10.12      DIRECT ROLLOVER

           (a)    Notwithstanding any provision of the Plan to the contrary that
                  would otherwise limit an Eligible  Recipient's  election under
                  this Section, an Eligible Recipient may elect, at the time and
                  in the manner  prescribed  by the  Administrator,  to have any
                  portion of an Eligible  Distribution that is equal to at least
                  $500  paid  to an  Eligible  Plan  specified  by the  Eligible
                  Recipient.

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

                  (1)        "Eligible Distribution" means any distribution from
                             the Plan to an  Eligible  Recipient,  to the extent
                             that it is includible  in the Eligible  Recipient's
                             gross  income (or would be  includible  but for the
                             exclusion  of  net   unrealized   appreciation   in
                             employer  securities)  and  is not  required  under
                             Section   401(a)(9)   of  the  Code,   unless   the
                             distribution  is one of a series  of  substantially
                             equal  periodic  payments  made no less  frequently
                             than  annually  over a  specified  period of ten or
                             more years,  or the life or life  expectancy  of an
                             Eligible Recipient or the joint lives or joint life
                             expectancies  of  the  Eligible   Recipient  and  a
                             designated  beneficiary  or,  effective  January 1,
                             2000, the  distribution  consists of  Participating
                             Employer   Elective   Contributions   and  is  made
                             pursuant to Section 9.1 of the Plan.

                  (2)        "Eligible  Plan"  means any of the  following  that
                             agrees to accept an Eligible  Recipient's  Eligible
                             Distribution  an  individual   retirement   account
                             described  in  Section   408(a)  of  the  Code;  an
                             individual  retirement annuity described in Section
                             408(b) of the Code; and for any Eligible  recipient
                             other  than a  Participant's  surviving  spouse,  a
                             qualified  plan  described in Section 401(a) of the
                             Code or a qualified  annuity  described  in Section
                             403(a) of the Code.

                                       87
<PAGE>

                  (3)        "Eligible  Recipient"  means a Participant;  Former
                             Participant or an alternate payee under a Qualified
                             Domestic  Relations  Order who is either the spouse
                             or  former  spouse  of  a  Participant   or  Former
                             Participant.

                                       88
<PAGE>

                                   ARTICLE XI
                       AMENDMENT, TERMINATION AND MERGERS

11.1       AMENDMENT

           (a) The Employer  shall have the right at any time to amend the Plan,
               subject to the limitations of this Section.

           (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 Participating Employer.

           (c)    Except as  permitted  by  Regulations,  no Plan  amendment  or
                  transaction  having the effect of a Plan amendment  (such as a
                  merger,  plan  transfer  or  similar   transaction)  shall  be
                  effective to the extent it  eliminates or reduces any "Section
                  411(d)(6)  protected  benefit" or adds or modifies  conditions
                  relating to "Section 411(d)(6)  protected benefits" the result
                  of which is a further  restriction on such benefit unless such
                  protected  benefits  are  preserved  with  respect to benefits
                  accrued as of the later of the adoption date or effective date
                  of the amendment.  "Section 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.

11.2       TERMINATION

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

           (b)    Upon the full  termination  of the Plan,  the  Employer  shall
                  direct  the  distribution  of the  assets of the Trust Fund to
                  Participants   in  a  manner  which  is  consistent  with  and
                  satisfies the  provisions of Article 8. 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 11.1(c).

           (c)    The  Company  shall  notify the Trustee in writing if it shall
                  permanently     discontinue      contributions      hereunder.
                  Notwithstanding  any other provisions of the Plan, if the Plan
                  is terminated or if the Company shall permanently  discontinue

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                  contributions  hereunder  (irrespective  of whether  the Trust
                  shall be terminated), the interests of all Participants in the
                  Plan and Trust shall become fully vested and nonforfeitable as
                  of the date of such termination or such  discontinuance.  Upon
                  the partial termination of the Plan with respect to a group of
                  Participants,   Former  Participants  or  Beneficiaries,   the
                  interests of all such  Participants,  Former  Participants  or
                  Beneficiaries  in the Plan and Trust shall become fully vested
                  and nonforfeitable as of the date of such partial termination.

11.3       MERGER OR CONSOLIDATION

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 11.1(c).

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                                   ARTICLE XII
                                    TOP HEAVY

 12.1      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 4.4 of the Plan.

 12.2      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 of the
                  Present Value of Accrued  Benefits and the Aggregate  Accounts
                  of all Key and Non-Key Employees under this Plan and all plans
                  of an Aggregation Group.

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

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

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

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

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<PAGE>

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

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

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

                  (6)        with respect to related  rollovers and plan-to-plan
                             transfers   (ones  either  not   initiated  by  the
                             Employee or made to a plan  maintained  by the same
                             employer),  if this Plan  provides  the rollover or
                             plan-to-plan transfer, it shall not be counted as a

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                             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.

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

                  (1)        Required   Aggregation   Group:  In  determining  a
                             Required Aggregation Group hereunder,  each plan of
                             the Participating  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
                             Participating  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  Participating
                             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  Participating  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.

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<PAGE>

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

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

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

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

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

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

         exceeds sixty percent of a similar sum determined for all Participants.

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<PAGE>

                                  ARTICLE XIII
                                  MISCELLANEOUS

13.1       PARTICIPANT'S RIGHTS

This Plan shall not be deemed to constitute a contract between the Participating
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  Participating  Employer  or to  interfere  with the right of the
Participating  Employer to  discharge  any  Participant  or Employee at any time
regardless  of  the  effect  which  such  discharge  shall  have  upon  him as a
Participant of this Plan.

 13.2      ALIENATION

Subject to the exceptions  provided below, no benefit which shall be payable out
of the Trust Fund to any person (including a Participant,  Former Participant or
his  Beneficiary)  shall be subject in any manner to  anticipation,  alienation,
sale, transfer,  assignment,  pledge, encumbrance, or charge, and any attempt to
anticipate,  alienate,  sell, transfer,  assign, pledge, encumber, or charge the
same shall be void;  and no such  benefit  shall in any manner be liable for, or
subject to, the debts, contracts, liabilities, engagements, or torts of any such
person,  nor shall it be subject to  attachment  or legal process for or against
such  person,  and the same shall not be  recognized  by the  Trustee;  provided
however,  that the rule just stated shall not apply in the case of any Qualified
Domestic  Relations  Order,  nor to any  loan  pursuant  to  Section  10.4  nor,
effective for judgments,  orders and decrees  issued and  settlement  agreements
entered  into on or after  August 5,  1997,  to any  offset of a  Participant's,
Former  Participant's or Beneficiary's  benefits provided under the Plan against
an amount that such person is ordered or required to pay to the Plan if:

(a)      The order or requirement to pay arises:

(i)      under a judgment of conviction for a crime involving the Plan;
(ii)     under a civil judgment  (including a consent order or
         decree)  entered  by a court in an action  brought in
         connection with a violation (or alleged violation) of
         Part 4 of Subtitle B of Title I of ERISA; or
(iii)    pursuant  to  a  settlement   agreement  between  the
         Secretary of Labor and such person in connection with
         a  violation  (or alleged  violation)  of a Part 4 of
         Subtitle B of Title I of ERISA by a fiduciary  or any
         other person; and

(b)      The judgment,  order,  decree or settlement  agreement  expressly
         provides  for the  offset  of all or part of the  amount  ordered  or
         required  to be paid to the Plan  against the  Participant's,  Former
         Participant's or Beneficiary's benefits provided under the Plan.

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<PAGE>

13.3       CONSTRUCTION OF PLAN

This Plan and Trust shall be construed and enforced according to the Act and the
laws of the State of New York to the extent not preempted by the Act.

 13.4      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.

 13.5      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  Participating
Employer  or  the  Administrator  may be a  party,  and  such  claim,  suit,  or
proceeding is resolved in favor of the Trustee,  the  Participating  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.

 13.6      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,
                  Retired Participants, or their Beneficiaries.

           (b)    In  the  event  the  Participating   Employer  shall  make  an
                  excessive contribution under a mistake of fact pursuant to Act
                  Section  403(c)(2)(A),  the Participating  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 Participating  Employer within
                  the one year period.  Earnings of the Plan attributable to the
                  excess  contributions may not be returned to the Participating
                  Employer but any losses  attributable  thereto must reduce the
                  amount so returned.

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<PAGE>

13.7       BONDING

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

 13.8      EMPLOYER'S AND TRUSTEE'S PROTECTIVE CLAUSE

Neither the Participating  Employer,  the  Administrator,  nor the Trustee,  nor
their  successors  shall 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.

 13.9      INSURER'S PROTECTIVE CLAUSE

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

 13.10     RECEIPT AND RELEASE FOR PAYMENTS

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

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<PAGE>

 13.11     ACTION BY THE EMPLOYER

Whenever the Participating  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.

 13.12     NAMED FIDUCIARIES AND ALLOCATION OF RESPONSIBILITY

The "named Fiduciaries" of this Plan are (1) the Employer, (2) the Administrator
and (3) the  Trustee.  The named  Fiduciaries  shall  have only  those  specific
powers, duties, responsibilities, and obligations as are specifically given them
under the Plan or as accepted by or assigned to them  pursuant to any  procedure
provided 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, unless otherwise indicated herein or pursuant to such
agreements,  the Employer shall have the duties  specified in Article II hereof,
as the same may be allocated or delegated thereunder,  including but not limited
to the  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
responsibility for the administration of the Plan,  including but not limited to
the items  specified at Article II of the Plan,  as the same may be allocated or
delegated  thereunder.  The Trustee shall have the  responsibility of management
and  control 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 and any agreement with the Trustee.  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.  In the  furtherance of
their responsibilities  hereunder, the "named Fiduciaries" shall be empowered to
interpret and apply the Plan and Trust, including the power to resolve questions
of law and/or fact and to resolve  ambiguities,  inconsistencies  and omissions,
which findings shall be binding, final and conclusive.

 13.13     HEADINGS

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

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<PAGE>

 13.14     APPROVAL BY INTERNAL REVENUE SERVICE

           (a)    Notwithstanding anything herein to the contrary, contributions
                  to this Plan are  conditioned  upon the  qualification  of the
                  Plan under Code Section  401. If the Plan  receives an adverse
                  determination with respect to its qualification, then the Plan
                  may return such  contributions to the  Participating  Employer
                  within  one  year  after  such  determination,   provided  the
                  application  for  the   determination  is  made  by  the  time
                  prescribed  by law for  filing  the  Participating  Employer's
                  return for the taxable year in which the Plan was adopted,  or
                  such  later  date  as  the   Secretary  of  the  Treasury  may
                  prescribe.

           (b)    Notwithstanding   any  provisions  to  the  contrary,   except
                  Sections  3.5,  3.6,  and  4.1(d),  any  contribution  by  the
                  Participating  Employer to the Trust Fund is conditioned  upon
                  the  deductibility  of the  contribution by the  Participating
                  Employer  under the Code and, to the extent any such deduction
                  is disallowed,  the Participating Employer may, within one (1)
                  year  following  the  disallowance  of the  deduction,  demand
                  repayment  of such  disallowed  contribution  and the  Trustee
                  shall return such  contribution  within one (1) year following
                  the  disallowance.  Earnings of the Plan  attributable  to the
                  excess  contribution may not be returned to the  Participating
                  Employer,  but any losses attributable thereto must reduce the
                  amount so returned.

13.15      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.

 13.16     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.

13.17 SPECIAL DISTRIBUTION FORMS

Notwithstanding any language contained in the Plan to the contrary, with respect
to Participating  Employer contributions made to the Plan on and before December
31, 1994, the following provisions shall apply:

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<PAGE>

           (a)    Upon the death of a Participant  before his Retirement Date or
                  other  termination of his employment,  all amounts credited to
                  such  Participant's  Company  Stock Account shall become fully
                  Vested.

           (b)    Upon  the  death of a Former  Participant,  the  Administrator
                  shall direct the Trustee,  to distribute any remaining  Vested
                  amounts   credited  to  the  accounts  of  a  deceased  Former
                  Participant to such Former Participant's Beneficiary.

           (c)    Any  security  interest  held  by the  Plan  by  reason  of an
                  outstanding  loan to the  Participant  or  Former  Participant
                  shall be taken into account in  determining  the amount of the
                  Pre-Retirement Survivor Annuity.

           (d)    The  Administrator  may require such proper proof of death and
                  such evidence of the right of any person to receive payment of
                  the  Company  Stock  Account   attributable  to  Participating
                  Employer  contributions made on or before December 31, 1994 on
                  behalf 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.

           (e)    Unless otherwise elected, the Beneficiary of the death benefit
                  shall be the  Participant's  spouse,  who shall  receive  such
                  benefit  in the  form of a  Pre-Retirement  Survivor  Annuity,
                  which is an immediate  annuity form of payment for the life of
                  the surviving  spouse of a  Participant  who dies prior to his
                  annuity  starting  date,  which is the  first day of the first
                  period  for which an amount is paid as an  annuity,  or in the
                  case of a benefit not  payable in the form of an annuity,  the
                  first day on which all events have occurred  which entitle the
                  Participant to such benefit.  Except, however, the Participant
                  may designate a Beneficiary other than his spouse if:

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

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

                  (3)  the Participant has no spouse, or

                  (4)  the spouse cannot be located.

                  In such event, the designation of a Beneficiary  shall be made
                  on a form satisfactory to the Administrator. A Participant may
                  at any time revoke his  designation of a Beneficiary or change
                  his Beneficiary by filing written notice of such revocation or
                  change  with the  Administrator.  However,  the  Participant's
                  spouse  must  again  consent  in  writing  to  any  change  in

                                      100
<PAGE>

                  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.  In the event no valid  designation of
                  Beneficiary exists at the time of the Participant's death, the
                  death benefit shall be payable to his estate.

                (f)(1) Unless otherwise elected as provided below, a Participant
                  who is married on the Annuity  Starting  Date and who does not
                  die before the Annuity  Starting  Date shall receive the value
                  of  his  Company  Stock  Account  derived  from  Participating
                  Employer contributions made or before December 31, 1994 in the
                  form of a joint and survivor  annuity.  The joint and survivor
                  annuity is an annuity that commences  immediately and shall be
                  equal in  value  to a single  life  annuity.  Such  joint  and
                  survivor  benefits  following  the  Participant's  death shall
                  continue to the spouse during the spouse's  lifetime at a rate
                  equal to 50 percent of the rate at which  such  benefits  were
                  payable to the Participant. This joint and 50 percent survivor
                  annuity shall be considered the designated qualified joint and
                  survivor   annuity   and   automatic   form  of   payment   of
                  Participating  Employer  contributions made to a Participant's
                  Company  Stock  Account on or before  December  31,  1994.  An
                  unmarried  Participant  shall receive the value of his Company
                  Stock   Account    derived   from    Participating    Employer
                  contributions  made on or before December 31, 1994 in the form
                  of a life annuity.  Such unmarried  Participant,  however, may
                  elect in writing to waive the life annuity.  The election must
                  comply with the  provisions  of this  Section as if it were an
                  election to waive the joint and survivor  annuity by a married
                  Participant,  but without the spousal consent requirement. The
                  Participant may elect to have any annuity provided for in this
                  Section  distributed  upon  the  attainment  of the  "earliest
                  retirement age" under the Plan. The "earliest  retirement age"
                  is the earliest date on which, under the Plan, the Participant
                  could elect to receive retirement benefits.

                  (2)        Any  election  to  waive  the  joint  and  survivor
                             annuity must be made by the  Participant in writing
                             during the  election  period and be consented to by
                             the Participant's  spouse. If the spouse is legally
                             incompetent  to give  consent,  the spouse's  legal
                             guardian, even if such guardian is the Participant,
                             may give consent.  Such election shall  designate a
                             Beneficiary (or a form of benefits) that may not be

                                      101
<PAGE>

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

                  (3)        The election period to waive the joint and survivor
                            annuity shall be the ninety day period ending on the
                             Annuity Starting Date.

                  (4)        With  regard  to the  election,  the  Administrator
                             shall  provide  to the  Participant  no  less  than
                             thirty days and no more than ninety days before the
                             Annuity Starting Date a written explanation of:

                             (i)     the terms and conditions of the joint and
                                     survivor annuity,

                             (ii)    the Participant's right to make, and the
                                     effect of, an election to waive the joint
                                     and survivor annuity,

                             (iii)   the right of the Participant's spouse to
                                     consent to any election to waive the joint
                                     and survivor annuity, and

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

                  (5)        Any  distribution  provided for in this Section may
                             commence  less than  thirty  days  after the notice
                             required  by  Code  Section   417(a)(3)  is  given,
                             provided that:

                             (i)     the   Administrator   clearly  informs  the
                                     Participant  that  the  Participant  has  a
                                     right  to  a  period   of  30  days   after
                                     receiving the notice to consider whether to
                                     waive the joint and  survivor  annuity  and
                                     consent  to a form  of  distribution  other
                                     than a joint and survivor annuity,

                             (ii)    the  Participant  is permitted to revoke an
                                     affirmative  distribution election at least
                                     until the  Annuity  Starting  Date,  or, if
                                     later,  at any time prior to the expiration
                                     of the 7-day  period  that  begins  the day
                                     after  the  explanation  of the  joint  and
                                     survivor   annuity  is   provided   to  the
                                     Participant,

                             (iii)   the Annuity Starting Date is after the date
                                     that  the  explanation  of  the  joint  and
                                     survivor   annuity  is   provided   to  the
                                     Participant.  However, the Annuity Starting
                                     Date  may  be  before  the  date  that  any
                                     affirmative  distribution  election is made

                                      102
<PAGE>

                                     by the Participant and before the date that
                                     the  distribution  is permitted to commence
                                     under (iv) below, and

                             (iv)    distribution   in   accordance   with   the
                                     affirmative   election  does  not  commence
                                     before the  expiration  of the 7-day period
                                     that  begins the day after the  explanation
                                     of  the  joint  and  survivor   annuity  is
                                     provided to the Participant.

           (g)    In the event a married  Participant duly elects not to receive
                  his benefit in the form of a joint and survivor annuity, or if
                  such  Participant  is  not  married,  in  the  form  of a life
                  annuity,  the  Administrator,  pursuant to the election of the
                  Participant,  shall  direct  the  Trustee to  distribute  to a
                  Participant  or his  Beneficiary  any  amount  to  which he is
                  entitled  under  the  Plan  in one or  more  of the  following
                  methods:

                  (1)       One lump-sum payment in cash.

                  (2)       Payments over a period certain in monthly,
                            quarterly, semi-annual, or annual cash installments.

           (h)    The  present  value  of a  Participant's  joint  and  survivor
                  annuity  derived  from  Participating  Employer  and  Employee
                  contributions  may not be paid without his written  consent if
                  the value exceeds,  or has ever  exceeded,  $3,500 ($5,000 for
                  distributions  occurring  after December 31, 1997) at the time
                  of  any  prior   distribution.   Further,   the  spouse  of  a
                  Participant   must   consent  in  writing  to  any   immediate
                  distribution.  Any written  consent  must be obtained not more
                  than ninety days before commencement of the distribution.

                  If  the  value  of  the  Participant's  benefit  derived  from
                  Participating  Employer  and Employee  contributions  does not
                  exceed  $3,500  ($5,000  for  distributions   occurring  after
                  December  31,  1997),   the   Administrator   may  immediately
                  distribute such benefit without such Participant's consent. No
                  distribution  may be made under the preceding  sentence  after
                  the  Annuity  Starting  Date  unless the  Participant  and his
                  spouse consent in writing to such distribution.

           (i)    Any  distribution  to a  Participant  who has a benefit  which
                  exceeds,   or  has   ever   exceeded,   $3,500   ($5,000   for
                  distributions  occurring  after December 31, 1997) at the time
                  of any prior  distribution  shall  require such  Participant's
                  consent if such  distribution  commences prior to the later of
                  his  Normal  Retirement  Age or age 62.  With  regard  to this
                  required consent:

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

                                      103
<PAGE>

                  (2)        The  Participant  must be  informed of his right to
                             defer receipt of the distribution. If a Participant
                             fails to consent, it shall be deemed an election to
                             defer the commencement of payment of any benefit.

                  (3)        Notice of the rights specified under this paragraph
                             shall be  provided  no less than thirty days and no
                             more than ninety  days before the Annuity  Starting
                             Date.

                  (4)        Written   consent   of  the   Participant   to  the
                             distribution   must   not  be   made   before   the
                             Participant  receives  the  notice  and must not be
                             made more than 90 days before the Annuity  Starting
                             Date.

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

                  Any such distribution may commence less than thirty 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 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.

                                      104
<PAGE>

                                   ARTICLE XIV
                              AFFILIATED EMPLOYERS

         14.1     Adoption of Plan and Trust.  The following rules shall apply
                  with respect to the adoption of this Plan and Trust:

                  (a) Adoption by Affiliated  Employers.  The terms of this Plan
         and Trust may be adopted by any Affiliated Employer with respect to the
         Affiliated  Employer  as a whole or with  respect to any one or more of
         its divisions, facilities or operations, provided:

                           (1)      The Board of Directors consents to such
                  adoption by an appropriate written resolution;

                           (2) The board of directors of the Affiliated Employer
                  adopts  this  Plan  and  Trust  by  an   appropriate   written
                  resolution  which  identifies the Eligible  Employees to be so
                  covered; and

                           (3) The Affiliated Employer executes a Plan and Trust
                  Adoption Agreement,  in substantially the form attached hereto
                  as Plan Exhibit A,  applicable  to the  Eligible  Employees of
                  such Affiliated Employer. The Affiliated Employer may elect in
                  such Adoption  Agreement to have special provisions apply with
                  respect to the Eligible  Employees of the Affiliated  Employer
                  which  differ  from  the  provisions  of the  Plan  and  Trust
                  applicable to other Eligible Employees; and

                           (4)  The  Affiliated  Employer  executes such other
                                documents as may be required to make such
                                Affiliated  Employer a party to the
                                Plan and Trust as a Participating Employer.

                  (b)      Effect of Adoption.  An Affiliated  Employer  that
                  adopts the Plan and Trust is  thereafter a  Participating
                  Employer with respect to its Eligible Employees.

         14.2     Withdrawal from Plan and Trust.

                  (a) A Participating Employer may at any time withdraw from the
         Plan and Trust upon  giving the Board of  Directors  and the Trustee at
         least 30 days prior written  notice of its intention to withdraw.  Upon
         the  withdrawal of a  Participating  Employer  pursuant to this Section
         12.2, the Trustee shall  segregate a portion of the assets in the Trust
         Fund,  the value of which shall equal the total amount  credited to the
         Aggregate  Accounts of Participants  then employed or formerly employed
         by the withdrawing  Participating  Employer. The determination of which
         assets are to be so segregated shall be made by the Trustee in its sole
         discretion.

                  (b) Exclusive  Purpose of Fund.  Neither the  segregation  and
         transfer  of the Trust  Fund  upon the  withdrawal  of a  Participating
         Employer nor the execution of a new plan and trust by such  withdrawing
         Participating  Employer  shall  operate to permit any part of the Trust

                                      105
<PAGE>

         Fund to be used  for,  or  diverted  to,  purposes  other  than for the
         exclusive benefit of the Participants and their Beneficiaries.

                  (c)  Application  of  Withdrawal  Provisions.  The  withdrawal
         provisions  contained in this Section 12.2 shall be applicable  only if
         the  withdrawing   Participating   Employer   continues  to  cover  its
         Participants and Eligible Employees in another  profit-sharing plan and
         trust qualified under Sections 401(a) and 501(a) of the Code. Under any
         other circumstances,  the termination  provisions of the Plan and Trust
         shall apply.

         14.3     Single Plan.  Notwithstanding  any other  provision set forth
herein,  the Plan, as adopted by the Employer and each Participating Employer,
shall constitute a single plan, as such term is defined in Treas.
Reg.ss.1.414(1)-1(b)(1).

         14.4  Employer  Appointed  Agent  of  Participating   Employers.  As  a
condition  precedent to the adoption of the Plan and Trust,  each  Participating
Employer appoints the Employer as its agent to exercise on its behalf all of the
power and authority conferred upon the Employer by the Plan, including,  without
limitation,  the power to amend or to terminate  the Plan.  The authority of the
Employer to act as agent of any Participating Employer shall terminate only when
the portion of the Plan's assets held for the benefit of the Eligible  Employees
of such  Participating  Employer  shall be  segregated in a trust as provided in
Section 12.2 hereof.

         14.5 Disposition of Affiliated  Employers.  In the event of the sale of
substantially  all of the assets  used by an  Affiliated  Employer in a trade or
business conducted by the Affiliated Employer or the sale of at least 50% of the
outstanding  voting stock of an  Affiliated  Employer by the Employer or another
Affiliated Employer, the Administrator (in its discretion) may:

                  (a) Direct that the interest of each  Participant,  who ceases
         to be employed by an Affiliated  Employer upon the  consummation and by
         reason of the sale (an "Affected Participant"), in his or her Aggregate
         Account shall be 100% vested;

                  (b)      Authorize distribution of the Affected Participants'
         Aggregate Accounts subject to the restrictions imposed
         by Section 401(k)(2)(B) of the Code;

(C)      Authorize the direct trust-to-trust  transfer of Affected Participants'
         Aggregate  Account balances to a defined  contribution  plan maintained
         for the  benefit  of  employees  of the  purchaser  or its  affiliates,
         provided  that such  transferee  plan contains  provisions  pursuant to
         which any Deferred Compensation transferred would remain subject to the
         distribution  restrictions  and vesting  standard  set forth in Section
         401(k)(2) of the Code; or

                  (d) Provide for the administration and subsequent distribution
         of  Aggregate   Accounts  not  so  transferred   pending  the  Affected
         Participants'  separation  from  service  with  the  purchaser  and its
         affiliates.

                                      106
<PAGE>

         The Administrator shall have all powers necessary or appropriate to the
orderly administration of the foregoing provisions of this Section 14.5.

         14.6  Acquisition  of  Affiliated  Employers.   In  the  event  of  the
acquisition by the Employer or an Affiliated  Employer of  substantially  all of
the assets used by an employer in a trade or business conducted by such employer
or the acquisition by the Employer or an Affiliated Employer of more than 50% of
the outstanding voting stock of an employer or its affiliate,  the Administrator
(in its discretion) may:

                  (a) Authorize the acceptance, from a defined contribution plan
         maintained for the benefit of employees of the seller or its affiliates
         (the  "Seller's  Plan"),  of  direct  trust-to-trust  transfers  of the
         account   balances  of  individuals  who  become   Employees  upon  the
         consummation   and  by  reason  of  the   acquisition   (the  "Acquired
         Employees"), subject to the provisions of Section 4.11 hereof;

                  (b) Authorize the acceptance of rollover  contributions by the
         Acquired  Employees  of  distributions  they  receive from the Seller's
         Plan,  subject to the  limitations  imposed by  Section  402(a)(5)  and
         related provisions of the Code; or

                  (c) Provide for the administration and subsequent distribution
         of amounts transferred or contributed pursuant to Subsection (a) and/or
         (b), above, pending the occurrence of a distribution in accordance with
         Article VII with respect to each Acquired Employee.

           The  Administrator  shall have all powers necessary or appropriate to
the orderly  administration of this Section 14.6,  including the power to direct
the sale of any assets transferred or contributed to the Plan in kind.

         14.7     Disposition  of Less Than 85 Percent  of Assets of Trade or
Business.  In the event the  Employer  or  Participating Employer  transfers
less than 85  percent  of the  assets of a trade or  business  to a new
employer,  the Plan may  distribute  to a Participant  who was a former
employee  such  Participant's  Aggregate  Account  provided  such  Participant
goes to work for the new employer that purchased the assets in accordance with
the provisions of Rev. Rul.  2000-27, 2000 I.R.B. 1.

                  IN WITNESS  WHEREOF,  this Plan has been executed the 18th day
of December, 2000, effective January 1, 2001 forward.

NBT Bancorp, Inc.                                    NBT Bank, N.A

By:  /s/   Daryl R. Forsythe                         By:  /s/  Martin Dietrich

Title:  Pres & CEO                                   Title:  Pres & COO

                                      107
<PAGE>EXHIBIT 10.2
       NBT BANCORP INC. Defined Benefit Pension Plan Amended and Restated
                        Effective as of January 1, 2000

<PAGE>

                 NBT BANCORP INC. DEFINED BENEFIT PENSION PLAN

             As Amended and Restated Effective as of January 1, 2000

                      (except as otherwise provided herein)

                               December 11, 2000

<PAGE>

<TABLE>
<CAPTION>

                                TABLE OF CONTENTS

<S>                                                                                                  <C>
PREAMBLE.............................................................................................ii

ARTICLE I.............................................................................................1

ARTICLE II...........................................................................................12

ARTICLE III..........................................................................................14

ARTICLE IV...........................................................................................16

ARTICLE V............................................................................................18

ARTICLE VI...........................................................................................20

ARTICLE VII..........................................................................................22

ARTICLE VIII.........................................................................................29

ARTICLE IX...........................................................................................31

ARTICLE X............................................................................................35

ARTICLE XI...........................................................................................37

ARTICLE XII..........................................................................................44

ARTICLE XIII.........................................................................................47

ARTICLE XIV..........................................................................................49

ARTICLE XV...........................................................................................51

EXHIBIT I............................................................................................56

EXHIBIT II...........................................................................................58
</TABLE>

                                       i

<PAGE>

                                    PREAMBLE

Prior to January 1, 2000,  NBT Bancorp  Inc.  maintained  the NBT  Bancorp  Inc.
Defined Benefit Pension Plan (the "Plan").  The portion of the Plan that existed
immediately  prior to January 1, 2000 shall be  maintained  in Appendix A hereof
and shall hereinafter, for purposes of this plan document, be referred to as the
"Appendix  A Plan."  The  Appendix A Plan shall be  applicable  with  respect to
periods on and after January 1, 2000 to those  individuals who qualified for the
one-time  election to continue to accrue benefits under the benefit formula used
to calculate pension benefits in the Appendix A Plan under the terms of the Plan
as it existed on December 31, 1999 and who irrevocably  elected to remain in the
Appendix A Plan. Except as is otherwise  hereinafter  expressly  provided,  such
individuals  shall be entitled to receive  benefits only in accordance  with the
provisions of the Appendix A Plan.

The Plan is now  amended  and  restated  in its  entirety  as herein  set forth,
effective January 1, 2000,  except as otherwise  provided herein, to reflect its
redesign to a cash balance plan (the "Account  Balance Plan") for the benefit of
all Eligible  Employees (as defined in Section 1.19 hereof) who meet the Account
Balance Plan's  eligibility  requirements  (as set forth in Section 2.1 hereof).
The Plan shall  continue to be known as the NBT  Bancorp  Inc.  Defined  Benefit
Pension Plan. However, except as is otherwise specifically provided, on or after
January 1, 2000 all  references to the Plan shall refer only to the cash balance
portion hereof,  which shall be Articles I through XV,  including  Exhibit I and
Exhibit II.

Except as is otherwise hereinafter expressly provided, the Plan and the Appendix
A Plan as so amended  and  restated  apply to persons in the  employment  of NBT
Bancorp Inc. who are or become  participants on or after January 1, 2000. Former
employees whose service terminated prior to January 1, 2000, whether as a result
of retirement, death, disability or any other form of termination of employment,
and those  entitled to benefits  under the  Appendix A Plan with respect to such
former  employees,  shall be entitled to benefits under the Appendix A Plan only
to the extent,  if any,  provided  under the Appendix A Plan as in effect before
January 1, 2000, except as otherwise specifically provided.

Notwithstanding the foregoing  paragraph,  the Appendix A Plan was amended as of
March 1, 2000  (Amendment #1) and as of May 15, 2000  (Amendment  #2). Any other
provision  of the Plan to the  contrary  notwithstanding,  in no  event  will an
individual who becomes a participant  in the Account  Balance Plan as of January
1, 2000 in accordance  with the  provisions of Subsection  2.1(a) of the Plan be
entitled to a lesser  benefit than the benefit to which such  participant  would
have been entitled if such individual  remained  covered by the Appendix A Plan,
inclusive  of Amendment  #1 and  Amendment #2 (but in no event  inclusive of any
accruals thereunder with respect to periods after May 15, 2000).

The Plan and the  Appendix A Plan are intended to be a single plan and to comply
with  the  provisions  of  Section  401(a)  of the  Internal  Revenue  Code  and
applicable regulations thereunder.

                                       ii
<PAGE>

                                    ARTICLE I

                                   DEFINITIONS

The  following  words and  phrases,  as used  herein,  shall have the  following
meanings, unless a different meaning is plainly required by the context. Some of
the words and phrases  used in the Plan are not  defined in this  Article I, but
for convenience are defined as they are introduced into the text.

1.1      "Account" means the bookkeeping account established and maintained with
         respect to a Participant pursuant to the provisions of Section 3.1.

1.2      "Account   Balance  Accrued   Benefit"  means,  as  of  any  particular
         determination  date, the annual amount of benefit,  payable  monthly in
         the  Normal  Form as set forth in  Subsection  1.29(a),  commencing  at
         Normal  Retirement  Date or any  later  date,  which  is the  Actuarial
         Equivalent of the Participant's Account as of such determination date.

1.3      "Account Balance Plan" means the portion of the Plan other than the
         Appendix A Plan.

1.4      "Actuarial  Equivalent" means, with respect to any specified annuity or
         benefit,  another  annuity or benefit  commencing  at a different  date
         and/or  payable  in a  different  form than the  specified  annuity  or
         benefit,  but which has the same present value as the specified annuity
         or  benefit.  Such  present  value is  determined  on the  basis of the
         interest rate, mortality table and other factors, if any, applicable to
         such other  annuity or benefit,  as specified in Exhibit I as in effect
         at the date of determination.

1.5      "Affiliated  Employer"  means  (a) a member of a  "controlled  group of
         corporations" or group of trades or businesses under common control (as
         defined  in Code  Section  414(b) and (c)) of which the  Employer  is a
         member, (b) a member of an affiliated service group (as defined in Code
         Section  414(m)) which  includes the Employer,  or (c) any other entity
         that must be  aggregated  with the  Employer  pursuant to Code  Section
         414(o).  The term "controlled  group of  corporations"  has the meaning
         given in Code Section  1563(a),  but determined  without regard to Code
         Sections 1563(a)(4) and (e)(3)(C). If an Affiliated Employer is also an
         Employer  maintaining  the Plan, the provisions of the Plan shall apply
         to that  entity  as an  Employer,  rather  than  only as an  Affiliated
         Employer.

1.6      "Alternate  Payee" means any spouse,  former  spouse,  child or other
         dependent of a Participant  who is  recognized by a Domestic  Relations
         Order as having a right to receive  all, or a portion of, the  benefits
         payable under the Plan with respect to such Participant.

1.7      "Appendix A Plan" means the NBT Bancorp Inc. Defined Benefit Pension
         Plan as in effect as of December 31, 1999, and as set forth in
         Appendix A.

                                       1
<PAGE>

1.8      "Beneficiary" means a person,  estate, trust or other entity designated
         as provided in Article VIII to receive the  benefits  which are payable
         under the Plan upon or after the death of a Participant.

1.9      "Benefit  Commencement  Date" means the first date of the first  period
         for which an amount attributable to a Participant's  Account is paid as
         an annuity or any other form, as determined in accordance  with Section
         417(f)(2) of the Code and the regulations thereunder.

1.10      "Board" or "Board of Directors" means the Board of Directors of NBT
          Bancorp Inc.

1.11     "Code" means the Internal Revenue Code of 1986, as amended from time
         to time.

1.12     "Compensation"  means  remuneration paid by the Employer to an Employee
         in the  form of  fixed  basic  annual  salary  or  wages,  commissions,
         overtime,  and  cash  bonuses  actually  received.  Compensation  shall
         include any amount  contributed by the Employer at the direction of the
         Employee pursuant to a salary reduction agreement,  which amount is not
         includable  in the  Employee's  gross  income  under Code  Section  125
         (cafeteria   plans)  or  Code  Section   402(a)(8)   ("401(k)"  plans).
         Compensation   shall  not  include  any  other  form  of  remuneration,
         regardless   of  the   manner   calculated   or  paid.   For   example,
         "Compensation"  shall not include amounts realized from the exercise of
         stock  options  or from the  disposition  of  stock  or  stock  rights,
         Employer contributions to any public or private benefit plan or system,
         or amounts paid as severance pay.

         Notwithstanding  the  foregoing,  with  respect to periods on and after
         January 1, 2000, in no event will Compensation  determined on an annual
         basis exceed  $170,000 as adjusted for changes in the cost of living as
         provided in Section 401(a)(17) of the Code.

1.13     "Corporate Group" means the Employer and any Affiliated  Employer.  For
         purposes  under the Plan of  determining  whether or not a person is an
         Employee  and the  period  of  employment  of such  person,  each  such
         Affiliated Employer shall be included in the "Corporate Group" only for
         such period or periods  during which such other  company is so a member
         of a controlled  group,  under common  control,  an affiliated  service
         group or otherwise required to be aggregated.

1.14     "Corporation" means NBT Bancorp Inc. as now constituted or as may be
         constituted hereafter or any person, firm, corporation
         or partnership which may succeed to its business.

1.15     "Disabled  Participant"  means a  Participant  who is  determined to be
         entitled to, and is in receipt of,  disability  benefits under both (a)
         Title II or XVI of the  Social  Security  Act,  and (b) any  long  term
         disability   income  plan   sponsored  by  the  Employer.   A  Disabled
         Participant  shall be deemed to be "Disabled" or to have a "Disability"
         only during the period such  individual  is entitled to, and in receipt
         of,  disability  benefits  under both (a) Title II or XVI of the Social
         Security Act, and (b) any long term disability income plan sponsored by
         the Employer.

                                       2
<PAGE>

1.16     "Domestic  Relations  Order"  means  any  judgment,  decree,  or  order
         (including  approval of a property  settlement  agreement)  which:  (a)
         relates to the provision of child support,  alimony payments or marital
         property rights to a spouse, child or other dependent of a Participant,
         and (b) is made pursuant to a state domestic relations law (including a
         community property law).

1.17      "Effective Date" means October 1, 1989.

1.18     "Eligible  Compensation"  means,  with  respect  to a  Plan  Year,  the
         Compensation  paid to the Employee as a  Participant,  exclusive of any
         Compensation  paid to the  Employee  while he is employed in a capacity
         other than as an Eligible Employee; provided, however, that in the Plan
         Year in which an Employee  commences  participation  in accordance with
         Subsection  2.1(b),  Eligible  Compensation  shall  include  all of his
         Compensation for such Plan Year.

1.19     "Eligible  Employee"  means an  Employee  of an  Employer  other than a
         person  included  in a  unit  of  employees  covered  by  a  collective
         bargaining  agreement  (as  defined in Code  Section  7701(a))  between
         Employee  representatives  and the  Employer,  unless  such  collective
         bargaining  agreement  expressly  provides  for the  inclusion  of such
         persons as Participants in the Account Balance Plan.

         Any other provision of the Account Balance Plan to the contrary
         notwithstanding,

(a)             in no event shall an individual  who elected to  participate  in
                the Appendix A Plan as provided in Section 2.1(a) be an Eligible
                Employee  unless such  individual  is  reemployed  after  having
                terminated  employment,  in which case the opening value of such
                individual's  Account shall be $0 and the  provisions of Section
                2.4 shall apply; and

(b)     in no event shall an individual be an Eligible Employee to the extent he
        is a Leased Employee or is retained by the Employer
        to perform services for the Employer (for either a definite or
        indefinite duration) and is characterized thereby as a
        fee-for-service worker or independent contractor or in a similar
        capacity (rather than in the capacity of an
        employee), regardless of such individual's status under common law,
        including, without limitation, any such
        individual who is or has been determined by a third party, including,
        without limitation, a government agency or
        board or court or arbitrator, to be an employee of the Employer for any
        purpose, including, without limitation, for
        purposes of any employee benefit plan of the Employer (including this
        Plan) or for purposes of federal, state or
        local tax withholding, employment tax or employment law.

1.20     "Employee"  means any person who  receives  compensation  for  personal
         services,  other than a retainer or fee under a contract, from a member
         of the  Corporate  Group and who is treated by such  entity as a common
         law  employee  for  employment  tax  withholding  purposes.  Any Leased
         Employee shall be considered to be an Employee  solely for the purposes
         specified in Code Section 414(n).

                                       3
<PAGE>

1.21    "Employer" means (a) the Corporation, or (b) any other member of the
         Corporate Group which may elect to participate with the
         approval of the Board of Directors.

1.22     "ERISA" means Public Law No. 93-406, the Employee Retirement Income
         Security Act of 1974, as amended from time to time.

1.23     "Fund" or "Trust Fund" shall mean the assets of the Plan (including the
         Appendix A Plan).

1.24     Highly Compensated  Employee shall mean a highly  compensated  employee
         within the meaning of Code Section 414(q). As set forth below, the term
         "Highly  Compensated   Employee"  includes  highly  compensated  active
         employees and highly  compensated  former  employees.  In the following
         subsections,  the term "determination year" means the current Plan Year
         and the term "look-back year" means the twelve-month period immediately
         preceding the determination year.

(A)             HIGHLY COMPENSATED ACTIVE EMPLOYEE:  A highly compensated active
                employee  includes any  Employee  who performs  services for the
                Employer  during  the  determination  year  and  who (i) for the
                preceding  determination  year,  received  compensation from the
                Employer in excess of $80,000 (as  adjusted by the  Secretary of
                the  Treasury),  or (ii) was a  5-Percent  Owner (as  defined in
                section   416(i)(1)   of  the  Code)  at  any  time  during  the
                determination year or the preceding determination years.

(B)             HIGHLY COMPENSATED FORMER EMPLOYEE:  A highly compensated former
                employee  includes any employee who  separated  from service (or
                was deemed to have separated) prior to the  determination  year,
                performs no service for the  Employer  during the  determination
                year and was a highly compensated active employee for either the
                separation year or any determination year ending on or after the
                employee's 55th birthday.

(C)             INCORPORATION OF SECTION 414(Q):  The  determination of who is a
                Highly Compensated Employee under the above rules, shall be made
                in  accordance   with  Code  Section  414(q)  and   implementing
                Regulations, which are hereby incorporated by reference.

1.25     "Hour of Service" shall mean an hour  determined in accordance with the
         following provisions. In this definition, the term "computation period"
         means the Plan Year, with the following exception. To the extent that a
         "Year of  Service"  is defined as a  different  period for  eligibility
         purposes,  that period  shall be  considered  a  computation  period in
         crediting Hours of Service for eligibility.

(A)     GENERAL RULES FOR CREDITING HOURS:  For all purposes under the Plan, an
        Employee shall be credited with an Hour of Service for all of the
        following:

                                       4
<PAGE>

                  (i)       Each  hour  for  which  the  Employee  is  paid,  or
                            entitled to payment,  for the  performance of duties
                            for the  Employer.  These  hours will be credited to
                            the Employee for the computation period in which the
                            duties are performed.

                  (ii)      Each hour for which the Employee is paid, or
                            entitled to payment, by
                            the Employer, on account of a period during which no
                            duties are performed    (whether   or   not   the
                            employment relationship  has  terminated),   due  to
                            vacation, holiday, illness, incapacity (including
                            disability), layoff,   jury  duty,  military  duty
                            or  leave  of absence.  No more than 501 Hours of
                            Service shall be credited  under  this  subsection
                            for  any  single, continuous  period,whether or not
                            such period occurs in a single computation period.

                  (iii)     Each  hour  for  which  back  pay  (irrespective  of
                            mitigation  of damages) is either  awarded or agreed
                            to by the  Employer.  The same Hours of Service will
                            not be credited both under  subsection  (i) or (ii),
                            whichever is applicable,  and this subsection (iii).
                            Under  this  subsection,  Hours of  Service  will be
                            credited to the Employee for the computation  period
                            to which the  award or  agreement  pertains,  rather
                            than the  computation  period  in which  the  award,
                            agreement or payment is made.

                  Hours under this  subsection  shall be calculated and credited
                  pursuant to Department of Labor Regulation  2530.200b-2(b) and
                  (c), which is incorporated herein by reference.

(b)           HOURS NOT KEPT:  An Employee for whom hours are not normally  kept
              shall  receive  credit for 45 Hours of Service for each weekly pay
              period  during  which the  Employee  performs  one Hour of Service
              under the conditions described in subsection (a)(i) or (ii) above.

(c)           AFFILIATED EMPLOYERS: For eligibility and vesting purposes
              (Articles II and V), Hours of Service shall also be credited for
              employment with any Affiliated Employer.

(d)           For eligibility and vesting purposes  hereunder,  Hours of Service
              shall include each hour:  for which an Employee,  who was employed
              by any  banking  institution  or banking  facility  as of the date
              immediately  preceding the date of the  Employer's  acquisition of
              that institution or facility, was credited with an hour of service
              under the terms of such former employer's tax-qualified retirement
              plan  as of  the  date  immediately  preceding  the  date  of  the
              Employer's acquisition of the institution or facility.

                                       5
<PAGE>

(e)           Hours of Service  shall be granted  for  eligibility  and  vesting
              purposes during a period of military service which does not exceed
              two years in  duration.  Hours of Service  will be credited on the
              basis of the Employee's normal workweek when such leave commenced.
              For purposes of this subsection (e),  military  service is service
              with the Armed Forces of the United States during  periods of war,
              national emergency or conscription,  subject to the condition that
              the Employee returns to active employment with the Employer within
              the period his  reemployment  rights are  protected by  applicable
              law. Notwithstanding the foregoing, Hours of Service shall include
              qualified  military service to the extent required by Code Section
              414(u),  if such Code  Section  would  grant  more  service to the
              Employee.

(f)           Except to the extent required by subsection  (a)(ii) above,  Hours
              of Service  shall not be granted for any purpose under the Plan as
              a  result  of an  Employee's  receipt  of  severance  pay from the
              Employer.

1.26     "Interest Credit" means with respect to any Plan Year, additions to a
          Participant's Account determined pursuant to Section 3.3.

1.27     "Interest Credit Rate" means with respect to a Plan Year the average
         annual yield on 30-year U.S. Treasury securities for
         the November of the prior year.

1.28     "Leased  Employee"  shall  mean any  person  (other  than one who is an
         employee without regard to a leasing arrangement) who performs services
         pursuant  to  an   agreement   between  the   Employer  and  a  leasing
         organization if:

         (a)    The  services  have been  performed  for the Employer or for the
                Employer 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

         (b)    The services are performed under the primary direction or
                control of the Employer.

1.29     "Normal Form" means

(a)             for a Participant who is not married on his Benefit Commencement
                Date a straight life annuity,  payable in monthly  installments,
                for the life of the Participant;  provided, however, that if the
                Participant   shall  die  before  having   received  60  monthly
                payments,  such  monthly  payments  shall  be  continued  to his
                Beneficiary  until the total number of monthly  payments to such
                Participant  and Beneficiary  equals 60 (i.e.,  the Life Annuity
                With 5 Years  Certain).  If the  Participant and Beneficiary die
                before  having  received  a total of 60  monthly  payments,  the
                Actuarial  Equivalent  value  of the  balance  of  such  monthly
                payments  shall be paid in a  single  sum to the  estate  of the
                survivor of the Participant and Beneficiary.

                                       6
<PAGE>

(b)             for a  Participant  who is married on his  Benefit  Commencement
                Date, a 50 percent joint and survivor annuity with the Surviving
                Spouse  as  Beneficiary   (i.e.,  the  Joint  And  50%  Survivor
                Annuity),  which is the Actuarial Equivalent of the benefit that
                would be payable to the  Participant if the  Participant was not
                married on his Benefit Commencement Date.

1.30     "Normal Retirement Age" means the Employee's 65th birthday.

1.31     "Normal Retirement Date" means the first day of the month coincident
         with or next following the Participant's Normal
         Retirement Age.

1.32     "Opening  Account  Balance"  means  the  initial   bookkeeping  account
         established as hereinafter  provided as of January 1, 2000 with respect
         to an Employee as of December 31, 1999 who both (i) participated in the
         Plan immediately  before January 1, 2000 and (ii) becomes a Participant
         in the Account  Balance Plan in  accordance  with Section  2.1(a) as of
         January 1, 2000.  Such Opening  Account Balance shall equal the greater
         of (a) and (b) below:

(a)      A lump sum amount  equal to the  Actuarial  Equivalent  lump sum
         present value of the Employee's  "Accrued Benefit" (as such term
         is  defined  in  Section  2.01 of the  Appendix  A  Plan)  as of
         December 31, 1999.

(b)      A lump sum amount equal to the product of (i), (ii) and (iii) below:

(i)     five percent (5%);

(ii)    the Participant's "Frozen Three Year Average Compensation" (as
        hereinafter defined); and

(iii)   the  Participant's  "Frozen  Years of  Benefit  Service"  (as
        hereinafter defined) as of December 31, 1999.

         For purposes of this Section 1.32,  the following  terms shall have the
following meanings:

(a)     "Frozen Three Year Average Compensation" shall mean the average of the
        Participant's annual "compensation" (as such term is
        defined in Section 2.14 of the Appendix A Plan) for the three Frozen
        Years of Benefit Service during the
        Participant's last ten "Years of Benefit Service" (as such term is
        defined in Section 2.70 of the Appendix A Plan)
        before January 1, 2000 that produces the highest average.  If a
        Participant has less than three Frozen Years of
        Benefit Service, the Participant's Frozen Three Year Average
        Compensation shall be the average of his annual
        Compensation for his total Frozen Years of Benefit Service.  For
        Plan Years that begin prior to October 1, 1993,
        Frozen Three Year Average Compensation shall be determined by reference
        to "compensation" (as such term is defined in
        Section 2.14 of the Appendix A Plan) received by the Participant for

                                       7
<PAGE>

        each applicable calendar year.  For Plan Years
        that begin after September 30, 1993, Frozen Three Year Average
        Compensation shall be based upon the "compensation"
        (as such term is defined in Section 2.14 of the Appendix A Plan)
        received by the Participant for each applicable Plan
        Year.  In all cases, Frozen Three Year Average Compensation shall be
        based upon consecutive Frozen Years of Benefit Service.

(b)     "Frozen Years of Benefit  Service" means the number of "Years of
        Benefit Service" (as such term is defined in Section 2.70 of the
        Appendix  A Plan)  standing  to the  Participant's  credit as of
        December 31, 1999.

1.33     "Participant"  means an Eligible  Employee who becomes a Participant in
         the Account  Balance  Plan  pursuant to the  provisions  in Article II.
         Participant  also  means  any  Eligible  Employee  or  former  Eligible
         Employee who is receiving  benefit  payments under the Account  Balance
         Plan or with  respect  to whom an  Account  is being  maintained  after
         termination of employment under the Account Balance Plan.

1.34     "Pay-Based Credits" means additions to a Participant's Account
         determined pursuant to Section 3.2.

1.35     "Plan"  means the NBT Bancorp  Inc.  Defined  Benefit  Pension  Plan as
         amended and restated effective January 1, 2000, as set forth herein and
         as  may  hereafter  be  amended  from  time  to  time.  The  Plan  is a
         continuation,  through  amendment  and  restatement,  of the Appendix A
         Plan.

1.36     "Plan  Administrator"  means  the  person,  committee  or other  entity
         appointed to  administer  the Plan in  accordance  with Article XI. The
         Plan  Administrator  shall be the "named fiduciary" for the management,
         operation and administration of the Plan, within the meaning of Section
         402(a) of ERISA.

1.37    "Plan Year" means the calendar year.

1.38     "Qualified  Domestic  Relations Order" means a Domestic Relations Order
         that creates or recognizes the existence of an Alternate  Payee's right
         to, or assigns to an  Alternate  Payee the right to,  receive  all or a
         portion of the benefits that would otherwise be payable with respect to
         a Participant under the Plan, and that meets the requirements described
         in Article XII.

1.39     "Qualified  Election"  means an  election by the  Participant  that (i)
         expressly  rejects the automatic joint and 50% surviving spouse annuity
         as  described  in Section 7.2,  (ii)  designates  the form in which the
         Participant's  Account  Balance  Accrued  Benefit  shall be paid (which
         designation  may not be changed  without  Spousal  Consent,  unless the
         change  is to  elect  the  automatic  joint  and 50%  surviving  spouse
         annuity),  (iii)  designates  the  Beneficiary  who is to  receive  any
         payments that are to be made after the death of the  Participant  under
         such benefit payment form (which designation can not be changed without
         Spousal  Consent,  unless the change is to name the Surviving Spouse as

                                       8
<PAGE>

         Beneficiary),  (iv)  is  in  writing  on  a  form  prescribed  by  Plan
         Administrator   for  such   purpose,   (v)  is  filed   with  the  Plan
         Administrator  within the period described in Section 7.2(e),  and (vi)
         contains Spousal Consent.

1.40   "Retirement  Benefit"  means a lump sum  payment  or a series of  monthly
       payments  which are payable to an  individual  who is entitled to receive
       benefits under the Account Balance Plan.

1.41   "Service"  means the sum of (i) the period of "Service" (if any) standing
       to  an  Employee's  credit  immediately  prior  to  January  1,  2000  in
       accordance  with the provisions of the Appendix A Plan as then in effect,
       and (ii) the number of Plan Years  after  December  31, 1999 (or if later
       the Plan  Year that  includes  the date as of which a  Participant  first
       becomes an Employee for  purposes of the Plan),  and ending with the Plan
       Year in which such  Participant was last employed by the Corporate Group,
       but excluding each Plan Year in such period during which the  Participant
       had less than 1,000 Hours of Service.

1.42     "Specified  Percentage"  means, with respect to the amount of Pay-Based
         Credits  with respect to Eligible  Compensation  for a given Plan Year,
         five  percent  (5%)  plus,  in the  case  of an  individual  who  was a
         Participant as of January 1, 2000 and who attained age fifty as of such
         date, an additional  fractional percentage of Eligible Compensation for
         such Plan Year equal to 0.5% for each year over age forty-nine that the
         Participant  has  attained  as  of  January  1,  2000,   determined  in
         accordance with the following schedule:

                                     AGE AT                ADDITIONAL
                                   01/01/2000              PERCENTAGE

                                       50                     0.5%
                                       51                     1.0%
                                       52                     1.5%
                                       53                     2.0%
                                       54                     2.5%
                                       55                     3.0%
                                       56                     3.5%
                                       57                     4.0%
                                       58                     4.5%
                                       59                     5.0%
                                       60                     5.5%
                                       61                     6.0%
                                       62                     6.5%
                                       63                     7.0%
                                   64 OR OLDER                7.5%

                                       9
<PAGE>

1.43     "Spousal Consent" means an irrevocable written consent by the Spouse of
         a Participant  to an election by the  Participant  under Article VII or
         Article  VIII  which  consent  (i)  acknowledges  the  effect  of  such
         election,  designation  or  action  and  (ii)  is  witnessed  by a Plan
         representative  or a notary  public.  A Spouse  shall be deemed to have
         given such consent if it is established to the satisfaction of the Plan
         Administrator  that actual  written  consent to an  election  cannot be
         obtained  from the  Spouse  because  the  Spouse  cannot be  located or
         because of such other  circumstances as may be prescribed in accordance
         with Treasury Regulation Section 1.401(a)-20,  Q&A-27. Any such consent
         (including  such deemed  consent) by a Spouse shall be  effective  only
         with respect to such Spouse. Except as otherwise provided under Section
         1.39,  Spousal  Consent with respect to a Qualified  Election  shall be
         effective only for such election, and any change in such election shall
         require a new Spousal  Consent,  unless the Spousal  Consent  expressly
         permits the Participant to change such election  without  obtaining the
         consent of his Spouse with respect to such change.  A former spouse who
         is treated as a Spouse under  Section 1.44 must consent to any election
         that  affects  benefit  payments,  if any,  to be  made to such  former
         spouse,  but no consent  shall be required from such former spouse with
         respect to  benefits  that are not  required  to be paid to such former
         spouse under Article XII. No consent  obtained  under this Section 1.43
         shall be valid unless the  Participant has received any notice required
         under  Sections  401(a)(11)  and 417 of the  Code  and the  regulations
         thereunder.

1.44     "Spouse"  means,  as of any date, the person to whom the Participant is
         legally  married on such date.  A former  spouse  shall be treated as a
         Spouse to the extent  provided  under a  Qualified  Domestic  Relations
         Order.

1.45     "Surviving Spouse" means the Participant's Spouse on such Participant's
         date of death.

1.46      "Trust," means the legal entity resulting from the Trust Agreement
          between the Employer and the Trustee.

1.47     "Trust  Agreement"  means the  agreement  between the  Employer and the
         Trustee,   or  any  successor  Trustee,   establishing  the  Trust  and
         specifying the duties of the Trustee.

1.48    "Trustee" means the trustee or trustees designated by the Board of
        Directors.

1.49    "Year of Eligibility Service" means a computation period during which an
        Employee is credited with at least 1,000 Hours of Service.

        (a)     For  purposes of Article II, the first  eligibility  computation
                period is the  12-consecutive-month  period  that  begins on the
                date the Employee first performs an Hour of Service.  Succeeding
                12-consecutive-month  computation periods begin on the first day
                of each Plan Year thereafter.

        (b)     For purposes of Article III, each separate Plan Year shall be
                deemed to be a separate computation period.

                                       10
<PAGE>

The use of the  masculine  pronoun  shall  include the  feminine  gender and the
singular shall include the plural whenever appropriate.

                                       11
<PAGE>

                                   ARTICLE II

                          ELIGIBILITY AND PARTICIPATION

2.1      ELIGIBILITY AND PARTICIPATION REQUIREMENTS:

(a)           Each  individual who was a participant in the Plan as in effect as
              of December 31, 1999 was given the  opportunity to make a one-time
              irrevocable  election to either participate in the Account Balance
              Plan or to remain in the  Appendix  A Plan.  Each such  individual
              shall become a Participant in the Account Balance Plan or continue
              as a Participant in the Appendix A Plan, as of January 1, 2000, in
              accordance with such individual's  election.  In no event shall an
              Employee commence participation in the Account Balance Plan before
              January 1, 2000.

(b)           Each other  person who is, or becomes an  Eligible  Employee on or
              after  January 1, 2000 shall become a  Participant  in the Account
              Balance Plan on the first day of the month coincident with or next
              following the date on which such  individual has both attained age
              21 and completed a Year of Eligibility  Service (or, if later,  on
              the first day of the month thereafter that the individual  becomes
              an Eligible Employee).

(c)           The Plan  Administrator  shall,  no later  than 90 days  after the
              Eligible Employee  commences  participation in the Account Balance
              Plan,   advise  the  Eligible   Employee  that  he  has  become  a
              Participant,  and provide him with  information  about the Account
              Balance Plan.

2.2      ABSENCE FROM EMPLOYMENT:

         Any person who is absent from the active  employment of the Employer on
         the date he would otherwise become a Participant in the Account Balance
         Plan, by reason of authorized  leave of absence granted by the Employer
         or by  reason  of  military  service,  shall  automatically  become  an
         Participant in the Account Balance Plan as of the date of his return to
         active employment as an Eligible Employee, subject to the provisions of
         this Article II.

2.3      INELIGIBLE CLASSIFICATIONS:

         An  Account  Balance  Plan  Participant  who  ceases to be an  Eligible
         Employee, but who continues to be an Employee,  shall continue to be an
         Account  Balance Plan  Participant  with respect to his or her existing
         Account,  and such Participant's period of employment shall continue to
         be considered in  determining  his years of Service.  Interest  Credits
         shall  continue but Pay Credits shall be suspended,  and benefits shall
         not be payable  from the  Account  Balance  Plan until  termination  of
         employment with the Corporate Group or as required by law.

                                       12
<PAGE>

2.4      REEMPLOYMENT:

         If a former  Account  Balance  Plan  Participant  is  reemployed  as an
         Eligible  Employee,  he shall immediately  recommence to participate in
         the Plan and the following rules shall apply:

(a)           If  the  Participant  is  receiving,  or has  previously  received
              benefit  payments from the Account  Balance Plan, his Account upon
              rehire shall be $0. If he elected an annuity,  such annuity  shall
              continue to be paid.

(b)           If  the  Participant  had a  nonforfeitable  right  to an  Account
              Balance Accrued Benefit as of the date of the  commencement of his
              break  in  service,  and he has not  taken a  distribution  of his
              Account,  his Account  upon rehire  shall be  redetermined  as the
              Account as of the commencement of his break, plus Interest Credits
              earned through his date of reemployment.

(c)           If the  Participant  did not  have a  nonforfeitable  right  to an
              Account Balance Accrued Benefit as of the date of the commencement
              of a break in service,  his prior  Service  shall be restored upon
              rehire, and his Account shall be redetermined as the Account as of
              the commencement of his break, plus Interest Credits earned during
              such break.

         The  Participant  will again be  eligible  for  Pay-Based  Credits  (in
         accordance  with Section 3.2) and Interest  Credits (in accordance with
         Section 3.3).

         In the  event of the  reemployment  on or after  January  1, 2000 as an
         Eligible  Employee of an individual  who was  previously  employed as a
         Participant  under  the  Appendix  A Plan,  such  individual  shall  be
         eligible to become a  Participant  as provided in this  Article II, and
         his or her Account upon rehire shall be $0.

                                       13
<PAGE>

                                   ARTICLE III

                        ACCOUNTS AND CREDITS TO ACCOUNTS

3.1      ACCOUNTS:

(a)           Each Eligible  Employee who becomes a  Participant  in the Account
              Balance  Plan shall have an Account  established  with  respect to
              such  Eligible  Employee.  Credits shall be made to the Account of
              each such  individual  pursuant to the  provisions of this Article
              III.  Accounts  shall be  bookkeeping  accounts,  and  neither the
              maintenance  of, nor the  crediting  of amounts to, such  Accounts
              shall be treated as (i) the  allocation  of assets of the Plan to,
              or a  segregation  of such assets in, any such  Account or (ii) as
              otherwise  creating  a right in any  person  to  receive  specific
              assets of the Plan.  Benefits  provided under the Account  Balance
              Plan shall be paid from the Fund in the amounts,  in the forms and
              at the times provided under the terms of the Account Balance Plan.

(b)           When an Account is initially  established for an Eligible Employee
              who was  employed  prior  to  January  1,  2000  and who  became a
              Participant  as of  January  1, 2000 in  accordance  with  Section
              2.1(a),  such  Participant's  Account  shall be  credited  with an
              Opening Account Balance as of January 1, 2000.

3.2      PAY-BASED CREDITS:

         (a)  As of the last day of each Plan Year beginning on or after January
              1, 2000,  a Pay-Based  Credit shall be made to the Account of each
              Employee who meets the  following two  requirements  for such Plan
              Year:

              (i)    the Employee was a Participant for all or part of such Plan
                     Year, and

              (ii)   the Employee completed a Year of Eligibility Service for
                     such Plan Year

                  Such  Pay  Based  Credit  shall  be  equal  to  the  Specified
                  Percentage of the Participant's Eligible Compensation for such
                  Plan Year, but in no event less than $1000 for such Plan Year.

(b)           In addition to the Pay-Based  Credits made to Accounts pursuant to
              subsection  (a)  above,  as of the  last  day of  each  Plan  Year
              beginning on or after  January 1, 2000, a  supplemental  Pay-Based
              Credit   shall  be  made  to  the  Account  of  each   Participant
              specifically  designated  in  Exhibit II who  completed  a Year of
              Eligibility Service for such Plan Year, in an amount equal to such
              percentage of his Eligible  Compensation  for such Plan Year as is
              designated for such Participant in Exhibit II.

                                       14
<PAGE>

(c)           Notwithstanding  the  foregoing,  Pay-Based  Credits shall also be
              credited  to  the  Account  of a  Participant  who  is a  Disabled
              Participant   based  on  the   Disabled   Participant's   Eligible
              Compensation  actually  paid during the last full Plan Year before
              becoming a Disabled  Participant.  Such  Pay-Based  Credits  shall
              continue to be made until the earlier of (i) the date he ceases to
              be a Disabled  Participant,  (ii) his Normal  Retirement  Date, or
              (iii) the Disabled Participant elects a Benefit Commencement Date.

3.3      INTEREST CREDITS:

         As of the last day of each Plan Year  beginning on or after  January 1,
         2000, each  Participant's  Account shall be automatically  increased by
         crediting  the  balance  in  such  Account  as of the  last  day of the
         preceding  Plan  Year with an  Interest  Credit  equal to the  Interest
         Credit Rate for such year multiplied by the Participant's Account as of
         the last day of the preceding  Plan Year.  Such Interest  Credits shall
         continue  after  a  Participant  ceases  to  be an  Eligible  Employee;
         provided,  however,  that  no  Interest  Credit  shall  be  made  to  a
         Participant's  Account for any calendar month beginning on or after his
         Benefit  Commencement  Date, unless his benefit is being paid solely to
         comply  with  Section  401(a)(9)  of the Code.  During the Plan Year in
         which a Participant's  Benefit  Commencement  Date occurs,  he shall be
         entitled to a partial year of Interest Credits determined on a pro rata
         basis by  determining  the number of completed full months prior to the
         Participant's Benefit Commencement Date over 12 months.

3.4     CREDIT FOR MILITARY SERVICE:

       Notwithstanding  any  provision  of  this  Account  Balance  Plan  to the
       contrary,  Employer contributions,  benefits, and Service with respect to
       qualified  military  service will be provided in accordance  with section
       414(u) of the Code.

                                       15
<PAGE>

                                   ARTICLE IV

                               RETIREMENT BENEFITS

4.1      NORMAL RETIREMENT BENEFIT:

         Each  Participant who retires from employment on his Normal  Retirement
         Date shall be entitled to receive a Retirement  Benefit,  commencing as
         of such Normal  Retirement  Date, equal to such  Participant's  Account
         Balance Accrued Benefit as of such Normal  Retirement Date,  payable as
         provided in Section 7.

4.2      LATE RETIREMENT BENEFIT:

         If a Participant  remains  employed beyond his Normal  Retirement Date,
         such  Participant  shall be  entitled to receive a  Retirement  Benefit
         equal to such  Participant's  Account Balance Accrued Benefit as of his
         actual retirement date, payable as provided in Section 7.

4.3      EARLY RETIREMENT BENEFIT:

         At any time within ten years prior to his Normal  Retirement  Date, and
         provided he has completed five or more years of Service,  a Participant
         may  elect,  by  providing  advance  notice in such  manner as the Plan
         Administrator  shall prescribe,  to retire early from the Plan. In such
         case,  he shall  receive a  deferred  Retirement  Benefit  equal to his
         Account  Balance Accrued  Benefit  commencing on his Normal  Retirement
         Date,  payable  as  provided  in  Section  7,  except  as is  otherwise
         hereinafter provided.

         Subject to such rules as the Plan  Administrator  shall prescribe,  any
         Participant  who retires in accordance with this Section 4.3 may elect,
         in such manner as the Plan Administrator shall prescribe,  to receive a
         Retirement Benefit as of any Benefit  Commencement Date selected by him
         which is on or after his  termination  of  employment  and prior to his
         Normal  Retirement  Date, in an amount which, if payable as a lump sum,
         shall  be  equal  to  the  value  of his  Account  as of  such  Benefit
         Commencement  Date, and if payable as an annuity as provided in Section
         7, the  annual  amount of such  annuity  shall be equal to his  Account
         Balance Accrued Benefit as of such Benefit  Commencement  Date, reduced
         by   one-quarter  of  one  percent  (1/4%)  for  each  month  that  the
         Participant's  Benefit  Commencement  Date  precedes the  Participant's
         Normal Retirement Date.

                                       16
<PAGE>

4.4      VESTED BENEFIT:

         A Participant  who has a  nonforfeitable  right to his Account  Balance
         Accrued Benefit in accordance with Subsection  5.1(a) shall be entitled
         to receive a Retirement Benefit as provided in Article V.

4.5      DISABILITY RETIREMENT BENEFIT:

         If a Participant  becomes a Disabled  Participant  while employed as an
         Eligible Employee, an Account shall continue to be maintained under the
         Account Balance Plan on his behalf during such period of Disability and
         shall be credited with Pay Credits (based on the Eligible  Compensation
         actually paid during the last full Plan Year before becoming a Disabled
         Participant ) during such period of  Disability  prior to his attaining
         his  Normal  Retirement  Date (or,  if  earlier,  the date on which the
         Disabled  Participant elects a Benefit Commencement Date). In addition,
         Interest  Credits  shall  be  made  to the  Account  of  such  Disabled
         Participant  until  there is a  Benefit  Commencement  Date.  After the
         Disabled  Participant  either  attains  Normal  Retirement Age or is no
         longer  deemed to be  Disabled,  the  Participant  shall be entitled to
         receive a  Retirement  Benefit in  accordance  with the  provisions  of
         Section 4.1 or 4.3, whichever is applicable.

4.6      NONDUPLICATION OF BENEFITS:

         The amount of a  Participant's  Retirement  Benefit shall be reduced by
         that portion of any  retirement  income,  payable from any source other
         than this  Account  Balance  Plan,  to which he is  entitled  under any
         pension plan  maintained  by a member of the  Corporate  Group which is
         intended to be  tax-qualified  under section  401(a) of the Code (other
         than a profit  sharing  or stock  bonus plan  which is  intended  to be
         tax-qualified  under section 401(a) of the Code) which is  attributable
         to a period of  employment  for which he  receives a benefit  from this
         Account  Balance Plan,  except that no such reduction shall be made for
         that  part of any  such  retirement  income  which is  attributable  to
         contributions  made by him. For the purpose of computing  the amount of
         such  reduction,  any such  retirement  income,  payment of which is to
         commence other than at the Employee's Normal Retirement Date under this
         Account  Balance  Plan,  or  payment  of which is to be made on a basis
         other than a  retirement  income for life,  shall be  recomputed  as an
         Actuarial Equivalent reduction of the Account.

         Furthermore,  an Eligible  Employee who is earning credited service for
         benefits under any other qualified  defined benefit pension plan of the
         Employer or other member of the Corporate Group (including the Appendix
         A Plan),  shall not be eligible to become a Participant  in the Account
         Balance  Plan until he no longer is so earning  credited  service,  and
         shall not be entitled to Pay Credits  under this  Account  Balance Plan
         with respect to any period during which he has earned credited  service
         under such other pension or retirement plan.

                                       17
<PAGE>

                                    ARTICLE V

                                     VESTING

5.1      BENEFIT ON TERMINATION OF EMPLOYMENT PRIOR TO NORMAL RETIREMENT DATE:

(a)           A  Participant's  vested  interest in his Account  Balance Accrued
              Benefit  shall be determined by his years of Service in accordance
              with the following schedule:

                     YEARS OF SERVICE                       VESTED PERCENTAGE

                        fewer than 5                                 0%
                        5 or more                                  100%

(b)     Notwithstanding the foregoing,

(i)                        in  no  event  shall  an  individual   who  both  (A)
                           participated in the Plan prior to January 1, 2000 and
                           (B) becomes a Participant in the Account Balance Plan
                           pursuant to Subsection  2.1(a) have a  nonforfeitable
                           right to a percentage of his Account  Balance Accrued
                           Benefit which is less than such percentage would have
                           been  had the  vesting  provisions  of the Plan as in
                           effect  immediately prior to January 1, 2000 remained
                           unchanged on and after January 1, 2000; and

(ii)                       the Account  Balance Accrued Benefit of a Participant
                           shall in all events be 100% vested and nonforfeitable
                           upon his attainment of age 65 while still employed by
                           the Employer or other member of the Corporate Group.

5.2     PAYMENT OF VESTED BENEFIT:

       Except  as is  otherwise  hereinafter  provided,  if a vested  terminated
       Participant  survives to his Normal Retirement Date, he shall be entitled
       to receive a  Retirement  Benefit,  commencing  on his Normal  Retirement
       Date,  equal to his  Account  Balance  Accrued  Benefit  as of his Normal
       Retirement Date, payable as provided in Section 7.

        Subject to such rules as the Plan  Administrator  shall  prescribe,  any
       vested  terminated  Participant  may  elect,  in such  manner as the Plan
       Administrator shall prescribe,  to receive a Retirement Benefit as of any
       Benefit  Commencement  Date  selected  by him  which is on or  after  his
       termination of employment and prior to his Normal  Retirement Date, in an
       amount  which,  if payable as a lump sum,  shall be equal to the value of
       his Account as of such Benefit  Commencement  Date,  and if payable as an
       annuity  as  provided  in  Section  7,  shall be  equal to the  Actuarial

                                       18
<PAGE>

       Equivalent  of his Account  Balance  Accrued  Benefit as of such  Benefit
       Commencement  Date;  provided,  however,  that if the  vested  terminated
       Participant's  Benefit  Commencement  Date is on or after he attains  age
       fifty-five,  the  annual  amount  of such  annuity  shall be equal to his
       Account  Balance Accrued  Benefit as of such Benefit  Commencement  Date,
       reduced  by  one-quarter  of one  percent  (1/4%) for each month that the
       vested terminated  Participant's  Benefit  Commencement Date precedes the
       vested terminated Participant's Normal Retirement Date.

        Notwithstanding the foregoing,

          (a)     if the  value  of a  vested  terminated  Participant's  vested
                  Account as of the date of such  Participant's  termination  of
                  employment does not exceed $5,000 and did not exceed $5,000 at
                  the time of any prior  distribution,  the vested  value of the
                  Participant's  Account  shall be paid to such  Participant  as
                  soon as practicable thereafter in a single lump sum; and

          (b)     in the case of a Participant who has no vested interest in his
                  Account  Balance  Accrued  Benefit  on the date he  terminates
                  employment,  such  Participant  shall be  deemed  to have been
                  cashed out as of his or her date of termination, and he or she
                  shall have no further interest in the Plan, except as provided
                  in Section 2.4.

                                       19
<PAGE>

                                   ARTICLE VI

                          PRERETIREMENT DEATH BENEFITS

6.1      BENEFIT PAYABLE UPON DEATH BEFORE BENEFIT COMMENCEMENT DATE:

         If a  Participant  who is an  Employee,  a Disabled  Participant,  or a
         vested terminated Participant dies before his Benefit Commencement Date
         but on or after the date he becomes  vested in accordance  with Section
         5.1, a benefit shall be payable to his Beneficiary or Surviving  Spouse
         as follows:

         (a)      If the Participant  does not have a Surviving  Spouse (or if a
                  married  Participant has designated,  with appropriate Spousal
                  Consent,  as provided in Section 8.1, a Beneficiary other than
                  his Spouse), there shall be paid to his Beneficiary as soon as
                  practicable  after the  Participant's  death  (but in no event
                  later than the December 31 of the Plan Year which contains the
                  fifth  anniversary of the  Participant's  death), a single sum
                  amount  equal to 100% of the  value of his  Account  as of the
                  last day of the month in which  the  death of the  Participant
                  occurs,  plus applicable  Interest Credits through the Benefit
                  Commencement Date.

         (b)      Except as is otherwise provided in Section 6.1(a) above, if
                  the Participant has a Surviving Spouse, such Surviving
                  Spouse shall be entitled to receive a Retirement Benefit for
                  her life commencing on the date the Participant would
                  have attained his Normal Retirement Date if he had survived
                  to such date (the "Preretirement Survivor Annuity").
                  Such benefit to the Surviving Spouse shall be a single life
                  annuity, payable monthly, where such annuity is the
                  Actuarial Equivalent of the Account Balance Accrued Benefit
                  to which such Participant would have been entitled had
                  he terminated employment on his date of death, survived to
                  his Normal Retirement Date, and commenced to receive a
                  Retirement Benefit as of such date.  Notwithstanding the
                  foregoing, the Surviving Spouse of a Participant may elect
                  to commence receiving a Retirement Benefit for her life in
                  the form of a single life annuity commencing on the first
                  day of any month on or after the date the Participant died.
                  The monthly amount of such benefit to the Surviving
                  Spouse shall equal the monthly amount payable under a single
                  life annuity where such single life annuity is the
                  Actuarial Equivalent of the Account  Balance Accrued Benefit
                  to which such Participant would have been entitled had
                  he terminated employment on his date of death, survived to
                  such commencement date, and commenced to receive a
                  Retirement Benefit as of such date.  Alternatively, the
                  Surviving Spouse may request to receive, in lieu of any
                  other benefits under the Plan to which she would otherwise
                  be entitled, a distribution of the value of the
                  Participant's Account as of his date of death, payable as
                  soon as practicable after the Participant's death, in a
                  single lump sum.

                                       20
<PAGE>

         (c)      Notwithstanding   the   foregoing,   if  the   value   of  the
                  Participant's  Account as of his date of death does not exceed
                  $5,000,  the Account  shall be  distributed  to the  Surviving
                  Spouse or Beneficiary  as soon as practicable  after the death
                  of the  Participant.  Such payment shall be in full settlement
                  of the  benefit  that  otherwise  would be payable  under this
                  Article VI.

                                       21
<PAGE>

                                   ARTICLE VII

                               PAYMENT OF BENEFITS

7.1      NORMAL FORM OF BENEFIT FOR A PARTICIPANT WITHOUT A SPOUSE:

         If a  Participant  does not have a Spouse on his  Benefit  Commencement
         Date, the Retirement  Benefit payable to such  Participant  pursuant to
         this Account  Balance Plan shall be a monthly  annuity,  payable in the
         Normal Form,  in an amount  equal to the  Actuarial  Equivalent  of his
         Account Balance Accrued  Benefit as of his Benefit  Commencement  Date;
         PROVIDED,  HOWEVER that during the period commencing 90 days before the
         beginning  of the month in which his Benefit  Commencement  Date falls,
         and  ending 60 days after such date,  such  Participant  may elect,  by
         filing  the  appropriate  form  with  the Plan  Administrator  that his
         Retirement  Benefit  be  paid in  another  permitted  optional  form of
         benefit described in Section 7.3.

7.2      NORMAL FORM OF BENEFIT FOR A PARTICIPANT WITH A SPOUSE:

         The Normal Form of benefit for a Participant  with a Spouse shall be as
follows:

         (a)      If a  Participant  has a Spouse  on his  Benefit  Commencement
                  Date, unless a Qualified  Election has been made (if required)
                  and another form of benefit payment has been elected  pursuant
                  to paragraph (e) of this Section 7.2, the  Retirement  Benefit
                  payable to such Participant  pursuant to Article IV shall be a
                  joint and 50% surviving  spouse annuity  (i.e.,  the Joint and
                  50%  Survivor  Annuity)  the amount of which is the  Actuarial
                  Equivalent  of the Normal Form of benefit that would have been
                  payable to the  Participant if the Participant was not married
                  on his Benefit Commencement Date.

                  Such joint and 50% surviving spouse annuity is a level monthly
                  annuity under which (i) the Participant  shall receive a level
                  monthly annuity for life and (ii) following the  Participant's
                  death the  Participant's  Spouse shall receive a level monthly
                  annuity for life with the monthly annuity payment equal to 50%
                  of the monthly  annuity  which would have been  payable to the
                  Participant had he lived.

         (b)      If the Participant's Spouse dies after the Participant's
                  Benefit Commencement Date (but before the Participant), the
                  Participant shall continue to receive the same amount payable
                  to such Participant under the joint and 50% surviving
                  spouse annuity form (i.e., the Joint and 50% Survivor Annuity)
                  for the remainder of the Participant's lifetime, with
                  the last payment to be made for the month in which his death
                  occurs.  Thereafter no further benefits shall be
                  payable under the Account Balance Plan with respect to the
                  Participant, whether or not the Participant has
                  subsequently remarried.  The individual who is the
                  Participant's Spouse on the Participant's Benefit Commencement

                                       22
<PAGE>

                  Date shall be treated as his Spouse for purposes of this
                  Section 7.2 so long as such Spouse shall live, whether or
                  not the Spouse is subsequently divorced from the Participant
                  or the marriage otherwise terminated after the
                  Participant's Benefit Commencement Date, except as a
                  Qualified Domestic Relations Order shall otherwise provide.

         (c)      Not more than 90 days,  and not less than 30 days,  before the
                  Benefit  Commencement Date, a Participant shall be furnished a
                  written explanation of:

                  (i)      the terms and conditions of the Normal Form;

                  (ii)     the right of the Participant to make, and the effect
                           of, a Qualified Election to reject the Normal Form;

                  (iii)    the right of the Participant's Spouse to consent or
                           not to consent to such Qualified Election; and

                  (iv)     a general  description of the eligibility  conditions
                           and other material  features of the optional forms of
                           benefits available under the Account Balance Plan.

         (d)      Notwithstanding the foregoing, a Participant may elect to have
                  his benefit commence as of a Benefit Commencement Date even if
                  the Benefit  Commencement  Date is less than 30 days after the
                  written  explanation  was provided to the  Participant  if the
                  following conditions are satisfied:

                  (i)      the written explanation is provided to the
                           Participant no later than the Benefit Commencement
                           Date,

                  (ii)     the written explanation explains that the Participant
                           has the  right to at least 30 days from the time that
                           such  written  explanation  is  provided  to  make  a
                           Qualified Election,

                   (iii)   the  Participant is permitted to revoke the Qualified
                           Election  at  any  time  during  the  30-day   period
                           referred to in subsection  (ii) above,  or the end of
                           the 7 day  period  beginning  on the  day  after  the
                           written  explanation is provided to the  Participant,
                           if later,

                   (iv)    distribution  of benefits  does not begin  before the
                           7-day period  described above expires (which date may
                           be later than the Benefit Commencement Date), and

                   (v)     the Participant makes a Qualified Election no later
                           than 90 days after the Benefit Commencement Date.

          (e)     A Participant may reject the joint and 50% surviving spouse
                  that otherwise would be payable annuity (i.e., the Joint
                  and 50% Survivor Annuity), and elect an optional form of

                                       23
<PAGE>

                  benefit under Section 7.3 below, by filing a Qualified
                  Election with the Plan Administrator during the period
                  commencing 90 days before the Benefit Commencement Date and
                  ending on the day prior to such date (or the date specified
                  in subsection (d) above if the benefit will commence in
                  accordance with the rules of subsection (d) above).
                  Revocation of a prior Qualified Election may be made by a
                  Participant before the Benefit Commencement Date (or the
                  date specified in (d) above if the benefit will commence in
                  accordance with the rules of subsection (d) above) by filing
                  the appropriate form with the Plan Administrator.  The
                  number of revocations and Qualified Elections permitted under
                  this Section (e) is unlimited.

7.3      OPTIONAL FORMS OF BENEFIT:

         (a)      The  optional  forms  of  benefit  (which  shall  each  be the
                  Actuarial  Equivalent  of the Normal  Form)  provided  in this
                  Section 7.3 shall be available  only to (i) a Participant  who
                  is not  married on the  Benefit  Commencement  Date and (ii) a
                  Participant who is married on the Benefit Commencement Date if
                  a Qualified Election,  made in accordance with Section 7.2, is
                  in  effect  on  such  Benefit  Commencement  Date  (except  as
                  provided below).

         (b)      The optional forms of benefit are the following:

                  (i)      JOINT AND 100% SURVIVOR ANNUITY. A reduced retirement
                           benefit  payable during the  Participant's  lifetime,
                           with the  provision  that  after  his  death the same
                           benefit  shall  be  paid  during  the  life  of  such
                           contingent annuitant (Beneficiary) as the Participant
                           shall  have  nominated  by written  designation  duly
                           acknowledged  and filed  with the Plan  Administrator
                           prior to the Benefit Commencement Date.

                   (ii)    JOINT AND 100% SURVIVOR ANNUITY WITH 5 OR 10 YEARS
                           CERTAIN.  A reduced retirement benefit payable during
                           the Participant's lifetime, with the provision that
                           after his death the same benefit shall be paid during
                           the life of such contingent annuitant (Beneficiary)
                           as the Participant shall have nominated by written
                           designation duly acknowledged and filed with the Plan
                           Administrator prior to the Benefit Commencement Date.
                           If both the Participant and the contingent annuitant
                           die before 60 or 120 monthly payments have been made
                           since the Benefit Commencement Date, the Actuarial
                           Equivalent value of the balance of such 60 or 120
                           monthly payments, as applicable, shall be paid in a
                           single sum to the estate of the survivor of the
                           Participant and contingent annuitant.

                  (iii)    JOINT AND 50% SURVIVOR ANNUITY WITH 5 OR 10 YEARS
                           CERTAIN.  A reduced retirement benefit payable during
                           the Participant's life with the provision that
                           after such period a benefit of one-half of the
                           benefit payable during the Participant's life shall
                           be continued during the life of such contingent
                           annuitant (Beneficiary) as the Participant shall have
                           nominated by written designation duly acknowledged

                                       24
<PAGE>

                           and filed with the Plan Administrator prior to the
                           time payment is to commence.  If both the Participant
                           and the contingent annuitant die before 60 or 120
                           monthly payments have been made since the Benefit
                           Commencement Date, the Actuarial Equivalent value of
                           the balance of such 60 or 120 monthly payments, as
                           applicable, shall be paid in a single sum to the
                           estate of the survivor of the Participant and
                           contingent annuitant.

                  (iv)     LIFE  ANNUITY  WITH  TEN  YEARS  CERTAIN.  A  reduced
                           retirement  benefit payable during the  Participant's
                           life,  with  no  benefit  payable  after  his  death;
                           provided,  however, that if the Participant shall die
                           before  having  received 120 monthly  payments,  such
                           monthly  payments  shall  continue  to be paid to his
                           Beneficiary until the total number of payments to the
                           Participant  and the  Beneficiary  equals 120. If the
                           Participant  and  Beneficiary  both die before having
                           received  a  total  of  120  monthly  payments,   the
                           Actuarial  Equivalent  value of the balance of unpaid
                           monthly payments shall be paid in a single sum to the
                           estate  of  the  survivor  of  the   Participant  and
                           Beneficiary.

                  (v)      STRAIGHT LIFE ANNUITY.  An increased retirement
                           benefit payable during the Participant's life,
                           with no other benefit payable after his death.

                  (vi)     SINGLE LUMP SUM PAYMENT.  A lump sum payment equal
                           to the value of the Participant's Account as of the
                           Benefit Commencement Date.

7.4      CLAIM FOR BENEFIT:

          (a)     A Participant must file a claim for benefits before payment of
                  benefits  shall  commence.  The claim for benefits shall be in
                  writing,   in  such  form  as  the  Plan  Administrator  shall
                  designate.

         (b)      The  claim for  benefits  shall  specify  the date as of which
                  payments are to commence,  consistent  with the  provisions of
                  the Account Balance Plan for commencement of benefits.

         (c)      The claim for benefits  shall include a  certification  by the
                  Participant  either (i) that the Participant is not married or
                  (ii) that the  Participant is married and the name and date of
                  birth of the  individual to whom the  Participant  is married.
                  The  certification by the Participant as to the  Participant's
                  marital status shall be binding upon the Participant.

7.5      STATUTORY COMMENCEMENT OF BENEFITS:

         Except  as  is  otherwise   provided  in  Section  7.8,  payment  of  a
         Participant's  Retirement  Benefit shall begin no later than as soon as
         administratively   practicable   following   the   latest  of  (i)  the
         Participant's 65th birthday,  (ii) the tenth anniversary of the date on

                                       25
<PAGE>

         which he became a Participant,  or (iii) the date he terminates service
         with the  Employer,  (but not more than 60 days  after the close of the
         Plan Year in which the latest of (i), (ii) or (iii) occurs).

7.6      CASHOUTS:

         If the vested  value of the  Participant's  Account as of the date of a
         Participant's  termination  of  employment  (or as soon as  practicable
         thereafter)   does  not  exceed  the  applicable  limit  under  section
         411(a)(11)(A)   of  the  Code,  such  Account  shall  be  paid  to  the
         Participant  as soon as  practicable  thereafter  in a single lump sum.
         This  distribution  may  be  made  prior  to the  Participant's  Normal
         Retirement Date and without  obtaining the  Participant's  consent.  No
         distribution   in  excess  of  the  applicable   amount  under  section
         411(a)(11)(A)  of the  Code  may be made  without  the  consent  of the
         Participant  and, if the  Participant  is then  lawfully  married,  the
         consent of his Spouse in writing and witnessed by a notary public.

         If  the   vested   Participant's   Account  as  of  the  date  of  such
         Participant's  termination  of  employment  (or as soon as  practicable
         thereafter) is zero, the Participant shall be deemed to have received a
         payment of his entire vested Account  Balance Accrued Benefit under the
         Account Balance Plan as of the date he or she ceased to be an Employee.
         A payment (or deemed  payment)  under this Section 7.6 shall be in full
         settlement  of the  Participant's  benefits  under the Account  Balance
         Plan.

7.7      DEFERRED BENEFIT COMMENCEMENT DATE:

         Upon termination of a Participant's employment for any reason after his
         Normal Retirement Date, the Plan Administrator shall direct the Trustee
         to  commence  payment  of the  Participant's  Account  Balance  Accrued
         Benefit to him (or to his Beneficiary, if the Participant is deceased),
         in accordance with the provisions of Article VII not later than 60 days
         after the close of the Plan Year in which the Participant's  employment
         terminates.

7.8      MINIMUM REQUIRED DISTRIBUTIONS:

         Notwithstanding  anything else to the contrary  herein, a Participant's
         Account Balance  Accrued Benefit may not be distributed  under a method
         of payment which,  as of the "required  beginning  date" (as defined in
         section  401(a)(9) of the Code and applicable  guidance  promulgated by
         the   Internal   Revenue   Service),   does  not  satisfy  the  minimum
         distribution  requirements  under section 401(a)(9) of the Code and the
         applicable  Treasury  regulations.  The  Participant's  Account Balance
         Accrued  Benefit  will be  distributed,  beginning  not later  than the
         required  beginning  date, over the life of the Participant or over the
         lives of the  Participant  and his  Beneficiary  (or over a period  not
         extending  beyond  the  Participant's   life  expectancy  or  the  life
         expectancy of the Participant and his Beneficiary).

                                       26
<PAGE>

         Participants  attaining  age 70 1/2 in 2000 and later  years shall have
         the following required beginning date:

         (a)      a Participant  who is a 5% owner (as defined in Section 416(i)
                  of the Code), shall commence to receive payment of his benefit
                  no later than the April 1 of the calendar  year  following the
                  calendar year in which such Participant attains 70 1/2; and

         (b)      a Participant  who attained age 70 1/2 after December 31, 1999
                  and who is not a 5% owner,  shall commence to receive  payment
                  of his benefit no later than the April 1 of the calendar  year
                  following  the  later of (i) the  calendar  year in which  the
                  Participant  attains  age 70 1/2, or (ii) his  termination  of
                  employment  with the  Employer or any member of the  Corporate
                  Group.

         Applicable life  expectancies  will be determined under the unisex life
         expectancy  multiples under Treasury  Regulation section 1.72-9. If the
         Participant's  Spouse is not his  designated  Beneficiary,  a method of
         payment  to the  Participant  must  satisfy  the  minimum  distribution
         incidental  benefit  requirements  in the Treasury  regulations  issued
         pursuant to section 401(a)(9) of the Code.

7.9      DIRECT ROLLOVER FROM THE ACCOUNT BALANCE PLAN:

         Notwithstanding  any  provision  of the  Account  Balance  Plan  to the
         contrary that would otherwise limit a distributee's election under this
         Section  7.9, a  distributee  may elect,  at the time and in the manner
         prescribed  by the  Plan  Administrator,  to  have  any  portion  of an
         eligible rollover  distribution paid directly to an eligible retirement
         plan specified by the distributee in a direct rollover.
         For purposes of this Section,

          (a)     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:

                   (i)     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;

                   (ii)    any distribution to the extent such distribution is
                           required under section 401(a)(9) of the Code;

                   (iii)   the portion of any distribution that is not
                           includable in gross income; and

                   (iv)    any distribution with a value of $200 or less.

                                       27
<PAGE>

          (b)     An  "eligible  retirement  plan" is an  individual  retirement
                  account described in section 408(a) of the Code, an individual
                  retirement annuity described in section 408(b) of the Code, an
                  annuity  plan  described in section  403(b) of the Code,  or a
                  qualified  trust described in section 401(a) of the Code, that
                  accepts  the  distributee's  eligible  rollover  distribution.
                  However, for an eligible rollover  distribution to a surviving
                  Spouse,   an  eligible   retirement   plan  is  an  individual
                  retirement   account   or   individual   retirement   annuity.
                  Notwithstanding  anything  herein  to the  contrary,  only one
                  eligible  retirement  plan may be designated  for any eligible
                  rollover distribution.

          (c)     A "distributee"  includes an Employee or former  Employee.  In
                  addition, the Employee's or former Employee's Spouse or former
                  spouse who is the Alternate  Payee under a qualified  domestic
                  relations order, as defined in section 414(p) of the Code, are
                  distributees  with  regard to the  interest  of the  Spouse or
                  former spouse.

          (d)     A "direct  rollover" is a payment by the Account  Balance Plan
                  to the eligible  retirement plan specified by the distributee.
                  Notwithstanding  anything  herein  to the  contrary,  only one
                  direct  rollover  may  be  made  for  any  eligible   rollover
                  distribution.

                                       28
<PAGE>

                                  ARTICLE VIII

                                   BENEFICIARY

8.1      BENEFICIARY:

         (a)      A  Participant  who has a Surviving  Spouse at the date of his
                  death after his Benefit  Commencement Date shall automatically
                  be deemed to have  designated  such Spouse as his  Beneficiary
                  unless  (i) the  Participant  makes a  Qualified  Election  to
                  designate a different  Beneficiary and the Surviving Spouse of
                  such Participant gives Spousal Consent to such designation, or
                  (ii)  it is  established  to  the  satisfaction  of  the  Plan
                  Administrator   or  its  designee  that  the  consent  of  the
                  Surviving  Spouse  cannot be obtained  because  the  Surviving
                  Spouse   cannot  be  located  or  because  of  other   special
                  circumstances as prescribed by law.

                  A Participant may designate a Beneficiary or  Beneficiaries to
                  receive a death  benefit  in the event  the  Participant  dies
                  prior to his Benefit  Commencement  Date.  Such death  benefit
                  shall  be  payable  as   provided   in  Section  6.  Any  such
                  designation  shall be made, and may be changed or revoked,  by
                  filing the appropriate form with the Plan Administrator within
                  such time period as the Plan  Administrator  shall  prescribe.
                  Notwithstanding  the  foregoing,   a  Participant  who  has  a
                  Surviving  Spouse at the date of his death  before his Benefit
                  Commencement  Date  shall  automatically  be  deemed  to  have
                  designated  such Spouse to receive  such  preretirement  death
                  benefit  unless  such  Participant  designates,  with  Spousal
                  Consent,  another Beneficiary to receive a preretirement death
                  benefit. Any such designation of a nonspousal  Beneficiary for
                  such  preretirement  death  benefit  made prior to the date on
                  which a married  Participant  attains age 35 shall be null and
                  void,  provided,  the married  Participant  may  redesignate a
                  Beneficiary  other than his  Surviving  Spouse  (with  Spousal
                  Consent) on or after attaining age 35.

                  For purposes of this Section  8.1, the term  Surviving  Spouse
                  shall also include an individual to whom the  Participant  was
                  previously  married to the extent so required  under the terms
                  of a Qualified Domestic Relations.

          (b)     Subject to the provisions of Section 8.1(a) above, a
                  Beneficiary designation shall be made, and may be changed or
                  revoked, by filing the appropriate form with the Plan
                  Administrator or its designee.  If more than one person is
                  designated each shall have an equal share unless the
                  designation directs otherwise.  Any designation, change or
                  revocation by a Participant shall be effective only if it
                  is received by the Plan Administrator or its designee
                  before the death of such Participant.  For purposes of this
                  Section 8.1, the term "person" includes an individual, a
                  trust or an estate.  If no Beneficiary designation is on
                  file with the Plan Administrator or its designee at the

                                       29
<PAGE>

                  Participant's death, or if any designation is not effective
                  for any reason as determined by the Plan Administrator
                  or its designee, the benefit payable under the Plan shall
                  be paid to the following persons in the following order of
                  priority: (a) the Spouse; (b) children, including adopted
                  children and step-children, in equal shares; (c) parents,
                  in equal shares, and(d) the Participant's estate.  This
                  order of priority shall apply to individuals living at the
                  time of the Participant's death.

                                       30
<PAGE>

                                   ARTICLE IX

                             LIMITATIONS ON BENEFITS

9.1      MAXIMUM LIMITATIONS:

         The provisions of this Section 9.1 shall be construed consistently with
         Section 415 of the Code.

(a)      Maximum Benefit
         (i)      Any   other   provision   of  the   Plan   to   the   contrary
                  notwithstanding,  with respect to periods on and after January
                  1, 2000, the maximum annual benefit under the Account  Balance
                  Plan  (exclusive of any benefits  derived from the  Employee's
                  own  contributions and exclusive of any benefits which are not
                  directly related to retirement income benefits) shall, subject
                  to the  following  provisions  of this Section 9.1, not exceed
                  the lesser of:

                      (A)    $135,000, or

                      (B)    100% of the Employee's  average  "compensation" (as
                             defined   herein)  from  the  Corporate  Group  (as
                             modified  pursuant  to section  415(h) of the Code)
                             during  the  three  consecutive  calendar  years of
                             participation  during  which his  compensation  was
                             highest.

                  The  applicable  maximum  described  in (A) or (B) above shall
                  apply to a retirement  benefit payable in the form of a single
                  life annuity or a "qualified  joint and survivor  annuity" (as
                  hereinafter defined).

         (ii)   For a benefit not payable in the form of an annual straight life
                  annuity  within the  meaning of  Section  415(b)(2)(A)  of the
                  Code,  the maximum annual benefit shall be adjusted as follows
                  when  applying the limits  described in (1) (A) and (B) above.
                  The  annual  benefit is  determined  in the form of a straight
                  life annuity  commencing at the annuity  starting date that is
                  actuarially  equivalent to the plan benefit. For this purpose,
                  the actuarially  equivalent benefit must be the greater of the
                  equivalent  annual  benefit  calculated  using the factors set
                  forth  in  Exhibit  I of the  Account  Balance  Plan  for  the
                  particular form of benefit  payable and the equivalent  annual
                  benefit  calculated  using  the  Applicable  415  Rate and the
                  Applicable  Mortality Table. The amount  determined under this
                  paragraph  (2)  cannot  exceed  the  lesser of (a) the  amount
                  determined   under  paragraph  (3),  (4),  or  (5)  below  (as
                  applicable),  or (b) the amount determined under  subparagraph
                  (1) (b) above.

                                       31
<PAGE>

(iii)             In the  event  that  retirement  benefits  commence  under the
                  Account  Balance  Plan  at or  after  age 62 but  prior  to an
                  Employee's  "Social  Security  Retirement  Age" (as defined in
                  Section  415(b)(8)  of  the  Code),  the  $135,000  limitation
                  described  in (A) above shall be reduced by 5/9 of 1% for each
                  of the first 36 months by which the commencement date precedes
                  the Employee's Social Security  Retirement Age, and by 5/12 of
                  1% for each additional month by which such  commencement  date
                  precedes the Employee's Social Security Retirement Age.

(iv)           If the  commencement  date is earlier than age 62, reduced to the
                  actuarial equivalence of the amount determined under (3) above
                  applicable at age 62 based on either (a) the factors set forth
                  in  Exhibit I of the Plan for the  particular  form of benefit
                  payable  and  (b)  the  Applicable  Mortality  Table  and  5%,
                  whichever would yield the lesser limitation.

(v)            In the event that retirement  benefits commence under the Account
                  Balance  Plan after the  Employee's  attainment  of his or her
                  "Social  Security  Retirement  Age", the  determination  as to
                  whether the  $135,000  limitation  described  in (A) above has
                  been  satisfied  shall  be made in  accordance  with  guidance
                  issued by the Internal  Revenue  Service,  by increasing  such
                  limitation   actuarially   to  the   equivalent   of  $135,000
                  commencing  at such  "Social  Security  Retirement  Age".  The
                  increased   limitation   shall  be  based  on  the  Applicable
                  Mortality  Table  and an  interest  rate no  greater  than the
                  lesser of (a) the  factors  set forth in Exhibit I of the Plan
                  for the particular form of benefit payable and (b) 5%.

(vi)            If the  Employee has fewer than ten (10) years of  Service,  the
                  applicable  maximum described in (b) above shall be multiplied
                  by a fraction  of which the  numerator  is his or her years of
                  Service and the  denominator  is ten (10). If the Employee has
                  fewer than ten (10) years of  participation  in the Plan,  the
                  applicable  maximum described in (a) above shall be multiplied
                  by a fraction  of which the  numerator  is his or her years of
                  participation and the denominator is ten (10).

(vii)           The $135,000 limitation described in (A) above shall be adjusted
                   for  increases  in the  cost of  living  in  accordance  with
                   regulations  prescribed by the Internal Revenue Service under
                   Section 415(d) of the Code.

(viii)          "Qualified joint and survivor annuity" means an annuity for the
                life of the Employee with a survivor annuity for the life of his
                     or her  spouse  which  is not less  than  one-half  of,  or
                     greater than, the amount of the annuity  payable during the
                     joint  lives of the  Employee  and  spouse and which is the
                     actuarial  equivalent of a single life annuity for the life
                     of the  Employee,  as  determined  in  accordance  with the
                     factors set forth in Exhibit I of the Plan.

(ix)                "Compensation"  means  the  Participant's  compensation  as
                     defined  in  Treasury  Regulation  section  1.415-2(d)  for
                     services actually rendered in the course of employment with
                     a member of the  Corporate  Group (as modified  pursuant to
                     section 415(h) of the Code.

(x)               "Applicable Mortality Table" means the mortality table based
                   on the prevailing commissioners' standard table (described in
                     Section 807(d)(5)(A) of the Code) used to determine
                     reserves for group annuity contracts issued on the date as

                                       32
<PAGE>

                     of which present value is determined (without regard to any
                     other subparagraph of Section 807(d)(5) of the Code),
                     that is prescribed by the Commissioner of the Internal
                     Revenue Service in revenue rulings, notices, or other
                     guidance, published in the Internal Revenue Bulletin.

(xi)                 "Applicable  Interest Rate" means for any  distribution the
                     annual  interest  rate on 30-year  Treasury  securities  as
                     specified  by  the  Commissioner  of the  Internal  Revenue
                     Service in  revenue  rulings,  notices  or other  guidance,
                     published in the Internal Revenue  Bulletin,  for the month
                     of  November  of the Plan Year  preceding  the Plan Year in
                     which the annuity starting date occurs  (resulting in a one
                     year stability period).

(xii)                "Applicable  415 Rate" means, in the case of a distribution
                     in a form of benefit not  subject to Section  417(e) of the
                     Code,  5%, and in the case of a  distribution  in a form of
                     benefit  subject  to  Section  417(e)(3)  of the Code,  the
                     Applicable Interest Rate.

          (b)     Repeal of Provision

                  Should Congress  provide by statute,  or the Internal  Revenue
                  Service  provide by regulation  or ruling,  that any or all of
                  the  conditions  set forth in this  Section  9.1 are no longer
                  necessary  for the Plan to meet the  requirements  of  Section
                  401(a)  or other  applicable  provisions  of the Code  then in
                  effect,  such  conditions  shall  immediately  become void and
                  shall no  longer  apply,  without  the  necessity  of  further
                  amendment to the Plan.

9.2      PRE-TERMINATION RESTRICTIONS:

         (a)      The purpose of this Section 9.2 is to conform the Plan to the
                  requirements of Treasury Regulation Sections 1.401-4(c) and
                  1.401(a)(4)-5(b).

(i)                 In the event of the  termination of the Plan, the benefit of
                    any Highly Compensated  Employee shall in no event exceed an
                    amount that is nondiscriminatory  under Section 401(a)(4) of
                    the Code.

(ii)                The annual  payments  to an  Employee  described  in Section
                    9.2(a)(iii)  may not exceed an amount  equal in each year to
                    the payments that would be made on behalf of the Participant
                    under  a  straight   life  annuity  that  is  the  Actuarial
                    Equivalent  value  of  the  Participant's   Account  Balance
                    Accrued   Benefit  and  the  other  benefits  to  which  the
                    Participant is entitled under the Plan.  Notwithstanding the
                    foregoing, the restrictions of this subparagraph (ii) do not
                    apply if any one of the following requirements is satisfied:

                           (A)      after  payment to an Employee  described  in
                                    Section  9.2(a)(iii) of all  "benefits",  as
                                    described in Section  9.2(a)(iv),  the value
                                    of Plan assets equals or exceeds 110 percent
                                    of the value of  "current  liabilities"  (as
                                    defined in Section 412(l)(7) of the Code);

                                       33
<PAGE>

                           (B)      the value of the "benefits", as described in
                                    Section   9.2(a)(iv),   for  a   Participant
                                    described  in  Section  9.2(a)(iii)  is less
                                    than 1 percent of the value of such  current
                                    liabilities of the Plan, or

                           (C)      the value of the "benefits", as described in
                                    Section   9.2(a)(iv),   for  a   Participant
                                    described  in Section  9.2(a)(iii)  does not
                                    exceed $5,000.

                           Furthermore,  this  subparagraph  (ii)  and  Treasury
                           Regulation  Section   1.401(a)(4)-5(b)(3)  shall  not
                           restrict  any   distribution  to  a  Participant  who
                           agrees,  by an adequately  secured written  agreement
                           with the Plan  Administrator to repay to the Plan and
                           Trust Fund any amount  necessary for the distribution
                           of assets upon Plan  termination  to satisfy  Section
                           401(a)(4) of the Code.

(iii)             The   Participants   whose   benefits   are   restricted   on
                  distribution  consist of the 25 Highly Compensated  Employees
                  whose "compensation", within the meaning of Section 414(q) of
                  the Code,  was the  highest in the  current or any prior Plan
                  Year.

(iv)              For  purposes  of Section  9.2(a)(ii)(A)  the term  "benefits"
                  includes,  in addition  to other  benefits  payable  under the
                  Plan,  loans in excess  of the  amounts  set forth in  Section
                  72(p)(2)(A) of the Code, any periodic  income,  any withdrawal
                  values  payable to a living  Employee,  and any death benefits
                  not provided for by insurance on the Employee's life.

         (b)      In the event that Congress  should provide by statute,  or the
                  Internal  Revenue  Service  should  provide by  regulation  or
                  ruling, that any or all of the conditions set forth in Section
                  9.2(a)  are no  longer  necessary  for the  Plan  to meet  the
                  requirements of Section 401 or other applicable  provisions of
                  the Code then in effect,  such  conditions  shall  immediately
                  become void and shall no longer  apply,  without the necessity
                  of further amendment to the Plan.

                                       34
<PAGE>

                                    ARTICLE X

                                    FINANCING

10.1     FUND.

         The funding of the Account  Balance Plan and payment of benefits  shall
         be  provided  for  through  the medium of the Fund held by the  Trustee
         under the provisions of the Trust Agreement,  which is deemed to form a
         part of the Plan. All rights or benefits which may accrue to any person
         under the Account Balance Plan shall be subject to the Trust Agreement.
         The names of the current  Trustees are available  from the Secretary of
         the Employer.  The  contributions  of the  Employer,  together with any
         income,  gains,  or  profits,  less  distributions  and  losses,  shall
         constitute the Fund. The Employer shall determine the form and terms of
         any such Trust Agreement,  and may modify the Trust Agreement from time
         to time to  accomplish  the  purposes  of the Plan,  and may remove any
         Trustee.

10.2     CONTRIBUTIONS TO THE PLAN.

         The Employer intends to make, from time to time, such  contributions to
         the Fund as  determined  by the  Plan  Administrator.  Expenses  of the
         Account Balance Plan, unless paid by the Employer, shall be paid out of
         the  assets of the Fund.  There are no  Employee  contributions  to the
         Account Balance Plan.

10.3     FUNDING POLICY.

         The Plan  Administrator  shall  establish a written  funding policy and
         method  consistent  with the objectives of the Account Balance Plan and
         the  requirements  of Title I of ERISA.  The Plan  Administrator  shall
         review  such  funding  policy  and  method  at least  annually.  In its
         actions, the Plan Administrator shall endeavor to determine the Account
         Balance Plan's short-term and long-term objectives and financial needs,
         taking into account the need for liquidity to pay benefits and the need
         for investment  growth.  All actions under this Section,  including the
         supporting   reasons,   shall  be  recorded  in  writing  by  the  Plan
         Administrator and communicated to the Trustee and Board of Directors.

10.4     RETURN OF EMPLOYER CONTRIBUTIONS.

         Contributions  shall be returned to the Employer by the Trustee, if the
         Plan Administrator certifies in writing to the Trustee that one or more
         of the following circumstances exists:

                                       35
<PAGE>

(a)            If the  Employer  made a  contribution  by mistake  of fact,  the
               contribution  shall be returned to the  Employer  within one year
               after its payment to the Trustee.

(b)            If  the  Employer  made  the  contribution   conditioned  on  the
               qualification  of the Account Balance Plan under the Code, and if
               the Account Balance Plan receives an adverse  determination  with
               respect to its initial  qualification,  the contribution shall be
               returned  to the  Employer  within  one  year  after  such  final
               determination,  but only if the application for the determination
               is made by the time  prescribed by law for filing the  Employer's
               tax return for the taxable year in which the Account Balance Plan
               was adopted,  or such later date as the Secretary of the Treasury
               may prescribe.

(c)            To the extent that a deduction for a  contribution  under Section
               404 of the Code is disallowed, the contribution shall be returned
               to the Employer within one year after the disallowance (or within
               one  year  after  the  date  a  court   decision   upholding  the
               disallowance becomes final).

       With  respect  to  the  return  of   contributions   occasioned   by  the
        circumstances  listed in  subsections  (a) and/or (c) above,  the amount
        which  shall be  returned  to the  Employer  is the excess of the amount
        contributed  over the amount that would have been  contributed had there
        not  occurred  a  mistake  of  fact  or a  mistake  in  determining  the
        deduction. Earnings attributable to the excess contribution shall not be
        returned to the Employer,  but losses  attributable to the  contribution
        must reduce the amount to be returned.

                                       36
<PAGE>

                                   ARTICLE XI

                                 ADMINISTRATION

11.1     PLAN ADMINISTRATOR

(a)            The Plan  Administrator  shall  be the  named  fiduciary  for the
               Account Balance Plan and shall be responsible for the management,
               operation and administration of the Account Balance Plan.

(b)            The Board of  Directors  shall have the  authority  to appoint an
               individual  or other entity,  or a committee  consisting of three
               members to be the Plan  Administrator,  and to fill any vacancies
               which occur, in its sole discretion.  Any appointee is subject to
               removal by the Board of Directors at any time,  and may resign at
               his own volition upon 10 days prior  written  notice to the Board
               of  Directors.  If  at  any  time  there  is  no  appointed  Plan
               Administrator  because vacancies have not been filled,  the Board
               of Directors shall be deemed the Plan Administrator. Names of all
               current  appointees  shall be available from the Secretary of the
               Employer.

(c)            If the Plan  Administrator  is a  committee,  any act  that  this
               Account   balance   Plan   authorizes   or   requires   the  Plan
               Administrator  to do may be done at a meeting of the committee by
               a majority of the members then voting.

(d)            The Board of  Directors  will  appoint a chairman and a secretary
               and  such  other  agents  and   representatives  of  the  pension
               committee as it may deem  advisable  (SEE Section  11.5).  In its
               relationship  with  the  Trustee  and any  insurance  company  or
               companies on any matter or thing included in this Account Balance
               Plan, one member of the committee may be authorized by it to sign
               or execute any document on its behalf.  The Chairman of the Board
               of Directors  will  certify to the Trustee and to such  insurance
               company or companies  the name and signature of the member of the
               committee who is so authorized.

(e)            The Plan Administrator will serve without compensation for
               services as such, but all the Plan Administrator's expenses shall
               be paid by the Employer (SEE Section 11. 11).

(f)            The  Board  of  Directors,  in  its  sole  discretion,  may  also
               designate  the  Trustee  as  the  Plan  Administrator.  Any  such
               designation  shall  be  valid  only if the  Trustee  acknowledges
               responsibility  for the management,  operation and administration
               of  the  Account  Balance  Plan  in  writing.   Thereafter,   all
               references  in the  Account  Balance  Plan and  Trust to the Plan
               Administrator  shall mean the Trustee  unless and until the Board
               of  Directors   appoints  a  different  Plan   Administrator   in
               accordance with this Section.

                                       37
<PAGE>

11.2     FIDUCIARY AND ADMINISTRATIVE DUTIES

        (a)    The Plan Administrator  shall have the following powers,  duties,
               and  responsibilities,  which it may retain or delegate among the
               below-mentioned bodies:

(i)            Powers, duties, and responsibilities of administration which
               shall be delegable to an administrator;

(ii)           Powers,   duties,   and   responsibilities   of  custody  and
               disbursement  of the  assets  of the  Fund,  which  shall  be
               delegable to the Trustee, the administrator,  or an insurance
               company, and

(iii)          Powers,  duties,  and  responsibilities  of investment  which
               shall be delegable to the Trustee,  an investment advisor, or
               an insurance company.

         The Plan  Administrator  may appoint an  administrator,  an  investment
         advisor, or an insurance company, and review or redelegate the exercise
         of these powers, duties and responsibilities at any time.

       (b)      As provided in Section 10.3, the Plan Administrator will
                prescribe a funding policy for the Account Balance Plan.

11.3     GENERAL POWERS AND DISCRETION OF PLAN ADMINISTRATOR

(a)            The  Plan  Administrator  shall  have  all  powers  necessary  to
               administer the Account Balance Plan in accordance with its terms,
               including  the power to  construe  the Account  Balance  Plan and
               determine all questions that arise under it.

(b)            Notwithstanding  any other provision in the Account Balance Plan,
               and to the full extent  permitted by law, the Plan  Administrator
               shall have  exclusive  authority  and  discretion  to  interpret,
               construe and apply all of the terms of the Account  Balance Plan,
               including  any  uncertain  or disputed  term or  provision in the
               Account  Balance  Plan.  The Plan  Administrator's  authority and
               discretion shall include, but not be limited to, the following:

(i)     Determining and deciding all questions of law and/or fact that arise
        under the Account Balance Plan;

                                       38
<PAGE>

(ii)    Determining whether any individual is eligible for any benefits under
        this Account Balance Plan; and

(iii)   Determining the amount of benefits, if any, an individual is entitled to
        under this Account Balance Plan.

(c)            The Plan Administrator's  exercise of discretionary  authority to
               interpret,  construe  and apply the terms of the Account  Balance
               Plan,   and   all   its   determinations,   interpretations   and
               applications shall:

(i)               Be binding upon any  individual  claiming  benefits under this
                  Account  Balance  Plan,  including,  but not  limited  to, the
                  Participant,  the Participant's estate, any Beneficiary of the
                  Participant, and any Alternate Payees;

(ii)    Be given deference in all courts of law, to the greatest extent allowed
        by applicable law; and

(iii)   Not be  overturned  or set aside by any  court of law  unless  found to
        be arbitrary and capricious, or made in bad faith.

(d)            If the  discretionary  authority in  subsection  (c) is exercised
               with  respect  to an  individual  who is a member of the  pension
               committee,   the   authority   shall  be  exercised   solely  and
               exclusively by the other  members.  If the individual is the only
               Plan Administrator at the time, the discretionary authority shall
               be  exercised  by the  Board  of  Directors,  not  including  the
               affected  individual  if he is  also a  member  of the  Board  of
               Directors.

(e)            Any discretionary  actions of the Plan  Administrator or Board of
               Directors  shall be taken in a manner that does not  discriminate
               in favor of Highly Compensated Employees.

11.4     ADMINISTRATION OF THE FUND

(a)     The Trustee shall be responsible for the management and investment of
        the Fund in accordance with the provisions of the Trust Agreement.

(b)     Directives of the Plan Administrator to the Trustee shall be delivered
        in writing, and properly signed.

11.5     DELEGATION OF POWERS

(a)      When   the   Plan    Administrator    appoints    assistants   or
         representatives,  it may  delegate to them any powers and duties,
         both  ministerial  and  discretionary,  as it deems  expedient or
         appropriate (except as provided in Section 11.6).

                                       39
<PAGE>

(b)     Any appointment under this Section or Section 11.6 shall be made
        pursuant to a signed, written instrument.

11.6     APPOINTMENT OF PROFESSIONAL ASSISTANTS AND INVESTMENT MANAGERS

(a)            The Plan Administrator may engage accountants, actuaries,
               attorneys, physicians and such other professional personnel as it
               deems necessary or advisable.  The Plan Administrator may also
               appoint one or more investment managers to manage all
               or any of the assets of the Trust, including the power to acquire
               or dispose of assets.  However, the appointment of
               an investment manager must be approved by the Board of Directors,
               and the investment manager must acknowledge in writing that it
               is a fiduciary with respect to the Account Balance Plan.
               An investment manager can only be a party that is either
               (i) registered as an investment adviser under the Investment
               Advisers Act of 1940, (ii) a bank, as defined in that Act, or
               (iii) an insurance company qualified to manage, acquire and
               dispose of plan assets under the laws of more than one State.

(b)            The  functions of persons  engaged  under this  Section  shall be
               limited to the  specific  services  and duties for which they are
               engaged. Such persons shall have no other duties,  obligations or
               responsibilities  under the Account  Balance  Plan or Trust,  and
               shall  exercise no  discretion  regarding  the  management of the
               Account   Balance  Plan.   Unless  engaged   specifically  as  an
               investment manager,  such a person shall exercise no authority or
               control respecting management or disposition of the assets of the
               Trust.

(c)            The  fees  and  costs  of  services  under  this  Section  are an
               administrative expense of the Account Balance Plan to be paid out
               of the Fund, except to the extent paid by the Employer.

11.7     RECORDS

         All acts and  determinations  with respect to the Account  Balance Plan
         shall be duly recorded.  All such records and other  documents that may
         be necessary for the  administration  of the Account Balance Plan shall
         be preserved in the custody of the Plan Administrator (or its appointed
         assistants or representatives).

11.8     NOTICE OF ROLLOVER TREATMENT

         When making a qualifying  rollover  distribution  within the meaning of
         Code  Section  402(a),  the Plan  Administrator  shall  provide  to the
         recipient a written explanation of:

(a)           The  circumstances  under  which  such  distribution  will  not be
              subject to tax if transferred to an eligible  retirement  plan (as
              defined in Code Section  402(a))  within 60 days after the date on
              which the recipient receives the distribution; and

                                       40
<PAGE>

(b)     If applicable, the income averaging provisions of Code Section 402(e).

11.9     RESPONSIBILITY OF FIDUCIARIES

         The Plan Administrator and any assistant or representative,  other than
         any investment  manager,  shall be free from all liability for acts and
         conduct in the  administration  of the Account  Balance Plan and Trust,
         except for acts of willful misconduct.  However, the preceding sentence
         shall not relieve any fiduciary from any responsibility,  obligation or
         duty that the fiduciary may have pursuant to ERISA.

11.10    INDEMNITY BY EMPLOYER

         To the extent not insured  against by an applicable  insurance  policy,
         and to the extent  permitted by law, the Employer  shall  indemnify and
         hold  harmless  the  Plan   Administrator   and  its   assistants   and
         representatives from any and all claims,  demands, suits or proceedings
         in  connection  with the  Account  Balance  Plan or  Trust  that may be
         brought   against  them,   provided  the  individual  or  entity  being
         indemnified  is/was an  employee,  or committee  of  employees,  of the
         Employer.

11.11    PAYMENT OF FEES AND EXPENSES

         To the  extent  consistent  with  ERISA,  the  Plan  Administrator  and
         assistants and  representatives,  shall be entitled to payment from the
         Fund for all  reasonable  costs,  charges and expenses  incurred in the
         administration  of the Account  Balance Plan and Trust.  This includes,
         but is not limited to, reasonable fees for accounting,  legal and other
         services, to the extent incurred in the performance of duties under the
         Account Balance Plan and Trust,  except to the extent that the fees and
         costs are paid by the Employer.  Notwithstanding any other provision of
         the Account  Balance  Plan or Trust,  no person who is a  "disqualified
         person," within the meaning of Code Section 4975(e)(2) and who receives
         full-time  pay from the Employer  shall receive  compensation  from the
         Trust Fund,  except for reimbursement of expenses properly and actually
         incurred.

11.12    ERISA REPORTING AND DISCLOSURE

         The Plan Administrator  shall be responsible for the performance of all
         reporting and disclosure obligations under ERISA.

11.13    SERVICE OF LEGAL PROCESS

         The Plan  Administrator  shall be the  designated  agent of the Account
         Balance Plan for service of legal process.

11.14    CLAIM FOR BENEFITS.

                                       41
<PAGE>

         Any claim for benefits by a Participant or Beneficiary shall be made in
         writing to the Plan Administrator.

11.15    DENIAL OF CLAIM

(a)             If the Plan Administrator denies a claim in whole or in part, it
                shall send the Participant or Beneficiary ("claimant") a written
                notice of the denial.

(b)             The Plan  Administrator  shall send the denial  notice within 90
                days  after  the  date it  receives  a  claim,  unless  it needs
                additional  time to make its  decision.  In that case,  the Plan
                Administrator  may authorize an extension of up to an additional
                90 days, if it notifies the claimant of the extension within the
                initial  90-day  period.  The  extension  notice shall state the
                reasons for the extension and the expected decision date.

(c)             The denial notice shall be written in a manner calculated to be
                understood by the claimant and shall contain:

             (i)     The specific reason or reasons for the denial of the claim;

             (ii)    Specific reference to pertinent Account Balance Plan
                     provisions on which the denial is based;

             (iii)   A description  of any  additional  material or information
                     necessary to perfect the claim, with an explanation of why
                     the material or information is necessary; and

             (iv)    An explanation of the review procedures provided by
                     sections 11.16 and 11.17.

11.16    REQUEST FOR REVIEW OF DENIAL

(a)              Within 60 days after the claimant  receives a denial notice, he
                 may file a request for review with the Plan Administrator.  Any
                 such request must be made in writing.

(b)              A claimant who timely  requests  review shall have the right to
                 review pertinent  documents,  to submit additional  information
                 and written comments, and to be represented.

11.17    REVIEW DECISION

(a)     The Plan Administrator shall send the claimant a written decision on any
        request for review that it receives.

                                       42
<PAGE>

(b)              The Plan Administrator shall send the review decision within 60
                 days after the date it receives a request for review, unless an
                 extension of time is needed, due to special  circumstances.  In
                 that case, the Plan Administrator may authorize an extension of
                 up to an additional 60 days,  provided it notifies the claimant
                 of the extension within the initial 60-day period.

(c)              The review decision shall be written in a manner calculated to
                 be understood by the claimant and shall contain:

         (i)     The specific reason or reasons for the decision; and

         (ii)    Specific  reference to the  pertinent  Account  Balance Plan
                 provisions on which the decision is based.

(d)              If the Plan  Administrator  does not send the claimant a review
                 decision within the applicable time period,  the claim shall be
                 deemed denied on review.

(e)              The review decision (including a deemed decision) shall be the
                 final decision of  the Account Balance Plan.

                                       43
<PAGE>

                                   ARTICLE XII

                       QUALIFIED DOMESTIC RELATIONS ORDERS

12.1     GENERAL.

         Notwithstanding  the  restriction  against  alienation  and  assignment
         stated in Section 13.1,  the Plan  Administrator  shall comply with the
         terms of any Qualified Domestic Relations Order.

12.2     REQUIRED PROVISIONS.

         A Domestic Relations Order is a Qualified Domestic Relations Order only
         if it clearly specifies:

(a)     The name and the last known mailing address (if any) of the Participant
        and the name and mailing address of each Alternate Payee covered by
        the order;

(b)     The amount or percentage of the Participant's benefits that the Plan
        shall pay to each Alternate Payee, or the manner in which
        the amount or percentage is to be determined;

(c)     The number of payments or period to which the order applies; and

(d)     Each plan to which the order applies.

        Notwithstanding  the preceding  provisions,  a Domestic Relations Order
        that  does not  provide  the  specified  address  information  can be a
        Qualified  Domestic  Relations Order, if the Plan Administrator has the
        necessary information from other sources.

12.3    PROHIBITED PROVISIONS

        A Domestic Relations Order is a Qualified Domestic Relations Order only
        if it:

(a)     Does  not  require  the  Plan  to  provide  any  type or form of
        benefit, or any option, not otherwise provided under the Account
        Balance Plan, except as stated in Section 12.4 below;

(b)     Does not require the Plan to provide increased benefits determined on
        the basis of actuarial value; and

(c)     Does not require the payment of benefits to an  Alternate  Payee
        that are required to be paid to another Alternate Payee under an
        order previously determined to be a Qualified Domestic Relations
        Order.

                                       44
<PAGE>

12.4     EXCEPTION FOR CERTAIN PAYMENTS MADE AFTER EARLIEST RETIREMENT AGE

(a)             A Domestic  Relations  Order  shall not be treated as failing to
                meet the  requirements  of Section  12.3(a),  solely because the
                order requires payment to an Alternate Payee:

         (i)           In the  case of any  payment  before a  Participant  has
                       separated  from  service,  on or after the date on which
                       the  Participant  attains (or would have  attained)  the
                       "earliest  retirement  age" as defined in subsection (b)
                       below;

         (ii)          As if the Participant had retired on the date on which
                       payment is to begin under the order; and

         (iii)         In any form in which  benefits may be paid under the
                       Account  Balance Plan to the Participant.

(b)             For purposes of this Section, the term "earliest retirement age"
                means the earlier of:

         (i)           The date on which the Participant is entitled to a
                       distribution under the Plan; or

          (ii)         The earliest date on which the  Participant could receive
                      Account  Balance Plan  benefits if he had  separated  from
                      service with the Employer.

12.5     PLAN PROCEDURES WITH RESPECT TO DOMESTIC RELATIONS ORDERS

(a)             The  Plan  Administrator  shall  apply  the  procedures  in this
                Article,  and may adopt additional  appropriate  procedures,  to
                determine the qualified  status of Domestic  Relations Orders it
                receives  and  to  administer   distributions   under  Qualified
                Domestic Relations Orders.

(b)             The Plan Administrator shall promptly notify the Participant and
                each  Alternate  Payee of the receipt of the Domestic  Relations
                Order,  and provide them with copies of the  procedures the Plan
                will use in determining  the qualified  status of the order.  If
                addresses are not specified in the order, the Plan Administrator
                shall send notices to the last known addresses of these parties.
                The   Participant  and  any  Alternate  Payee  may  designate  a
                representative to receive copies of future  communications  from
                the Plan  Administrator  regarding  the order,  by  submitting a
                written request to the Plan Administrator.

(c)             Within a reasonable period after receiving a Domestic  Relations
                Order, the Plan  Administrator  shall determine  whether it is a
                Qualified   Domestic   Relations  Order  and  shall  notify  the

                                       45
<PAGE>

                Participant,   each   Alternate   Payee   and   any   designated
                representatives of the determination.

(d)             During  the  period in which the  issue of  qualified  status is
                being  determined  by the  Plan  Administrator,  by a  court  of
                competent  jurisdiction,  or otherwise,  the Plan  Administrator
                shall  separately  account for the amounts which would have been
                payable to the  Alternate  Payee  during the period if the order
                had been determined to be a Qualified  Domestic Relations Order.
                The separate  accounting is for  recordkeeping and a segregation
                of Fund assets is not required. The separately accounted amounts
                shall be treated in the following manner:

               (i)     If the Domestic Relations Order (or a modification of it)
                       is determined to be a Qualified  Domestic Relations Order
                       within 18  months of the date on which the first  payment
                       would be  required  to be made under the order,  the Plan
                       Administrator   shall  pay  the  amounts  (including  any
                       interest)  to  the  person  or  persons  entitled  to the
                       payment.

               (ii)    If the Domestic Relations Order is determined not to be a
                       Qualified  Domestic  Relations  Order or the issue is not
                       resolved, within the 18-month period specified above, the
                       Plan  Administrator  shall pay the amounts (including any
                       interest)  to the person or  persons  who would have been
                       entitled  to the  amounts if there had been no order.  In
                       applying this provision, the Plan Administrator may delay
                       payments for the full 18-month period, even if an earlier
                       determination  of  non-qualified  status is made,  if the
                       Plan  Administrator  has  notice  that  the  parties  are
                       attempting to remedy the order's deficiencies.

               (iii)   Any  determination of qualified status that is made after
                       the close of the 18-month period shall be applied
                       prospectively only.

                                       46
<PAGE>

                                  ARTICLE XIII

                            MISCELLANEOUS PROVISIONS

13.1     NO ALIENATION OR ASSIGNMENT

         The right of any  Participant  or Beneficiary to any benefit or payment
         under  the  Account  Balance  Plan or Trust  shall  not be  subject  to
         voluntary or involuntary transfer,  alienation or assignment.  Further,
         to the fullest extent  permitted by law, the right shall not be subject
         to attachment, execution, garnishment,  sequestration or other legal or
         equitable process.  In the event a Participant or Beneficiary  attempts
         to assign,  transfer or dispose of a right  under the  Account  Balance
         Plan,  or if any attempt is made to subject the right to such  process,
         the assignment, transfer or disposition shall be null and void.

13.2     ADOPTION OF PLAN BY ANOTHER EMPLOYER

         Any other  employer,  whether an Affiliated  Employer or not, may, with
         the approval of the Board of Directors of NBT Bancorp Inc.,  adopt this
         Account Balance Plan pursuant to appropriate written resolutions of its
         board of  directors.  The  adopting  employer  shall also  execute such
         documents  with the  Trustee  as may be  necessary  to make  the  other
         employer a party to the Trust. As part of its adopting resolutions, the
         other  employer  shall  delegate  authority to amend and  terminate the
         Account  Balance Plan to the Board of Directors of NBT Bancorp Inc. The
         National Bank and Trust Company,  by its adoption and execution of this
         document, is deemed to have made the foregoing delegation.

13.3     STATUS OF EMPLOYMENT RELATIONS

         The  adoption  and  maintenance  of the Account  Balance Plan and Trust
         shall not be deemed to  constitute a contract  between the Employer and
         its Employees or to be consideration for, or an inducement or condition
         of, the  employment  of any person.  Nothing  contained  in the Account
         Balance  Plan shall be deemed (a) to give to any  Employee the right to
         be retained in the employ of the  Employer,  (b) to affect the right of
         the Employer to discipline  or discharge any Employee at any time,  (c)
         to give the Employer the right to require any Employee to remain in its
         employ,  or (d)  to  affect  any  Employee's  right  to  terminate  his
         employment at any time.

13.4     BENEFITS PAYABLE BY TRUST

         All Benefits  payable  under the Account  Balance Plan shall be paid or
         provided for solely from the Trust.  The Employer  assumes no liability
         or responsibility for the payments.

                                       47
<PAGE>

13.5     INCREASES IN SOCIAL SECURITY BENEFITS

         Increases  in  Social  Security  benefits  or  the  taxable  wage  base
         subsequent to a  Participant's  termination of employment or Retirement
         shall not cause a reduction in benefits under the Account Balance Plan.

13.6     HEADINGS NOT PART OF THIS PLAN

         Headings of Articles and Sections are inserted only for  convenience of
         reference, and shall not be considered in construing the Plan.

13.7     GENDER AND NUMBER

         Unless the context clearly requires a different meaning, the use of the
         masculine pronoun includes the feminine gender, and the singular number
         includes the plural (and vice versa).

13.8     APPLICABLE LAW

         The Plan and  Trust  shall be  construed,  regulated,  interpreted  and
         administered  under and in accordance with the laws of the State of New
         York, unless preempted by federal law.

                                       48
<PAGE>

                                   ARTICLE XIV

                        AMENDMENT, MERGER AND TERMINATION

14.1     AMENDMENT

(a)             The Board of Directors of NBT Bancorp Inc. may amend the Account
                Balance  Plan at any time,  and from time to time,  pursuant  to
                written   resolutions  and  written   amendments.   However,  no
                amendment  shall have the effect of reducing the Account Balance
                Accrued  Benefit  of  any  Participant,  except  to  the  extent
                permitted under Section 412(c)(8) of the Code.

(b)             For purposes of this Section,  an amendment  that has the effect
                of (i) eliminating or reducing an early retirement  benefit or a
                retirement-  type subsidy,  or (ii) eliminating an optional form
                of benefit,  with  respect to benefits  attributable  to service
                before  the  amendment,  shall be treated  as  reducing  Account
                Balance Accrued Benefits.

(c)             In the case of a retirement-type  subsidy,  subsection (b) shall
                apply only with respect to a Participant  who satisfies  (either
                before or after the amendment) the  preamendment  conditions for
                the subsidy. In general, a retirement-type  subsidy is a subsidy
                that continues after retirement,  but does not include qualified
                disability  benefits,  a  medical  benefit,  a  Social  Security
                supplement, or a death benefit (including life insurance).

(d)             No amendment  to the Account  Balance Plan shall have the effect
                of decreasing a Participant's vested interest determined without
                regard  to such  amendment  as of the  later  of the  date  such
                amendment is adopted, or becomes effective.

14.2     TERMINATION OF ACCOUNT BALANCE PLAN AND TRUST

(a)             The Employer contemplates that the Account Balance Plan shall be
                permanent   and  that  the  Employer   shall  be  able  to  make
                contributions  to the Account  Balance  Plan.  Nevertheless,  in
                recognition of the fact that future conditions and circumstances
                cannot now be entirely  foreseen,  the Board of Directors of NBT
                Bancorp Inc.  reserves the right to terminate either the Account
                Balance Plan, or both the Account Balance Plan and the Trust, at
                any  time,   pursuant   to  written   resolutions   and  written
                amendments.

(b)             If  the  Board  of  Directors  of  NBT  Bancorp  Inc.   makes  a
                determination  to terminate the Account  Balance Plan and Trust,
                they shall be terminated  as of the date  specified in certified
                copies of resolutions  delivered to the Plan  Administrator  and
                the Trustee.

                                       49
<PAGE>

14.3     BENEFITS UPON TERMINATION AND PARTIAL TERMINATION

         In the event of a  termination  or partial  termination  of the Account
         Balance  Plan,  any  affected  Participant's  Account  Balance  Accrued
         Benefit  shall be  nonforfeitable  as of the date of such  event to the
         extent funded.  On termination of the Account Balance Plan, the Trustee
         will  liquidate  the  assets  held in the Fund.  After  payment  of all
         expenses of  liquidation,  the Plan  Administrator  shall  allocate the
         remainder  of the Fund  assets  among  Participants  and  Beneficiaries
         entitled to benefits,  and cause them to be distributed by the Trustee,
         in  accordance  with Section 4044 and other  applicable  provisions  of
         ERISA.  Any residual assets of the Account Balance Plan remaining after
         the above  allocation  and  distribution  shall revert to the Employer,
         provided  that all  liabilities  of the Account  Balance Plan have been
         satisfied.

14.4     MERGER, CONSOLIDATION OR TRANSFER OF ASSETS

         Neither  the Plan nor the Trust may be  merged  with any other  plan or
         trust unless each Participant would receive a benefit immediately after
         the merger  that is equal to or greater  than the benefit he would have
         been entitled to receive immediately before the merger, if the Plan had
         then  terminated.   The  preceding  sentence  shall  also  apply  to  a
         consolidation or transfer of assets.

                                       50
<PAGE>

                                   ARTICLE XV

                              TOP HEAVY PROVISIONS

15.1     APPLICATION

         The  provisions  of this Article XV shall become  effective in any Plan
         Year in which the Account Balance Plan is a Top Heavy Plan. The Account
         Balance  Plan shall be a Top Heavy Plan with  respect to a Plan Year if
         the  Top  Heavy  Ratio  exceeds  60%.  However,   notwithstanding   the
         foregoing,  the Account  Balance Plan shall not be a Top Heavy Plan for
         any Plan Year in which the Account  Balance  Plan is part of a Required
         Aggregation  Group of Plans or a Permissive  Aggregation Group of Plans
         if the Top Heavy Ratio for the group does not exceed 60%.

15.2     TOP HEAVY RATIO

         For  purposes  of this  Article  XV,  Top Heavy  Ratio  shall  mean the
         following:

(a)             If the Employer  does not maintain a defined  contribution  plan
                that covers an Employee in this Account  Balance  Plan,  the Top
                Heavy Ratio is a fraction,  the numerator of which is the sum of
                the  present  value of accrued  benefits  for all Key  Employees
                under this Account  Balance Plan and all other  defined  benefit
                plans  maintained  by  the  Employer  in  which  a Key  Employee
                participates as of the  Determination  Date, and the denominator
                of which is the sum of present value of accrued  benefits  under
                this Account  Balance Plan and such other defined  benefit plans
                on  that  date.  Both  the  numerator  and the  denominator  are
                adjusted  to  reflect  any  distribution  made in the  five-year
                period ending on the Determination Date.

(b)             If the Employer maintains one or more defined contribution plans
                which cover a Key Employee who participates in this Account
                Balance Plan, the Top Heavy Ratio is a fraction, the numerator
                of which is the sum of account balances for all Key
                Employees under the defined contribution plans sponsored by
                the Employer which cover a Key Employee and the present
                value of accrued benefits for all Key Employees under this
                Plan and all other defined benefit plans sponsored by the
                Employer which cover a Key Employee, and the denominator of
                which is the sum of the account balances under this
                Account Balance Plan and all other defined benefit plans
                sponsored by the Employer and the present value of accrued
                benefits under this Account Balance Plan and all other defined
                benefit plans sponsored by the Employer all calculated
                as of the Determination Date.  Both the numerator and
                denominator of the Top Heavy Ratio are adjusted for any
                distribution made in the five-year period ending on the
                Determination Date and any contribution due but unpaid as of
                the Determination Date.

         For  purposes of (a) and (b) above,  the value of account  balances and
         the present value of accrued benefits will be determined as of the most
         recent  valuation  date  that  falls  within  or ends with the 12 month
         period  ending on the  Determination  Date.  The account  balances  and

                                       51
<PAGE>

         accrued benefits of an Employee who is not a Key Employee but who was a
         Key Employee in a prior year will be  disregarded.  The  calculation of
         the Top Heavy Ratio, and the extent to which distributions,  rollovers,
         and transfers  are taken into account will be made in  accordance  with
         section  416  of  the  Code  and  the  regulations   thereunder.   When
         aggregating  plans,  the value of account balances and accrued benefits
         will be calculated with reference to the Determination  Dates that fall
         within the same calendar year. The accrued benefit of an individual who
         is not a Key  Employee  under  a  defined  benefit  plan  shall  be (1)
         determined under the method, if any, that uniformly applies for accrual
         purposes under all plans  maintained by the Corporate  Group, or (2) if
         there is no such method,  as if such  benefit  accrued not more rapidly
         than the slowest  accrual rate permitted  under the fractional  accrual
         rate of Section 411(b)(1)(C) of the Code.

15.3     DEFINITIONS

         The capitalized  terms used in this Article XV shall have the following
         meanings:

(a)            "Determination  Date"  with  respect to any Plan Year shall mean
                the last day of the  preceding  Plan Year, or in the case of the
                first Plan Year, the last day of such Plan Year.

(b)             Key Employee" shall mean each Employee or former Employee (and
                the Beneficiaries of such Employee) who at any time during the
                determination period was an officer of the Employer, who has
                an annual compensation in excess of 50% of the dollar
                limitation under Section 415(b)(1)(A), an owner (or considered
                an owner under Section 318 of the Code) of one of the
                ten largest interests in the Employer if such individual's
                compensation exceeds the dollar limitation under
                Section 415(c)(1)(A) of the Code, a 5% owner of the Employer,
                or a 1% owner of the Employer who has an annual
                compensation of more than $150,000.  The determination period
                of the Plan is the Plan Year containing the
                Determination Date and the four preceding Plan Years.
                The determination of who is a Key Employee will be made in
                accordance with Section 416(i)(1) of the Code and the
                regulations thereunder.

(c)             "Permissive  Aggregation Group of Plans" shall mean the Required
                Aggregation  Group of Plans  plus any other plan or plans of the
                Employer  which,  when  considered  together  with the  Required
                Aggregation  Group of  Plans,  would  continue  to  satisfy  the
                requirement of Section 401(a)(4) and 410 of the Code.

(d)             "Required Aggregation Group of Plans" shall mean:

(i)                   each qualified plan of the Employer in which at least one
                      Key Employee participates; and

(ii)                  any other  qualified  plan of the Employer which enables a
                      plan  described in (i) above to meet the  requirements  of
                      Sections 401(a)(4) or 410 of the Code.

                                       52
<PAGE>

(e)             "Top Heavy  Average  Compensation"  shall mean the average of an
                individual's   annual  total  pay  (as   described  in  Treasury
                Regulation Section 1.415-2(d)(2)) received from an Employer over
                any five  consecutive  Plan  Years  that  produces  the  highest
                average;  provided,  however, that years beginning after the end
                of the last Plan  Year in which  the Plan was a Top  Heavy  Plan
                shall be disregarded.

15.4     APPLICABLE LIMITATIONS IF TOP HEAVY

         For any Plan  Year in which  the  Account  Balance  Plan is a Top Heavy
Plan, the following shall apply:

(a)  (1)            Notwithstanding any other provision in this Account Balance
                    Plan except (2) and (3) below, each Employee who is not a
                    Key Employee will accrue a benefit (to be provided solely by
                    Employer contributions and expressed as a life
                    annuity commencing at his Normal Retirement Date) of not
                    less than 2% of his Top Heavy Average Compensation
                    multiplied by the number of his years of Service (up to a
                    maximum of 20%).  The minimum accrual is determined
                    without regard to any Social Security contribution.
                    The minimum accrual applies even though under other Account
                    Balance Plan provisions, the Employee would not otherwise be
                    entitled to receive an accrual, or would have
                    received a lesser accrual for the year because of (i) the
                    Plan's provisions for integration with Social Security,
                    or (ii) the Employee's failure to make mandatory employee
                    contributions.

(2)                 The  provisions in (1) above shall not apply to any Employee
                    who does not have at least  1,000  Hours of Service  for the
                    Plan Year. Furthermore, no additional benefit accruals shall
                    be  provided  pursuant  to (1) above to the extent  that the
                    total  accruals on behalf of the  Employee  attributable  to
                    Employer contributions will provide a benefit expressed as a
                    life  annuity  commencing  at  Normal  Retirement  Date that
                    equals or exceeds 20% of the  Employee's  Top Heavy  Average
                    Compensation.

(3)                 The  provisions in (1) above shall not apply to any Employee
                    to the extent that the  Employee is covered  under any other
                    plan or plans of the Employer and the minimum  allocation or
                    benefit  requirement  applicable  to top heavy plans will be
                    met in the other plan or plans.

         (b)    If, for any reason other than death,  disability or  retirement,
                an Employee shall incur a break in service before the completion
                of five years of service for vesting  purposes,  then in lieu of
                the  benefit  that  would  otherwise  be  provided,  he shall be
                entitled to a benefit equal to (1)  multiplied by (2) multiplied
                by (3) where:

(1)                 equals the monthly  Retirement  Benefit he would be entitled
                    to at his Normal Retirement Date under the terms of the Plan
                    then  in  effect  on  the  date  of his  termination,  if he
                    continued in Service until his Normal Retirement Date and he
                    continued to earn annually until his Normal  Retirement Date
                    the same rate of  compensation as he was earning at the time
                    of his termination.

                                       53
<PAGE>

(2)                 equals a fraction not  exceeding  one (1), the  numerator of
                    which is the Employee's  total years of participation in the
                    Plan at  termination,  and the  denominator  of which is the
                    total years of  participation he would have if he terminated
                    upon his Normal Retirement Date; and

(3)                 equals a percentage, according to the following chart,
                    based on the years of Service for vesting purposes:

                              YEARS OF SERVICE                   PERCENTAGE

                              fewer than 2                           0%
                                         2                          20%
                                         3                          40%
                                         4                          60%
                                         5 or more                 100%

         If the Plan ceases to be Top Heavy, then this Subparagraph (b) shall no
longer be applicable except as follows:

(1)                 the percentage of an Employee's accrued benefit that was
                    nonforfeitable before the Account Balance Plan ceased to be
                    Top Heavy must remain nonforfeitable; and
(2)                 an Employee who has completed three or more years of Service
                    for vesting  purposes may, after the Plan ceases to be a Top
                    Heavy  Plan,  elect to have his accrued  benefit  determined
                    according to the above provisions of this  Subparagraph (b).
                    For purposes of this  Subparagraph  (b) the vesting election
                    period  begins on the date the Plan ceases to be a Top Heavy
                    Plan and ends 60 days  following  that date, or the date the
                    Employee is given  written  notice that the Account  Balance
                    Plan is no longer a Top Heavy Plan, whichever is later.

         An election  pursuant to this  Subparagraph  (b) may be made only by an
         individual who is an Employee at the time of such an election and shall
         be irrevocable.

                                       54
<PAGE>

NBT Bancorp Inc. and NBT Bank, N.A. have caused this Plan to be signed by
duly authorized officers on this 18th day of December 2000.

                                                NBT BANCORP INC.

                                                By: /s/ Daryl R. Forsythe

                                                Title: Pres & CEO

                                                NBT BANK, N.A.

                                                By: /s/ Martin Dietrich

                                                Title: Pres & CEO

                                       55
<PAGE>

                                    EXHIBIT I

                       DEFINITION OF ACTUARIAL EQUIVALENT

The interest rate,  mortality  table and other factors,  if any,  applicable for
purposes of determining an Actuarial  Equivalent  benefit under Account  Balance
Plan Section 1.4 shall be determined in accordance  with the applicable  section
of this Exhibit I, below.

For purposes of this Exhibit I, "Applicable Mortality Table" means the mortality
table prescribed by the Internal  Revenue  Service,  which shall be based on the
prevailing  commissioners'  standard table (described in  ss.807(d)(5)(A) of the
Code) used to determine  reserves for group annuity contracts issued on the date
as of  which  a  present  value  is  determined  (without  regard  to any  other
subparagraph of  ss.807(d)(5) of the Code) as specified by the Internal  Revenue
Service.

Also for purposes of this Exhibit I,  "Applicable  Interest  Rate" means,  for a
Plan Year,  the  annual  rate of  interest  on 30-year  Treasury  securities  as
specified by the Internal  Revenue  Service for November of the  preceding  Plan
Year, in revenue  rulings,  notices or other guidance  published in the Internal
Revenue Bulletin.

1.       OPENING  ACCOUNT  BALANCE - For purposes of determining the Actuarially
         Equivalent  present  value as of December  31, 1999 of a  Participant's
         Accrued  Benefit  ("as  such term is  defined  in  Section  2.01 of the
         Appendix A Plan) as of that date to establish a  Participant's  Opening
         Account Balance under this Account Balance Plan (See Section 1.32(a) of
         the Account Balance Plan), Actuarial Equivalence will be based upon the
         following:

         Mortality:   Applicable Mortality Table

         Interest:    Applicable Interest Rate

2.       CONVERSION OF ACCOUNT TO ACCOUNT BALANCE ACCRUED BENEFIT - For purposes
         of determining a  Participant's  Account Balance  Accrued  Benefit,  as
         defined  in  Section  1.2  of  the  Account  Balance  Plan,   Actuarial
         Equivalence will be based upon the following:

         Mortality:   Applicable Mortality Table

         Interest:    Applicable Interest Rate

                                       56
<PAGE>

         This  determination is made by projecting the Participant's  Account to
         Normal  Retirement  Age  using  the  Applicable  Interest  Rate  at the
         determination date, and then converting the projected Account at Normal
         Retirement  Age  to the  Account  Balance  Accrued  Benefit  using  the
         Applicable   Mortality  Table  and  Applicable  Interest  Rate  at  the
         determination date.

3.       OPTIONAL   FORMS  -  For  purposes  of   converting   the  Normal  Form
         (single-life  annuity  with 60 months  of  payments  guaranteed)  to an
         Actuarially  Equivalent  optional  form of  payment  under the  Account
         Balance  Plan,  other than a lump sum,  Actuarial  Equivalence  will be
         based upon the following:

         Mortality:        The 1984 Unisex Pension Mortality Table
         Interest:         7.00%

4.       REDUCTION  FOR  EARLY  RETIREMENT  BENEFIT  PAYMENTS  PRIOR  TO  NORMAL
         RETIREMENT  AGE - As  stated  in  Sections  4.3 and 5.2 of the  Account
         Balance Plan, a Participant who has attained age 55 and who has five or
         more years of Service at their Benefit Commencement Date shall have his
         Account  Balance  Accrued Benefit reduced by one-quarter of one percent
         (1/4%) for each full month  prior to Normal  Retirement  Date that such
         benefit is paid.

5.       REDUCTION  FOR  BENEFIT   PAYMENTS  PRIOR  TO  NORMAL   RETIREMENT  FOR
         PARTICIPANTS  NOT  ELIGIBLE  FOR EARLY  RETIREMENT  - For  purposes  of
         converting  a  Participant's  Account  Balance  Accrued  Benefit  to an
         Actuarially  Equivalent Normal Form annuity at his Benefit Commencement
         Date, Actuarial Equivalence will be based upon the following:

         Mortality:        The 1984 Unisex Pension Mortality Table
         Interest:         7.00%

6.       OTHER ACTUARIAL  EQUIVALENCE  DETERMINATIONS - The Applicable  Interest
         Rate and the Applicable  Mortality Table shall be used
         for all other Actuarial Equivalence determinations.

                                       57
<PAGE>

                                   EXHIBIT II

DESIGNATED PARTICIPANT.....................................DESIGNATED PERCENTAGE

John R. Bradley                                             ....30.0%

Michael J. Chewens                                          ....14.0%

Martin A. Dietrich                                          ....17.0%

Daryl Forsythe                                              ....35.0%

Joe C. Minor                                                ....30.0%

Jane E. Neal                                                ....30.0%

John Roberts                                                ....30.0%

                                       58
<PAGE>

                                 APPENDIX A PLAN

                                       59
<PAGE>

                               NBT BANCORP, INC.

                          DEFINED BENEFIT PENSION PLAN

Amended and restated as of October 1, 1989,
including amendments adopted through August 31, 1998

<PAGE>

                                TABLE OF CONTENTS
                                -----------------

                                                                           Page
                                                                           ----

ARTICLE I - GENERAL PROVISIONS
------------------------------

1.01              Designation                                               1
1.02              Effective Date                                            1
1.03              Purpose                                                   1

ARTICLE II - DEFINITIONS                                                    2
------------------------

ARTICLE III - ELIGIBILITY AND PARTICIPATION REQUIREMENTS
--------------------------------------------------------

3.01              Eligibility                                              18
3.02              Becoming a Participant                                   18
3.03              Eligibility after Reemployment                           19
3.04              Eligibility Based on Service in Ineligible
                    Classification                                         20

ARTICLE IV - SERVICE CREDITING
------------------------------

4.01              Benefit Service                                          21
4.02              Vesting Service                                          21
4.03              Treatment of Prior Service after a Break in Service      22
4.04              Retention of Service                                     23
4.05              Limitation of Service Credited                           23

ARTICLE V - VESTING AND FORFEITURES
-----------------------------------

5.01              Vesting Schedule                                         24
5.02              Exceptions to Vesting Schedule                           24
5.03              Forfeitures                                              25
5.04              Amendments Affecting Vesting Schedule                    26

ARTICLE VI - BENEFITS ELIGIBILITY
---------------------------------

6.01              Normal Retirement Benefit                                27
6.02              Early Retirement Benefit                                 27
6.03              Late Retirement Benefit                                  28
6.04              Disability Retirement Benefit                            28
6.05              Preretirement Death Benefit.                             28
6.06              Benefits Following Termination of Employment             30

                                      -i-
<PAGE>

                           TABLE OF CONTENTS (cont'd)
                           --------------------------

                                                                           Page
                                                                           ----

ARTICLE VII - COMPUTATION OF BENEFITS
-------------------------------------

7.01              Normal Retirement Benefit                                31
7.02              Early Retirement Benefit                                 32
7.03              Late Retirement Benefit                                  32
7.04              Disability Retirement Benefit                            33
7.05              Preretirement Death Benefit                              33
7.06              Deferred Vested Retirement Benefit                       34
7.07              Reemployment After Benefit Commencement                  34
7.08              July 1, 1995 Cost-of-Living Increase                     35

ARTICLE VIII - BENEFICIARIES
----------------------------

8.01              Designation of a Beneficiary                             36
8.02              Spouses's Rights                                         36
8.03              Absence of a Designated Beneficiary                      37
8.04              Beneficiaries' Rights                                    38

ARTICLE IX - DISTRIBUTION REQUIREMENTS
--------------------------------------

9.01              Form of Distribution                                     39
9.02              Compliance with Code Section 401(a)(9)                   42
9.03              Required Distribution to Participant                     42
9.04              Limits on Distribution Periods                           44
9.05              Required Distribution to Beneficiary                     45
9.06              Location of Participant or Beneficiary Unknown           45
9.07              Facility of Payment                                      45
9.08              Eligible Rollover Distributions                          46

ARTICLE X - FINANCING
---------------------

10.01             Fund                                                     48
10.02             Contributions to the Plan                                48
10.03             Funding Policy                                           48
10.04             Return of Employer Contributions                         48

                                      -ii-

<PAGE>

                           TABLE OF CONTENTS (cont'd)
                           --------------------------

                                                                           Page
                                                                           ----

ARTICLE XI - ADMINISTRATION
---------------------------

11.01             Plan Administrator                                       50
11.02             Fiduciary and Administrative Duties                      51
11.03             General Powers and Discretion of Plan Administrator      51
11.04             Administration of the Fund                               52
11.05             Delegation of Powers                                     52
11.06             Appointment of Professional Assistants and Investment
                    Managers                                               53
11.07             Records                                                  53
11.08             Notice of Rollover Treatment                             53
11.09             Responsibility of Fiduciaries                            53
11.10             Indemnity by Employer                                    54
11.11             Payment of Fees and Expenses                             54
11.12             ERISA Reporting and Disclosure                           54
11.13             Service of Legal Process                                 54
11.14             Claim for Benefits                                       54
11.15             Denial of Claim                                          54
11.16             Request for Review of Denial                             55
11.17             Review Decision                                          55

ARTICLE XII - LIMITATIONS ON BENEFITS
-------------------------------------

12.01             General Rules                                            57
12.02             Code Section 415 Limitations                             57
12.03             Deemed Satisfaction of Maximum Retirement Benefit
                    Limitation                                             60
12.04             Maximum Retirement Benefit for Multiple Plans            61
12.05             Exceptions to the Maximum Retirement Benefit Limitation  63
12.06             Increases in Maximum Retirement Benefit                  64

ARTICLE XIII - QUALIFIED DOMESTIC RELATIONS ORDERS
--------------------------------------------------

13.01             General                                                  65
13.02             Required Provisions                                      65
13.03             Prohibited Provisions                                    65
13.04             Exception for Certain Payments Made after Earliest
                    Retirement Age                                         66
13.05             Plan Procedures with Respect to Domestic Relations
                    Orders                                                 66

                                     -iii-

<PAGE>

                           TABLE OF CONTENTS (cont'd)
                           --------------------------

                                                                           Page
                                                                           ----

ARTICLE XIV - AMENDMENT, MERGER AND TERMINATION
-----------------------------------------------

14.01             Amendment                                                68
14.02             Termination of Plan and Trust                            68
14.03             Benefits upon Termination and Partial Termination        68
14.04             Restriction of Benefits to Certain Highly Compensated
                    Employees                                              69
14.05             Merger, Consolidation or Transfer of Assets              70

ARTICLE XV - TOP-HEAVY REQUIREMENTS
-----------------------------------

15.01             General Rules                                            71
15.02             Determination of Top-Heaviness                           72
15.03             Vesting in Employer Contributions under a Top-Heavy Plan 74
15.04             Minimum Required Benefit                                 75
15.05             Maximum Annual Benefit under a Super Top-Heavy Plan      77

ARTICLE XVI - MISCELLANEOUS PROVISIONS
--------------------------------------

16.01             No Alienation or Assignment                              78
16.02             Adoption of Plan by Another Employer                     78
16.03             Status of Employment Relations                           78
16.04             Benefits Payable by Trust                                78
16.05             Failure of Qualification                                 78
16.06             Increases in Social Security Benefits                    79
16.07             Headings Not Part of This Plan                           79
16.08             Gender and Number                                        79
16.09             Applicable Law                                           79

                                      -iv-

<PAGE>

                                   ARTICLE I

                               GENERAL PROVISIONS
                               ------------------

         1.01 DESIGNATION.  This Plan,  previously  designated The National Bank
and Trust Company of Norwich  Employees' Defined Benefit Pension Plan and Trust,
is designated the NBT BANCORP,  INC.  DEFINED BENEFIT PENSION PLAN. The Plan and
Trust are intended to meet the requirements of Sections 401(a) and 501(a) of the
Internal Revenue Code of 1986, as amended,  and the Employee  Retirement  Income
Security Act of 1974,  as amended.  The Plan is intended to qualify as a defined
benefit plan.

         1.02 EFFECTIVE DATE. This Plan originally  became  effective on October
1, 1986, following the Employer's termination of its participation in the Master
Plan of the New York State Bankers Retirement System. The Employer hereby amends
and restates the Plan effective  October 1, 1989  ("Effective  Date"),  unless a
different  effective  date is otherwise  stated.  This  restatement  governs the
rights of all  Employees  who have an Hour of Service  with the  Employer  on or
after the Effective Date. The rights of any former Employee who does not have an
Hour of  Service  on or  after  the  Effective  Date  shall be  governed  by the
provisions  of the  Predecessor  Plan in effect when he  terminated  employment,
unless otherwise provided in this Plan or required by law.

         1.03  PURPOSE.  The  purpose  of this Plan is to provide  benefits  for
Participants and Beneficiaries  (including any Alternate Payees).  Contributions
to the Plan, and any income,  shall be for the exclusive benefit of Participants
and Beneficiaries and shall not be used for, or diverted to, any other purpose.

<PAGE>

                                   ARTICLE II

                                  DEFINITIONS
                                  -----------

         The following  terms shall have the following  meanings in and for this
Plan.

         2.01  Accrued  Benefit  shall mean the amount  that will be paid to the
Participant,  under the formula in Section 7.01,  expressed as an annual benefit
(straight  life  annuity)   beginning  at  his  Normal   Retirement   Date.  The
Participant's accrued benefit as of a determination date shall be the portion of
the normal  retirement  benefit  accrued under that  formula,  based on years of
Credited Service through the determination date.

         2.02 Actual  Retirement Date shall mean the date on which a Participant
retires from service with the Employer,  within the meaning of  "Retirement"  in
this Article of the Plan.

         2.03  Actuarial  Equivalent  or  Actuarially  Equivalent  shall  mean a
benefit  payable  in  a  different  form  and/or  at a  different  time  than  a
Participant's  Accrued  Benefit,  but having the same value as that benefit when
computed using the following actuarial assumptions:

                  Mortality:                1984 Unisex Mortality Table
                  Interest:                 7 percent per annum

         a.  Notwithstanding the preceding sentence,  for Annuity Starting Dates
that occur  before  September  1, 1997,  the present  value of any  distribution
(other than a non-decreasing life annuity payable for a period not less than the
life of the Participant or Surviving  Spouse) shall be determined using the Code
Section 417(e)(3)  interest rates(s)  described in subsection (b) below, if such
rate(s) would produce a greater benefit than the assumptions above.

         b. The Code Section 417 interest rates are:

            i.  The Applicable Interest Rate if the present value of the benefit
                (using such rate(s)) is not in excess of $25,000; or

            ii. 120 percent of the  Applicable  Interest  Rate if the  present
                value of the benefit exceeds $25,000 (as determined under
                subsection (i) above).  In no event shall the  present  value
                determined  under this  subsection  (ii) be less than $25,000.

          c. Notwithstanding the foregoing of this Section 2.03, and subject to
subsection 2.03(d) below, for Annuity Starting Dates that occur after August 31,
1997, the present value of a lump sum distribution shall be determined by apply-
ing the Applicable Interest Rate and the "Applicable Mortality Table."

                                      -2-

<PAGE>

For purposes of this subsection 2.03(c),  the "Applicable  Mortality  Table" is
the  mortality  table based on the  prevailing commissioners'  standard table
(described in Code Section  807(d)(5)(A)) used to determine  reserves for group
annuity  contracts  issued on the date as of which present value is being
determined  (without regard to any other  subparagraph of Code Section  807(d)
(5)),  that is prescribed by the Internal Revenue Service in revenue  rulings,
notices or other guidance,  published in the Internal Revenue Bulletin.

         d. The lump sum  distribution  payable to a  Participant  whose Annuity
Starting  Date occurs  after  August 31, 1997 shall not be less than the present
value of the benefit  accrued by the  Participant  through August 31, 1997, when
calculated  by using the interest rate and  mortality  assumptions  in the first
sentence of this Section  2.03,  based on the  Participant's  age on the Annuity
Starting Date.

         2.04 Adjustment  Factor shall mean the cost of living adjustment factor
prescribed by the Secretary of the Treasury under Section 415(d) of the Code.

         2.05 Affiliated Employer shall mean (a) a member of a "controlled group
of  corporations"  or group of trades or  businesses  under  common  control (as
defined in Code Section 414(b) and (c)) of which the Employer is a member, (b) a
member of an affiliated  service group (as defined in Code Section 414(m)) which
includes the Employer,  or (c) any other entity that must be aggregated with the
Employer  pursuant  to Code  Section  414(o).  The  term  "controlled  group  of
corporations"  has the meaning  given in Code Section  1563(a),  but  determined
without regard to Code Sections 1563(a)(4) and (e)(3)(C).  Further, for purposes
of  applying  the  Code  Section  415  limitations  on  benefits,  Code  Section
1563(a)(1)  shall be applied by  substituting  the phrase "more than 50 percent"
for the phrase "at least 80  percent,"  each place that  phrase  appears.  If an
Affiliated Employer is also an Employer  maintaining the Plan, the provisions of
the Plan  shall  apply to that  entity as an  Employer,  rather  than only as an
Affiliated Employer.

         2.06 Alternate  Payee shall mean any spouse,  former  spouse,  child or
other dependent of a Participant who is recognized by a Domestic Relations Order
as having a right to receive  all, or a portion of, the benefits  payable  under
the Plan with respect to such Participant.

         2.07  Annual  Benefit  shall mean a benefit  attributable  to  Employer
contributions  payable in the form of a straight life annuity within the meaning
of Code Section 415(b)(2), as further described in Article XII.

         2.08  Annuity  Starting  Date  shall  mean  the  first day of the first
period for which an amount is paid to a Participant in any form.

                                      -3-

<PAGE>

         2.09     Applicable Interest Rate shall mean:

         a. for Annuity  Starting Dates that occur before September 1, 1997, the
interest  rate or rates that would be used, as of the first day of the Plan Year
that contains the Annuity Starting Date, by the PBGC for purposes of determining
the present value of the Participant's  benefits under the Plan, if the Plan had
terminated on that date with insufficient  assets to provide benefits guaranteed
by the PBGC; and

         b. for Annuity  Starting  Dates that occur after August 31,  1997,  the
annual  interest rate on 30-year  Treasury  securities for the second month that
precedes  the Plan Year during  which the Annuity  Starting  Date  occurs.  (For
example,  for Annuity Starting Dates that occur in 1998, the Applicable Interest
Rate  shall be the  annual  interest  rate on 30-year  Treasury  securities  for
November 1997, as specified by the Internal  Revenue Service in revenue rulings,
notices or other guidance published in the Internal Revenue Bulletin.)

         2.10  Beneficiary  shall  mean  any  person  properly  designated  by a
Participant  pursuant to Article VIII to receive any benefits  payable after the
Participant's death.

         2.11  Board  of  Directors  shall  mean  the Board  of Directors of the
Employer.

         2.12 Break in Service or  One-Year  Break in Service  shall mean a Plan
Year during  which a  Participant  is not  credited  with more than 500 Hours of
Service;  provided  that,  for the Plan Year that  begins on October 1, 1994 and
ends December 31, 1994, a Participant  shall not incur a Break in Service if the
Participant  is  credited  with at least 125 Hours of Service  during  that Plan
Year.

         2.13 Code shall mean the Internal Revenue Code of 1986, as amended from
time to time, and  implementing  Regulations  and rulings issued by the Internal
Revenue  Service.  References  to any  Section  of the Code  shall  include  any
successor provision.

         2.14  Compensation  shall mean  remuneration  paid by the Employer to a
Participant  in the form of fixed  basic  annual  salary or wages,  commissions,
overtime, and cash bonuses actually received; provided that, for Plan Years that
begin prior to January 1, 1995,  Compensation shall include  remuneration in the
form of  severance  pay and for Plan  Years  beginning  before  October 1, 1993,
Compensation shall not include remuneration in the form of commissions.  For all
years,  Compensation shall include any amount contributed by the Employer at the
direction of the Participant  pursuant to a salary  reduction  agreement,  which
amount is not  includable in the  Participant's  gross income under Code Section
125 (cafeteria plans) or Code Section 402(a)(8)  ("401(k)" plans).  Compensation
shall not  include  any other  form of  remuneration,  regardless  of the manner
calculated  or paid.  For  example,  "Compensation"  shall not  include  amounts
realized from the exercise of stock options or from the  disposition of stock or
stock rights,  Employer  contributions  to any public or private benefit plan or
system, or (after December 31, 1994) amounts paid as severance pay.

                                      -4-

<PAGE>

For the Plan Year in which an Employee  first  becomes a  Participant,  the term
"Compensation"  shall mean only the  Compensation  he receives after the date he
satisfies the eligibility requirements to participate in the Plan.

The annual  Compensation of each  Participant  taken into account under the Plan
for any Plan Year  beginning  after December 31, 1988 and before January 1, 1994
shall not exceed $200,000. Each January 1, beginning in 1990 and ending in 1993,
this amount shall be adjusted by the Adjustment  Factor,  using 1989 as the base
period. The adjusted  Compensation  limitation shall be effective for Plan Years
beginning within the calendar year of the adjustment.

For Plan Years beginning on or after January 1, 1994, the annual Compensation of
each Employee  taken into account under the Plan shall not exceed  $150,000,  as
adjusted by the  Commissioner  of the Internal  Revenue Service for increases in
the cost of living in accordance  with Section  401(a)(17)(B)  of the Code.  The
cost-of-living  adjustment  in effect for a calendar year applies to any period,
not exceeding 12 months,  over which  Compensation is determined  (determination
period)  beginning in such calendar year. If a determination  period consists of
fewer than 12 months,  the $150,000 limit will be multiplied by a fraction,  the
numerator of which is the number of months in the determination  period, and the
denominator of which is 12.

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

In applying the $200,000 and $150,000 limitations in Plan Years that begin prior
to January 1, 1997, the  Compensation of a Participant who is (i) a Five Percent
Owner,  or (ii) a Highly  Compensated  Employee  and one of the ten most  Highly
Compensated  Employees,  ranked on the basis of compensation (within the meaning
of Code Section  414(q)(7)) paid by the Employer during the Plan Year,  shall be
treated as including the  Compensation of his Spouse and any lineal  descendants
who have not  attained age 19 before the close of the Plan Year (but only if his
Spouse  or  lineal  descendant  also is an  Employee).  If,  as a result  of the
application of such rules, the $200,000 limitation or the $150,000 limitation is
exceeded,  then (except for purposes of determining  the portion of Compensation
included in "Covered Compensation" defined in Article VII), the limitation shall
be  prorated  among  the  affected  individuals,  in  proportion  to  each  such
individual's  Compensation  as  determined  under  this  Section  prior  to  the
application of the limitation.

         2.15 Defined Benefit Dollar Limitation shall mean the dollar limitation
in effect under Code Section 415(b)(1)(A);   specifically, $90,000,  as adjusted
each January 1 by the Adjustment Factor.   Any adjusted  limitation  shall apply
to Limitation  Years ending with or within the calendar year of the adjustment.

                                      -5-

<PAGE>

         2.16 Defined Benefit  Fraction shall mean the fraction  defined in Code
Section  415(e)(2)  that is used,  with the Defined  Contribution  Fraction,  to
determine  the  Maximum  Retirement  Benefit  for a  Participant  who  also  has
participated  in a defined  contribution  plan of the Employer or an  Affiliated
Employer.

         2.17 Defined  Contribution  Fraction shall mean the fraction defined in
Code Section  415(e)(3)  that is used,  with the Defined  Benefit  Fraction,  to
determine  the  Maximum  Retirement  Benefit  for a  Participant  who  also  has
participated  in a defined  contribution  plan of the Employer or an  Affiliated
Employer.

         2.18  Determination Date shall mean, with respect to any Plan Year, the
last day of the  preceding  Plan Year.  In the case of a first  Plan  Year,  the
Determination Date shall be the last day of that Plan Year.

         2.19  Disability  Retirement  Date  shall  mean  the  date  on  which a
Participant  terminates  employment  with the  Employer  because  of a Total and
Permanent Disability.

         2.20 Domestic Relations Order shall mean any judgment, decree, or order
(including  approval of a property  settlement  agreement) which: (a) relates to
the provision of child support, alimony payments or marital property rights to a
spouse, child or other dependent of a Participant, and (b) is made pursuant to a
state domestic relations law (including a community property law).

         2.21 Earliest  Retirement Age shall mean the earliest date on which the
Participant can elect to receive retirement benefits under the Plan.

         2.22  Early  Retirement  Date  shall  mean the date of a  Participant's
Retirement,  before  the  Normal  Retirement  Date,  after the  Participant  has
attained age 55 and earned a "Vested Percentage" (described in Article V) of 100
percent.

         2.23     Effective Date shall mean October 1, 1989.

         2.24  Employee  shall  mean any person who  receives  compensation  for
personal  services,  other than a  retainer  or fee under a  contract,  from the
Employer  of the  Employee  and who is treated by the  Employer  as a common law
employee for employment tax withholding purposes.  Any Leased Employees shall be
considered Employees solely for the purposes specified in Code Section 414(n).
Leased Employees shall not be eligible to participate in the Plan.

                                      -6-

<PAGE>

          2.25 Employer shall mean NBT Bancorp,  Inc., NBT Bank,  N.A. (formerly
known as  The National  Bank and Trust  Company and The National Bank and Trust
Company of Norwich), and any Affiliated Employer that adopts this Plan. Notwith-
standing the preceding sentence, the term Employer means NBT Bank, N.A. for pur-
poses of Plan administration,  and NBT Bancorp, Inc. for  purposes of  Sections
14.01 and 14.02.

         2.26 ERISA shall mean the Employee  Retirement  Income  Security Act of
1974, as amended from time to time, and any implementing regulations and rulings
issued by the Department of Labor or the Internal Revenue Service. References to
any Section of ERISA shall include any successor provision.

         2.27  Final  Average   Compensation  shall  mean  the  average  of  the
Participant's  annual  Compensation for the five Years of Benefit Service during
the  Participant's  last ten Years of Benefit  Service that produces the highest
average.  If a  Participant  has less than five  Years of Benefit  Service,  the
Participant's  Final  Average  Compensation  shall be the  average of his annual
Compensation for his total Years of Benefit  Service.  For Plan Years that begin
prior to October 1, 1993,  Final  Average  Compensation  shall be based upon the
Compensation  received by the Participant for each applicable calendar year. For
Plan Years that begin after September 30, 1993, Final Average Compensation shall
be based upon the  Compensation  received by the Participant for each applicable
Plan  Year.  In all  cases,  Final  Average  Compensation  shall be  based  upon
consecutive Years of Benefit Service.

         2.28 Five Percent Owner shall mean, as further  defined in Code Section
416(i),  any person who owns, or is considered as owning under the  constructive
ownership  rules of Code Section 318, more than five percent of the  outstanding
stock of the  Employer or stock  possessing  more than five percent of the total
combined voting power of all stock of the Employer.  However,  the  constructive
ownership  rules in Code Section  318(a)(2)(C)  shall be applied by substituting
"five  percent"  for "50  percent." If the  Employer is not a  corporation,  any
person who owns more than five  percent of the  capital or profits  interest  in
such organization is a Five Percent Owner.

         2.29     Fund shall mean the assets of the Plan.

         2.30  Highly  Compensated  Employee  shall  mean a  highly  compensated
employee  within the meaning of Code Section  414(q),  for Plan Years  beginning
after  December 31,  1986.  As set forth  below,  the term  "Highly  Compensated
Employee"  includes highly  compensated  active employees and highly compensated
former employees.  In the following  subsections,  the term "determination year"
means the current Plan Year and the term "look-back year" means the twelve-month
period immediately preceding the determination year.

         a. Highly Compensated Active Employee: For Plan Years that begin before
January 1, 1997,  highly  compensated  active employee includes any employee who
performs service for the Employer during the determination year and who:

                                      -7-

<PAGE>

                   i.  Received  compensation in excess of $75,000,  as adjusted
                       by the Adjustment Factor, during the look-back year;

                  ii.  Received compensation in excess of  $50,000,  as adjusted
                       by  the  Adjustment Factor, during  the  look-back  year,
                       and  was  a  member  of  the top-paid group for such year
                       (generally,  the  top  20 percent of  employees ranked on
                       the basis of compensation);

                 iii.  Was an officer (as defined in Code Section 416(i)) of the
                       Employer and received compensation  during the  look-back
                       year that is greater than 50 percent of the Defined Bene-
                       fit  Dollar  Limitation in effect during the year (if  no
                       officer  has  satisfied  this  compensation  requirement,
                       the highest-paid  officer  shall  be  treated as a Highly
                       Compensated Employee);

                  iv.  Is  described  in  the  above  subsections  if  the  term
                       "determination  year" is  substituted for the term "look-
                       back  year", and the employee is one of the 100 employees
                       who received the most compensation from the Employer dur-
                       ing the determination year; or

                   v.  Was a Five Percent Owner at any time during the look-back
                       year or determination year.

For Plan  Years that begin on or after  January  1, 1997,  a highly  compensated
active  employee  includes any  Employee who performs  services for the Employer
during the determination year and who (I) for the preceding  determination year,
received compensation from the Employer in excess of $80,000 (as adjusted by the
Secretary of the Treasury),  or (II) was a Five Percent Owner at any time during
the determination year or the preceding determination years.

         b. Highly  Compensated  Former Employee:  A highly  compensated  former
employee includes any employee who separated from service (or was deemed to have
separated) prior to the determination year, performs no service for the Employer
during the determination  year and was a highly  compensated active employee for
either the  separation  year or any  determination  year  ending on or after the
employee's 55th birthday.

         c. Family  Member  Aggregation  Rule:  For Plan Years that begin before
January 1, 1997,  if an employee is,  during a  determination  year or look-back
year,  a Family  Member of either (i) a Five  Percent  Owner who is an active or
former employee or (ii) a Highly Compensated Employee who is one of the ten most
Highly  Compensated  Employees  ranked on the basis of compensation  paid by the
Employer  during such year, then the Family Member and the Five Percent Owner or
top-ten  Highly  Compensated  Employee  shall be  aggregated.  In such case, the
Family  Member and Five Percent  Owner or top-ten  Highly  Compensated  Employee
shall  be  treated  as  a  single  employee  receiving   compensation  and  Plan
contributions   or  benefits  equal  to  the  sum  of  such   compensation   and
contributions or benefits of the Family Member and Five Percent Owner or top-ten

                                      -8-

<PAGE>

Highly  Compensated  Employee.  For purposes of this Section,  the  term "Family
Member" includes the spouse,  lineal ascendants and  descendants of the employee
or former employee and the spouses of such lineal ascendants and descendants.

         d.  Incorporation  of Section  414(q):  The  determination  of who is a
Highly Compensated Employee under the above rules,  including the determinations
of the number and  identity of  employees  in the  top-paid  group,  the top 100
employees, the number of employees treated as officers and the compensation that
is  considered,  shall  be made in  accordance  with  Code  Section  414(q)  and
implementing Regulations, which are hereby incorporated by reference.

         2.31 Hour of Service shall mean an hour  determined in accordance  with
the following  provisions.  In this definition,  the term  "computation  period"
means the Plan Year, with the following exception. To the extent that a "Year of
Service" is defined as a different period for eligibility purposes,  that period
shall be  considered  a  computation  period in  crediting  Hours of Service for
eligibility.

         a.  General Rules for Crediting Hours: For all purposes under the Plan,
an Employee shall be credited with an Hour of Service for all of the following:

                   i.  Each hour for which the  Employee is paid, or entitled to
                       payment,  for the performance of duties for the Employer.
                       These hours will be credited to the Employee for the com-
                       putation  period in which the duties are performed.

                  ii.  Each hour for which the Employee is paid,  or entitled to
                       payment,  by the  Employer,  on account of a period  dur-
                       ing  which no duties  are  performed  (whether or not the
                       employment relationship has terminated), due to vacation,
                       holiday,  illness,  incapacity  (including  disability),
                       layoff, jury duty,  military  duty  or  leave of absence.
                       Except as  provided in Section 7.04 (relating to disabil-
                       ity), no more than 501 Hours of Service shall be credited
                       under this  subsection for any single, continuous period,
                       whether or not such period occurs in a single computation
                       period.

                 iii.  Each hour for which back pay  (irrespective of mitigation
                       of damages)  is  either  awarded  or agreed  to  by  the
                       Employer.  The same Hours of Service will not be credited
                       both under subsection  (i) or (ii),  whichever is applic-
                       able,  and this subsection (iii). Under this subsection,
                       Hours of Service will be credited to the Employee for the
                       computation  period  to which the award or agreement per-
                       tains,  rather than the computation  period in  which the
                       award, agreement or payment is made.

                                      -9-

<PAGE>

Hours  under this  subsection  shall be  calculated  and  credited  pursuant  to
Department of Labor  Regulation  2530.200b-2(b)  and (c), which is  incorporated
herein by reference.

         b. Crediting Hours for Maternity or Paternity Leave to Prevent Break in
Service:  Solely  to  determine  whether a Break in  Service  has  occurred,  an
Employee who is absent from work for maternity or paternity reasons,  or is on a
leave of absence  taken in  accordance  with the Family and  Medical  Leave Act,
shall  receive  credit for the Hours of Service that would  otherwise  have been
credited to the Employee but for such  absence.  In any case in which such hours
cannot be  determined,  eight Hours of Service per day of such absence  shall be
credited.

                   i.  The Hours of Service credited under this subsection shall
                       be  credited  in  the  computation  period  in  which the
                       absence begins,  if necessary to prevent a Break in Ser-
                       vice in that period.  In all other cases,  the  Hours of
                       Service shall be credited to the next computation period.

                  ii.  For purposes of this subsection, an absence from work for
                       maternity or paternity reasons means an absence by reason
                       of  (A  the  Employee's  pregnancy,  (B) the birth of the
                       Employee's  child  or  the  placement of a child with the
                       Employee in connection  with  the Employee's  adoption of
                       the child,  or (C) the Employee  caring for the child for
                       a period  immediately  following such birth or placement.

                 iii.  In order to be credited  with Hours of Service under this
                       subsection, the  Employee  must provide the Plan Adminis-
                       trator  with  proof  that the  period of absence is for a
                       reason specified in subsection (ii) above.

         c. Hours Not Kept:  An Employee  for whom hours are not  normally  kept
shall  receive  credit for 45 Hours of Service for each weekly pay period during
which the Employee  performs one Hour of Service under the conditions  described
in subsection (a)(i) or (ii) above.

         d. Affiliated  Employers:  For  eligibility  and vesting  purposes (see
Articles III and IV),  Hours of Service  shall also be credited  for  employment
with any Affiliated Employer.

         e. For eligibility  and vesting  purposes  hereunder,  Hours of Service
shall  include each hour for which an Employee,  who was employed by any banking
institution or banking facility as of the date immediately preceding the date of
the  Employer's   acquisition  of  that   institution  or  facility  (and  which
acquisition  occurred on or before December 31, 1994), was credited with an hour
of service under the terms of such former  employer's  tax-qualified  retirement
plan as of the date immediately preceding the date of the Employer's acquisition
of the institution or facility.

         f.  Hours of Service  shall be  granted  for  eligibility  and  vesting
purposes during a period of military  service which does not exceed two years in
duration.  Hours  of  Service  shall  be credited on the basis of the Employee's

                                      -10-

<PAGE>

normal workweek when such leave commenced.  For purposes of this subsection (f),
military service  is  service with  the Armed Forces of the United States during
periods  of  war,  national emergency or conscription, subject to the  condition
that the  Employee  returns  to  active employment  with the Employer within the
period his reemployment rights are protected by applicable law.  Notwithstanding
the foregoing, Hours of Service shall include  qualified military service to the
extent  required by Code Section  414(u),  if such Code Section would grant more
service to the Employee.

         g. Except to the extent required by subsection  (a)(ii) above, Hours of
Service  shall not be granted for any  purpose  under the Plan as a result of an
Employee's receipt of severance pay from the Employer.

         2.32 Joint and Survivor Annuity shall mean an immediate annuity benefit
payable monthly for life to a Participant,  with a survivor annuity for the life
of the  Beneficiary  which is not less than 50 and not more than 100  percent of
the  amount of the  annuity  which is  payable  during  the  joint  lives of the
Participant and the Beneficiary.

         2.33 Key  Employee  shall mean an  employee  within the meaning of Code
Section 416(i). As further set forth in that Code Section, any Employee,  former
Employee or Beneficiary  will be considered a Key Employee if, for the Plan Year
that contains the  Determination  Date or any of the four  preceding Plan Years,
the employee is:

         a. An officer  (within  the  meaning  of Code  Section  416(i))  having
"annual  compensation"  from the Employer greater than 50 percent of the Defined
Benefit Dollar Limitation for any such Plan Year;

         b. An owner (or  considered  an owner under Code Section 318) of one of
the ten largest interests in the Employer,  who has "annual  compensation"  from
the  Employer  greater than the dollar  limitation  in effect under Code Section
415(c)(1)(A) (currently $30,000);

         c.       A Five Percent Owner; or

         d. A One Percent Owner with "annual  compensation" from the Employer of
more than $150,000.

For purposes of this  definition,  "annual  compensation"  means Limitation Year
Compensation,  plus any amounts contributed by the Employer pursuant to a salary
reduction agreement, which are excludable from the Employee's gross income under
Section 125, Section 402(a)(8), Section 402(h) or Section 403(b) of the Code.

         2.34 Leased  Employee  shall mean any person  (other than one who is an
employee without regard to a leasing arrangement) who performs services pursuant
to an agreement between the Employer and a leasing organization if:

                                      -11-

<PAGE>

         a.  The  services  have  been  performed  for the  Employer  or for the
Employer  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

         b. For Plan Years that begin before  January 1, 1997,  the services are
of a type  historically  performed by  employees  in the  business  field of the
Employer  and,  for Plan  Years that  begin on or after  January  1,  1997,  the
services are performed under the primary direction or control of the Employer.

         2.35 Limitation Year shall mean the calendar year.

         2.36 Limitation Year Compensation shall mean wages,  salaries, and fees
for professional  services and other amounts received (without regard to whether
or not an amount is paid in cash) for personal services actually rendered in the
course of  employment  with the  Employer  to the extent  that the  amounts  are
includable  in gross income  (including,  but not limited to,  commissions  paid
salesmen,  compensation  for services on the basis of a  percentage  of profits,
commissions   on   insurance   premiums,   tips,   bonuses,   fringe   benefits,
reimbursements, and expense allowances), and excluding the following:

         a. Employer contributions to a plan of deferred compensation, which are
not  includable  in the  Employee's  gross  income for the taxable year in which
contributed,  or Employer contributions under a simplified employee pension plan
(described  in Code  Section  408(k)) to the extent such  contributions  are not
includible in the gross income of the Employee, or any distributions from a plan
of deferred compensation;

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

         c. Amounts  realized from the sale,  exchange or other  disposition  of
stock acquired under a qualified stock option; and

         d. Other amounts which received special tax benefits.

Notwithstanding  the  above  definition,  for a  self-employed  individual  that
participates in the Plan (if any),  Limitation Year Compensation  shall mean the
net earnings from self-employment in the trade or business with respect to which
the Plan is  established,  for which  personal  services of the individual are a
material income-producing factor. Net earnings will be determined without regard
to items not  included  in gross  income and the  deductions  allocable  to such
items.  Net earnings are reduced by contributions by the Employer to a qualified
plan to the extent  deductible  under Code Section  404.  Net earnings  shall be
determined with regard to the deduction  allowed to the taxpayer by Code Section
164(f) for taxable years beginning after December 31, 1989.

                                      -12-

<PAGE>

For Limitation Years beginning after December 31, 1991, for purposes of applying
this  Section,  Limitation  Year  Compensation  for a  Limitation  Year  is  the
Limitation  Year  Compensation  actually  paid or  made  available  during  such
Limitation Year.

For Limitation Years beginning after December 31, 1997, for purposes of applying
this Section,  Limitation Year  Compensation  paid or made available during such
Limitation Year 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 Employee and which is not  includible in the gross income of
the Employee by reason of Code Sections 125 or 457.

         2.37  Maximum  Retirement Benefit shall mean the maximum Annual Benefit
determined  in  accordance  with  Article XII of the Plan and Section 415 of the
Code.

         2.38  Minimum  Required  Benefit  shall mean the benefit  described  in
Article XV which must be provided to Non-Key  Employees if the Plan is Top-Heavy
for a Plan Year.

         2.39 Minimum Vesting Schedule shall mean the vesting schedule  required
by Article XV if the Plan becomes Top-Heavy for one or more Plan Years.

         2.40 Non-Key Employee shall mean an Employee who is not a Key Employee.

         2.41  Non-Vested  Participant  shall  mean a  Participant  who is not a
Vested Participant.

         2.42 Normal Retirement Age shall mean the date upon which a Participant
attains age 65.

         2.43 Normal  Retirement  Date shall mean the first day of the  calendar
month coinciding with or next following a Participant's Normal Retirement Age.

         2.44 One Percent Owner shall mean,  as further  defined in Code Section
416(i),  any person who owns, or is considered as owning under the  constructive
ownership  rules of Code Section 318,  more than one percent of the  outstanding
stock of the  Employer  or stock  possessing  more than one percent of the total
combined voting power of all stock of the Employer.  However,  the  constructive
ownership  rules in Code Section  318(a)(2)(C)  shall be applied by substituting
"one percent" for "50 percent." If the Employer is not a corporation, any person
who owns more than one  percent  of the  capital  or  profits  interest  in such
organization is a One Percent Owner.

         2.45 Participant  shall  mean  an Employee who becomes a Participant in
the Plan as provided in Article III.

         2.4  PBGC shall mean the Pension Benefit Guaranty Corporation.

                                      -13-

<PAGE>

         2.47  Permissive   Aggregation  Group  shall  mean  a  group  of  plans
maintained by the Employer and any Affiliated Employer,  which may be aggregated
in determining  whether the Plan is Top-Heavy,  as further defined in Article XV
of the Plan.

         2.48 Plan shall mean the NBT  Bancorp,  Inc.  Defined  Benefit  Pension
Plan,  as amended from time to time.  Prior to January 1, 1995,  the name of the
Plan was The National Bank & Trust Company of Norwich Employees' Defined Benefit
Pension Plan and Trust.

         2.49 Plan  Administrator  shall  mean the  person,  committee  or other
entity  appointed to administer the Plan in accordance with Article XI. The Plan
Administrator  shall be the "named fiduciary" for the management,  operation and
administration of the Plan, within the meaning of Section 402(a) of ERISA.

         2.50 Plan Year shall mean the twelve consecutive month period beginning
on October 1st and ending on September 30th; provided,  however,  that (a) there
shall be a short Plan Year  beginning  on October 1, 1994 and ending on December
31, 1994,  and (b) beginning  January 1, 1995, the Plan Year shall be the period
beginning on January 1st and ending on December 31st.

         2.51  Predecessor  Plan shall mean any prior statement (or restatement)
of the Plan that is being amended and restated by this document.

         2.52 Preretirement  Survivor Annuity shall mean an annuity for the life
of the Spouse that is payable if a Participant  dies before his Annuity Starting
Date, as provided in Articles VI and VII.

         2.53 Qualified Domestic Relations Order shall mean a Domestic Relations
Order that creates or recognizes the existence of an Alternate Payee's right to,
or assigns to an Alternate  Payee the right to,  receive all or a portion of the
benefits that would otherwise be payable with respect to a Participant under the
Plan, and that meets the requirements described in Article XIII.

         2.54 Regulation(s) shall mean the Income Tax Regulations promulgated by
the  Secretary  of the Treasury or his  delegate,  as amended from time to time,
including proposed and temporary  Regulations.  References to any Section of the
Regulations shall include any successor provision.

         2.55 Required  Aggregation Group shall mean a group of plans maintained
by the  Employer  and any  Affiliated  Employer,  which  must be  aggregated  in
determining  whether the Plan is Top-Heavy,  as further defined in Article XV of
the Plan.

         2.56  Required  Beginning  Date shall mean the date when  distributions
must begin to a Participant, as further defined in Article IX of the Plan.

                                      -14-

<PAGE>

         2.57 Retirement shall mean voluntary termination of employment with the
Employer for a reason other than death,  after a  Participant  has fulfilled all
requirements for a normal, early or disability retirement benefit.

         2.58 Social  Security  Retirement  Age shall mean the  earliest  age at
which an individual can collect full,  unreduced Social Security  benefits.  The
Social Security Retirement Age is:

         a.   Age 65 for a Participant who attains age 62 before January 1, 2000
(i.e., born before January 1, 1938);

         b.   Age 66  for  a  Participant  who attains age 62 after December 31,
1999, but before  January 1, 2017 (i.e.,  born after  December  31,  1937,  but
before January 1, 1955); and

         c.   Age  67  for  a  Participant who attains age 62 after December 31,
2016 (i.e., born after December 31, 1954).

         2.59 Spouse or  Surviving  Spouse  shall mean the lawful wife of a male
Participant or the lawful husband of a female  Participant.  Notwithstanding the
preceding sentence,  a former spouse shall be treated as the Spouse or Surviving
Spouse  (and a current  spouse  shall not be treated as the Spouse or  Surviving
Spouse) to the extent provided under a Qualified Domestic Relations Order.

         2.60 Super  Top-Heavy  Plan  shall mean a plan for which the  Top-Heavy
Ratio  exceeds  90  percent.  As  stated  in  Article  XV,  if the Plan is Super
Top-Heavy and the Employer has also maintained a defined  contribution plan, the
denominators  in the  Defined  Benefit  Fraction  and the  Defined  Contribution
Fraction must be reduced when  calculating  the Maximum  Retirement  Benefit for
individuals who have participated in both plans.

         2.61 Top-Heavy shall mean the status of the Plan when it is a Top-Heavy
Plan (or a Super Top-Heavy Plan).

         2.62 Top-Heavy  Plan shall mean a plan for which  the  Top-Heavy  Ratio
exceeds 60 percent, including a Super Top-Heavy Plan unless otherwise specified.

         2.63  Top-Heavy  Ratio shall mean the ratio of the Accrued  Benefits of
Key Employees to the Accrued  Benefits of all Employees,  considering  this Plan
and any plans included in a Required Aggregation Group or Permissive Aggregation
Group.

         2.64  Top-Heavy  Rules shall mean the rules under Code  Section 416 and
implementing Regulations that will be applicable if the Plan is a Top-Heavy Plan
for any Plan Year beginning after December 31, 1983.

                                      -15-

<PAGE>

         2.65  Total  and  Permanent   Disability  or  Totally  and  Permanently
Disabled. A Participant shall be considered Totally and Permanently Disabled, if
he is  determined to be entitled to, and is in receipt of,  disability  benefits
under  (a) Title II or XVI of the  Social  Security  Act,  and (b) any long term
disability income plan sponsored by the Employer.

         2.66  Trust shall mean the legal entity resulting from the Trust Agree-
ment between the Employer and the Trustee.

         2.67 Trust Agreement shall mean the agreement  between the Employer and
the Trustee, or any successor Trustee, establishing the Trust and specifying the
duties of the Trustee.

         2.68 Trustee shall mean the trustee or trustees designated by the Board
of Directors.

         2.69  Vested   Participant   shall  mean  a   Participant   who  has  a
nonforfeitable  (vested)  interest in his Accrued  Benefit derived from Employer
contributions to the Plan.

         2.70  Years of  Benefit  Service  shall  mean a period  during  which a
Participant  participates  in the Plan and is entitled  to a benefit  accrual in
accordance with Section 4.01.

         2.71 Year of Eligibility Service shall mean a computation period during
which an Employee is  credited  with at least 1,000 Hours of Service.  The first
eligibility computation period is the 12-consecutive-month period that begins on
the  date  the  Employee  first   performs  an  Hour  of  Service   ("employment
commencement date"). Succeeding  12-consecutive-month  computation periods begin
on each anniversary of the employment commencement date.

         2.72 Year of Vesting Service shall mean:

         a. For Plan Years that  begin on and after  October 1, 1976,  each Plan
Year during  which an Employee  completes  at least 1,000 Hours of Service,  and
makes any portion of the  contribution  required of him under the  provisions of
the Plan then in effect; provided that, for the Plan Year that begins on October
1, 1994 and ends on December 31, 1994, an Employee  shall  receive  credit for a
Year of Vesting Service if the Employee completes at least 250 Hours of Services
during that Plan Year.

         b. For Plan Years that begin prior to October 1, 1976,  the  applicable
of the following:

                   i.  If a Participant on September  30,  1976,  the sum of (A)
                       "creditable  service" to which a Participant was entitled
                       on September 30, 1976 under the Plan as in effect on such
                       date, and (B) any uninterrupted service in the employ  of
                       the  Employer  prior to his Plan  membership  date  which
                       is not included in (A) above.

                                      -16-
<PAGE>

                  ii. If not a Participant on September 30, 1976, each period of
                      twelve consecutive  months  beginning on the date he first
                      performs an Hour of Service and each anniversary  thereof,
                      during which he completed at least 1,000 Hours of Service,
                      bu  excluding  any  such period during which such Employee
                      could have been a participant had he consented to make the
                      contributions required of him in order to become a Partic-
                      ipant.

                                      -17-

<PAGE>

                                   ARTICLE III

                   ELIGIBILITY AND PARTICIPATION REQUIREMENTS
                   ------------------------------------------

         3.01     Eligibility.

         a. An Employee  who is employed by the Employer on the  Effective  Date
shall be eligible to  participate  in the Plan on the Effective  Date, if he has
satisfied the  eligibility  requirements  in subsection (b) below or if he was a
Participant in the Predecessor Plan. In determining previous participation,  any
provisions of the Predecessor Plan which excluded  Employees from  participation
based on the attainment of a specified age shall not be applied after  September
30, 1988 to any Employee who performs an Hour of Service on or after  October 1,
1988.

         b. After the Effective Date, an Employee employed by the Employer shall
be eligible to participate in the Plan as of the first day of the calendar month
that  coincides  with or next follows the date as of which he has both  attained
age 21 and completed a Year of  Eligibility  Service  provided he is employed by
the Employer on that date.

         c. In applying the above service requirement, (i) an Employee's service
with any Affiliated  Employer shall be taken into account,  and (ii) an Employee
who transfers to employment with the Employer pursuant to the September 11, 1995
Purchase and Assumption  Agreement between Community Bank, National  Association
and the Employer shall receive credit for eligibility  service to the extent the
Employee is credited with  eligibility  service  under the qualified  retirement
plans of  Community  Bank,  National  Association  as of the  date the  Employee
transfers to employment with the Employer.

         d. Any person  included in a unit of employees  covered by a collective
bargaining  agreement  (as defined in Code  Section  7701(a))  between  Employee
representatives and the Employer or an Affiliated Employer shall not be eligible
to  participate  in  the  Plan,  unless  such  collective  bargaining  agreement
expressly  provides for the  inclusion of such  persons as  Participants  in the
Plan.

         3.02   Becoming  a   Participant.   Once  an  Employee   satisfies  the
requirements  in Section 3.01, he shall  participate in the Plan  automatically.
The Plan Administrator shall, no later than 90 days after the Employee meets the
eligibility requirements,  advise the Employee that he has become a Participant,
and provide him with information about the Plan.

                                      -18-

<PAGE>

         3.03  Eligibility after Reemployment.

         a. Reemployment before a Break in Service: Upon being reemployed before
a One-Year  Break in Service has  occurred,  the  reemployed  Employee  shall be
treated as follows:

                   i.  A former Participant shall continue to participate in the
                       Plan  as  if  his employment had not terminated; provided
                       that, for Plan Years that begin prior to January 1, 1995,
                       the period  during  which the Participant was absent from
                       employment  shall  not  be  included in the Participant's
                       Years of Benefit Service.

                  ii.  A former  Employee  who had not yet  become a Participant
                       shall have the period of prior employment  counted toward
                       satisfying the service requirement  in  Section  3.01  as
                       if his employment had not terminated.  The Employee shall
                       begin to  participate  in  the  Plan  in  accordance with
                       Sections  3.01 and  3.02, upon satisfying the eligibility
                       requirements.

         b. Reemployment after a Break in Service: Upon being reemployed after a
Break in Service,  the  reemployed  Employee  shall  participate  in the Plan as
follows:

                   i.  Participation  shall  be  reinstated  as of  the  date of
                       reemployment for: (A) a former Vested Participant and (B)
                       a former  Non-Vested Participant  whose  consecutive One-
                       Year  Breaks  in  Service  did  not exceed the greater of
                       five, or his number of Years of Vesting  Service  before
                       the Break in Service.

                  ii.  A former Non-Vested  Participant  with a Break in Service
                       longe   than  provided  in  subsection  (i), and a former
                       Employee  wh   had  not  yet become a Participant when he
                       terminated employment,  shall begin to participate in the
                       Plan  as  of  the  first day of the  calendar  month that
                       coincides  with  or next follows the date he again satis-
                       fies the eligibility requirements in Section 3.01.

In  applying  the  above  provisions,   the  computation  period  shall  be  the
eligibility   computation  period  specified  in  the  definition  of  "Year  of
Eligibility  Service"  in Article II, as though the  reemployment  date were the
employment commencement date.

Notwithstanding  the above  provisions,  prior  service  will be credited  for a
Participant  who received a  distribution  of his vested  benefits,  only if the
distribution is repaid as provided in Article V.

                                      -19-

<PAGE>

         3.04     Eligibility Based on Service in Ineligible Classification.

         a. If an Employee who had not been in an eligible class of employees of
the Employer or an  Affiliated  Employer  becomes a member of such a class,  his
eligibility to  participate  in the Plan shall be determined in accordance  with
the  above  provisions  of this  Article,  counting  service  in the  ineligible
classification.

         b. An individual who ceases to be a Participant because he is no longer
in an eligible  class of employees  shall become  eligible to participate in the
Plan immediately upon returning to an eligible class of employees.

                                      -20-

<PAGE>

                                   ARTICLE IV

                                SERVICE CREDITING
                                -----------------

         4.01     Benefit Service.

         a. For service  rendered prior to January 1, 1995, a Participant  shall
be entitled to a Year of Benefit  Service  for each  12-month  period of service
with  the  Employer,  beginning  on the  later of May 9,  1945,  or the date the
Participant  first  became a  Participant.  To the extent not taken into account
under the preceding  sentence,  a Participant shall also receive credit for each
completed month (counted as 1/12th of a year) of service with the Employer after
the applicable  date  described in the preceding  sentence and before January 1,
1995.

         b.  Effective  January  1,  1995,  Years of  Benefit  Service  shall be
measured by the Hours of Service performed by a Participant  during a Plan Year.
A  Participant  shall receive  credit for a Year of Benefit  Service for service
rendered after December 31, 1994 only if the Participant performs 1,000 Hours of
Service in a Plan Year. For the Plan Year during which an Employee first becomes
a Participant, the Employee shall be credited with a Year of Benefit Service for
that Plan Year only if the  Employee  performs  1,000 Hours of Service  from the
date participation  begins through the end of the Plan Year. No partial Years of
Benefit Service shall be granted.

         c. In  determining  Years of Benefit  Service,  service with any of the
following  listed banking  institutions by a Participant who was employed by any
such  institution as of September 29, 1989 shall be considered  service with the
Employer to the extent the Employee's service was recognized for benefit accrual
purposes under such former employer's  qualified defined benefit pension plan as
of September 29, 1989. The banking  institutions  referred to are: National Bank
of Hancock, Hayes National Bank, Fulton County National Bank and Trust, and Bank
of Lake  Placid.  For an Employee  who was  employed at the Key Bank of New York
branches known as  Plattsburgh,  Plattsburgh  North or Ellenburg Depot as of the
date  immediately  preceding  the date of the  Employer's  acquisition  of those
branches,  Years of Benefit  Service also shall include the  Employee's  service
with Key Bank of New York to the extent such service was  recognized for benefit
accrual purposes under such former employer's  qualified defined benefit plan as
of the date  immediately  preceding the date of the  Employer's  acquisition  of
those branches.

         4.02  Vesting Service.

         a. An  Employee  shall be  entitled  to  credit  for a Year of  Vesting
Service for purposes of determining  his vested  interest in his Accrued Benefit
derived from  Employer  contributions  for all Years of Vesting  Service  unless
excluded by subsection (b) or Section 4.03.

                                      -21-

<PAGE>

         b.  For  purposes  of this  Section,  service  shall  not  include  the
following:

                   i.  Service before age 22, if the Employee fails to be credi-
                       ted with an Hour of Service after September 30, 1985;

                  ii.  Service with the Employer during any period for which the
                       Employer  did  not  maintain  this  Plan or a predecessor
                       Plan; or

                  iii. Service for periods during which the Employee declined to
                       make  any  portion  of required Employee contributions to
                       the Plan.

         c. An Employee who transfers to employment  with the Employer  pursuant
to the September 11, 1995 Purchase and Assumption  Agreement  between  Community
Bank,  National  Association  and the Employer shall receive credit for Years of
Vesting  Service to the extent the  Employee is credited  with  vesting  service
under the qualified  retirement plans of Community Bank, National Association as
of the date the Employee transfers to employment with the Employer.

         4.03 Treatment of Prior Service after a Break in Service.

         a. Vested  Participant:  If a Vested  Participant is reemployed after a
One-Year  Break in  Service,  his prior  Years of Vesting  Service  and Years of
Benefit Service shall be taken into account in determining his vested percentage
in his Accrued Benefit derived from Employer  contributions as of the date he is
reemployed.  Notwithstanding  the preceding  sentence,  a Vested Participant who
receives  a full  distribution  of his  vested  Accrued  Benefit  following  his
termination of  employment,  shall receive credit for the prior Years of Vesting
Service  and Years of  Benefit  Service  only if he repays the  distribution  in
accordance with Section 5.03.

         b. Non-Vested Participant:

                   i. If a Non-Vested Participant is reemployed after a One-Year
                      Break  in  Service,  his prior  Years of  Vesting  Service
                      and  Years of  Benefit  Service  shall  not  be taken into
                      account,  if the number of consecutive  One-Year Breaks in
                      Service  equals  or  exceeds  the  greater  of:   (i) five
                      or  (ii)  the Participant's Years of Vesting Service prior
                      to the Break in Service.

                  ii. If  the  Non-Vested  Participant  has a  shorter  Break in
                      Service  than that  described in subsection  (i), he shall
                      receive credit for his prior Years of Vesting  Service and
                      Years  of  Benefit  Service in the same manner as provided
                      for a Vested Participant in subsection (a) above.

                                      -22-

<PAGE>

         c. Prior  Break in  Service:  In  applying  the above  provisions,  the
aggregate number of Years of Vesting Service and Years of Benefit Service before
the Break in Service shall be deemed not to include any Years of Vesting Service
or Years of Benefit  Service not  required to be taken into  account  under this
Section by reason of any prior Break in Service.

         4.04 Retention of Service.  A Participant's  benefit accrual and vested
interest in benefits under the Plan up to the Effective Date shall be determined
according  to  the  Predecessor  Plan  as in  effect  immediately  prior  to the
Effective  Date. On the Effective Date and thereafter,  a Participant's  benefit
accrual and vested  interest  shall not be reduced by termination of employment,
Breaks in Service or for any other reason, except as provided in the Plan.

         4.05 Limitation of Service  Credited.  No more than one Year of Vesting
Service and one Year of Benefit  Service  shall be credited  with respect to any
12-month  period.  The foregoing  sentence  shall not prevent the crediting of a
full Year of Vesting  Service  for the Plan Year that  begins on October 1, 1994
and ends on December 31, 1994 for an Employee  who  completes at least 250 Hours
of Service in that Plan Year.

                                      -23-

<PAGE>

                                    ARTICLE V

                             VESTING AND FORFEITURES
                             -----------------------

         5.01  Vesting  Schedule.  Except as provided in Section  5.02 below,  a
Participant's  Accrued  Benefit  shall  become  vested  in  accordance  with the
applicable schedule below.

         a. An Employee who is credited  with at least one Hour of Service after
the  Effective  Date,  but who is not credited with at least one Hour of Service
after  December 31, 1994,  shall become vested in accordance  with the following
schedule:

         Years of Vesting Service                             Vested Percentages
--------------------------------------------------------------------------------
         Less than 3 years                                              0%
         3 years but less than 4 years                                 20%
         4 years but less than 5 years                                 40%
         5 years but less than 6 years                                 60%
         6 years but less than 7 years                                 80%
         7 years or more                                              100%

         b. An  Employee  who is  credited  with  Hours of  Service  only  after
December 31, 1994 shall become vested in accordance with the following schedule:

         Years of Vesting Service                             Vested Percentage
         ------------------------                             -----------------
         Less than 5 years                                             0%
         5 years or more                                             100%

         c. An Employee  who (i) is  credited  with at least one Hour of Service
during the period that  begins on the  Effective  Date and ends on December  31,
1994,  and (ii) is credited with at least one Hour of Service after December 31,
1994,  shall become vested in accordance  with the schedule  above that provides
the greatest Vested Percentage for the Employee.

         5.02  Exceptions  to  Vesting  Schedule.   Notwithstanding   the  above
schedule,  the following rules shall apply in determining a Participant's vested
interest in his Accrued Benefit:

         a. In  case  of a change in the vesting schedule,  the rules in Section
5.04 shall be applied to Participants affected by the change.

         b. The Minimum Vesting  Schedule in Article XV shall become  applicable
if the Plan is Top-Heavy for one or more Plan Years.  (The rules in Section 5.04
apply to any change to or from the Minimum Vesting Schedule.)

                                      -24-

<PAGE>

         c. A Participant shall become 100 percent vested in his Accrued Benefit
upon (i) the  Participant's  attainment  of Normal  Retirement  Age while  still
actively employed by the Employer,  (ii) the Participant's  death at a time when
he is actively employed by the Employer, or (iii) the Participant's  termination
of employment due to Total and Permanent Disability.

         5.03 Forfeitures.  If a Participant  terminates his employment with the
Employer  at a time when he is not 100  percent  vested in his  Accrued  Benefit
derived from Employer contributions,  the nonvested portion of the benefit shall
be forfeited subject to the following provisions:

         a. Time of Forfeiture:  If a Participant terminates employment with the
Employer and receives a distribution from the Plan, his nonvested benefits shall
be forfeited when the  distribution is made. If the Participant does not receive
a distribution,  his nonvested  benefits shall be forfeited as of the end of the
Plan Year in which he incurs five  consecutive  One-Year Breaks in Service.  For
purposes of this subsection,  if the present value of the  Participant's  vested
Accrued  Benefit is zero, he shall be deemed to have received a distribution  of
the Accrued Benefit when he terminated employment.

         b. Use of Forfeiture:  Any benefits  forfeited pursuant to this Section
shall be used to reduce future Employer  contributions  to the Plan. In no event
shall the remaining  Participants receive additional benefits as a result of the
forfeitures.

         c. Restoration of Forfeited Amounts:

                   i.  A  Participant who forfeited  benefits when he received a
                       distribution  from  the  Plan  shall  have  the  right to
                       restore his Accrued Benefit to the extent forfeited, pro-
                       vided that he resumes  employment and repays  to the Plan
                       the full amount of the distribution plus interest (using
                       the interest rates determined under Section  411(c)(2)(C)
                       of the Code).  Any repayment pursuant to this  subsection
                       must be made before the  earlier of (A) five years  after
                       the first date on which the Participant is subsequently
                       reemployed by the Employer; or (B) the close of the first
                       period of five  consecutive  One-Year  Breaks in Service
                       after the distribution was made.

                  ii.  If a Participant who was deemed to receive a distribution
                       pursuant to subsection  (a) above resumes employment with
                       the Employer  before incurring  five consecutive One-Year
                       Breaks in Service,  the amount of the Accrued Benefit  as
                       of the date of the deemed distribution shall be  restored
                       when he again participates in the Plan (see Section 3.03)

                                      -25-

<PAGE>

         5.04  Amendments Affecting Vesting Schedule.

         a. In the case of an Employee who is a  Participant  on (i) the date an
amendment  changing the vesting schedule is adopted,  or (ii) if later, the date
the  amendment  is  effective,  the vested  percentage  of his  Accrued  Benefit
(determined  as of the  applicable  date) shall not be less than the  percentage
calculated under the terms of the Plan without regard to the amendment.

         b. If the vesting  schedule in Section 5.01 is amended,  or the Plan is
amended  in  any  way  that,  directly  or  indirectly,  adversely  affects  the
computation of a Participant's  nonforfeitable  percentage in his future benefit
accruals  (including an automatic change to or from the Minimum Vesting Schedule
if the Plan becomes  Top-Heavy),  a Participant who is an Employee with at least
three Years of Service may elect to have the  nonforfeitable  percentage  of his
Accrued Benefit determined without regard to the amendment. For Participants who
do not have at least one Hour of Service in a Plan Year beginning after December
31, 1988, the preceding sentence shall be applied by substituting "five Years of
Service" for "three Years of Service." In determining a  Participant's  Years of
Service for purposes of this  subsection,  the  exclusions  set forth in Section
4.02 shall not apply.

         c. A Participant's right to make an election under subsection (b) shall
be governed by the following:

                   i.  The  Plan  Administrator  shall  provide   each  affected
                       Participant  with  written  notice and  an election  form
                       regarding  his  right to elect to remain under the former
                       vesting schedule.

                  ii.  The  election  period  shall  begin  with  the  date  the
                       amendment is adopted (or deemed to be made) and shall end
                       on the date which is the latest of: (A) 60 days after the
                       date the amendment is adopted; (B) 60 days after the date
                       the  amendment  becomes  effective;  or (C) 60 days after
                       the  date  the  notice   described  in   subsection   (i)
                       above  is  issued  by  the  Plan Administrator.

                 iii.  A  Participant  who  does  not  timely  file  a  properly
                       completed  election  form shall be subject to the amended
                       vesting schedule.

                                      -26-

<PAGE>

                                   ARTICLE VI

                              BENEFITS ELIGIBILITY
                              --------------------

         6.01  Normal Retirement Benefit.

         a. A Participant  shall be eligible to receive benefits upon Retirement
on  his  Normal  Retirement  Date,  provided  he  completes  an  application  in
accordance with subsection (b).

         b. To commence receipt of benefit payments, a Participant must submit a
signed  written  application  to the Plan  Administrator  in which he  elects an
Annuity  Starting Date and form of distribution (in compliance with Article IX).
Upon  proper  application,  the Plan  Administrator  shall  begin to  distribute
benefits as soon as administratively feasible.

         c. If a Participant continues in employment after his Normal Retirement
Date for at least 40 Hours of Service monthly, the Participant shall not receive
any benefit  payments during the period of such  employment.  However,  benefits
shall  continue to accrue,  and the  Participant  shall be eligible to receive a
late retirement benefit as provided in this Article and Article VII.

         d. In the case of a Participant  described in subsection  (c), the Plan
Administrator  shall  establish  procedures to give the  Participant  the notice
required by Department of Labor  Regulation 29 C.F.R.  ss.  2530.203-3(b)(4)  no
later than the end of the first  calendar  month or payroll  period in which the
Plan does not pay benefits due to the continued employment.  Benefit payments to
the Participant shall commence no later than the first day of the third calendar
month  after the  calendar  month in which he ceases to be employed at the level
described in subsection (c).

         e. Notwithstanding the above provisions,  the payment of benefits shall
begin once a Participant has reached his Required Beginning Date.

         6.02  Early Retirement Benefit.

         a. Upon written  notice to the Plan  Administrator,  a Participant  may
elect to receive  benefits upon  Retirement  on an Early  Retirement  Date.  The
payment  of  benefits  shall  be  effective  as of the  first  day of the  month
coinciding with or next following the elected Early Retirement Date.

         b. A Participant who terminates  employment with a nonforfeitable right
to an Accrued  Benefit after  satisfying  the service  requirement  for an early
retirement benefit,  but  before satisfying the age  requirement,  may  elect to
receive early retirement  benefits  when he later satisfies the age requirement.

                                      -27-

<PAGE>

         6.03 Late Retirement  Benefit.  A Participant who delays his Retirement
until after his Normal  Retirement  Date shall  continue to accrue  benefits and
shall be eligible to receive a late retirement  benefit as of the earlier of (a)
the  first  day of the  month  coinciding  with or  next  following  his  Actual
Retirement Date, or (b) his Required Beginning Date.

         6.04  Disability Retirement Benefit.

         a. A Participant  who terminates  employment  because he is Totally and
Permanently  Disabled,  before  reaching his Normal  Retirement  Date,  shall be
eligible to receive benefits  commencing on the Participant's  Normal Retirement
Date.

         b. A  Participant  must  file  a  written  application  with  the  Plan
Administrator  to receive  disability  retirement  benefits.  Upon  receiving an
application,  the Plan Administrator  shall determine whether the Participant is
Totally and Permanently Disabled as defined in Article II.

         6.05 Preretirement Death Benefit. Effective as of January 1, 1995, if a
Participant  dies before the Annuity  Starting  Date,  death  benefits  shall be
provided  in  accordance  with this  Section and the  provisions  of Article VII
regarding  preretirement death benefits.  If a Participant dies prior to January
1, 1995 and prior to the Annuity Starting Date, only the Preretirement  Survivor
Annuity shall be payable and shall be payable only to the Surviving  Spouse.  If
the Participant is unmarried at the time of death (prior to the Annuity Starting
Date and prior to January 1, 1995),  no  preretirement  death  benefit  shall be
payable.

         a. The  Participant's  Accrued Benefit shall be paid as a Preretirement
Survivor  Annuity for the life of the Surviving  Spouse,  as provided in Article
VII, unless:

                   i.  The  Participant  is  unmarried  or  another exception to
                       spousal rights in Section 8.02 applies; or

                  ii.  The Participant waives the Preretirement Survivor Annuity
                       with spousal consent in accordance with subsection (c)
                       below.

         b. If benefits are not being paid as a Preretirement  Survivor  Annuity
pursuant to  subsection  (a), the  Participant's  designated  Beneficiary  shall
receive preretirement death benefits as provided in Article VII.

         c.  Waiver  of  Preretirement   Survivor  Annuity:  A  Participant  may
effectively  waive the  Preretirement  Survivor  Annuity,  and elect to have the
other preretirement death benefit paid to another Beneficiary as follows:

                                      -28-

<PAGE>

                   i.  The election  ust be made in writing and delivered to the
                       Plan  Administrator  during the period that begins on the
                       first  day  of  the  Plan  Year  in which the Participant
                       attains age 35, and ends on the date of the Participant's
                       death.  However, if  a Participant  terminates employment
                       before  the  first day of the Plan Year in which he would
                       attain  age  35,  the  election period shall begin on the
                       termination date.

                  ii.  The Participant's Spouse must consent to the election, in
                       a consent which satisfies the requirements in Section
                       8.02(e).

                 iii.  The  election  must be made after the Plan  Administrator
                       provides  the  Participant  with  a notice  regarding the
                       Preretirement  Survivor  Annuity  that is  comparable  to
                       the   notice  regarding  the  Joint and  Survivor Annuity
                       described in Section  9.01.  The Plan  Administrator must
                       provide  this  notice  during  whichever of the following
                       periods ends last:

                       A. The  period  beginning  with the first day of the Plan
                          Year in  which the Participant attains age 32 and end-
                          ing with the close of the Plan Year preceding the Plan
                          Year in which the Participant attains age 35;

                       B. A  reasonable period ending after the Employee becomes
                          a Participant; or

                       C. A  reasonable period ending  after  the  Preretirement
                          Survivor  Annuity  requirements  first  apply  to  a
                          Participant.

                       Notwithstanding the  foregoing,  notice  must be provided
                       within a reasonable period after  termination  of employ-
                       ment in the case of a Participant  who terminates employ-
                       ment with the Employer before attaining age 35.

                       For  purposes  of  this  subsection,  a reasonable period
                       after a specified event is the end of the two year period
                       beginning  one  year  prior  to the date the event occurs
                       and ending one year  after that date.  In  the  case of a
                       Participant  who terminated  employment  before  the Plan
                       Year in  which he  attains  age 35,  the  notice shall be
                       provided  within  the two-year period  beginning one year
                       prior to termination  and  ending  one  year  after term-
                       ination.  If  such a  Participant thereafter  returns  to
                       employment with the Employer,  his notice period shall be
                       redetermined.

                  iv.  Notwithstanding   the   election   period   described  in
                       subsection  (i),  a  Participant  who will not yet attain
                       age  35 as of the end of any current Plan Year may make a
                       special  election, in  the  form  and method  required by

                                      -29-

<PAGE>

                       subsection (i), for the period that begins on the date of
                       such election and ends on the  first day of the Plan Year
                       in  which  the Participant  will attain  age  35. Such an
                       election  shall  not be valid unless the Spouse  consents
                       and the Participant receives a written explanation of the
                       Preretirement  Survivor  Annuity,  as  described in  sub-
                       sections  (ii) and (iii).  Preretirement Survivor Annuity
                       coverage automatically will be reinstated as of the first
                       day of the Plan Year in which the Participant will attain
                       age 35. Any new  waiver  thereafter  will  be  subject to
                       all of the  requirements  of this Article.

Notwithstanding the preceding provisions,  a revocation of a prior waiver of the
Preretirement  Survivor Annuity may be made by a Participant without the consent
of the Spouse at any time prior to the  commencement of benefits.  The number of
revocations shall not be limited.

         d. The Plan Administrator shall require  satisfactory  written proof of
the  Participant's  death before paying  benefits  under this Section.  The Plan
Administrator shall also require whatever proof is necessary,  in the particular
case, to establish the right of any person to receive the benefit.

         6.06  Benefits  Following  Termination  of  Employment.   If  a  Vested
Participant terminates employment at a time when he is not eligible for benefits
under any of the  preceding  Sections of this  Article,  his  benefits  shall be
distributed  in accordance  with the following  provisions and the provisions of
Article VII regarding deferred vested retirement benefits.

         a.  Benefits  Not in Excess of  $3,500:  If the value of  Participant's
vested Accrued Benefit does not exceed $3,500, the entire vested amount shall be
paid to the  Participant in a single lump sum.  Payment shall be made as soon as
administratively feasible following the termination of employment. No consent is
required for this distribution.

         b.   Benefits  in  Excess  of  $3,500:   If  the  present  value  of  a
Participant's  vested Accrued  Benefit  derived from Employer (and any Employee)
contributions  exceeds  (or at the  time  of any  prior  distribution  exceeded)
$3,500,  he will be  entitled  to a  deferred  vested  benefit.  This means that
benefits  will  only  be  distributed  at  times  when  the  Participant  or his
Beneficiary is eligible to receive benefits under the preceding Sections of this
Article.

         c.  Notwithstanding  the  foregoing of this Section  6.06,  for Annuity
Starting  Dates that occur on or after January 1, 1998,  this Section 6.06 shall
be applied by  deleting  $3,500 and  inserting  $5,000 in each place that $3,500
appears.

                                      -30-

<PAGE>

                                   ARTICLE VII

                             COMPUTATION OF BENEFITS
                             -----------------------

         7.01     Normal Retirement Benefit.

         a. The annual normal  retirement  benefit of a Participant  who becomes
eligible  for  benefits  under  Section  6.01 shall equal the sum of the amounts
described in (i), (ii) and (iii) below, with that sum then reduced by the amount
described in (iv) below.

                   i.  The  Participant's accrued  benefit under the Predecessor
                       Plan as of September 30, 1989.

                  ii.  For Years of Benefit  Service earned after  September 30,
                       1989  and  before  January  1,  1995,  the  sum  of  (A)
                       1.60  percent of  the Participant's Final Average Compen-
                       sation  for  each  such Year of Benefit Service, plus (B)
                       .60 percent  of the Participant's  Final Average  Compen-
                       sation that is in excess of Covered Compensation for each
                       such Year of Benefit Service.

                 iii.  For Years of Benefit  Service  earned after  December 31,
                       1994, the sum  f (A) 1.25 percent  of  the  Participant's
                       Final  Average Compensation for each such Year of Benefit
                       Service,  plus (B) .60 percent of the Participant's Final
                       Average   Compensation  that  is  in  excess  of  Covered
                       Compensation for each such Year of Benefit Service.

                 iv.   The  annual normal  retirement  benefit  payable  to  the
                       Participant  from  the  Retirement  Plan  of  Irving Bank
                       Corporation  and  Affiliated Companies,  or any successor
                       plan, as a result of  the  Participant's  employment with
                       National  Bank  of  Hancock,  Hayes National Bank, Fulton
                       Count  National  Bank  and  Trust, and/or  Bank  of Lake
                       Placid through September 29, 1989.

In  applying  the  foregoing  formula,  the Plan shall at all times  satisfy the
overall permitted disparity limit of Regulation 1.401(l)-5.

         b. For  purposes  of this  Section,  "Covered  Compensation"  means the
amounts  prescribed  in tables  published  by the  Commissioner  of the Internal
Revenue Service pursuant to Regulation 1.401(l)-1(c)(7)(ii).

                                      -31-

<PAGE>

         c. For  purposes of this Section  7.01,  the number of Years of Benefit
Service taken into account under the Plan shall be limited to the greater of (i)
30, or (ii) the number of Years of Benefit Service  completed by the Participant
as of December 31, 1994 (up to a maximum of 40). For purposes of this subsection
(c), Years of Benefit Service completed by the Participant through September 30,
1989 shall be taken into account.

         d.  Notwithstanding  Section  7.01(a),  the  annual  normal  retirement
benefit of a Participant who is actively employed and performs at least one Hour
of Service  after  September  30,  1989 shall not be less than the excess of the
amount described in (i) below, over the amount described in (ii) below.

                   i.  The sum of (A) 1.60  percent of the  Participant's  Final
                       Average  Compensation  determined as of December 31, 1994
                       for each  Year of Benefit Service earned through December
                       31, 1994 (up to a maximum of 40 years), plus (B) .65 per-
                       cent  of  the  Participant's  Final Average  Compensation
                       determined  as  of December 31, 1994 that is in excess of
                       1994  Covered  Compensation  for  each  Year  of  Benefit
                       Service  earned   through   December  31,  1994  (up to a
                       maximum of 35 years).

                  ii.  The  annual  normal  retirement  benefit  payable  to the
                       Participant  fro   the  Retirement  Plan  of  Irving Bank
                       Corporation and  Affiliated  Companies,  or any successor
                       plan, as  a result of the  Participant's  employment with
                       National  Bank  of  Hancock,  Hayes National Bank, Fulton
                       County  National  Bank  and  Trust,  and/or  Bank of Lake
                       Placid through September 29, 1989.

         7.02  Early  Retirement  Benefit.  The early  retirement  benefit  of a
Participant  who  becomes  eligible  for  benefits  under  Article  VI  shall be
calculated as provided in Section 7.01, based on the Participant's service up to
his Early Retirement Date, and then reduced by one-quarter of one percent (.25%)
per  month for each  month by which  the  Participant's  Early  Retirement  Date
precedes the Participant's Normal Retirement Date.

         7.03  Late Retirement Benefit.

         a. The late retirement  benefit of a Participant  who becomes  eligible
for benefits  under  Article VI shall be determined as provided in Section 7.01,
based on the Participant's  Compensation and service up to his Actual Retirement
Date.

         b. The benefit  provided  under  subsection  (a) for a Participant  who
earns Years of Benefit Service after the  Participant's  Normal  Retirement Date
shall be redetermined annually in accordance with Section 7.07.

                                      -32-

<PAGE>

         c.  Notwithstanding  the  preceding   provisions,   the  accrual  of  a
Participant's  benefit for a Plan Year shall be reduced  (but not below zero) by
the  Actuarial  Equivalent  of any  distributions  made  from  the  Plan  to the
Participant  by the close of the Plan Year  pursuant  to Article IX of the Plan.
The reduction shall be determined in accordance with Section 7.07.

         7.04 Disability  Retirement Benefit. The disability  retirement benefit
of a  Participant  who becomes  eligible for benefits  under Article VI shall be
determined as provided in Section  7.01,  based on (a) the  Participant's  Final
Average  Compensation and Covered  Compensation as of the Disability  Retirement
Date,  and (b) the  benefit  formula  in  effect  under the Plan on the date the
Participant  ceased active  employment.  For purposes of determining an eligible
Participant's  benefit under this Section 7.04,  the  Participant  will be given
credit for a Year of Benefit  Service for each year  between  the  Participant's
Disability  Retirement  Date and  Normal  Retirement  Date that the  Participant
remains Totally and Permanently Disabled.

         7.05  Preretirement Death Benefit.

         a. Effective as of January 1, 1995, the survivor  annuity  described in
subsection (b) or (c), as applicable,  shall be payable to the  Beneficiary,  if
the  Participant  dies before the Annuity  Starting Date. If a Participant  dies
prior to  January  1,  1995 and prior to the  Annuity  Starting  Date,  only the
Preretirement Survivor Annuity shall be payable and shall be payable only to the
Surviving  Spouse.  If a Participant is unmarried at the time of death (prior to
the Annuity Starting Date and prior to January 1, 1995), no preretirement  death
benefit shall be payable.

         b. If the  Participant  dies after his  Earliest  Retirement  Age,  the
Beneficiary  shall  receive  the  same  benefit  that  would be  payable  if the
Participant had retired with a Joint and Survivor  Annuity on the day before his
death.

         c. If the  Participant  dies on or before his Earliest  Retirement Age,
the  Beneficiary  shall  receive the same  benefit  that would be payable if the
Participant had:

                   i.  Separated from service on the date of death (or actual
                       date of separation from service, if earlier);

                  ii.  Survived to the Earliest  Retirement  Age, and retired on
                       that date with an immediate Joint and Survivor Annuity;
                       and

                 iii.  Died on the day after the Earliest Retirement Age.

         d. Payment of the preretirement  death benefit described in subsections
(b) and (c) shall commence as soon as  administratively  feasible (but not later
than one year) after the date of the Participant's death;  provided that, if the
Beneficiary is the Surviving Spouse, the Surviving Spouse may elect to defer the
commencement of payments to the first day of any month before December 31 of the

                                      -33-

<PAGE>

calendar  year in which the  Participant  would have attained age 70 1/2. If the
payment of benefits commences as of a date other than the Participant's Earliest
Retirement  Age,  the benefits  paid shall be the  Actuarial  Equivalent  of the
benefits that would have been paid at the Participant's Earliest Retirement Age.

         e.  Notwithstanding the preceding  provisions,  if the present value of
the  preretirement  death benefit  described in subsections (b) and (c) does not
exceed $3,500 ($5,000,  for  distributions  that commence on or after January 1,
1998),  the full vested amount shall be paid to the designated  Beneficiary in a
single lump sum. The payment shall be made as soon as administratively  feasible
following the date on which the Plan Administrator is provided with proof of the
Participant's death.

         7.06  Deferred Vested Retirement Benefit.

         a. The deferred vested retirement  benefit of a Participant who becomes
eligible  for  benefits  under  Article  VI shall be the  Participant's  Accrued
Benefit  up to his  termination  of  employment,  multiplied  by the  applicable
vesting percentage set forth in Article V.

         b. The  benefit  provided  by  subsection  (a) shall be  payable at the
Participant's  Normal  Retirement Date or, if the  Participant so elects,  at an
Early  Retirement Date if the Participant  meets the pertinent  requirements set
forth in Article VI.

         7.07 Reemployment After Benefit Commencement.  A Participant in receipt
of  benefit  payments  under the Plan who  returns  to active  service  with the
Employer as an Employee, or, in the case of an active Participant employed after
his Required  Beginning  Date,  who continues in active  service as an Employee,
shall  have  his  allowance  recalculated  as of the  end of each  Plan  Year as
follows:

                  a. First, the Participant's  benefit as of the end of the Plan
Year will be  calculated  without  regard to the fact  that the  Participant  is
receiving benefits.

                  b. The Participant's benefit in effect as of the Participant's
original  Annuity  Starting  Date  will  then be  subtracted  from  the  benefit
determined  pursuant  to (a) above to  determine  the  extent of any  additional
accrual.

                  c. Any  additional  accrual  determined  pursuant to (b) above
shall then be reduced (but not below zero) by the Actuarial  Equivalent value of
Plan benefit  payments  received by the Participant  through the end of the Plan
Year.

                  d. Any  additional  accrual  determined  pursuant to (c) above
shall be converted to the form of payment  selected by the Participant as of the
Participant's  original Annuity Starting Date, using the ages of the Participant
and  the  Participant's Beneficiary (if applicable) at the time of recalculation
and conversion.

                                      -34-

<PAGE>

                  e.  Payment  of  the  recalculated   benefit,   including  any
increase, shall be effective as of the first day of the ensuing Plan Year.

         7.08  July 1, 1995  Cost-of-Living  Increase.  Effective  as of July 1,
1995,  the  benefit  otherwise  determined  pursuant  to  Section  7.01 for each
Participant  (a) whose  employment  with the Employer  terminated for any reason
prior to  January 1,  1990,  (b) who,  at the time  employment  terminated,  had
already fulfilled all requirements for a normal, early, or disability retirement
benefit,  and (c) who is receiving (or upon filing  appropriate  election  forms
would be eligible to receive)  monthly benefit payments from the Plan as of July
1, 1995,  shall be increased by five percent.  The foregoing  increase  shall be
applied prior to any adjustment for the date  distributions  commence and/or for
optional forms of payment.

                                      -35-

<PAGE>

                                  ARTICLE VIII

                                  BENEFICIARIES
                                  -------------

         8.01     Designation of a Beneficiary.

         a.  Each  Participant  may  designate  one or more  Beneficiaries  (and
contingent  Beneficiaries)  by  delivering  a  written  designation  to the Plan
Administrator on a form provided by the Plan  Administrator,  in compliance with
the provisions of Section 8.02.

         b. A  Participant  may  also  make a new  designation  at any  time (in
accordance with Section 8.02). Such a designation is effective only upon receipt
by the Plan Administrator, at which time it supersedes all prior designations.

         c. Upon the death of a Participant, his Beneficiaries shall be entitled
to the benefits described in Articles VII and IX.

         d. A  designation  of a  Beneficiary  shall  be  effective  only if the
designated Beneficiary survives the Participant.

         e. Upon the legal  dissolution  of the marriage of a  Participant,  any
designation  of the  Participant's  former Spouse as a Beneficiary  shall remain
valid,  unless otherwise  provided in a Qualified  Domestic  Relations Order, or
unless the Participant  delivers a new designation to the Plan  Administrator or
is remarried.

         8.02 Spouses's Rights. The Spouse of a married Participant shall be the
Participant's Beneficiary,  whether or not designated as such, unless one of the
following requirements in subsections (a) through (d) below is satisfied.

         a. Spouse's  Consent to the Beneficiary:  The Participant  designates a
different Beneficiary and the Spouse waives the right to be the Beneficiary in a
consent which meets the requirements of subsection (e). In this regard:

                  i.  The Participant must designate a specific Beneficiary that
                      cannot be changed  without a new spousal  consent,  unless
                      the Spouse executes a general consent, as provided in sub-
                      section (e)(ii) below.

                 ii.  Notwithstanding  subsection (i) above, the Participant may
                      at any time revoke the  designation of a non-spouse  Bene-
                      ficiary and restore the Spouse as the Beneficiary, without
                      spousal consent.

                                      -36-

<PAGE>

         b. Separation:  The Participant  designates a different Beneficiary and
is legally  separated from his Spouse or has been abandoned,  within the meaning
of local law, and provides the Plan  Administrator  with a court order regarding
the  applicable  circumstance.  (However,  such a Spouse must be considered  the
Spouse to the extent provided in a Qualified Domestic Relations Order.)

         c. Missing Spouse: The Participant  designates a different  Beneficiary
and establishes to the  satisfaction of the Plan  Administrator  that the Spouse
cannot be located.  The Plan  Administrator  shall adopt procedures to implement
this provision, which shall be applied uniformly to all Participants.

         d. Unmarried Participant:  The Participant is unmarried.  This "deemed"
waiver of spousal  rights for an unmarried  Participant  is null and void if the
Participant later marries.

         e. Consent Requirement: The Spouse's consent to waive survivor benefits
in favor of another Beneficiary is valid only if the following  requirements are
satisfied:

                   i.  The Spouse's consent must be in writing and signed,  must
                       acknowledge  the  effect  of the  election,  and  must be
                       witnessed  by a notary public.

                  ii.  The Spouse's consent must either acknowledge the specific
                       non-spouse  Beneficiary   or  must  expressly  permit the
                       Participant to alter the Beneficiary designation  without
                       further  spousal  consent.  For   Plan   Years  beginning
                       after  October 22, 1986, a  consent that permits  further
                       designations must also  acknowledge  (A) that the Spouse
                       has the right to limit  consent to a specific Beneficiary
                       and (B) that the Spouse is voluntarily  elinquishing this
                       right.

                 iii.  The consent  required by this  subsection may be given by
                       the  legal  guardian  of  a legally  incompetent  Spouse.
                       This  applies  even  if  the  Participant is  the  legal
                       guardian.

                  iv.  A  consent  is  only  valid  for the Spouse who gives the
                       consent (or  for whom  the  consent  is  given by a legal
                       guardian).

A valid consent,  once given,  can be revoked;  provided the  revocation  occurs
before the Annuity Starting Date.

         8.03 Absence of a Designated  Beneficiary.  If no effective Beneficiary
designation  exists at the Participant's  death, the Participant shall be deemed
to have  designated  the  following  Beneficiaries  in the  following  order  of
priority:  (a)  the  Spouse;  (b)  children,   including  adopted  children  and
step-children,  in equal  shares;  (c)  parents,  in equal  shares,  and (d) the
Participant's  estate.  This order of priority shall apply to individuals living
at the time of the Participant's death.

                                      -37-

<PAGE>

         8.04     Beneficiaries' Rights.   Whenever  the rights of a Participant
are stated or limited in the Plan,  his Beneficiaries shall also be bound by the
Plan provisions.

                                      -38-

<PAGE>

                                   ARTICLE IX

                            DISTRIBUTION REQUIREMENTS

         9.01  Form of Distribution.

         a. Normal Forms:  The normal form of benefit for a  Participant  who is
married on his Annuity  Starting Date is a 50 percent Joint and Survivor Annuity
with the Spouse as Beneficiary, which is the Actuarial Equivalent of the benefit
that would be payable to the  Participant if the  Participant was not married on
his Annuity  Starting Date. The normal form of benefit for a Participant  who is
not married on his Annuity Starting Date is a straight life annuity,  payable in
monthly installments,  for the life of the Participant;  provided, however, that
if the Participant  shall die before having received 60 monthly  payments,  such
monthly payments shall be continued to his Beneficiary until the total number of
monthly  payments  to  such  Participant  and  Beneficiary  equals  60.  If  the
Participant  and  Beneficiary  die before having  received a total of 60 monthly
payments, the Actuarial Equivalent value of the balance of such monthly payments
shall be paid in a single sum to the estate of the  survivor of the  Participant
and Beneficiary.

         b. Optional Forms of Payment:  Unless the mandatory cash-out provisions
of Section 6.06(a) apply, a Participant may elect to receive his Plan benefit in
one of the optional forms of payment  described below,  provided the Participant
and form of payment satisfy the other requirements of this Article IX.

                   i.  A  reduced  retirement   benefit   payable   during   the
                       Participant's lifetime, with the provision that after his
                       death  the  same benefit shall be paid during the life of
                       such contingent annuitant Beneficiary) as the Participant
                       shall have nominated by written  designation duly acknow-
                       ledged and filed with the Plan Administrator prior to the
                       time payment is to commence.

                  ii.  A  reduced  retirement benefit payable during the Partic-
                       ipant's lifetime, with the provision that after his death
                       the  same  benefit  shall be paid during the life of such
                       contingent  annuitant  (Beneficiary)  as  the Participant
                       shall  have nominated by written designation duly acknow-
                       ledged and filed with the Plan Administrator prior to the
                       time payment is to commence.  If both the Participant and
                       the  contingent  annuitant die before 60 monthly payments
                       have  been made since the benefit  commencement date, the
                       Actuarial  Equivalent  value  of  the  balance of such 60
                       monthly   payments  shall be paid in a single  sum to the
                       estate  of the survivor of the Participant and contingent
                       annuitant.  Participants who elect to commence receipt of
                       benefit  payments on  or  after January 1, 1995 may elect
                       this  optional  form of payment with 120 monthly payments
                       guaranteed.

                                      -39-

<PAGE>

                 iii.  A   reduced   retirement   benefit   payable  during  the
                       Participant's  life with the  provision  that after  such
                       period  a benefit of one-half of the benefit payable dur-
                       ing  the Participant's life shall be continued during the
                       life of such contingent  annuitant  (Beneficiary)  as the
                       Participant  shall have nominated  by written designation
                       duly  acknowledged and filed with the Plan  Administrator
                       prior to the  time  payment  is to commence.  If both the
                       Participant  and the  contingent  annuitant die before 60
                       monthly  payments  have  been made since the benefit com-
                       mencement date, the  Actuarial  Equivalent  value  of the
                       balance  of such 60 monthly  payments  shall be paid in a
                       single  sum to the estate of the survivor of the Partici-
                       pant  and contingent annuitant. Participants who elect to
                       commence  receipt of benefit payments on or after January
                       1, 1995 may elect this optional form of payment with 120
                       monthly payments guaranteed.

                  iv.  Effective for benefit  payments that commence on or after
                       January 1, 1995, a  reduced  retirement  benefit  payable
                       during  the  Participant's  life, with no benefit payable
                       after his death;  provided, however, that if the Partici-
                       pant  shall  die  before having received 120 monthly pay-
                       ments, such monthly payments shall continue to be paid to
                       his Beneficiary until the total number of payments to the
                       Participant and the Beneficiary equals 120. If the Parti-
                       cipant  and Beneficiary both die before having received a
                       tota  of  120 monthly payments, the Actuarial  Equivalent
                       value  of  the  balance of unpaid  monthly payments shall
                       be paid in a single sum to the estate of the  survivor of
                       the  Participant and Beneficiary.

                   v.  An  increased  retirement   benefit  payable  during  the
                       Participant's  life, with  no other benefit payable after
                       his death.

         c.  Election and Consent Requirements

             A Participant may effectively waive his normal form of benefit  and
elect any of the other forms provided in subsection (b) only as follows:

                   i.  The election must be made in writing and delivered to the
                       Plan Administrator during the 90-day period ending on the
                       Annuity Starting Date.  Fo  Plan  Years  beginning  after
                       December 31, 1986, the election must specify the optional
                       form of benefit elected.

                                      -40-

<PAGE>

                  ii.  The  election  must be made after the Plan  Administrator
                       provides  the  Participant  with  the notice described in
                       subsection (d) below.

                 iii.  Unless an exception  stated in Section 8.02 applies,  the
                       Spouse of a  married  Participant  must  consent  to  any
                       election,  except   a  different-percentage   Joint   and
                       Survivor Annuity  with  the  Spouse  as  the Beneficiary.
                       The  Spouse's  consent must  satisfy the  requirements in
                       Section 8.02(e),  and,  for  Plan  Years  beginning after
                       December 31, 1986   must  also  agree  to   the  specific
                       optional form of benefits that  the  Participant  elects.
                       Notwithstanding the preceding provisions, the Participant
                       may  at  any time prior to the  commencement  of benefits
                       revoke  an  election and restore the 50 percent Joint and
                       Survivor Annuity for the Spouse.   The  number of revoca-
                       tions  shall  not be limited; provided, however, that the
                       form  of  payment  in effect on the Annuity Starting Date
                       may not be changed after the Annuity Starting Date.

         d.  Notice:  No  less  than 30 and no more  than 90 days  prior  to the
Annuity  Starting Date, the Plan  Administrator  shall furnish each  Participant
with a written notice that explains:

                   i.  The  terms  and  conditions of  the  50 percent Joint and
                       Survivor Annuity;

                  ii.  The  Participant's  right  to make, and the effect of, an
                       election to waive the 50 percent Joint and Survivor
                       Annuity;

                 iii.  The rights of the Participant's Spouse;

                  iv.  The right to revoke a previous election and the effect of
                       the revocation; and

                   v.  The  relative  values  of the other forms of payment des-
                       cribed in subsection (b).

The Annuity  Starting Date for a  distribution  in a form other than a Joint and
Survivor  Annuity  may be  less  than  30  days  after  receipt  of the  written
explanation described above provided: (A) the Participant has been provided with
information that clearly  indicates that the Participant has at least 30 days to
consider whether to waive the Joint and Survivor Annuity and elect (with spousal
consent) to a form of distribution other than a Joint and Survivor Annuity;  (B)
the Participant is permitted to revoke any affirmative  distribution election at
least until the  Annuity  Starting  Date or, if later,  at any time prior to the
expiration of the 7-day period that begins the day after the  explanation of the
Joint and Survivor Annuity is provided to the  Participant;  and (C) the Annuity
Starting Date is a date after the date that the written explanation was provided
to the Participant.

                                      -41-

<PAGE>

         e. Amount:  The amount payable under any optional form of benefit shall
be the Actuarial Equivalent of the benefit payable as a straight life annuity.

         f.  Annuity  Contracts:  Benefits to be paid in the form of any type of
annuity may be provided through a  nontransferable  annuity contract issued by a
reputable  insurance company and purchased by the Trustee,  or by direct payment
from the  Trust,  as  determined  by the Plan  Administrator.  The  terms of any
annuity  contract  purchased and  distributed by the Trustee to a Participant or
Beneficiary  shall  comply  with the  required  distribution  rules  under  this
Article, and Code Section 401(a)(9) and implementing Regulations.

         9.02  Compliance with Code Section 401(a)(9).

         a.  Incorporation  by  Reference:   Distributions   shall  be  made  in
compliance with Code Section 401(a)(9) and implementing  Regulations,  including
the minimum  distribution  incidental benefit requirement of proposed Regulation
1.401(a)(9)-2.  These Code and regulatory  provisions are hereby incorporated by
reference,  and shall take  precedence over any  inconsistent  provisions of the
plan.  (However,  the  Section  401(a)(9)  rules  will not extend the period for
making a  distribution,  if other  provisions  of the Plan  require  an  earlier
distribution.)  These rules are  summarized  in this Section and  Sections  9.03
through 9.05 below.

         b.  Life   Expectancies:   In  applying  Code  Section   401(a)(9)  and
implementing Regulations:

                   i.  Life  expectancies  of  Participants  and   Beneficiaries
                       shall be calculated using the expected return  multiplies
                       in  Tables V and VI of Regulation 1.72-9.

                  ii.  The life  expectancies  of a  Participant  and his Spouse
                       shall not be redetermined pursuant to Code Section 401(a)
                       (9)(D).

         9.03 Required  Distribution to Participant.  As stated in Article VI, a
Participant  generally  may elect to defer the  receipt  of  benefits  following
Retirement.  Notwithstanding  this  general  rule,  the  entire  interest  of  a
Participant must be distributed,  or begin to be distributed,  no later than the
Participant's Required Beginning Date, as defined below.

         a. Age 70-1/2 before January 1, 1988: For a Participant who attains age
70-1/2 before January 1, 1988,  the Required  Beginning Date shall be determined
as follows:

                   i.  For a  Participant who is not a Five  Percent  Owner, the
                       Required  Beginning  Date is April 1 of the calendar year
                       following the calendar year in which the later of Retire-
                       ment or attainment of age 70-1/2 occurs.

                                      -42-

<PAGE>

                  ii.  For a  Participant who is a Five Percent Owner during any
                       year  beginning  after  December 31,  1979,  the Required
                       Beginning Date is April 1 following the later of: (A) the
                       calenda   yea r in  which  the  Participant  attains  age
                       70-1/2, or (B) the earlier of the  calendar  year with or
                       within which ends the Plan Year in which the  Participant
                       becomes  a Five  Percent  Owner,  or the calendar year in
                       which the Participant retires.

         b. Age 70-1/2 on or after  January 1, 1988 and before  January 1, 1996:
For a Participant  who attains age 70-1/2 on or after January 1, 1988 and before
January 1, 1996,  the Required  Beginning  Date is April 1 of the calendar  year
following the calendar year in which the  Participant  attains age 70-1/2,  with
the following  exception.  For a Participant  who attains age 70-1/2 during 1988
and has not retired as of January 1, 1989, the Required  Beginning Date is April
1, 1990.

         c. Age 70-1/2 after  December 31, 1995:  For a Participant  who attains
age 70-1/2  after  December  31,  1995,  the  Required  Beginning  Date shall be
determined as follows:

                   i.  For  a  Participant  who  is  a  Five  Percent Owner, the
                       Required Beginning  Date is April 1 of the calendar  year
                       following the calendar  year during which the Participant
                       attains age 70-1/2.

                  ii.  For a Participant  who is not a Five Percent  Owner,  the
                       Required Beginning  Date is April 1 following  the calen-
                       dar  year  in which the later of Retirement or attainment
                       of age 70-1/2 occurs; provided,  however, that  any  such
                       Participant  who  attains age  70-1/2  after December 31,
                       1995  may  elect by April 1 following  the calendar  year
                       during  which the  Participant  attains age 70-1/2 (or by
                       December  31, 1997  in  the  case  of a  Participant  who
                       attains age 70-1/2  in 1996) to  commence  receipt of the
                       Participant's  Plan  benefit as of April 1 following  the
                       calendar  year during which the  Participant  attains age
                       70-1/2.

For purposes of this Section,  a Participant  shall be treated as a Five Percent
Owner if he is a Five Percent Owner at any time during the Plan Year ending with
or within the  calendar  year in which he attains  age 66-1/2 or any  subsequent
Plan Year.  Once  distributions  have begun to a Five Percent  Owner,  they must
continue  even  if the  Participant  ceases  to be a  Five  Percent  Owner  in a
subsequent year.

         d. Except with respect to a Five Percent Owner, a Participant's accrued
benefit is  actuarially  increased  to take into  account  the period  after age
70-1/2  in which the  employee  does not  receive  any  benefits  under the Plan
because the Participant  remains in active  employment.  The actuarial  increase
begins on April 1 following the calendar year in which the  Participant  attains
age 70-1/2 (January 1, 1997 in the case of a Participant who attained age 70-1/2
prior to 1996), and ends on the date on which benefits

                                      -43-

<PAGE>

commence  after  retirement  in an amount  sufficient  to satisfy  Code  Section
401(a)(9).  The benefit payable as of such benefit commencement date shall equal
the sum of (i) the Actuarial Equivalent of the Participant's  benefit that would
have been payable as of the date actuarial  increases  must commence,  plus (ii)
the  Actuarial  Equivalent  of any  additional  benefits  accrued after the date
actuarial increases must commence.

The sum  described  above shall be reduced by the  Actuarial  Equivalent  of any
distributions  made with  respect to the  Participant's  benefit  after the date
actuarial increases must commence; provided, however, that, in no event will the
Participant's  benefit at benefit  commencement  be less than the  Participant's
benefit determined as of the date actuarial increases must commence.

The actuarial  increase  described in this Section is generally the same as, and
not in addition to, the actuarial  increase  required for that same period under
Code  Section  411 to reflect  the delay in payments  after  normal  retirement,
except that the actuarial increase required under Code Section 401(a)(9)(C) must
be  provided  even  during the period  during  which a  Participant  is in ERISA
Section 203(a)(3)(B) service.

For  purposes of Code  Section  411(b)(1)(H),  the  actuarial  increase  will be
treated as an adjustment  attributable  to the delay in distribution of benefits
after the  attainment  of normal  retirement  age.  Accordingly,  to the  extent
permitted under Code Section 411(b)(1)(H), the actuarial increase required under
Code Section 401(a)(9)(C)(iii) may reduce the benefit accrual otherwise required
under Code Section  411(b)(1)(H)(i),  except that the rules on the suspension of
benefits are not applicable.

         9.04  Limits on Distribution Periods.

         a. As of the first "distribution calendar year," distributions,  if not
made in a single sum, may be made only over one of the  following  periods (or a
combination thereof):

                   i.  The life of the Participant;

                  ii.  The life of the Participant and a Beneficiary;

                 iii.  A period certain not extending beyond the life expectancy
                       of the Participant; or

                  iv.  A period  certain not extending beyond the joint and last
                       survivor  expectancy  of the Participant and a designated
                       Beneficiary.

                                      -44-

<PAGE>

         b. 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.

         c. For distributions beginning after the Participant's death, the first
"distribution  calendar  year" is the calendar year in which  distributions  are
required to begin pursuant to Section 9.05(b).

         9.05 Required Distribution to Beneficiary.  As provided in Article VII,
the designated  Beneficiary generally may elect to defer the receipt of benefits
payable following the death of a Participant.  However, this right is subject to
the following restrictions:

         a.  Distribution  Beginning before Death: If the Participant dies after
he begins to receive  benefits,  any benefits that remain  undistributed  at his
death  shall be  distributed  at least as rapidly as the method of  distribution
being used at the time of his death.

         b.  Distribution  Beginning after Death: If the Participant dies before
he begins to receive benefits, payment of the survivor benefit shall commence no
later than one year after the date of the  Participant's  death. As an exception
to this rule, if the designated  Beneficiary is the Surviving Spouse,  the later
of the calendar year in which the Participant  dies, or the Surviving Spouse may
elect to have  payments  commence  on or before  December 31 of the later of the
calendar year in which the  Participant  died, or the calendar year in which the
Participant would have attained age 70-1/2.

         9.06  Location of Participant or Beneficiary Unknown.

         a. When a distribution is payable to a Participant or Beneficiary,  the
Plan  Administrator  shall make all  reasonable  efforts to locate that  person.
These  efforts  shall include (i) sending a registered  letter,  return  receipt
requested,  to the  person's  last known  mailing  address,  and (ii)  sending a
written  request to any person shown in the Employer's  records as a relative or
other person to contact, asking for information regarding the whereabouts of the
Participant or Beneficiary.

         b. If the Plan  Administrator is unable to locate the person within six
months  from  the  date  a  certified   letter  was  mailed  to  him,  the  Plan
Administrator  shall  direct  the  Trustee to  maintain  the  Participant  as an
inactive  Participant.  The Plan  Administrator  shall  continue to maintain the
Participant  in  inactive  status  until (i) the person  entitled to the benefit
makes an  application  for it, or (ii) the  benefit  reverts  by  escheat to the
State, whichever occurs first.

         9.07  Facility of  Payment.  If the Plan  Administrator  finds that any
person  to whom a  benefit  is  payable  from the Fund is unable to care for his
affairs  because of  illness or  accident,  any  payment  due may be paid to the
Spouse,  a child, a parent,  or a brother or sister,  or to any person deemed by
the Plan  Administrator to have incurred expense for the person,  unless a prior
claim  for  the benefit has been made by a duly appointed guardian, committee or
other  legal  representative.  Any such payments will be a complete discharge of
any liability under the Plan.

                                      -45-

<PAGE>

         9.08  Eligible Rollover Distributions.

         a. Application of Section.  This Section applies to distributions  made
on or after  January 1, 1993.  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 Plan
Administrator,  to have any portion of an eligible  rollover  distribution  paid
directly to an eligible retirement plan specified by the distributee in a direct
rollover.

         b. Definitions.

                   i.  Eligible  Rollover  Distribution:   An  eligible rollover
                       distribution  is any  distribution  of all or any portion
                       of  the balance to the credit of the distributee,  except
                       that an eligible  rollover distribution does not include:
                       any distribution that is one of a series of substantially
                       equal periodic payments (not less frequently than annual-
                       ly) made for the life (or life expectancy) of the distri-
                       butee or the joint lives (or joint life  expectancies) of
                       the distributee and  the distributee's  designated  Bene-
                       ficiary, or for a specified  period of ten years or more;
                       any  distribution  to  the   extent  such distribution is
                       required  under  Section  401(a)(9) of  the Code; and the
                       portion  of any  distribution  that is not  includable in
                       gross income (determined  without regard to the exclusion
                       for net unrealized appreciation with respect to employer
                       securities).

                  ii   Eligible Retirement Plan: An eligible  retirement plan is
                       an  individual  retirement  account  described in Section
                       408(a)  of  the  Code, an individual  retirement  annuity
                       described   in   Section  408(b) of the Code,  an annuity
                       plan  described  in Section  403(a)  of  the  Code,  or a
                       qualified  trust described in Section 401(a) of the Code,
                       that  accepts the distributee's eligible rollover distri-
                       bution.  However,  in  the  case  of an eligible rollover
                       distribution to the Surviving Spouse, an eligible retire-
                       ment  plan  is an individual retirement account or indiv-
                       idual retirement annuity.

                 iii.  Distributee: A distributee includes an Employee or former
                       Employee.    In addition,  the  Employee's  or former
                       Employee's  Surviving Spouse and the Employee's or former
                       Employee's  Spouse  or former Spouse who is the Alternate
                       Payee  under  a  Qualified  Domestic  Relations Order, as
                       defined  in  Section 414(p) of the Code, are distributees
                       with regard to the interest of the Spouse or former
                       Spouse.
                                      -46-

<PAGE>

                  iv.  Direct  Rollover:  A direct  rollover is a payment by the
                       Plan  to  the  eligible  retirement plan specified by the
                       distributee.

                                      -47-

<PAGE>

                                    ARTICLE X

                                    FINANCING
                                    ---------

         10.01 Fund.  The  funding of the Plan and payment of benefits  shall be
provided  for  through  the  medium  of the Fund held by the  Trustee  under the
provisions of the Trust  Agreement,  which is deemed to form a part of the Plan.
All rights or  benefits  which may accrue to any person  under the Plan shall be
subject to the Trust Agreement.  The names of the current Trustees are available
from the Secretary of the Employer. The contributions of the Employer,  together
with any  income,  gains,  or profits,  less  distributions  and  losses,  shall
constitute the Fund. The Employer shall determine the form and terms of any such
Trust  Agreement,  and may  modify  the  Trust  Agreement  from  time to time to
accomplish the purposes of the Plan, and may remove any Trustee.

         10.02  Contributions  to the Plan. The Employer  intends to make,  from
time  to  time,  such  contributions  to the  Fund  as  determined  by the  Plan
Administrator.  Expenses of the Plan, unless paid by the Employer, shall be paid
out of the assets of the Fund. There are no Employee contributions to the Plan.

         10.03 Funding Policy. The Plan Administrator  shall establish a written
funding  policy and method  consistent  with the  objectives of the Plan and the
requirements  of Title I of ERISA.  The Plan  Administrator  shall  review  such
funding  policy  and  method  at  least  annually.  In  its  actions,  the  Plan
Administrator  shall  endeavor to determine the Plan's  short-term and long-term
objectives  and financial  needs,  taking into account the need for liquidity to
pay benefits and the need for investment growth. All actions under this Section,
including  the  supporting  reasons,  shall be  recorded  in writing by the Plan
Administrator and communicated to the Trustee and Board of Directors.

         10.04 Return of Employer Contributions. Contributions shall be returned
to the Employer by the Trustee,  if the Plan Administrator  certifies in writing
to the Trustee that one or more of the following circumstances exists:

         a.  If the  Employer  made a  contribution  by  mistake  of  fact,  the
contribution shall be returned to the Employer within one year after its payment
to the Trustee.

         b.  If  the  Employer  made  the   contribution   conditioned   on  the
qualification  of the Plan under the Code,  and if the Plan  receives an adverse
determination with respect to its initial qualification,  the contribution shall
be returned to the Employer  within one year after such final  determination  as
described in Section 16.05(a), but only if the application for the determination
is made by the time  prescribed by law for filing the  Employer's tax return for
the  taxable  year in which  the Plan was  adopted,  or such  later  date as the
Secretary of the Treasury may prescribe.

                                      -48-

<PAGE>

         c. To the extent that a deduction for a contribution  under Section 404
of the Code is disallowed,  the  contribution  shall be returned to the Employer
within  one  year after the  disallowance  (or within one year after the date a
court  decision  upholding  the  disallowance  becomes final).

With  respect to the return of  contributions  occasioned  by the  circumstances
listed in subsections  (a) and/or (c) above,  the amount which shall be returned
to the  Employer  is the excess of the amount  contributed  over the amount that
would  have  been  contributed  had there not  occurred  a mistake  of fact or a
mistake  in  determining  the  deduction.  Earnings  attributable  to the excess
contribution shall not be returned to the Employer,  but losses  attributable to
the contribution must reduce the amount to be returned.

                                      -49-

<PAGE>

                                   ARTICLE XI

                                 ADMINISTRATION
                                 --------------

         11.01  Plan Administrator.

         a. The Plan Administrator shall be the named fiduciary for the Plan and
shall be responsible for the  management,  operation and  administration  of the
Plan.

         b. The Board of  Directors  shall  have the  authority  to  appoint  an
individual or other entity, or a committee consisting of three members to be the
Plan  Administrator,  and to  fill  any  vacancies  which  occur,  in  its  sole
discretion. Any appointee is subject to removal by the Board of Directors at any
time,  and may resign at his own volition upon 10 days prior  written  notice to
the Board of Directors.  If at any time there is no appointed Plan Administrator
because  vacancies have not been filled,  the Board of Directors shall be deemed
the Plan Administrator.  Names of all current appointees shall be available from
the Secretary of the Employer.

         c. If the Plan  Administrator  is a  committee,  any act that this Plan
authorizes or requires the Plan  Administrator to do may be done at a meeting of
the committee by a majority of the members then voting.

         d. The Board of Directors  will appoint a chairman and a secretary  and
such other agents and  representatives  of the pension  committee as it may deem
advisable  (see Section  11.05).  In its  relationship  with the Trustee and any
insurance company or companies on any matter or thing included in this Plan, one
member of the  committee may be authorized by it to sign or execute any document
on its  behalf.  The  Chairman  of the Board of  Directors  will  certify to the
Trustee and to such insurance company or companies the name and signature of the
member of the committee who is so authorized.

         e. The Plan Administrator will serve without  compensation for services
as such, but all the Plan Administrator's expenses shall be paid by the Employer
(see Section 11.11).

         f. The Board of Directors,  in its sole discretion,  may also designate
the Trustee as the Plan Administrator.  Any such designation shall be valid only
if the Trustee  acknowledges  responsibility  for the management,  operation and
administration  of the Plan in writing.  Thereafter,  all references in the Plan
and Trust to the Plan Administrator  shall mean the Trustee unless and until the
Board of Directors  appoints a different Plan  Administrator  in accordance with
this Section.

                                      -50-

<PAGE>

         11.02  Fiduciary and Administrative Duties

         a. The Plan Administrator shall have the following powers,  duties, and
responsibilities,  which it may  retain or  delegate  among the  below-mentioned
bodies:

         i.  Powers,  duties, and responsibilities of administration which shall
             be delegable to an administrator;

        ii.  Powers, duties, and responsibilities of custody and disbursement of
             the assets of the Fund, which  shall be delegable to  the  Trustee,
             the administrator, or an insurance company, and

       iii.  Powers,  duties,  and responsibilities of investment which shall be
             delegable  to  the  Trustee, an investment advisor, or an insurance
             company.

The Plan Administrator may appoint an administrator,  an investment  advisor, or
an insurance  company,  and review or  redelegate  the exercise of these powers,
duties and responsibilities at any time.

         b. As provided in Section 10.03, the Plan  Administrator will prescribe
a funding policy for the Plan.

         11.03  General Powers and Discretion of Plan Administrator.

         a. The Plan Administrator shall have all powers necessary to administer
the Plan in accordance with its terms,  including the power to construe the Plan
and determine all questions that arise under it.

         b.  Notwithstanding  any other  provision in the Plan,  and to the full
extent permitted by law, the Plan Administrator  shall have exclusive  authority
and  discretion to  interpret,  construe and apply all of the terms of the Plan,
including  any  uncertain or disputed  term or  provision in the Plan.  The Plan
Administrator's  authority and discretion shall include, but not limited to, the
following:

                   i.  Determining and deciding all questions of law and/or fact
                       that arise under the Plan;

                  ii.  Determining  whether  any  individual is eligible for any
                       benefits under this Plan; and

                 iii.  Determining the amount of benefits, if any, an individual
                       is entitled to under this Plan.

                                      -51-

<PAGE>

         c. The Plan  Administrator's  exercise of  discretionary  authority  to
interpret, construe and apply the terms of the Plan, and all its determinations,
interpretations and applications shall:

                   i.  Be binding  upon  any  individual claiming benefits under
                       this Plan,  including,  but  not limited to, the Partici-
                       pant,  the Participant's estate, any Beneficiary of the
                       Participant, and any Alternate Payees;

                  ii.  Be given  deference in all courts of law, to the greatest
                       extent allowed by applicable law; and

                 iii.  Not be overturned or set aside by any court of law unless
                       found  to  be  arbitrary  and  capricious, or made in bad
                       faith.

         d. If the  discretionary  authority in subsection (c) is exercised with
respect to an individual who is a member of the pension committee, the authority
shall  be  exercised  solely  and  exclusively  by  the  other  members.  If the
individual  is the  only  Plan  Administrator  at the  time,  the  discretionary
authority  shall be  exercised  by the Board of  Directors,  not  including  the
affected individual if he is also a member of the Board of Directors.

         e. Any  discretionary  actions  of  the  Plan Administrator or Board of
Directors  shall  be  taken  in a manner that does not  discriminate in favor of
Highly Compensated Employees.

         11.04  Administration of the Fund.

         a. The Trustee shall be  responsible  for the management and investment
of the Fund in accordance with the provisions of the Trust agreement.

         b.  Directives  of the  Plan  Administrator  to the  Trustee  shall  be
delivered in writing, and properly signed.

         11.05  Delegation of Powers.

         a. When the Plan Administrator  appoints assistants or representatives,
it  may  delegate  to  them  any  powers  and  duties,   both   ministerial  and
discretionary,  as it deems  expedient  or  appropriate  (except as  provided in
Section 11.06).

         b. Any appointment  under  this  Section or Section 11.06 shall be made
pursuant to a signed, written instrument.

                                      -52-

<PAGE>

         11.06  Appointment of Professional Assistants and Investment Managers.

         a. The Plan Administrator may engage accountants, attorneys, physicians
and such other  professional  personnel as it deems necessary or advisable.  The
Plan  Administrator  may also appoint one or more investment  managers to manage
all or any of the assets of the Trust, including the power to acquire or dispose
of assets. However, the appointment of an investment manager must be approved by
the Board of Directors,  and the investment  manager must acknowledge in writing
that it is a fiduciary with respect to the Plan. An investment  manager can only
be a party that is either (i)  registered  as an  investment  adviser  under the
Investment  Advisers Act of 1940,  (ii) a bank, as defined in that Act, or (iii)
an insurance  company  qualified  to manage,  acquire and dispose of Plan assets
under the laws of more than one State.

         b. The functions of persons engaged under this Section shall be limited
to the specific  services  and duties for which they are  engaged.  Such persons
shall have no other duties,  obligations or  responsibilities  under the Plan or
Trust,  and shall  exercise no discretion  regarding the management of the Plan.
Unless  engaged  specifically  as an  investment  manager,  such a person  shall
exercise no authority or control  respecting  management or  disposition  of the
assets of the Trust.

         c.  The  fees  and  costs  of  services   under  this  Section  are  an
administrative  expense  of the Plan to be paid out of the  Fund,  except to the
extent paid by the Employer.

         11.07  Records.  All acts and  determinations  with respect to the Plan
shall be duly  recorded.  All  such  records  and  other  documents  that may be
necessary for the  administration  of the Plan shall be preserved in the custody
of the Plan Administrator (or its appointed assistants or representatives).

         11.08 Notice of Rollover  Treatment.  When making a qualifying rollover
distribution  within the meaning of Code Section 402(a),  the Plan Administrator
shall provide to the recipient a written explanation of:

                   i.  The circumstances under which such distribution will not
                       be  subject  to tax if transferred to an eligible retire-
                       ment plan (as defined in Code Section  402(a))  within 60
                       days after the date on which the recipient  receives the
                       distribution; and

                  ii.  If  applicable, the income  averaging  provisions of Code
                       Section 402(e).

         11.09  Responsibility  of Fiduciaries.  The Plan  Administrator and any
assistant or representative,  other than any Investment  Manager,  shall be free
from all  liability for acts and conduct in the  administration  of the Plan and
Trust, except for acts of willful misconduct.

                                      -53-

<PAGE>

However, the preceding sentence shall not relieve any fiduciary from any respon-
sibility,  obligation or duty that the fiduciary may have pursuant to ERISA.

         11.10  Indemnity by Employer.  To the extent not insured  against by an
applicable  insurance  policy,  and to the extent permitted by law, the Employer
shall indemnify and hold harmless the Plan  Administrator and its assistants and
representatives  from  any and all  claims,  demands,  suits or  proceedings  in
connection with the Plan or Trust that may be brought against them, provided the
individual  or entity  being  indemnified  is/was an  employee,  or committee of
employees, of the Employer.

         11.11  Payment  of Fees and  Expenses.  To the extent  consistent  with
ERISA,  the Plan  Administrator  and  assistants and  representatives,  shall be
entitled to payment from the Fund for all reasonable costs, charges and expenses
incurred in the administration of the Plan and Trust. This includes,  but is not
limited to,  reasonable  fees for accounting,  legal and other services,  to the
extent incurred in the performance of duties under the Plan and Trust, except to
the extent that the fees and costs are paid by the Employer. Notwithstanding any
other provision of the Plan or Trust, no person who is a "disqualified  person,"
within the meaning of Code Section  4975(e)(2)  and who receives  full-time  pay
from the Employer  shall receive  compensation  from the Trust Fund,  except for
reimbursement of expenses properly and actually incurred.

         11.12 ERISA Reporting and Disclosure.  The Plan Administrator  shall be
responsible  for the  performance  of all reporting and  disclosure  obligations
under ERISA.

         11.13 Service  of Legal Process.   The  Plan Administrator shall be the
designated agent of the Plan for service of legal process.

         11.14 Claim for Benefits.  Any claim for benefits by a  Participant  or
Beneficiary shall be made in writing to the Plan Administrator.

         11.15 Denial of Claim.

         a. If the Plan  Administrator  denies  a claim in whole or in part,  it
shall send the  Participant or Beneficiary  ("claimant") a written notice of the
denial.

         b. The Plan  Administrator  shall send the denial notice within 90 days
after the date it receives a claim,  unless it needs additional time to make its
decision.  In that case, the Plan Administrator may authorize an extension of up
to an additional  90 days,  if it notifies the claimant of the extension  within
the initial 90-day period.  The extension notice shall state the reasons for the
extension and the expected decision date.

         c. The denial  notice  shall be written  in a manner  calculated  to be
understood by the claimant and shall contain:

                                      -54-

<PAGE>

                  i.   The  specific  reason  or  reasons  for the denial of the
                       claim;

                 ii.   Specific  reference to pertinent Plan provisions on which
                       the denial is based;

                iii.   A description of any  additional  material or information
                       necessary to perfect the claim,  with an  explanation  of
                       why the  material or information is necessary; and

                 iv.   An  explanation  of the  review  procedures  provided  by
                       sections 11.16 and 11.17.

         11.16 Request for Review of Denial.

         a. Within 60 days after the claimant  receives a denial notice,  he may
file a request for review with the Plan Administrator.  Any such request must be
made in writing.

         b. A claimant who timely requests review shall have the right to review
pertinent documents,  to submit additional information and written comments, and
to be represented.

         11.17 Review Decision.

         a. The Plan Administrator shall send the claimant a written decision on
any request for review that it receives.

         b. The Plan Administrator shall send the review decision within 60 days
after the date it receives a request for review,  unless an extension of time is
needed, due to special  circumstances.  In that case, the Plan Administrator may
authorize an extension of up to an additional 60 days,  provided it notifies the
claimant of the extension within the initial 60-day period.

         c. The review  decision  shall be written in a manner  calculated to be
understood by the claimant and shall contain:

                   i.  The  specific  reason  or  reasons  for the decision; and

                  ii.  Specific  reference to the pertinent  Plan  provisions on
                       which the decision is based.

         d. If the  Plan  Administrator  does not  send  the  claimant  a review
decision within the applicable time period,  the claim shall be deemed denied on
review.

                                      -55-

<PAGE>

         e. The review decision (including a deemed decision) shall be the final
decision of the Plan.

                                      -56-

<PAGE>

                                   ARTICLE XII

                             LIMITATIONS ON BENEFITS
                             -----------------------

         12.01  General Rules.

         a.  Incorporation  of Code  Section  415: In  addition to the  specific
provisions  of this  Article,  the terms of Code  Section  415 and  implementing
Regulations   are  hereby   incorporated  by  reference  and  shall  govern  the
determination of the Maximum Retirement Benefits of all Participants.

         b.  Aggregation  of Employers  and Plans:  As further set forth in this
Article and Code  Section 415,  the Maximum  Retirement  Benefit is an aggregate
limitation that applies to this Plan and any other plans,  described below, that
are  maintained  by the  Employer  or an  Affiliated  Employer.  Therefore,  for
purposes  of  this  Article,   all  qualified  defined  benefit  plans,  whether
terminated  or not,  ever  maintained  by the  Employer  shall be treated as one
defined  benefit plan, and all qualified  defined  contribution  plans,  whether
terminated  or not,  ever  maintained  by the  Employer  shall be treated as one
defined  contribution  plan. Any required  employee  contributions  to a defined
benefit  plan  shall be treated as annual  additions  to a defined  contribution
plan.  However,  the annual  additions for  Limitation  Years  beginning  before
January 1, 1987 shall not be recomputed to treat all employee  contributions  as
annual additions.

         12.02 Code Section 415  Limitations.  For  Limitation  Years  beginning
after December 31, 1986, the Annual Benefit  payable to a Participant  shall not
exceed the Maximum  Retirement Benefit for any Limitation Year. If the benefit a
Participant  would otherwise accrue would produce an Annual Benefit in excess of
the Maximum Retirement Benefit,  the rate of accrual will be reduced so that the
Annual Benefit will equal the Maximum Retirement Benefit.

         a. Annual  Benefit  means a retirement  benefit  under the Plan that is
payable annually in the form of a straight life annuity.

                   i.  The  Annual  Benefit   does  not  include  any   benefits
                       attributable to employee contributions.

                  ii.  A benefit payable in a form  other  than a straight  life
                       annuity  must  be adjusted to an  Actuarially  Equivalent
                       straight  life annuity before applying the limitations of
                       this  Article.  For  Limitation  Years  beginning  before
                       January 1, 1995,  such  Actuarially  Equivalent  straight
                       life annuity is equal to the greater of the annuity bene-
                       fit  computed  using  the interest  rate specified in the
                       Plan  for  adjusting  benefits in the same form or 5 per-
                       cent.  For  Limitation Years beginning after December 31,
                       1994,  the  Actuarially  Equivalent straight life annuity

                                      -57-
<PAGE>

                       is equal to the greater of the annuity  benefit  computed
                       using  the  interest  rate and mortality table (or other
                       tabular factor) specified in the Plan for adjusting bene-
                       fits in the same form, and the annuity benefit  computed
                       using a 5 percent interest rate assumption and the Appli-
                       cable  Mortality  Table (defined  in  Section  2.03(c) of
                       the  Plan).  In  determining  the Actuarially  Equivalent
                       straight  life annuity  for  a  benefit form other than a
                       nondecreasing  annuity  payable  for a period of not less
                       than  the  life of  the Participant (or, in the case of a
                       Pre-Retirement Survivor  Annuity, the life of the surviv-
                       ing  spouse),  the  Applicable  Interest Rate (defined in
                       Section 2.09 of the Plan) will be  substituted  for "a 5
                       percent  interest  rate  assumption"  in  the  preceding
                       sentence.

         b. Maximum Retirement Benefit means the lesser of:

                   i.  The Defined Benefit Dollar Limitation; or

                  ii.  The  Participant's  highest  average  compensation.   For
                       purposes  of  the preceding  sentence,  "highest average
                       compensation"  means  the average Limitation Year Compen-
                       sation  for  the three consecutive  Limitation Years that
                       produces the highest  average for the  Participant.  The
                       actual  number  of  Limitation  Year  shall  be  used for
                       Participants  who  have been employed for less than three
                       consecutive  Limitation  Years. In the case of a Partici-
                       pant  who  has separated from service,  the Participant's
                       highest  average  compensation  will  be  automatically
                       adjusted by multiplying such  compensation by the cost of
                       living  adjustment  factor prescribed by the Secretary of
                       the  Treasury under Code Section 415(d)  in  such  manner
                       as  the Secretary shall prescribe. The adjusted compensa-
                       tion  amount  will  apply  to  Limitation  Years ending
                       within the calendar year of the date of the adjustment.

         c. Actuarial Increase of Defined Benefit Dollar Limitation: In the case
of a benefit  that begins  after the  Participant  attains  his Social  Security
Retirement  Age,  the  Defined  Benefit  Dollar  Limitation,  as  reduced  under
subsection  (e)  if  necessary,   shall  be  actuarially  increased,  using  (in
Limitation  Years beginning before January 1, 1995) an interest rate that is the
lesser of five percent or the interest rate specified in the first  paragraph of
Section 2.03.  For  Limitation  Years  beginning  after  December 31, 1994,  the
equivalent annual benefit  beginning after Social Security  Retirement age shall
be determined as the lesser of the equivalent  annual benefit computed using the
interest rate and mortality  table (or other  tabular  factor)  specified in the
Plan for purposes of determining  actuarial  equivalence for delayed  retirement
benefits,  and the equivalent annual benefit computed using a 5 percent interest
rate assumption and the Applicable Mortality Table as defined in Section 2.03(c)
of the Plan.

                                      -58-
<PAGE>

         d. Actuarial Decrease of Defined Benefit Dollar Limitation:

                   i.  If the Annual Benefit of the Participant commences before
                       the  Participant's  Social  Security  Retirement Age, but
                       on or after age 62, the Defined Benefit Dollar Limitation
                       as  reduced  under subsection  (e) if necessary, shall be
                       determined as follows:

                         A.  If  a  Participant's  Social  Security  Retirement
                             Age  is  65,  the  dollar limitation for benefits
                             commencing on or after age 62 is determined by re-
                             ducing the Defined  Benefit  Dollar  Limitation by
                             5/9 of one percent for each month by which benefits
                             commence before the month in which the  Participant
                             attains age 65.

                         B.  If a Participant's Social  Security  Retirement Age
                             is greater than 65, the dollar limitation for bene-
                             fits commencing on or after age 62 is determined by
                             reducing the Defined Benefit Dollar Limitation by
                             5/9 of one percent for each of the first 36 months
                             and 5/12 of one percent for each of the  additional
                             months (up  to  24  months)  by  which  benefits
                             commence  before  the  month  of  the Participant's
                             Social Security Retirement Age.

                  ii.  If the Annual Benefit of a Participant commences prior to
                       age  62, the  Defined  Benefit Dollar Limitation shall be
                       the actuarial equivalent of the  Defined  Benefit  Dollar
                       Limitation  for age 62, as determined  above, reduced for
                       each month by which benefits commence before the month in
                       which  the  Participant attains age 62. To determine act-
                       arial  equivalence  in Limitation Years that begin before
                       January 1, 1995,  the interest rate  assumption  shall be
                       the  greater of the rate specified in the first paragraph
                       of  Section 2.03 or five percent.  For  Limitation  Years
                       that  begin  after  December 31, 1994, the annual benefit
                       beginning  prior  to age 62 shall  be  determined  as the
                       lesser  of the equivalent  annual benefit  computed using
                       the interest  rate  and mortality table (or other tabular
                       factor)  equivalence for early  retirement  benefits, and
                       the equivalent  annual benefit computed using a five per-
                       cent  interest rate and  the Applicable  Mortality  Table
                       as defined in Section  2.03(c) of the Plan.  Any decrease
                       in  the adjusted Defined Benefit Dollar Limitation deter-
                       mined  in accordance with this  subsection (ii) shall not
                       reflect  any mortality decrement to the extent that bene-
                       fits   will  not  be  forfeited  upon  the  death  of the
                       Participant.

                                      -59-
<PAGE>

         e.       Reduction of Maximum Retirement Benefit:

                   i. If a Participant has less than ten Years of Participation,
                       the Defined Benefit Dollar Limitation shall be multiplied
                       by  a  fraction,  the numerator of which is the number of
                       Years  of  Participation  (or  part  thereof), and  the
                       denominator  of  which is ten. To the extent  provided in
                       Regulations  or  othe  guidance issued  by  the  Internal
                       Revenue Service,  he preceding  sentence shall be applied
                       separately  with  respect  to  each change in the benefit
                       structure of the Plan.

                  ii. If the Participant has less than ten Years of Service, the
                       compensation  limitation  in  subsection (b)(ii) shall be
                       multiplied  by  a fraction, the numerator of which is the
                       Participant's number  of Years of Service (or part there-
                       of), and the denominator of which is ten.

                 iii.  The  adjustments of this  subsection (e) shall be applied
                       in the denominator of the Defined Benefit  Fraction based
                       upon Years of Service. For purposes of computing the De-
                       fined  Benefit  Fraction only,  Years  of  Service  shall
                       include future Years of Service (or part thereof) commen-
                       cing  before  the Participant's  Normal  Retirement  Age.
                       Such  future  years  shall include the year that contains
                       the  date  the Participant reaches Normal Retirement Age,
                       only  if  it  can  reasonably  be  anticipated  that  the
                       Participant  will  receive  a  Year of Service  for  such
                       year, or the  year in  which  the Participant  terminates
                       employment, if earlier.

         12.03  Deemed Satisfaction of Maximum Retirement Benefit Limitation.

                   i.  The Maximum Retirement Benefit limitation shall be deemed
                       satisfied  if the aggregate Annual Benefits  payable to a
                       Participant under this Plan and all other defined Benefit
                       plans of the Employer do not exceed $10,000.

                  ii.  This deeming provision shall apply to a Participant if he
                       has not at any time  participated in a defined  contribu-
                       tion  plan  maintained by the  Employer  (or in a welfare
                       benefit  pla n under Code Section 419(e) or an individual
                       medical account under Code Section  415(l)(2)).  For pur-
                       poses  of  this subsection,  a defined  benefit plan that
                       provides for  employee  contributions, which  are treated
                       as annual additions,  does not constitute the maintenance
                       of a separate defined contribution plan maintained by the
                       Employer.

                                      -60-
<PAGE>

         12.04    Maximum Retirement Benefit for Multiple Plans.

         a. Multiple  Defined  Benefit  Plans:  If a  Participant  has ever been
covered under more than one defined benefit plan maintained by the Employer, the
sum of the  Participant's  Annual  Benefits from all such plans shall not exceed
the Maximum  Retirement  Benefit.  The Employer  shall reduce and, if necessary,
freeze the accrual of benefits  under this Plan to the extent  necessary to meet
this limitation.

         b. Defined Benefit Plan and Defined  Contribution  Plan: For Limitation
Years beginning  before January 1, 2000, if a Participant is or has been covered
by a defined  contribution plan maintained by the Employer  (including a welfare
benefit fund, as defined in Code Section 419(e) or an individual medical account
as defined in Code  Section  415(l)(2)),  the sum of the  Participant's  Defined
Benefit Fraction and Defined Contribution  Fraction, as defined below, shall not
exceed 1.0 in any Limitation Year.

                   i.  Defined Benefit  Fraction:  The  numerator of the Defined
                       Benefit  Fraction is the sum of the  Participant's  "pro-
                       jected  annual benefits" under all defined benefit plans
                       of  the Employer (whether  or not terminated). The denom-
                       inator is  the lesser of 1.25 times the dollar limitation
                       determined for  the Limitation Year under Sections 415(b)
                       and  (d)  of the  Code  and  in  accordance  with Section
                       12.02(e) above, or 1.4 times the  Participant's  "highest
                       average compensation,"  including any  adjustments  under
                       Section  415(b) of  the  Code. In determining the Defined
                       Benefit Fraction:

                         A.  "Projected annual benefit" means the annual retire-
                             ment benefit (adjusted to an actuarially equivalent
                             straight life annuity, if such benefit is expressed
                             in  a  form other than a straight life annuity,  or
                             qualified  joint and survivor annuity) to which the
                             Participant  would  be  entitled under the terms of
                             the Plan,  assuming that:  (1) The Participant will
                             continue  employment  until  Normal  Retirement Age
                             under  the Plan (or current age, if later), and (2)
                             The  Participant's  Compensation  for  the  current
                             Limitation  Year  and  all other  relevant  factors
                             used to determine benefits under the Plan will
                             remain constant for all future Limitation Years.

                         B.  "Highest average compensation" is defined in
                             Section 12.02(b)(ii).

                         C.  Notwithstanding  the  preceding  provisions,  if a
                             Participant was  a  Participant as of the first day
                             of  the  first  Limitation  Year  beginning  after
                             December 31, 1986  in a defined benefit plan  main-
                             tained  by  the Employer  which was in existence on
                             May 6, 1986,  the denominator of the fraction  will

                                      -61-

<PAGE>

                             not  be  less  than  125  percent of the sum of the
                             annual benefits under such plan, which the Partici-
                             pant  had accrued as of the close of the last Limi-
                             tation Year beginning  before January 1, 1987, dis-
                             regarding  any  changes in the terms and conditions
                             of the Plan after May 5, 1986.  The preceding  sen-
                             tence applies  only  if  any  such  defined benefit
                             plans,  individually  and in the aggregate,  satis-
                             fied the  requirements  of Code Section 415 for all
                             Limitation Years beginning before January 1, 1987.

                  ii.  Defined  Contribution  Fraction:  The  numerator  of  the
                       Defined  Contribution  Fraction  is  the  sum  of the
                       annual  additions  to  the Participant's  accounts  under
                       all defined  contribution  plans  (whether o  not termi-
                       nated) maintained by the Employer for the current and all
                       prior  Limitation  Years.  The  denominator is the sum of
                       the "maximum  aggregate  amounts" for the current and all
                       prior Limitation  Years  of Service  with  the  Employer
                       regardless of  whether a defined  contribution  plan was
                       maintained  by the  Employer.  In determining the Defined
                       Contribution Fraction:

                         A.  "Maximum aggregate amount" means the lesser of (1)
                             125  percent of  the defined  contribution  dollar
                             limitation,  determined  in  accordance  with Code
                             Sections  415(c) and (d), or (2) 35 percent of the
                             Participant's Limitation Year Compensation for such
                             year.

                         B. If the Participant was a Participant as of the first
                             day  of  the  first Limitation Year beginning after
                             December 31,  1986, in one or more defined  contri-
                             bution  plans of the Employer,  which were in exis-
                             tence on May 6, 1986, the numerator of the fraction
                             will be adjusted if the sum of this  fraction and
                             the Defined Benefit Fraction would otherwise exceed
                             1.0 under the terms of this Plan. Under the adjust-
                             ment,  an  amount  equal to the  product of (1) the
                             excess of the sum of the fractions over  1.0  times
                             (2)  the  denominator  of  this  fraction  will  be
                             permanently  subtracted  from the  numerator of the
                             fraction.  The  adjustment is calculated using  the
                             fractions  as  they  would  be  computed  as of the
                             end  of the  last Limitation Year beginning  before
                             January 1, 1987,  and  disregarding  any changes in
                             the  terms  and  conditions  of the plan made after
                             May 5, 1986, but using the code Section 415 limita-
                             tion applicable to the first Limitation Year begin-
                             ning on or after January 1, 1987.

                                      -62-

<PAGE>

                 iii.  Adjustment:  If the sum of the Defined  Benefit  Fraction
                       and the Defined  Contribution  Fraction  exceeds  1.0  in
                       any  Limitation   Year   for   a  Participant,   the Plan
                       Administrator  shall  adjust the numerator of the Defined
                       Benefit  Fraction,  so  that the sum of the fractions for
                       the  Participant  does  not  exceed 1.0 in any Limitation
                       Year.

                  iv.  Super  Top-Heavy  Rules: In  applying the above rules, if
                       the  Plan i s a Super  Top-Heavy  Plan, the  denominators
                       of both the Defined Benefit Fraction and the Defined Con-
                       tribution  Fraction  shall  be  adjusted  as provided  in
                       Article XV.

         12.05  Exceptions to the Maximum Retirement Benefit Limitation.

         a.  The  Maximum  Retirement  Benefit  of  a  Participant,  who  was  a
Participant  in one or more  defined  benefit  plans of the  Employer on July 1,
1982, shall not be less than the Participant's  Accrued Benefit as of the end of
the last Plan Year beginning prior to January 1, 1983.

         b.  The  Maximum  Retirement  Benefit  for  a  Participant,  who  was a
Participant in one or more defined benefit plans of the Employer as of the first
day of the first Limitation Year beginning after December 31, 1986, shall not be
less than the Participant's  "Current Accrued Benefit," as defined in subsection
(c) below. The preceding sentence applies only if such defined benefit plans met
the  requirements of Section 415 of the Code, for all Limitation Years beginning
before January 1, 1987.

         c. "Current  Accrued  Benefit" means a Participant's  Accrued  Benefit,
determined as if the  Participant  had separated from service as of the close of
the last Limitation Year beginning  before January 1, 1987, when expressed as an
Annual Benefit.  In determining  the amount of a  Participant's  Current Accrued
Benefit, changes in the Plan and cost-of-living adjustments that occur after May
5, 1986 shall be disregarded.

         d. In the case of a Participant  who was a  Participant  in one or more
defined  benefit plans of the Employer as of January 1, 1995, the application of
the limitations of this Article shall not cause the Maximum  Retirement  Benefit
for the  Participant  under all such defined  benefit  plans to be less than the
individual's  accrued  benefit  under the terms of the plan as of  September  1,
1997,  taking into account the  limitations of Code Section 415, as in effect on
December 7, 1994, but disregarding any Plan amendments increasing benefits after
September 1, 1997 and any cost of living adjustments that become effective after
September 1, 1997. For purposes of this Section, a Participant's accrued benefit
as of September 1, 1997 is not increased after that date, but if the limitations
of Code  Section  415,  as in  effect on  December  7,  1994,  are less than the
limitations that were applied to determine the Participant's  accrued benefit as
of September 1, 1997,  then the  Participant's  accrued  benefit as of that date
will be reduced in  accordance  with such  reduced  limitation.  If, at any date
after September 1, 1997, the Participant's total Plan benefit, before

                                      -63-

<PAGE>

the  application  of Code  Section 415, is less than the  Participant's  accrued
benefit as of September 1, 1997,  the benefit as of that date will be reduced to
the  Participant's  total  Plan  benefit.   Determinations  under  Code  Section
415(b)(2)(E)  that are made before January 1, 1995 shall be made with respect to
a  Participant's  benefit as of  September  1, 1997 on the basis of Code Section
415(b)(2)(E) as in effect on December 7, 1994, and the provisions of the Plan as
in effect on that date, but only to the extent such  provisions of the Plan meet
the requirements of Code Section 415(b)(2)(E) as so in effect.

         12.06 Increases in the Maximum Retirement Benefit.  Notwithstanding the
foregoing of this Article XII, and to the extent  permitted by Code Section 415,
the Maximum  Retirement Benefit shall be increased each Plan Year beginning July
1, 1995 to reflect  cost-of-living  adjustments  in the  limits  imposed by Code
Section 415. In no event, however,  shall the benefit payable to or on behalf of
a Participant exceed the benefit which is otherwise payable under the Plan.

                                      -64-

<PAGE>

                                  ARTICLE XIII

                       QUALIFIED DOMESTIC RELATIONS ORDERS
                       -----------------------------------

         13.01 General.  Notwithstanding  the restriction against alienation and
assignment stated in Article XVI, the Plan  Administrator  shall comply with the
terms of any Qualified Domestic Relations Order.

         13.02 Required  Provisions.  A Domestic  Relations Order is a Qualified
Domestic Relations Order only if it clearly specifies:

         a. The name and the last known mailing address (if any) of the Partici-
pant  an  the  name and  mailing  address of each Alternate Payee covered by the
order;

         b. The amount or percentage of the Participant's benefits that the Plan
shall  pay to each  Alternate  Payee,  or the  manner  in which  the  amount  or
percentage is to be determined;

         c. The number of payments or period to which the order applies; and

         d. Each plan to which the order applies.

Notwithstanding the preceding  provisions,  a Domestic Relations Order that does
not provide  the  specified  address  information  can be a  Qualified  Domestic
Relations Order, if the Plan  Administrator  has the necessary  information from
other sources.

         13.03  Prohibited Provisions. A Domestic Relations Order is a Qualified
Domestic Relations Order only if it:

         a. Does not require the Plan to provide any type or form of benefit, or
any option, not otherwise provided under the Plan, except as stated in Section
13.04 below;

         b. Does not require the Plan to provide increased  benefits  determined
on the basis of actuarial value; and

         c. Does not require the payment of benefits to an Alternate  Payee that
are  required to be paid to another  Alternate  Payee under an order  previously
determined to be a Qualified Domestic Relations Order.

                                      -65-

<PAGE>

         13.04  Exception for Certain Payments Made after Earliest Retirement
                Age.

         a. A Domestic  Relations  Order shall not be treated as failing to meet
the requirements of Section 13.03(a),  solely because the order requires payment
to an Alternate Payee:

                   i.  In the case  of any  payment  before  a  Participant  has
                       separated from service, on or after the date on which the
                       Participant  attains  (or  would  have  attained)  the
                       "earliest  retirement age" as  defined  in subsection (b)
                       below;

                  ii.  As if the Participant  had  retired  on the date on which
                       payment is to begin under the order; and

                 iii.  In any form in which  benefits may be paid under the Plan
                       to the Participant.

         b. For purposes of this Section,  the term  "earliest  retirement  age"
means the earlier of:

                   i.  The  date  on which the Participant is entitled to a dis-
                       tribution under the Plan; or

                  ii.  The later of:

                         A.  The date the Participant attains age 50; or

                         B.  The  earliest  date  on which  he Participant could
                             receive  Plan  benefits  if  he  had separated from
                             service with the Employer.

         13.05  Plan Procedures with Respect to Domestic Relations Orders.

         a. The Plan  Administrator  shall apply the procedures in this Article,
and may adopt  additional  appropriate  procedures,  to determine  the qualified
status of Domestic Relations Orders it receives and to administer  distributions
under Qualified Domestic Relations Orders.

         b. The Plan  Administrator  shall promptly  notify the  Participant and
each Alternate Payee of the receipt of the Domestic Relations Order, and provide
them  with  copies  of the  procedures  the  Plan  will use in  determining  the
qualified  status of the order. If addresses are not specified in the order, the
Plan  Administrator  shall send  notices to the last  known  addresses  of these
parties.  The Participant and any Alternate Payee may designate a representative
to receive copies of future communications from the Plan Administrator regarding

                                      -66-

<PAGE>

the order,  by submitting a written request to the Plan Administrator.

         c. Within a  reasonable  period  after  receiving a Domestic  Relations
Order, the Plan Administrator shall determine whether it is a Qualified Domestic
Relations Order and shall notify the  Participant,  each Alternate Payee and any
designated representatives of the determination.

         d.  During the period in which the issue of  qualified  status is being
determined by the Plan Administrator,  by a court of competent jurisdiction,  or
otherwise, the Plan Administrator shall separately account for the amounts which
would have been  payable to the  Alternate  Payee during the period if the order
had been determined to be a Qualified  Domestic  Relations  Order.  The separate
accounting  is  for  recordkeeping  and a  segregation  of  Fund  assets  is not
required.  The  separately  accounted  amounts shall be treated in the following
manner:

                   i.  If the Domestic Relations Order (or a modification of it)
                       is determined  to be a Qualified Domestic Relations Order
                       within  18 months of the date on which the first  payment
                       would  be  required  to be made under the order, the Plan
                       Administrator  shall  pay  the  amounts  (including  any
                       interest)  to  the person or persons entitled to the pay-
                       ment.

                  ii.  If the Domestic Relations Order is determined not to be a
                       Qualified  Domestic  Relations  Order or the issue is not
                       resolved,  within  the 18-month  period  specified above,
                       the Plan  Administrator  shall pay the amounts (including
                       any  interest)  to  the  person or persons who would have
                       been  entitled to the amounts if there had been no order.
                       In  applying this provision,  the Plan Administrator  may
                       delay  payments  for the full  18-month  period,  even if
                       an earlier determination of non-qualified status is made,
                       if the Plan Administrator has notice that the parties are
                       attempting to remedy the order's deficiencies.

                 iii.  Any  determination of qualified status that is made after
                       the  close  of  the 18-month period shall be applied pro-
                       spectively only.

                                      -67-

<PAGE>

                                   ARTICLE XIV

                        AMENDMENT, MERGER AND TERMINATION
                        ---------------------------------

         14.01 Amendment.

         a. The Board of Directors  of NBT  Bancorp,  Inc. may amend the Plan at
any time,  and from time to time,  pursuant to written  resolutions  and written
amendments.  However, no amendment shall have the effect of reducing the Accrued
Benefit  of any  Participant,  except  to the  extent  permitted  under  Section
412(c)(8) of the Code.

         b. For purposes of this Section,  a Plan  amendment that has the effect
of (i) eliminating or reducing an early retirement  benefit or a retirement-type
subsidy,  or (ii)  eliminating  an  optional  form of benefit,  with  respect to
benefits  attributable  to  service  before the  amendment,  shall be treated as
reducing Accrued Benefits.

         c. In the case of a retirement-type subsidy, subsection (b) shall apply
only with respect to a  Participant  who satisfies  (either  before or after the
amendment)  the  preamendment   conditions  for  the  subsidy.   In  general,  a
retirement-type  subsidy is a subsidy that continues after retirement,  but does
not include qualified  disability benefits, a medical benefit, a Social Security
supplement, or a death benefit (including life insurance).

         d. No  amendment  to the Plan  shall have the  effect of  decreasing  a
Participant's  vested interest determined without regard to such amendment as of
the later of the date such amendment is adopted, or becomes effective.

         14.02  Termination of Plan and Trust.

         a. The Employer  contemplates that the Plan shall be permanent and that
the Employer shall be able to make contributions to the Plan.  Nevertheless,  in
recognition of the fact that future conditions and  circumstances  cannot now be
entirely  foreseen,  the Board of Directors of NBT  Bancorp,  Inc.  reserves the
right to terminate either the Plan, or both the Plan and the Trust, at any time,
pursuant to written resolutions and written amendments.

         b. If the Board of Directors of NBT Bancorp, Inc. makes a determination
to  terminate  the Plan and  Trust,  they  shall  be  terminated  as of the date
specified in certified copies of resolutions delivered to the Plan Administrator
and the Trustee.

         14.03 Benefits upon Termination and Partial  Termination.  In the event
of a termination or partial termination of the Plan, any affected  Participant's
Accrued  Benefit  shall be  nonforfeitable  as of the date of such  event to the
extent funded. On termination of the Plan, the Trustee will liquidate the assets
held in the  Fund.  After  payment  of all  expenses  of  liquidation,  the Plan
Administrator shall allocate the remainder of the Fund assets among Participants

                                      -68-

<PAGE>

and Beneficiaries entitled to benefits,  and cause them to be distributed by the
Trustee, in  accordanc  with  Section  4044  and other applicable  provisions of
ERISA.  Any residual  assets  of the Plan remaining after  the above  allocation
and  distribution  shall  revert to the  Employer, provided that all liabilities
of the Plan have been satisfied.

         14.04  Restriction of Benefits to Certain Highly Compensated Employees.

         a. In  General:  In the event of Plan  termination,  the benefit of any
Highly   Compensated   Employee   shall  be  limited   to  a  benefit   that  is
nondiscriminatory under Code Section 401(a)(4).

         b. Before January 1, 1992: For Plan Years  beginning  before January 1,
1992,  Employer  contributions  to the Plan  shall be  restricted,  pursuant  to
subsection (c) below, if:

                  (i)  The  contributions  may be used to  benefit any of the 25
                       Highly  Compensated  Employees with the greatest  Limita-
                       tion Year  Compensation, whose anticipated Annual Benefit
                       exceeds $1,500, and

                 (ii)  Within  10 years of its  establishment,  (A) the Plan  is
                       terminated or (B) the benefits of any Highly Compensated
                       Employee,  described in (i) above, become payable.

         c.  Restriction:   As  required  by  subsection  (b)  above,   Employer
contributions  shall not exceed the greater of (i) $20,000 or (ii) 20 percent of
the first $50,000 of the Highly  Compensated  Employee's  Compensation times (A)
the number of years from the date the Plan was established  until,  (B) the date
the Plan is terminated or the date the benefits become payable under  subsection
(b)(ii)(B) above, whichever is applicable.

         d. After  December 31, 1991:  Except as provided in (i) and (ii) below,
for Plan Years  beginning on or after January 1, 1992, the annual  payments to a
Participant who is one of the 25 Highly Compensated  Employees with the greatest
Limitation Year  Compensation  are restricted to an amount equal to the payments
that would be made on behalf of the Participant under a single life annuity that
is the Actuarial Equivalent of the sum of the Participant's  Accrued Benefit and
other Plan  benefits,  within the  meaning  of  Regulation  1.401(a)(4)-5(b)(3).
However, benefits need not be restricted if:

                  (i)  After  payment  of all  benefits  to the  group of Highly
                       Compensated Employees  described in subsection (b) above,
                       the value of the Plan assets  equals or exceeds  110 per-
                       cent of the value of current  liabilities,  as defined in
                       Code Section 412(l)(7); or

                                      -69-

<PAGE>

                 (ii)  The  value of  the  benefits  for  said  group of  Highly
                       Compensated  Employees  is  less  than  one  percent  of
                       the  value  of  current liabilities.

For purposes of this Section,  "benefit"  includes loans in excess of the amount
set forth in Code Section  72(p)(2)(A),  any  periodic  income,  any  withdrawal
values payable to a living Employee,  and any death benefits not provided for by
insurance on the Employee's life.

         e.  Notwithstanding  the  restrictions in subsection (b), an Employee's
benefit  may be  distributed  in full  upon his  depositing  with an  acceptable
depository,  property  having a fair  market  value  equal to 125 percent of the
amount  which  would be  repayable  had the Plan  terminated  on the date of the
distribution.  If the fair market value of the property  held by the  depository
falls below 110 percent of the amount  which would be repayable if the Plan were
then to  terminate,  additional  property  necessary  to bring  the value of the
property  held by the  depository  up to 125  percent  of such  amount  shall be
deposited.

         14.05 Merger, Consolidation or Transfer of Assets. Neither the Plan nor
the Trust may be merged  with any other plan or trust  unless  each  Participant
would receive a benefit immediately after the merger that is equal to or greater
than the benefit he would have been entitled to receive  immediately  before the
merger, if the Plan had then terminated. The preceding sentence shall also apply
to a consolidation or transfer of assets.

                                      -70-

<PAGE>

                                   ARTICLE XV

                             TOP-HEAVY REQUIREMENTS
                             ----------------------

         15.01  General Rules.

         a.  Notwithstanding  any other Plan  provisions  to the  contrary,  the
Top-Heavy  Rules of this  Article  shall  become  effective  for any  Plan  Year
beginning  after  December 31, 1983 in which the Plan is a Top-Heavy  Plan.  The
provisions of Section 416 of the Code and  implementing  Regulations  are hereby
incorporated by reference and control the application of this Article.

         b. As stated in Article II in  defining  "Compensation,"  not more than
$200,000  of  Compensation  (adjusted  by the  Adjustment  Factor) is taken into
account  under the Plan for a  Participant,  for any Plan Year  beginning  after
December 31, 1988. This $200,000 limitation,  without any adjustment, shall also
apply for any earlier Plan Year in which the Plan is Top-Heavy.

         c. As further set forth in this Article (and the Code and Regulations),
the Top-Heavy Rules mean that:

                   i.  Whether the Plan is Top-Heavy,  or  Super Top-Heavy shall
                       be  determined  by  finding the Top-Heavy Ratio in accor-
                       dance with Section 15.02.

                  ii.  If the Plan is  Top-Heavy  or Super Top-Heavy  for a Plan
                       Year, the Minimum Vesting Schedule in Section 15.03 shall
                       become  applicable  and  Non-Key  Employees must accrue a
                       Minimum Required Benefit as provided in Section 15.04.

                 iii.  If the  Plan  is Super  Top-Heavy  for a Plan  Year,  the
                       provisions  of  Section 15.05 shall apply in  determining
                       the  Maximum  Retirement Benefit under Article XII if the
                       Employer also maintains a defined  contribution plan.

         d.  Notwithstanding the preceding provisions or any other provisions of
the Plan,  the  requirements  in  Sections  15.03  and 15.04  shall not apply to
Employees covered by a collective bargaining agreement.

                                      -71-

<PAGE>

         15.02  Determination of Top-Heaviness.

         a. Top-Heavy Plan:  The Plan shall be considered a Top-Heavy Plan for a
Plan  Year if the Top-Heavy Ratio exceeds 60 percent, applying the principles in
subsection (c).

         b. Super Top-Heavy Plan: The Plan shall be considered a Super Top-Heavy
Plan for a Plan Year if the  Top-Heavy  Ratio  exceeds 90 percent,  applying the
principles in subsection (c).

         c.  Top-Heavy  Ratio:  The  Top-Heavy  Ratio  shall  be  determined  in
accordance with the following principles.

                   i.  Determination Date:  The Top-Heavy Ratio is determined as
                       of  the  Determination Date, which is the last day of the
                       preceding Plan Year (except for the first Plan Year). For
                       example, if the Top-Heavy Ratio exceeds 60 percent on the
                       last day of the 1989 Plan Year, the Plan is Top-Heavy for
                       the 1990 Plan Year.

                  ii.  Valuation  Date:  Benefits shall be valued as of the most
                       recent valuation date during the twelve-month period end-
                       ing on the Determination Date.

                 iii.  Prior  Distributions:   The  present  value of an Accrued
                       Benefit  includes any  distribution  with  respect to the
                       Participant  during  the  five-year  period ending on the
                       Determination Date. This  includes distributions to Bene-
                       ficiaries  and  distributions  before  the 1984 Plan Year
                       when the Top-Heavy Rules became effective.

                  iv. Key Employee Status: As defined in Article II, an Employee
                       is  considered  a Key Employee if he is a Key Employee at
                       any time during the Plan Year  containing the  Determina-
                       tion  Date  or  the  four  preceding Plan Years. If a Key
                       Employee  ceases to be a Key Employee but continues to be
                       employed,  he  will  be  treated  as a  Non-Key  Employee
                       after  the  last  year  in which  he must be considered a
                       Key Employee  under the preceding  sentence.  As of that
                       date,  his Accrued Benefits will be disregarded in compu-
                       ting the numerator and denominator of the Top-Heavy Ratio

                   v.  Required Aggregation  of Plans:  If the Plan is part of a
                       Required  Aggregation  Group, the  Top-Heavy  Ratio  must
                       be  determined  by considering all plans in  the group. A
                       Required  Aggregation  Group  consists  of  all qualified
                       plans of  the  Employer and  any  Affiliated  Employer in
                       which at least one  Key  Employee participates or partic-
                       ipated   at  anytime  during  the determination period

                                      -72-

<PAGE>
                       (regardless  of whether the plan has terminated), and any
                       other  plans  that  enable  a plan with a Key Employee to
                       satisfy  the  nondiscrimination  rules of Section  401(a)
                       (4) or Section 410 of the Code.

                         A. Except as may otherwise be allowed under the permis-
                            sive  aggregation  rule of  subsection  (vi)  below,
                            each  plan  in  the group  shall be  considered Top-
                            Heavy if the Top-Heavy  Ratio for the group exceeds
                            60 percent.  Conversely, if the  Top-Heavy  Ratio is
                            60  percent   or  less,  no  plan  in  the  Required
                            Aggregation Group shall be considered Top-Heavy.

                         B. If the Employer (or an  Affiliated  Employer)  main-
                            tains  one  or  more  defined benefit  plans and the
                            Employer (or an  Affiliated  Employer)  maintains or
                            has  maintained  one  or  more defined  contribution
                            plans  (including  any  simplified employee  pension
                            plan)  which  during  the  five-year  period  ending
                            on  the  Determination  Date(s) has  or  has had any
                            account  balances,  the    Top-Heavy  Ratio  for any
                            Required or Permissive  Aggregation Group as approp-
                            riate  is  a fraction, the numerator of which is the
                            sum of  the  present value of accrued benefits under
                            the aggregated defined benefit plan or plans for all
                            Key Employees,  determined as  above,  and  the  sum
                            of  account  balances  under the aggregated  defined
                            contribution plan or  plans  for  all Key  Employees
                            as of the Determination Date(s), and the denominator
                            of  which is the sum of the present value of accrued
                            benefits under the defined  benefit  plan  or  plans
                            for all Participants, determined  as above,  and the
                            account  balances  under  the  aggregated  defined
                            contribution  plan  or plans for all Participants as
                            of  the  Determination  Date(s), all  determined  in
                            accordance  with  Code  Section  416  and  the Regu-
                            lations thereunder.  The  account  balances  under a
                            defined  contribution plan in both the numerator and
                            denominator of the  Top-Heavy  Ratio  are  increased
                            for  any distribution  of an account balance made in
                            the  five-year  period  ending  on the Determination
                            Date.  Actuarial assumptions  must be identical  for
                            all  defined  benefit  plans  tested  for  Top-Heavy
                            purposes.

                         C. For  Top-Heavy purposes, the  accrued  benefit  of a
                            Participant  other  than  a  Key  employee  shall be
                            determined   under  (I)  the  method,  if any,  that
                            uniformly  applies  for  accrual  purposes under all
                            defined  benefit  plans   maintained by the Employer
                            (or an Affiliated Employer),  or (II) if there is no
                            such  method, as  if  such  benefit accrued not more
                            rapidly  than  the  slowest  accrual rate  permitted
                            under the fractional rule of Code Section 411(b)(1)
                            (C).

                                      -73-

<PAGE>

                  vi. Permissive Aggregation Group: The Employer may, but is not
                      required to, determine the  Top-Heavy  Ratio  on the basis
                      of a  Permissive Aggregation Group.

                        A.  A Permissive Aggregation Group consists of all plans
                            in  a  Required  Aggregation Group, plus other plans
                            that  satisfy  the nondiscrimination requirements of
                            Code  Sections  401(a) (4) and 410,  when considered
                            with the Required Aggregation Group.

                        B. If the Top-Heavy Ratio for the Permissive Aggregation
                            Group is 60 percent or less, no plan in the group is
                            Top-Heavy.  If the Top-Heavy  Ratio is greater than
                            60 percent, the Top-Heavy Rules apply to those plans
                            that are part of the  Required  Aggregation  Group,
                            but not to the other plans  which  were permissively
                            aggregated.

                  vii. Transfer  Amounts:  Rollover amounts and any plan-to-plan
                       transfer  amounts  held  under any other  plan,  shall be
                       taken  into  account in determining  the  Top-Heavy Ratio
                       only if required by the following rules:

                         A. If a transfer is initiated by the Employee and made
                            between plans maintained by different employers, the
                            transferring plan continues to count the transferred
                            amount under the rules for  counting  distributions.
                            The  receiving  plan does not count the amount if
                            accepted after  December  31,  1983,  but does count
                            the  amount if accepted prior to January 1, 1984.

                         B. If  the transfer is not initiated by the Employee or
                            if  it  is  made  to  a  plan maintained by the same
                            employer,  the  transferring  plan  shall  no longer
                            count  the amount transferred and the receiving plan
                            shall count the amount transferred.

                         C. For   purposes   of   this  subsection,   Affiliated
                            Employers shall be treated as the same employer.

         15.03  Vesting in Employer Contributions under a Top-Heavy Plan.

         a. Except as provided in Section  15.01(d),  for any Plan Year that the
Plan must be  considered  Top-Heavy,  a  Participant's  vested  interest  in his
Accrued  Benefit  derived from  Employer contributions  shall  be  determined in

                                      -74-

<PAGE>

accordance with the  following  Minimum Vesting Schedule rather than the vesting
schedule  in Article V. As an exception, the Participant  shall remain under his
previous  vesting schedule to the extent provided in Article V.

         b. The Minimum Vesting Schedule is:

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

                  Less than 3 years                           0%
                  3 years or more                             100%

         c. Once  applicable  for a Plan  Year,  the  Minimum  Vesting  Schedule
applies  to  benefits  accrued  before  and  after  the  Plan  became  Top-Heavy
(including  benefits  that accrued  before the 1984 Plan Year when the Top-Heavy
Rules became effective).
Notwithstanding the preceding sentence:

                   i.  Accrued  Benefits  of  a Participant who does not have an
                       Hour  of  Service  after the Plan becomes Top-Heavy shall
                       not be subject to the Minimum Vesting Schedule; and

                  ii.  Accrued  Benefits  which were  forfeited  before the Plan
                       became Top-Heavy do not vest.

         d. The vesting schedule in Article V shall again become  applicable for
benefits  that accrue  during Plan Years after the Plan ceases to be  Top-Heavy.
However, if this change in vesting schedule occurs:

                   i.  The  vested  percentage of a Participant in benefits that
                       accrued before  the Plan ceased to be Top-Heavy shall not
                       be reduced; and

                  ii.  Participants described in Section 5.04 shall be given the
                       option  to  remain  under  the Minimum Vesting  Schedule,
                       even  for  Plan  Years  after  the Plan is no longer Top-
                       Heavy,  in  accordance  with  the procedures described in
                       that Article.

         15.04  Minimum Required Benefit.

         a.  In General:  Except  as  provided  in Section 15.01(d), if the Plan
becomes  Top-Heavy,  the  Accrued Benefit  derived  from  Employer contributions
of a Non-Key Employee must at least equal the Minimum Required Benefit described
in this Section.

                                      -75-

<PAGE>

         For a Top-Heavy  Plan Year,  the  requirement  applies to each  Non-Key
Employee with 1000 or more Hours of Service in the Accrual  Computation  Period,
even though the Non-Key  Employee  would not otherwise have received an accrual,
or would have received a lesser  accrual  because (i) his  Compensation  is less
than a specified  level,  or (ii) he is not employed on the last day of the Plan
Year.

         b. Minimum Required Benefit Formula:  The Minimum Required Benefit is a
benefit,  provided  solely by Employer  contributions  (and not integrated  with
Social Security  benefits) which, when expressed as a life annuity commencing at
Normal Retirement Age, equals the lesser of:

                   i.  Two  percent  of the Participant's Top-Heavy Average Com-
                       pensation multiplied by the Participant's Top-Heavy Years
                       of Service; or

                  ii.  20 percent of the Participant's Top-Heavy Average Compen-
                       sation.

         c. Definitions:  In applying the formula in subsection (b):

                   i.  Top-Heavy Years of Service  means Years of  Service,  but
                       disregarding  any Vesting  Year of Service  completed  in
                       a  Plan Year  beginning before 1984,  or any Vesting Year
                       of  Service  if  the  Plan was not Top-Heavy for any Plan
                       Year ending during that Vesting Year of Service.

                  ii.  Top-Heavy Average Compensation means Limitation Year Com-
                       pensation, averaged  over the period of five  consecutive
                       calendar  years (or fewer if the total years which can be
                       considered  under  this  subsection  is less  than  five)
                       which  produces  the  highest average.  To determine this
                       period, the following are excluded:

                         A.  Years for which the Non-Key Employee did not earn a
                             Vesting Year of Service;

                         B.  Years ending within a Plan Year beginning before
                             January 1, 1984;

                         C.  Years excluded from Top-Heavy Years of Service; and

                         D.  Years  beginning  after the close of the last Plan
                             Year in which the Plan was Top-Heavy.

                                      -76-

<PAGE>

         d.  Employer-Derived  Benefits:  All accruals of benefits  derived from
Employer contributions,  whether or not attributable to Plan Years for which the
Plan is Top-Heavy shall be considered in determining  whether a Non-Key Employee
has an Accrued Benefit which equals the Minimum Required Benefit.

         e. Non-Key Employee in Defined Contribution Plan: If a Non-Key Employee
participates in this Plan and a defined contribution plan included in a Required
Aggregation  Group that is  Top-Heavy,  the Minimum  Required  Benefit  shall be
provide under this Plan.  For any Plan Year when the Plan is Top-Heavy,  but not
Super Top-Heavy, the Minimum Required Benefit for such Non-Key Employee shall be
determined by substituting three percent for two percent,  and 30 percent for 20
percent, in the formula in subsection (b) above.

         15.05  Maximum Annual Benefit under a Super Top-Heavy Plan.

         a. If the Plan is Super  Top-Heavy for any Plan Year, then for purposes
of the Code  Section  415  limitation,  described  in  Article  XII,  the dollar
limitations  in the  denominators  of the Defined  Benefit Plan Fraction and the
Defined Contribution Fraction shall each be multiplied by 1.0, not 1.25.

         b.  If  the  reduction  to 1.0  under  subsection  (a)  would  cause  a
Participant  to exceed the combined  limit on  contributions  and benefits under
Code Section 415, the  application  of  subsection  (a) shall be suspended as to
such  Participant  until  such  time  as  he  no  longer  exceeds  the  combined
limitation,  as modified by subsection (a). During such a suspension period, the
Participant will not accrue any benefits under this or any other defined benefit
plan of the Employer and or receive  contributions  (or  forfeitures)  under any
defined contribution plan of the Employer or an Affiliated Employer.

                                      -77-

<PAGE>

                                   ARTICLE XVI

                            MISCELLANEOUS PROVISIONS
                            ------------------------

         16.01  No Alienation or  Assignment.  The right of any  Participant  or
Beneficiary  to any  benefit  or  payment  under the Plan or Trust  shall not be
subject to voluntary or involuntary transfer, alienation or assignment. Further,
to the  fullest  extent  permitted  by law,  the right  shall not be  subject to
attachment,  execution,  garnishment,  sequestration or other legal or equitable
process. In the event a Participant or Beneficiary attempts to assign,  transfer
or dispose of a right  under the Plan,  or if any attempt is made to subject the
right to such process, the assignment, transfer or disposition shall be null and
void.

         16.02 Adoption of Plan by Another Employer. Any other employer, whether
an Affiliated  Employer or not, may, with the approval of the Board of Directors
of  NBT  Bancorp,   Inc.,  adopt  this  Plan  pursuant  to  appropriate  written
resolutions of its board of directors.  The adopting employer shall also execute
such documents with the Trustee as may be necessary to make the other employer a
party to the Trust.  As part of its  adopting  resolutions,  the other  employer
shall  delegate  authority  to amend  and  terminate  the  Plan to the  Board of
Directors of NBT  Bancorp,  Inc. The  National  Bank and Trust  Company,  by its
adoption and  execution of this  document,  is deemed to have made the foregoing
delegation.

         16.03 Status of Employment  Relations.  The adoption and maintenance of
the Plan and Trust  shall not be deemed to  constitute  a contract  between  the
Employer  and its  Employees or to be  consideration  for, or an  inducement  or
condition of, the employment of any person.  Nothing contained in the Plan shall
be deemed (a) to give to any  Employee the right to be retained in the employ of
the Employer, (b) to affect the right of the Employer to discipline or discharge
any  Employee  at any time,  (c) to give the  Employer  the right to require any
Employee  to remain in its  employ,  or (d) to affect  any  Employee's  right to
terminate his employment at any time.

         16.04 Benefits  Payable by Trust.  All Benefits  payable under the Plan
shall be paid or provided  for solely from the Trust.  The  Employer  assumes no
liability or responsibility for the payments.

         16.05 Failure of Qualification.

         a.  The  establishment  of  the  Plan  and  Trust  by the  Employer  is
contingent upon obtaining the initial  approval of the Internal Revenue Service.
Notwithstanding  any other provision of the Plan, in the event that the Internal
Revenue Service fails to approve the Plan, the Trustee shall liquidate the Trust
by paying all expenses and  returning  all  remaining  assets to the Employer as
soon as administratively  feasible.  In no event shall this process be completed
later than one year after the date of the final denial of  qualification  of the
Plan,  including the final resolution of any appeals before the Internal Revenue
Service or the courts.  The Trust shall terminate upon completion of these "wind
up" procedures.

                                      -78-

<PAGE>

         b. Contributions  shall be returned to the Employer pursuant to Section
10.04(b).

         16.06  Increases  in  Social  Security  Benefits.  Increases  in Social
Security  benefits  or the  taxable  wage  base  subsequent  to a  Participant's
termination of employment or Retirement  shall not cause a reduction in benefits
under the Plan.

         16.07 Headings Not Part of This Plan. Headings of Articles and Sections
are inserted only for  convenience of reference,  and shall not be considered in
construing the Plan.

         16.08  Gender  and  Number.  Unless  the  context  clearly  requires  a
different  meaning,  the use of the  masculine  pronoun  includes  the  feminine
gender, and the singular number includes the plural (and vice versa).

         16.09 Applicable Law. The Plan and Trust shall be construed, regulated,
interpreted and administered  under and in accordance with the laws of the State
of New York, unless preempted by federal law.

               NBT Bancorp, Inc. and NBT Bank, N.A.  have caused this Plan to be
signed by duly authorized officers on this

13th            day of       November                           1998.
---------------        ----------------------------------------

                                        NBT BANCORP, INC.

                                        By:  /S/  John D Roberts

                                        Title: Vice President and Secretary

                                        NBT BANK, N.A.

                                        By: /S/  Jane E Neal

                                        Title: Senior Vice President

                                      -79-

<PAGE>

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