Document:

<PAGE>
                                                                   Exhibit 10.13

                                 HCR MANOR CARE
                        SENIOR EXECUTIVE RETIREMENT PLAN

                            EFFECTIVE OCTOBER 1, 1992

                         RESTATED AS OF JANUARY 1, 2001

<PAGE>

                                 HCR MANOR CARE
                        SENIOR EXECUTIVE RETIREMENT PLAN

                            EFFECTIVE JANUARY 1, 2001

                                      INDEX
                                      -----

<TABLE>
<CAPTION>
                                                                                               PAGE
                                                                                               ----
<S>                                                                                             <C>
         ARTICLE I  -  Name, Effective Date and Purpose of Plan                                   1
                  1.01  -  Name                                                                   1
                  1.02  -  Effective Date                                                         1
                  1.03  -  Purpose                                                                1
                  1.04  -  No Duplication of Benefits                                             1

         ARTICLE II  -  Eligible Participants                                                     2
                  2.01  -  Eligible Participants                                                  2
                  2.02  -  Executive Officers                                                     2

         ARTICLE III  -  Credited Earnings                                                        3
                  3.01  -  Elements of Compensation                                               3
                  3.02  -  Basis for Determination                                                4
                  3.03  -  Effect of Disability                                                   4

         ARTICLE IV  -  Credited Service                                                          5
                  4.01  -  Determination of Credited Service                                      5
                  4.02  -  General Provisions as to Credited Service                              5
                  4.03  -  Disabled Participants                                                  5

         ARTICLE V  -  No Funding of Plan Benefits                                                7

         ARTICLE VI  - Normal Retirement Date                                                     8

         ARTICLE VII  -  Retirement Benefits                                                      9
                  7.01  -  Amount of Benefit                                                      9
                  7.02  -  Gross Retirement Benefit                                               9
                   (a)  -  Method I                                                               9
                   (b)  -  Method II                                                             10
                  7.03  -  Average Annual Earnings                                               10
                  7.04  -  Social Security Taxable Wage Base                                     10
                  7.05  -  Protection of Benefit                                                 11
                  7.06  -  Present Value of Designated Plans                                     11
</TABLE>

                                       -i-

<PAGE>

<TABLE>

<S>                                                                                             <C>
         ARTICLE VIII  -  Payment of Retirement Benefits                                         12
                  8.01  -  Normal or Postponed Retirement                                        12
                  8.02  -  Early Retirement-- Hired Before January 1, 1992                       12
                   (a)  -  General Rules and Reduction Factors                                   12
                   (b)  -  Early Retirement                                                      12
                           1)  - Age 60, Less Than Age 65                                        12
                           2)  - Age 55, Less Than Age 60                                        13
                  8.03  -  Early Retirement-- Hired After December 31, 1991                      13
                   (a)  -  General Rules and Reduction Factors                                   13
                   (b)  -  Early Retirement                                                      13
                  8.04  -   Option to Postpone Commencement of Benefits                          14
                  8.05  -   Commencement of Retirement Benefits and Modes of Payment             14
                  8.06  -   Commencement of Vested Benefits and Modes of Payment                 14
                  8.07  -   Death Benefits                                                       15
                  8.08  -   Designation and Change of Beneficiary                                16
                  8.09  -   Death or Failure to Designate Beneficiary                            16
                  8.10  -   Qualified Domestic Relations Order                                   16

         ARTICLE IX - Suspension of Retirement Benefits                                          19

         ARTICLE X -  Administration of the Plan                                                 20
                  10.01  -  General                                                              20
                  10.02  -  Duties of the Vice President of Human Resources                      20
                  10.03  -  Authority of the Vice President of Human Resources                   21

         ARTICLE XI - Amendment, Modification or Termination of Plan                             22
                  11.01  -  Amendment or Modification of Plan                                    22
                  11.02  -  Termination of the Plan                                              22

         ARTICLE XII  -  Merger, Consolidation, etc. of the Plan                                 23

         ARTICLE XIII -  Miscellaneous Provisions                                                24
                  13.01  -  Inalienability                                                       24
                  13.02  -  Facility of Payment                                                  24
                  13.03  -  Liability Limited                                                    24
                  13.04  -  Performance of Acts                                                  24
                  13.05  -  Claims Procedure                                                     25
                  13.06  -  Definitions                                                          25

         ADOPTION PAGE                                                                           26

         APPENDIX A - List of Covered Participants                                               27
</TABLE>

                                      -ii-

<PAGE>

                                 HCR MANOR CARE
                                 --------------
                        SENIOR EXECUTIVE RETIREMENT PLAN
                        --------------------------------

                           (Effective January 1, 2001)

                                    ARTICLE I
                                    ---------

                    NAME, EFFECTIVE DATE AND PURPOSE OF PLAN

         1.01 - NAME.

         The name of this plan is the "HCR Manor Care Senior Executive
Retirement Plan", formerly known as the "Amended and Restated Health Care and
Retirement Corporation Senior Executive Retirement Plan", hereinafter called the
"Plan".

         1.02 - EFFECTIVE DATE.

         The Plan was adopted as of October 1, 1992. Effective Date of the Plan,
as amended and restated, is January 1, 2001.

         1.03 - PURPOSE.

         The purpose of the Plan is to provide retirement and related benefits
to Corporate Officers and senior management employees of HCR Manor Care, the
"Company". The Plan is and is intended to be an unfunded deferred compensation
plan for a select group of management or highly compensated employees, commonly
known as a "top hat" plan.

         1.04 - NO DUPLICATION OF BENEFITS.

         This Plan is only intended to provide retirement and related benefits
over and above those provided, if any, under the Health Care and Retirement
Corporation Pension Plan (the "HCR Pension Plan"), a defined benefit plan,
and/or the HCR Manor Care Key Employee Insurance Program (the "HCR Manor Care
Key Employee Insurance Program", a welfare benefit plan, (hereinafter
collectively referred to as "Designated Plans").

                                       -1-

<PAGE>

                                   ARTICLE II
                                   ----------

                              ELIGIBLE PARTICIPANTS

         2.01 - ELIGIBLE PARTICIPANTS.

         Designated Corporate Officers and senior management employees of the
Company whose names are set forth in Appendix A hereof (List of Covered
Participants) shall be eligible to participate in this Plan.

         2.02 - CORPORATE OFFICERS.

         The term "Corporate Officer" shall mean an officer of the Company who
is chosen by the Board of Directors of the Company to hold an executive position
in the Company.

                                      -2-

<PAGE>

                                   ARTICLE III
                                   -----------

                                CREDITED EARNINGS

         3.01 - ELEMENTS OF COMPENSATION.

         With respect to earnings received during each calendar year or portion
thereof, the term "Credited Earnings" shall mean:

         (a)      annual base salary,

         (b)      any annual bonus earned (accrued) by a Participant under an
                  annual bonus plan of the Company,

         (c)      any amount earned (accrued) under the HCR Manor Care
                  Performance Award Plan (the "HCR Manor Care Performance Award
                  Plan"), and

         (d)      any payments made to a Participant for a period of illness or
                  disability prior to such Participant's retirement pursuant to
                  the HCR Manor Care Salary Continuation Plan (the "HCR Manor
                  Care Sick Leave Plan"), the HCR Manor Care Group Short-Term
                  Disability Plan (the "HCR Manor Care STD Plan") or the HCR
                  Manor Care Group Long-Term Disability Plan (the "HCR Manor
                  Care LTD Plan");

provided, however, that any bonus paid in a subsequent calendar year shall be
treated as Credited Earnings in the year for which such bonus was earned
(accrued) and any performance award paid in a subsequent year shall be treated
as Credited Earnings for the year prior to the year of payment. For all purposes
of the Plan, annual base salary, bonus payments, performance awards and sick
leave and disability payments shall include any salary deferral contributions
made pursuant to the Participant's elections under the HCR Manor Care Stock
Purchase and Retirement Savings Plan (the "HCR Manor Care SPARS"), the HCR Manor
Care Retirement Savings and Investment Plan (the "HCR Manor Care RSIP"), the HCR
Manor Care Pre-Tax Reimbursement Account Plan (the "HCR Manor Care Reimbursement
Plan"), the HCR Manor Care Senior Management Savings Plan for Corporate Officers
(the "HCR Manor Care SMSP for Corporate Officers"), and the HCR Manor Care
Senior Management Savings Plan and (the "HCR Manor Care SMSP") or pursuant to
any other Company-sponsored qualified or non-qualified plan.

                                      -3-
<PAGE>

         3.02 - BASIS FOR DETERMINATION.

         Credited Earnings shall be determined annually on a calendar-year
basis.

         3.03 - EFFECT OF DISABILITY.

         Except as otherwise provided in Section 3.01 hereof (Elements of
Compensation), no reduction shall be made in a Participant's Credited Earnings
during a period of disability on account of any decrease in the Participant's
Credited Earnings if at the date of disability such Participant shall have one
or more full years of Credited Service and if such decrease is because of such
Participant's total disability evidenced by the continuing award of benefits for
disability under the HCR Manor Care Sick Leave Plan and, after the expiration of
benefits under the HCR Manor Care Sick Leave Plan, by the continuing award of
benefits under the HCR Manor Care LTD Plan.

                                      -4-

<PAGE>

                                   ARTICLE IV
                                   ----------

                                CREDITED SERVICE

         4.01 - DETERMINATION OF CREDITED SERVICE.

         Each Corporate Officer and senior management employee of the Company
designated on Appendix A hereof (List of Covered Participants) shall receive
credit under this Plan for periods of employment:

         (a)      with the Company; and

         (b)      if hired before January 1, 1992, with Owens-Illinois, Inc.,
                  except to the extent such Participant is entitled to, or has
                  received a retirement or other vested benefit for such periods
                  of service under the Owens-Illinois Salary Retirement Plan

from the Participant's adjusted service date set forth on Appendix A hereof. All
such periods of credited employment or service shall be referred to herein as
"Credited Service."

         4.02 - GENERAL PROVISIONS AS TO CREDITED SERVICE.

         The "General Provisions as to Credited Service" provided in Section
4.03 (General Provisions as to Credited Service) of the HCR Pension Plan shall
be incorporated, where applicable, herein.

         4.03 - DISABLED PARTICIPANTS.

         Each Participant shall continue to be a Participant in this Plan for
periods during which the Participant is totally disabled if at the date of such
disability such Participant shall be covered under the HCR Manor Care LTD Plan
if and so long as such disability shall be evidenced by the continuing award of
benefits for disability under the HCR Manor Care Sick Leave Plan, the HCR Manor
Care STD Plan and the HCR Manor Care LTD Plan. A Participant who, upon recovery
from disability, resumes full-time employment with the Company within such
period of time as may be fixed from time to time by the Vice President, Director
of Human Resources and Labor Relations of the Company (hereinafter referred to
as the "Vice President of Human Resources" or the "Vice President") shall not be
deemed to have terminated employment or interrupted a Period of Service;

                                      -5-

<PAGE>

provided, however, that if a disabled Participant shall request and become
entitled to receive the early retirement benefit provided by Section 8.02 hereof
(Early Retirement), that Participant shall be deemed to have terminated
employment as of the last day of the month in which the request for early
retirement is approved.

                                      -6-

<PAGE>

                                    ARTICLE V
                                    ---------

                           NO FUNDING OF PLAN BENEFITS

         The benefits provided under this Plan shall be completely unfunded. If
the Company acquires or has acquired any asset for the purpose of fulfilling its
obligations hereunder, any such asset shall remain an asset of the Company and
not an asset of this Plan. Each Participant shall have only the rights of an
unsecured general creditor of the Company with respect to any benefits payable
under this Plan.

                                      -7-
<PAGE>

                                   ARTICLE VI
                                   ----------

                             NORMAL RETIREMENT DATE

         The normal retirement date for a Participant shall be the last day of
the month in which such Participant attains age 65.

                                       -8-

<PAGE>

                                   ARTICLE VII
                                   -----------

                               RETIREMENT BENEFITS

         7.01 - AMOUNT OF BENEFIT.

         A Participant who retires or whose employment terminates with vested
rights shall receive an annual retirement benefit, payable as a straight single
life annuity, the present value of which shall be (at commencement of the normal
retirement benefit) equal to the excess of (i) the present value of the "Gross
Retirement Benefit", as defined below, (assuming such benefit is payable as a
straight single life annuity) less (ii) the present value of benefits provided
to the Participant under the Designated Plans (measured in accordance with
Section 7.06 hereof (Present Value of Designated Plans)).

         7.02 - GROSS RETIREMENT BENEFIT.

         As used in this Article VII, the term "Gross Retirement Benefit" for
each Participant designated with an asterisk in Appendix A hereof (List of
Covered Participants) shall mean an annual benefit to be paid monthly calculated
pursuant to Method I or Method II below whichever provides the greater benefit.
The term "Gross Retirement Benefit" for each Participant not designated with an
asterisk in Appendix A shall mean an annual benefit to be paid monthly
calculated pursuant to Method II below

         (a)      Method I-- An annual benefit to be paid monthly based on the
                  sum of the following amounts:

                  (1)      If such Participant shall have 35 Years of Credited
                           Service from the Participant's adjusted service date
                           set forth on Appendix A hereof (List of Covered
                           Participants), an amount equal to 50% of the
                           Participant's Final Average Earnings less one-half of
                           the Primary Insurance Amount; or
                  (2)      If such Participant shall have more than 35 years of
                           Credited Service from the Participant's adjusted
                           service date set forth on Appendix A hereof (List of
                           Covered Participants) there shall be added to the
                           aforesaid percentage 0.50% for each such Year of
                           Credited Service in excess of 35; or
                  (3)      If such participant shall have less than 35 Years of
                           Credited Service from the

                                       -9-
<PAGE>

                           Participant's adjusted service date set forth on
                           Appendix A hereof (List of Covered Participants), an
                           amount equal to that which would have been payable if
                           such participant had 35 Years of Credited Service
                           multiplied by a fraction, the numerator of which
                           shall be the number of the Participant's Years of
                           Credited Service and denominator of which shall be
                           35.

         (b)      Method II-- An annual benefit to be paid monthly based on the
                  following amounts:

                  (1)      1.212% of such Participant's Average Annual Earnings
                           multiplied by the Participant's number of Years of
                           Credited Service from the Participant's adjusted
                           service date set forth on Appendix A hereof (List of
                           Covered Participants), plus

                  (2)      0.176% of such Participant's Average Annual Earnings
                           in excess of the Social Security Taxable Wage Base as
                           defined in Section 7.05 hereof (Social Security
                           Taxable Wage Base) multiplied by the Participant's
                           number of Years of Credited Service from the
                           Participant's adjusted service date set forth on
                           Appendix A hereof (List of Covered Participants),
                           plus

                  (3)      If such Participant shall have more than 35 Years of
                           Credited Service from the Participant's adjusted
                           service date set forth on Appendix A hereof (List of
                           Covered Participants), there shall be added to the
                           aforesaid amounts 0.50% of Average Annual Earnings
                           for each Year of Credited Service in excess of 35.

         7.03 - AVERAGE ANNUAL EARNINGS.

         As used in this Article VII, the term "Average Annual Earnings" shall
mean the average of the Credited Earnings of a Participant for the three
calendar years during which the aggregate of the Participant's Credited Earnings
was the highest.

         7.04 - SOCIAL SECURITY TAXABLE WAGE BASE.

         As used in this Article VII, the term "Social Security Taxable Wage
Base" shall mean the

                                      -10-

<PAGE>

maximum amount of annual wages subject to the tax imposed under the Federal
Insurance Contributions Act ("FICA"), as amended, in effect:

         (a)      on the date of such Participant's retirement or other
                  termination of employment, with respect to a Participant who
                  retires under such circumstances as to be eligible for the
                  normal or early retirement benefit under the Plan, or who
                  otherwise terminates employment with vested rights under the
                  Plan; or

         (b)      on the date of such Participant's entitlement to benefits
                  under the HCR Manor Care LTD Plan, with respect to a
                  participant receiving, at date of retirement, benefits under
                  such HCR Manor Care LTD Plan and who retires upon attainment
                  of age 65.

         7.05 - PROTECTION OF BENEFIT.

         No future amendment shall reduce the benefit a Participant has earned
under this Plan up to the day immediately preceding the date of such amendment
with respect to the Participant's Credited Service and Average Annual Earnings
as of such date.

         7.06 - PRESENT VALUE OF DESIGNATED PLANS.

         The present value of the HCR Pension Plan shall be the actuarially
determined lump sum value of any benefit payable to the Participant or the
Participant's designated beneficiary pursuant to such plan, measured as of the
appropriate date. The present value of the Manor Care Key Employee Insurance
Program shall be deemed to be equal to the Participant's cash surrender value
(if any), measured as of the appropriate date, of any life insurance policy
subject to the terms of such plan.

                                      -11-

<PAGE>

                                  ARTICLE VIII
                                  ------------

                               PAYMENT OF BENEFITS

         8.01 - NORMAL OR POSTPONED RETIREMENT.

         A Participant who retires on or after the normal retirement date shall
be paid a normal retirement benefit in the amount and form described in Article
VII hereof (Retirement Benefits), based on the Participant's Credited Service
accrued as of the normal retirement date and reduced (in the manner described in
Article VII hereof (Retirement Benefits)) for amounts, if any, provided through
Designated Plans. Such normal retirement benefit shall commence in the month
described in Section 8.05 hereof (Commencement of Retirement Benefits and
Optional Modes of Payment). Any other provision of this Plan to the contrary
notwithstanding, a Participant shall become fully vested in the Participant's
normal retirement benefit hereunder upon attaining age 65 while employed by the
Company.

         8.02 - EARLY RETIREMENT -- HIRED BEFORE JANUARY 1, 1992.

         (a)      GENERAL RULES AND REDUCTION FACTORS.

                  A Participant whose employment commencement date with the
                  Company is before January 1, 1992 and who has completed at
                  least ten full years of Credited Service, may retire on any
                  date within ten years prior to the Participant's normal
                  retirement date. Such early retirement benefit shall commence
                  in the month described in Section 8.05 hereof (Commencement of
                  Retirement Benefits and Optional Modes of Payment) unless
                  postponed pursuant to Section 8.04 hereof (Option to Postpone
                  Commencement of Early Retirement Benefits).

         (b)      EARLY RETIREMENT.

                  1)       AGE 60, LESS THAN AGE 65.

                           A Participant who retires after attainment of the age
                           of 60 but prior to the Participant's normal
                           retirement date shall be paid an unreduced early
                           retirement benefit, in the form and amount provided
                           in Article VII hereof (Retirement Benefits), based on
                           the Participant's Credited Service accrued as

                                      -12-

<PAGE>

                           of the date of early retirement and reduced (in the
                           manner described in Article VII) for amounts, if any,
                           provided through Designated Plans.

                  2)       AGE 55, LESS THAN AGE 60.

                           If at the date of such early retirement the
                           Participant shall not have attained the age of 60
                           years, the benefit specified in subsection 1) above
                           shall be reduced by 5/12 of 1% for each month by
                           which the first day of the month for which the
                           initial retirement payment is made is in advance of
                           the first day of the month following the attainment
                           of age 60; provided, however, that this subsection 2)
                           shall not apply to a Participant who retires after
                           attainment of the age of 55, if at such early
                           retirement date such Participant shall have completed
                           at least 30 years of Credited Service.

         8.03 - EARLY RETIREMENT -- HIRED AFTER DECEMBER 31, 1991.

         (a)      GENERAL RULES AND REDUCTION FACTORS.

                  A Participant whose employment commencement date with the
                  Company is after December 31, 1991 and who has completed at
                  least ten full years of Credited Service, may retire on any
                  date within five years prior to the Participant's normal
                  retirement date. Such early retirement benefit shall commence
                  in the month described in Section 8.05 hereof (Commencement of
                  Retirement Benefits and Optional Modes of Payment) unless
                  postponed pursuant to Section 8.04 hereof (Option to Postpone
                  Commencement of Early Retirement Benefits).

         (b)      EARLY RETIREMENT.

                  A Participant who retires after attainment of the age of 60
                  but prior to the Participant's normal retirement date shall be
                  paid an annual early retirement benefit, in the form and
                  amount provided in Article VII hereof (Retirement Benefits),
                  based on the Participant's Credited Service accrued as of the
                  date of early retirement and reduced (in the manner described
                  in Article VII) for amounts, if any, provided through
                  Designated Plans. The early retirement benefit shall be
                  reduced by 5/12 of 1% for each month by which the first day of
                  the month for which the initial

                                      -13-

<PAGE>

                  retirement payment is made is in advance of the first day of
                  the month following the attainment of age 65

         8.04 - OPTION TO POSTPONE COMMENCEMENT OF EARLY RETIREMENT BENEFITS.

         Any Participant eligible for such early retirement benefits who retires
prior to the normal retirement date may, by giving written notice to the Vice
President, Director of Human Resources at least one year prior to such actual
early retirement, elect to postpone the commencement of payment of early
retirement benefits to any month that is not later than the month following
attainment of age 65.

         8.05 - COMMENCEMENT OF RETIREMENT BENEFITS AND OPTIONAL MODES OF
PAYMENT.

         Early and normal retirement benefits shall be paid in the normal form
specified, commencing with the month following that in which the Participant's
early, normal or postponed retirement occurs (unless Section 8.02(c) hereof
(Option to Postpone Commencement of Early Retirement Benefits) is exercised) and
ceasing with the payment made in and for the month in which the Participant
dies. A Participant may, however, request in writing to the Vice President of
Human Resources to receive his or her retirement benefits hereunder in the form
of an actuarially equivalent lump sum payment, (using the actuarial assumptions
for lump sum conversions that are then in effect under the HCR Pension Plan at
the time of such election) payable at the time the Participant's retirement
benefits would otherwise commence; provided further, however, that no such
election shall be effective unless it is both:

         (a)      given by the Participant and

         (b)      approved by the Vice President at least one year prior to the
                  benefit commencement date.

         8.06 - COMMENCEMENT OF VESTED BENEFITS AND OPTIONAL MODES OF PAYMENT.

         In the event of the termination of employment of a Participant, other
than:

         (a)      by reason of death or

         (b)      a retirement qualifying under Section 8.01 hereof (Normal or
                  Postpone Retirement)

                                      -14-

<PAGE>

                  or Section 8.02 hereof (Early Retirement),

after such Participant accrues at least five full years of Credited Service,
such Participant shall be eligible for a vested benefit in an amount equal to
the Participant's accrued benefit immediately before the date of such
termination of employment, reduced (in the manner described in Article VII
hereof (Retirement Benefits)) for amounts, if any, provided through Designated
Plans.

         Vested benefits shall be paid in the normal form specified, commencing
at the same time the Participant commences his or her vested benefit under the
HCR Pension Plan, if applicable, or if not applicable any time after attaining
age 55, but on or before attaining age 65, subject to the same actuarial
equivalent reduction factors as set forth in the HCR Pension Plan for
commencement prior to attaining age 65. Such payment shall cease with the
payment made in and for the month in which the Participant dies. A Participant,
however, may request in writing to the Vice President of Human Resources to
receive his or her vested benefits hereunder in the form of an actuarially
equivalent lump sum payment, (using the actuarial assumptions for lump sum
conversions that are then in effect under the HCR Pension Plan at the time of
such election) payable at the time the Participant's vested benefits would
otherwise commence; provided further, however, that no such election shall be
effective unless it is both:

         (a)      given by the Participant and

         (b)      approved by the Vice President at least one year prior to the
                  benefit commencement date.

         8.07 - DEATH BENEFITS.

         In the event a retired Participant who is eligible for retirement
benefits under Section 8.01 hereof (Normal or Postpone Retirement), Section 8.02
hereof (Early Retirement -- Hired Before January 1, 1992) or Section 8.03 hereof
(Early Retirement -- Hired After December 31, 1991) dies before commencement of
such retirement benefits, a death benefit shall be paid to the Participant's
designated beneficiary. If there is no living designated beneficiary, the death
benefit shall be paid to the Participant's estate. The death benefit shall be
paid in a single payment in the month following the month in which the
Participant dies. The death benefit shall be the present value of

                                      -15-

<PAGE>

the early or normal retirement benefit (reduced for benefits provided by
Designated Plans) the Participant would have received in accordance with Section
8.01 hereof (Normal or Postpone Retirement), Section 8.02 hereof (Early
Retirement -- Hired Before January 1, 1992), or Section 8.03 hereof (Early
Retirement -- Hired After December 31, 1991), had the Participant received a
single sum distribution on the day the Participant died.

         8.08 - DESIGNATION AND CHANGE OF BENEFICIARY.

         Each Participant shall, upon such form as the Vice President of Human
Resources may provide for that purpose, designate the Participant's beneficiary
or beneficiaries, and the person or persons so designated or, where applicable,
the person or persons designated by the Vice President pursuant to Section 8.09
hereof (Death of or Failure to Designate Beneficiary), shall receive, any
payment which may be or become payable hereunder by reason of the death of such
Participant as a death benefit under this Plan as constituted as of the date of
such death. The designation of a Participant's spouse as beneficiary under this
Section 8.08 shall be automatically revoked, and such spouse shall not be
entitled to receive any death benefit to which the Participant might otherwise
be entitled under this Section, if such Participant and such spouse are divorced
after the date of such designation, unless thereafter the Participant shall
redesignate such former spouse as the Participant's beneficiary.

         8.09 - DEATH OF OR FAILURE TO DESIGNATE BENEFICIARY

         If any death benefit shall be payable to a beneficiary not then living
and no contingent beneficiary shall then survive, or if any death benefit shall
be payable on behalf of a deceased Participant who shall have failed to
designate a beneficiary, the death benefit shall be paid to the Participant's
estate.

         8.10 - QUALIFIED DOMESTIC RELATIONS ORDERS

         Benefits shall be payable to an individual other than a Participant in
accordance with the applicable requirements of a Qualified Domestic Relations
Order pursuant to the following provisions:

                                      -16-

<PAGE>

         (a)      The term "Qualified Domestic Relations Order" shall mean any
                  judgment, decree, or court order (including approval of a
                  property settlement agreement) which relates to the provision
                  of child support, alimony payments, or marital property rights
                  to a spouse, former spouse, child or other dependent of a
                  Participant (collectively an "Alternate Payee" as defined in
                  Section 414(p)(8) of the Code), which creates or recognizes
                  the existence of an Alternative Payee's right to, or assigns
                  to an Alternate Payee the right to, receive all or a portion
                  of the benefits payable with respect to a Participant under
                  the Plan, and which meets the following requirements:

                  (1)      Such order shall specify the name and last known
                           mailing address (if any) of the Participant and each
                           Alternate Payee covered by the order;

                  (2)      Such order shall specify the amount or percentage of
                           the Participant's benefits to be paid by the Plan to
                           each such Alternate Payee or the manner in which such
                           amount or percentage is to be determined as of a
                           given date;

                  (3)      Such order shall provide when the Alternate Payee may
                           first take a distribution of the Alternate Payee's
                           benefit hereunder, if silent the Alternate Payee's
                           benefit would first be distributable, unless limited
                           by the order, when the Participant is first eligible
                           to take a distribution of the Participant's benefit
                           pursuant to Section 8.05 hereof (Commencement of
                           Retirement Benefits and Optional Modes of Payment);

                  (4)      If applicable, such order shall specify the number of
                           payments or period to which the order applies;

                  (5)      Such order shall identify the Plan as to which the
                           order applies;

                  (6)      Such order shall not require the Plan to provide any
                           type or form of benefits or any option not otherwise
                           provided under the Plan; and

                  (7)      Such order shall not require the payment of benefits
                           to an Alternate Payee which are required to be paid
                           to another Alternate Payee under another order
                           previously determined to be a Qualified Domestic
                           Relations Order.

         (b)      The Company shall determine a set of nondiscriminatory and
                  reasonable procedures to determine the qualified status of a
                  domestic relations order and to administer

                                      -17-
<PAGE>

                  distributions under such qualified orders in accordance with
                  Section 414(p) of the Code.

                                      -18-

<PAGE>

                                   ARTICLE IX
                                   ----------

                        SUSPENSION OF RETIREMENT BENEFITS

Retirement or vested benefits shall be suspended during any period in which a
retired Participant or a Participant terminated with vested rights is in the
full-time employ of the Company, in accordance with regulations of uniform
application adopted by the Vice President of Human Resources, for all or part of
any period for which additional service credits are provided for the purpose of
determining the amount of the Participant's retirement benefits pursuant to
Article VII hereof (Retirement Benefits).

                                      -19-

<PAGE>

                                    ARTICLE X
                                    ---------

                           ADMINISTRATION OF THE PLAN

         10.01 - GENERAL.

         All rights, powers, duties, authority, and responsibility in connection
with the administration of this Plan, which are herein or otherwise reserved to
or conferred upon the Company have been delegated by the Board of Directors of
the Company to, and shall be exercised, performed or discharged on behalf of the
Company by, the Chief Executive Officer of the Company or by such other officer
or officers of the Company, as the Chief Executive Officer's delegate, pursuant
to the procedures hereinafter provided. Whenever reference is made in this Plan
to an appropriate officer or officers of the Company, such reference shall be to
the Chief Executive Officer of the Company or such other officer or officers of
the Company, to whom said Chief Executive Officer or, to the extent authorized
by said Chief Executive Officer, another officer or officers of the Company may
at the time concerned have delegated any one or more of such rights, powers,
duties, authority, or responsibility hereunder. Each such delegation and any
modification or revocation thereof shall be recorded in writing and kept on file
with the Secretary of the Company. Any act performed in the exercise of
delegated authority under this Plan shall be deemed the act of the Company or,
as the case may be, of such other Employer. The right to revoke or modify any
delegation under this Plan is reserved to the Board of Directors of the Company.
Said Chief Executive Officer of the Company and each appropriate officer to whom
authority is delegated hereunder shall be a named fiduciary with respect to this
Plan. If at any time there is no person duly designated as Chief Executive
Officer of the Company, any person who is President of the Company shall have
the full authority conferred upon such Chief Executive Officer hereunder for all
purposes hereof. The rights, powers, duties, authority, and responsibility of
the Vice President of Human Resources of the Company expressly conferred in this
Plan may be exercised, performed and discharged without the necessity of any
delegation hereunder but are subject to modification or revocation in accordance
with the procedures herein provided.

         10.02 - DUTIES OF THE VICE PRESIDENT OF HUMAN RESOURCES.

         The Vice President of Human Resources shall administer the Plan and
shall determine what

                                      -20-

<PAGE>

and when Participants and their Beneficiaries are entitled to receive benefits
hereunder and the amount of such benefits. The Vice President shall keep
complete records of all pertinent data and facts, and actions taken. The Vice
President shall, from time to time, adopt actuarial tables, methods, factors and
assumptions for purposes of the Plan.

         10.03 - AUTHORITY OF THE VICE PRESIDENT OF HUMAN RESOURCES.

         The Vice President of Human Resources shall have full power and
authority to adopt, modify and rescind any and all regulations necessary or
appropriate for the administration of the Plan, and to make fair, equitable and
nondiscriminatory rulings and decisions on any questions which may arise with
respect to Participants and their Beneficiaries, payments and amounts of
retirement and other benefits, and on any question concerning the construction
or interpretation of the Plan. All such regulations, rulings and decisions of
the Vice President made in good faith shall be consistent with the Plan and
shall be final and binding as to all persons interested and as to all rights and
obligations hereunder. The Vice President shall serve without compensation but
shall be entitled to reimbursement from the Company for expenses of
administering this Plan, including, but not limited to, fees of accountants,
actuaries, counsel, investment advisors and other specialists, and, to the
extent permitted by ERISA, the Vice President shall be fully protected in any
action or failure to act taken by the Vice President in good faith reliance upon
the advice or opinions of such specialists. Nothing herein shall preclude the
Company from indemnifying the Vice President or other fiduciary from any
liabilities incurred by them in connection with the administration of this Plan
or from purchasing insurance to provide for such indemnification.

                                      -21-

<PAGE>

                                   ARTICLE XI
                                   ----------

                 AMENDMENT, MODIFICATION OR TERMINATION OF PLAN

         11.01 - AMENDMENT OR MODIFICATION OF PLAN.

         The Company, by its appropriate officers on its behalf, shall have the
right, at any time and from time to time, to amend or modify the Plan by a
written instrument executed on behalf of the Company by such officers; provided,
however, that no amendment or modification shall have any adverse retroactive
effect on or reduce the benefit accrued before the amendment by eliminating or
reducing a retirement type subsidy or an early retirement benefit or eliminating
an optional form of benefit, with respect to benefits accrued before such
amendment, of any Corporate Officer, Participant or Beneficiary unless the same
shall be required by the Internal Revenue Service, or an officer or agent
thereof, or unless the same shall be required to comply with the Act, the
Internal Revenue Code or any other applicable law or laws.

         11.02 - TERMINATION OF THE PLAN.

         It is the expectation of the Company that it will continue the Plan
indefinitely, but the continuance of the Plan is not a contractual obligation of
the Company, or of any company, and is not in consideration of, an inducement
to, or condition of the employment of any person. The Company reserves the
right, by action of its Board of Directors, to terminate the Plan.

                                      -22-
<PAGE>

                                   ARTICLE XII
                                   -----------

                     MERGER, CONSOLIDATION, ETC. OF THE PLAN

         Any provision herein to the contrary notwithstanding, this Plan shall
not be merged or consolidated with, nor shall any liabilities of this Plan be
transferred to any other plan unless each Participant hereunder will be entitled
to receive a benefit immediately after such merger, consolidation or transfer
which shall be equal to or greater than the benefit the Participant would have
been entitled to receive if this Plan had been terminated immediately prior to
such merger, consolidation or transfer.

                                      -23-

<PAGE>

                                  ARTICLE XIII
                                  ------------

                            MISCELLANEOUS PROVISIONS

         13.01 - INALIENABILITY.

         No benefit or interest payable hereunder shall be alienated, disposed
of, sold, assigned or in any manner encumbered by any Participant or
Beneficiary.

         13.02 - FACILITY OF PAYMENT.

         Any payment which is otherwise required to be made to any person under
a disability may, in the discretion of the Vice President of Human Resources, be
made to or for the benefit of such person, notwithstanding such disability, to
any guardian, conservator or trustee of such person, to any spouse, child,
parent, other relative or any dependent of such person, or any one or more of
them, or may be applied directly to others on behalf of such person, in such
amount and to such of them as the Vice President may deem advisable. Any monthly
installment of retirement benefits due at the death of a Participant which
otherwise is required to be paid to the Participant's executor, Administrator or
estate may, when authorized by the Vice President, be paid to such Participant's
Beneficiary, or to the person designated by the decedent as beneficiary under
any group insurance policy provided for the Participant by the Company or to a
surviving spouse, child, parent, relative, dependent or next of kin of the
decedent.

         13.03 - LIABILITY LIMITED.

         No Participant or Beneficiary shall have any right or interest in this
Plan, nor shall the Company, nor the Vice President of Human Resources nor any
other officer, director or Corporate Officer of the Company, have any liability
or responsibility with respect to this Plan or under the Agreement, except as
may be otherwise expressly provided herein, in the Agreement or by the Act.

         13.04 - PERFORMANCE OF ACTS.

         Each Participant, Beneficiary or other person claiming any interest
hereunder agrees to furnish such data, perform any and all other acts and to
execute any and all applications or other

                                      -24-

<PAGE>

documents as may be necessary or desirable for carrying out the intent of this
Plan and as may be required by the Vice President of Human Resources.

         13.05 - CLAIMS PROCEDURE.

         Claims for benefits under this Plan shall be filed by a Participant or
Beneficiary or other claimant with the Vice President of Human Resources of the
Company on forms to be supplied. Written notice of the disposition of the claim
shall be furnished the Participant within 30 days of the filing of such claim.
Any Participant, Beneficiary or other person claiming any interest hereunder who
is denied, in whole or in part, a claim for benefits under this Plan shall be
entitled, upon written request therefor to the Vice President, to receive in
written form a clear and concise statement explaining the computation of such
benefit or such other action under the Plan as to which such person shall
object, together with an explanation of the claims review procedure as set forth
in this Section 13.05 and any additional documents or information which may be
necessary to perfect such person's claim. Within 60 days after receipt by such
person of the statement and explanation described in the preceding sentence,
such person, if desiring further consideration of the claim, shall file with the
Vice President, in written form a statement in support of the position together
with a request for reconsideration of such claim and, if desired, a request for
hearing before the Vice President thereon. If requested, and if in the
discretion of the Vice President, necessary or desirable, the Vice President
shall schedule an opportunity for a full and complete hearing within 30 days
after receipt of such request for reconsideration, and a final and binding
decision shall be made within 30 days after the date of such hearing or within
30 days after the receipt of such request for reconsideration if no hearing
shall be held. Such decision shall be communicated in writing to such person
together with a statement of the reasons therefor.

         13.06 - DEFINITIONS.

         The terms used in this Plan, unless otherwise defined herein, have the
same meaning and definition as those terms are used in the HCR Pension Plan.

                                      -25-

<PAGE>

         IN WITNESS WHEREOF, Manor Care, Inc. has caused this HCR Manor Care
Senior Executive Retirement Plan, to be adopted and effective as of January 1,
2001.

                                        MANOR CARE, INC.

                                        By: /s/ Paul A. Ormond
                                           -------------------------------------
                                           President and Chief Executive Officer

                                        Date: 1/6/01
                                             -----------------------------------

ATTEST:

By: /s/ R. Jeffrey Bixler
   -------------------------
        Secretary

                                      -26-

<PAGE>

                                   APPENDIX A

                                 HCR MANOR CARE
                        SENIOR EXECUTIVE RETIREMENT PLAN
                        --------------------------------

                          LIST OF COVERED PARTICIPANTS
                          ----------------------------

                              AS OF JANUARY 1, 2001

                 The list of Covered Participants is maintained
                      in the office of the Vice President,
                 Director of Human Resources and Labor Relations

                                      -27-<PAGE>
                                                                   Exhibit 10.14

                                MANOR CARE, INC.

                         SENIOR MANAGEMENT SAVINGS PLAN

                             FOR CORPORATE OFFICERS

                            Effective January 1, 1993

                         Restated as of January 1, 2001

<PAGE>

                                MANOR CARE, INC.
                                ----------------
              SENIOR MANAGEMENT SAVINGS PLAN FOR CORPORATE OFFICERS
              -----------------------------------------------------

         In exercise of the powers and authority conferred upon and reserved to
the Board of Directors of Manor Care, Inc. under and by virtue of Article VIII
of the First Amended and Restated Health Care and Retirement Corporation Senior
Management Savings Plan For Corporate Officers, the Board hereby amends,
restates and renames said Plan, to read as set forth in the document attached
hereto and incorporated herein, entitled "Manor Care, Inc. Senior Management
Savings Plan For Corporate Officers", herein called the "Amended and Restated
Plan" and in such document called the "Plan".

         In no event shall the adoption of the Amended and Restated Plan
pursuant to this instrument cause any benefit under the Plan that is accrued or
treated as accrued to be less than such benefit immediately before the adoption
of this Amended and Restated Plan.

         The Amended and Restated Plan shall be effective, except as otherwise
stated, January 1, 2001.

         IN WITNESS WHEREOF, the Board has caused the Amended and Restated Plan
to be executed by a duly authorized officer as of the 1st day of January, 2001.

                                         MANOR CARE, INC.

                                         By /s/ Paul A. Ormond
                                            -----------------------------------
                                            President

ATTEST:

/s/ R. Jeffrey Bixler
-----------------------------
Secretary

<PAGE>

                                MANOR CARE, INC.
                                ----------------
              SENIOR MANAGEMENT SAVINGS PLAN FOR CORPORATE OFFICERS
              -----------------------------------------------------

                                    ARTICLE I
                                    ---------

                    NAME, EFFECTIVE DATE AND PURPOSE OF PLAN
                    ----------------------------------------

1.01     The name of this plan is the "Manor Care, Inc. Senior Management
Savings Plan For Corporate Officers", formerly known as the "First Amended and
Restated Health Care and Retirement Corporation Senior Management Savings Plan
For Corporate Officers", hereinafter called the "Plan".

1.02     The effective date of the Plan, as amended and restated, is January 1,
2001.

1.03     The purpose of this Manor Care, Inc. Senior Management Savings Plan for
Corporate Officers is to permit selected executive officers of Manor Care, Inc.
and certain companies affiliated with it to elect to defer receipt of all or
part of their compensation. To the extent any of such officers are unable to
participate in the HCR Stock Purchase and Retirement Savings Plan, this Plan is
also intended to provide them, as nearly as practicable, with an equivalent
benefit. The Plan is and is intended to be an unfunded deferred compensation
plan for a select group of management or highly compensated employees, commonly
known as a "top hat" plan.

                                       -1-

<PAGE>

                                   ARTICLE II
                                   ----------

                                   DEFINITIONS
                                   -----------

2.01     "Account" means a Deferral Account or Matching Account.

2.02     "Annual Award" means an "Annual Bonus Award" as defined in and payable
         to an Officer under the Annual Award Plan.

2.03     "Annual Award Plan" means the Manor Care, Inc. Annual Incentive Award
         Plan, as from time to time in effect.

2.04     "Award" means an Annual Award or a Performance Award.

2.05     "Award Period" means, with respect to an Annual Award, the calendar
         year to which it relates and, with respect to a Performance Award,
         means the "Award Period", as defined in the Performance Award Plan, to
         which it relates.

2.06     "Board" means the Board of Directors of Manor Care, Inc. or any
         committee of said Board of Directors to which any or all of its powers
         or duties under the Plan may be delegated.

2.07     "CEO" means the Chief Executive Officer of Manor Care, Inc. or as the
         context hereof may indicate, any other officer, employee, or committee
         of Manor Care, Inc. designated by said CEO to whom any or all of the
         CEO's powers or duties under the Plan may be delegated.

2.08     "Code" means the Internal Revenue Code of 1986, as amended.

2.09     "Company" means Manor Care, Inc. and its Subsidiaries.

                                       -2-

<PAGE>

2.10     "Compensation" means any salary, bonus, and/or other form of current
         cash remuneration

         for services rendered to or on behalf of the Company by an Officer,
         other than an Award.

2.11     "Deferral Account" means a deferred compensation memorandum account
         established and maintained on the books of the Company to reflect the
         value of a Participant's interest in the Plan attributable to his
         Deferral Elections.

2.12     "Deferral Election" means an election made by a Participant pursuant to
         and in accordance with Section 5.01 of the Plan.

2.13     "401(k) Plan" means the HCR Stock Purchase and Retirement Savings Plan,
         as from time to time in effect.

2.14     "Investment Unit" means a unit of value by which the value of a
         Participant's Accounts is determined pursuant to and in accordance with
         Section 6.03 of the Plan.

2.15     "Matching Account" means a deferred compensation memorandum account
         established and maintained on the books of the Company to reflect the
         value of a Participant's interest in the Plan attributable to the
         Company's Matching Credits for his benefit.

2.16     "Matching Credit" means a credit by the Company to a Participant's
         Matching Account pursuant to and in accordance with Section 5.03 of the
         Plan.

2.17     "Officer" means an executive officer of the Company eligible to
         participate in the Plan pursuant to and in accordance with Article IV
         of the Plan.

2.18     "Participant" means an eligible Officer who becomes a Participant in
         the Plan as provided in Article IV of the Plan.

                                       -3-

<PAGE>

2.19     "Performance Award" means a "Performance Award" as defined in and
         payable to an Officer under the Performance Award Plan.

2.20     "Performance Award Plan" means the Manor Care, Inc. Performance Award
         Plan, as from time to time in effect.

2.21     "Plan" means this Manor Care, Inc. Senior Management Savings Plan for
         Corporate Officers, as further amended from time to time.

2.22     "Subsidiary" means a corporation (or unincorporated business entity) 50
         percent or more of the voting shares (or other ownership interests) of
         which are owned, directly or indirectly, by Manor Care, Inc.

2.23     Words of the masculine gender include correlative words of the feminine
         and neuter genders and vice versa, and words denoting the singular
         include the plural and vice versa.

                                       -4-

<PAGE>

                                   ARTICLE III
                                   -----------

                                 ADMINISTRATION
                                 --------------

         The Plan shall be administered by the Board. The administrative powers
of the Board shall include the powers to interpret the Plan and to exercise full
and complete discretion to adopt, modify, and/or rescind (or to authorize the
CEO or one or more other appropriate officers of Manor Care, Inc. to adopt,
modify, and/or rescind) any rulings, determinations, policies, or procedures
deemed necessary or appropriate for the maintenance and administration of the
Plan. No member of the Board who is not an employee of the Company shall be
eligible to participate in the Plan, but a member of the Board who is otherwise
eligible to participate in the Plan shall not be disqualified from such
participation solely by reason of such Board membership. Any provision hereof to
the contrary notwithstanding, only the Board may exercise any discretionary
and/or administrative authority under the Plan with respect to the CEO's
participation in the Plan, and the Board may not delegate any such authority to
the CEO or to any other officer, employee, or committee of Manor Care, Inc.
(other than a committee of the Board of which the CEO is not a voting member).

                                       -5-

<PAGE>

                                   ARTICLE IV
                                   ----------

                         ELIGIBILITY AND PARTICIPATION.
                         ------------------------------

4.01     Each officer of the Company who is a "highly compensated employee" of
the Company (within the meaning of Section 414(q) of the Code) and who is
otherwise eligible to participate in the 401(k) Plan, but is excluded therefrom
solely because, as determined by the Board, his participation in the 401(k) Plan
would jeopardize the qualification of the 401(k) Plan under Section 401(a) of
the Code, shall be eligible to participate in this Plan.

4.02     Any other officer of the Company who is a "Participant" under (and as
defined in) either or both of the Annual or Performance Award Plans shall be
eligible to participate in this Plan if, and for so long as, he is selected to
do so by the CEO, but only with respect to his Awards and not with respect to
his Compensation.

                                       -6-

<PAGE>

                                    ARTICLE V
                                    ---------

                     DEFERRAL ELECTIONS AND MATCHING CREDITS
                     ---------------------------------------

5.01     Each Officer eligible to participate in the Plan under Section 4.01 of
the Plan may elect from time to time, by written notice to the Vice President,
Human Resources of the Company, given before the first day of any regular
Company pay period, to defer his receipt, subject to the provisions of the Plan,
of a specified part of his Compensation earned in the next pay period and
thereafter. The amount of a Participant's Compensation to be deferred pursuant
to his Deferral Elections under this Plan without Board approval shall not
exceed, on an annual basis, 50% of his Compensation. With Board approval a
Participant may elect to defer on an annual basis more than 50% and up to 100%
of his Compensation.

5.02     A Participant may elect prospectively by written notice to the Vice
President, Human Resources of the Company, to change the rate of or revoke his
Deferral Election with respect to his future Compensation at such times and with
such frequency as may be permitted pursuant to rules and procedures of uniform
application adopted by the Company. Until so changed or revoked, a Participant's
Deferral Election shall remain in effect with respect to all Compensation earned
by the Participant after the date thereof.

5.03     The Company shall post a Matching Credit to the Matching Account of
each Executive who has made a Deferral Election under Section 5.01 in an amount
equal to 50 percent of the amount of such Deferral Election, up to a maximum
annual Matching Credit equal to the Excess of:

         (a)      three percent of the sum of the Participant's Compensation and
                  Annual Award that absent of a Deferral Election would be
                  payable in a calendar year, over

         (b)      the amount of the annual "Company Matching Contribution" made
                  on his behalf under (and as defined in) the 401(k) Plan during
                  the same calendar year.

                                       -7-

<PAGE>

5.04     For purposes of Sections 5.01 and 5.03 of the Plan, a Participant who
is eligible to participate in the 401(k) Plan for all or any part of a year
shall be deemed conclusively to have made "Employee MTSO Contributions" under
(and as defined in) the 401(k) Plan in the maximum amount which is permitted to
make thereunder for the period of such eligibility.

5.05     Each Officer eligible to participate in the Plan under Section 4.02 of
the Plan may elect from time to time, by written notice to the CEO or, in the
case of an election by the CEO, to the Board, given on or before December 31 of
any year, to defer his receipt without Board approval, subject to the provisions
of the Plan, of up to 100% of his Annual or Performance Award, if any, for the
applicable Award Period next following. .

5.06     Each Deferral Election with respect to an Award shall be irrevocable
and shall apply only to the Award with respect to which it is made. A
Participant may elect prospectively to change the rate of or revoke his Deferral
Election with respect to his future Compensation at such times and with such
frequency as may be permitted pursuant to rules and procedures of uniform
application adopted by the Board. Until so changed or revoked such a Deferral
Election shall remain in effect with respect to all future Compensation earned
by the Participant.

                                       -8-

<PAGE>

                                   ARTICLE VI
                                   ----------

                                    ACCOUNTS
                                    --------

6.01     All amounts deferred under the Plan shall be credited by the Company,
as of the date such amounts would otherwise be payable to the Participant in the
absence of a Deferral Election, to the Participant's Deferral Account. All
Matching Credits shall be posted concurrently with the deferred amounts to which
they relate.

6.02     The dollar amounts credited to each Account shall be converted to, and
thereafter expressed in terms of a number of Investment Unity and the value of
each Account shall at all times be equal to the value of the Investment Units so
allocated to it. The Investment Units available for allocation under the Plan
shall be equivalent in value and rate of return to:

         (a)      Shares of the common stock of Manor Care, Inc. ("Company Stock
                  Unit ");

         (b)      Shares of the registered investment companies (mutual funds)
                  sponsored by Harbor Capital Advisors, Inc. ("Harbor Fund
                  Units");

         (c)      Units of participation in the series of funds offered by
                  Harbor Trust, a qualified group trust sponsored by Harbor
                  Capital Advisors, Inc. ("Harbor Trust Units"); and

         (d)      A hypothetical bond or other evidence of indebtedness in the
                  principal amount of each amount credited to a Deferral Account
                  on which interest, compounded monthly, is paid at an annual
                  rate equal from time to time to the average annual yield on
                  domestic corporate bonds of Moody's A-rated companies (as most
                  recently reported in the Survey of Current Business published
                  by the United States Department of Commerce or a successor
                  publication) or at such other rate as the Board may at any
                  time and from time to time designate prospectively (the
                  "Moody's A Bond Units").

                                       -9-

<PAGE>

The value of an Investment Unit (other than a Moody's A Bond Unit) shall at all
times be equal to the value of its equivalent under the 401(k) Plan. The Board
may, in its discretion, adopt or cause to be adopted any other method of
accounting for the value of the Accounts that accurately reflects the value and
rate of return of the Investment Unit equivalencies allocated to the Accounts.

6.03     Each Participant, at the time of making a Deferral Election, shall
specify in writing the percentage of each amount to be credited to his Deferral
Account that is to be allocated to Company Stock Units, one or more of the
Harbor Fund and/or Harbor Trust Units, and/or Moody's A Bond Units. All amounts
credited to Matching Accounts shall be allocated to Company Stock Units.
Whenever interest, dividends, or any other form of realized investment return
are paid on any of the Investment Unit equivalencies, a like amount shall be
credited to each Account to which such Investment Units have been allocated and
shall be allocated to additional Investment Units of the same equivalency.

6.04     A Participant may change the allocation of amounts to be credited to
his Deferral Account in the future, and/or of amounts previously credited to his
Deferral Account, at such times and with such frequency as may be permitted
pursuant to rules and procedures of uniform application adopted by the Board;
provided, however, that no amount previously allocated to Company Stock Units in
the Participant's Matching Account may be reallocated to any other Investment
Unit.

6.05     The Company shall be under no duty to segregate or set aside any amount
credited to any Account from the general assets of the Company, but the Board
may, in its discretion, direct the establishment of any trusteed, insured, or
other payment arrangement from which the Company's obligations as to a
Participant under the Plan may be paid. No Participant, beneficiary, estate, or
other person claiming through or under a Participant shall have any legal or
beneficial property interest whatsoever in any assets of the Company or in any
such payment arrangement which may be established at the direction of the Board
except as may be expressly provided by such payment arrangement. Neither the
establishment of an Account nor the crediting of any amounts thereto nor

                                      -10-

<PAGE>

the establishment of any payment arrangement (except as may be expressly
provided by such payment arrangement) shall be deemed to create a trust of any
kind, any fiduciary relationship between the Company and any person, or any
collateral security for the Company's obligations under the Plan. To the extent
that a Participant or any other person acquires a right to receive any payment
from the Company under this Plan, such right shall be no greater than that of
any other unsecured general creditor of the Company. The Company shall provide
to each Participant who has made any Deferral Election, at least annually, a
statement of his Account balances.

                                      -11-

<PAGE>

                                   ARTICLE VII
                                   -----------

                           PAYMENT OF ACCOUNT BALANCES
                           ---------------------------

7.01     Each Participant shall at all times have a nonforfeitable, fully vested
interest in the amount credited to his Deferral Account. Each Participant who
was a participant in the 401(k) Plan before January 1, 1992 shall at all times
have a nonforfeitable, fully vested interest in the amount credited to his
Matching Account. Each Participant who first became a participant in the 401(k)
Plan or this Plan after December 31, 1991 shall have a nonforfeitable, vested
interest in a portion of his Matching Account determined by reference to the
length of his combined participation in the 401(k) Plan and this Plan, according
to the following table:

                 Combined Years                                 Vested
                  of Participation                           Percentage
                  ----------------                           ----------

                 Less than one.....................................  20%
                 One but less than two.............................  40%
                 Two but less than three...........................  60%
                 Three but less than four..........................  80%
                 Four or more...................................... 100%

Notwithstanding the foregoing, in the event of the termination of the Plan, each
Participant shall thereupon have a nonforfeitable, fully vested interest in the
entire amount credited to his Matching Account.

7.02     The entire amount credited to a Participant's Accounts shall become
payable upon termination of the Participant's employment with the Company by
reason of his death, total and permanent disability, or normal or early
retirement pursuant to any retirement plan sponsored by the Company. The
nonforfeitable, vested portion of a Participant's Accounts shall become payable
upon termination

                                      -12-

<PAGE>

of the Participant's employment with the Company for any other reason. Amounts
so payable shall be paid to the Participant in cash in a lump sum as soon as
practicable after such termination of employment, but in no event later than
March 31 of the following year. However, if at least one year prior to his
retirement, or termination of employment, the Participant may make an
irrevocable election to delay receiving his benefits from the Plan to a date
specific on or before the Participant attains age 65. In addition, if at least
one year prior to his retirement, or termination of employment, the Participant
may make an irrevocable election to receive his benefits in installment
payments. If a Participant elects distribution in the form of installment
payments, he shall further designate the commencement date and period of time
(not to exceed 20 years) over which the installment payments are to be made and
whether such installment payments are to be made on a monthly, quarterly,
semi-annual or annual basis. During the period such installment payments are
being made, the remaining balances in the Participant's Accounts shall continue
to be credited with earnings or losses in accordance with the provisions of
Article VI of the Plan. For purpose of a Participant who is retiring or
terminating employment in 2001, such election must be given to the CEO on or
before March 31, 2001.

7.03     In the event of a Participant's death before his Accounts have been
paid to him in full, the entire amount then credited to his Accounts shall be
paid in cash in a lump sum to the beneficiary or beneficiaries named by him in a
written designation filed with the Company (or, in the absence of such a
designation, to his estate).

7.04     Before termination of employment, a Participant may request a
withdrawal from any portion of his Deferral Account not allocated to Company
Stock Units of an amount sufficient to meet a hardship. For these purposes a
"hardship" shall mean a demonstrated and sever financial hardship resulting from
any one or more of the following:

         (a)      a sudden and unexpected illness or accident of the Participant
                  or of a dependent (as defined in Section 152(a) of the Code)
                  of the Participant;

                                      -13-

<PAGE>

         (b)      a loss of the Participant's property due to casualty; or

         (c)      any other similar extraordinary and unforeseeable
                  circumstances arising as a result of events beyond the
                  Participant's control;

in each case only to the extent that the "hardship" is not relieved:

         (a)      through reimbursement or compensation by insurance or
                  otherwise;

         (b)      by liquidation of the Participant's assets (to the extent that
                  such liquidation does not itself cause a "hardship); or

         (c)      cessation of deferrals under the Plan.

The Board shall determine the existence of a bona fide hardship based on
non-discriminatory procedures, taking into account any then applicable rulings
or regulations from the Internal Revenue Service. The standards established by
the Board for determining the existence of a hardship shall be uniformly applied
to all Participants who request such a withdrawal, and the Board's decision with
respect to each such request shall he final. An approved hardship withdrawal
shall be paid to the Participant in cash as soon as practicable after approval.

                                      -14-

<PAGE>

                                  ARTICLE VIII
                                  ------------

                       QUALIFIED DOMESTIC RELATIONS ORDER
                       ----------------------------------

8.01 Benefits shall be payable to an individual other than a Participant in
accordance with the applicable requirements of a Qualified Domestic Relations
Order pursuant to the following provisions:

         (a)      The term "Qualified Domestic Relations Order" shall mean any
                  judgment, decree, or court order (including approval of a
                  property settlement agreement) which relates to the provision
                  of child support, alimony payments, or marital property rights
                  to a spouse, former spouse, child or other dependent of a
                  Participant (collectively an "Alternate Payee" as defined in
                  Section 414(p)(8) of the Code), which creates or recognizes
                  the existence of an Alternative Payee's right to, or assigns
                  to an Alternate Payee the right to, receive all or a portion
                  of the benefits payable with respect to a Participant under
                  the Plan, and which meets the following requirements:

                  (1)      Such order shall specify the name and last known
                           mailing address (if any) of the Participant and each
                           Alternate Payee covered by the order;

                  (2)      Such order shall specify the amount or percentage of
                           the Participant's benefits to be paid by the Plan to
                           each such Alternate Payee or the manner in which such
                           amount or percentage is to be determined, or in the
                           alternative the amount or percentage transferred from
                           the Participant's Accounts to Accounts set up for the
                           Alternate Payee as of a given date;

                  (3)      Such order shall provide when the Alternate Payee may
                           first take a distribution of the Alternate Payee's
                           Accounts, if silent the Alternate Payee's Accounts
                           would first be distributable, unless limited by the
                           order, when the Participant is first eligible to take
                           a distribution of the Participant's Accounts

                                      -15-

<PAGE>

                           pursuant to Section 7.02 hereof;

                  (4)      If applicable, such order shall specify the number of
                           payments or period to which the order applies;

                  (5)      Such order shall identify the Plan as to which the
                           order applies;

                  (6)      Such order shall not require the Plan to provide any
                           type or form of benefits or any option not otherwise
                           provided under the Plan;

                  (7)      Such order shall not require the Plan to provide
                           increased benefits (determined on the basis of
                           actuarial value); and

                  (8)      Such order shall not require the payment of benefits
                           to an Alternate Payee which are required to be paid
                           to another Alternate Payee under another order
                           previously determined to be a Qualified Domestic
                           Relations Order.

         (b)      The Company shall determine a set of nondiscriminatory and
                  reasonable procedures to determine the qualified status of a
                  domestic relations order and to administer distributions under
                  such qualified orders in accordance with Section 414(p) of the
                  Code.

8.02     If pursuant to a Qualified Domestic Relations Order, all or a portion
of a Participant's Accounts in the Plan have been transferred to corresponding
Accounts in the Plan set up for a spouse, former spouse, child or other
dependent of the Participant (collectively an "Alternate Payee" as defined in
section 414(p)(8) of the Code), such Accounts shall be distributable to the
Alternate Payee, unless otherwise limited by the order, when the Participant is
first eligible to take a distribution of the Participant's Accounts pursuant to
Section 7.02.

8.03     If pursuant to a Qualified Domestic Relations Order, the Alternate
 Payee may take a

                                      -16-

<PAGE>

distribution of the Alternate Payee's Accounts when the Participant attains
"earliest retirement age" under the Plan, for purpose of this provision, such
Accounts shall be distributable to the Alternate Payee when the Participant
attains age 50 or anytime thereafter.

8.04     If pursuant to a Qualified Domestic Relations Order, the Alternate
Payee may take a distribution of the Alternate Payee's Account at the time the
Alternate Payee's Accounts are established, such Accounts shall be immediately
or anytime thereafter distributable to the Alternate Payee.

8.05     Not withstanding the foregoing, if the Alternate Payee will be
receiving a Qualified Domestic Relations Order distribution from the 401(k)
Plan, the timing of the Alternate Payee's distribution from this Plan, should
coincide with the Alternate Payee's distribution from the 401(k) Plan.

8.06     If the present value of the Alternate Payee's Accounts does not exceed
$5,000 when established or thereafter, such Alternate Payee's Accounts shall be
paid to the Alternate Payee in a lump sum, in an amount equal to such present
value.

                                      -17-

<PAGE>

                                   ARTICLE IX
                                   ----------

                      AMENDMENT AND TERMINATION OF THE PLAN
                      -------------------------------------

         The Board may at any time and from time to time amend, suspend, or
terminate the Plan in whole or in part and may, in connection with any Plan
termination, elect in its sole discretion to either continue to maintain the
Participants' accounts under the Plan or fully vest each Participant's account
and distribute the entire amount credited to the Participant's accounts;
provided, however, that no such amendment, suspension, or termination may,
without the consent of each Participant affected thereby, have any adverse
retroactive effect on the rights of any Participant (or any person claiming
through or under him) under the Plan unless required by applicable law.

                                      -18-

<PAGE>

                                    ARTICLE X
                                    ---------

                                  MISCELLANEOUS
                                  -------------

10.01    At the request of a Participant or on its own initiative, the Board
may, at any time and in its sole and unlimited discretion, accelerate the
payment of any part of a Participant's Deferral Account not allocated to Company
Stock Units, if the Board determines that such accelerated payment would be in
the interests of such Participant and not prejudicial to the interests of other
Participants or the Company.

10.02    Nothing in the Plan shall confer on any Participant or any other
employee of the Company any right to continue in the employ of the Company or
affect in any way the right of the Company to terminate any such person's
employment at any time.

10.03    Except as otherwise provided in Article VIII, rights under the Plan
shall not be assignable or transferable or subject to encumbrance or charge of
any nature, other than by designation of beneficiary to take effect at death or,
in the absence of such designation, by will or the laws of descent and
distribution.

10.04    The Plan shall be binding on and inure to the benefit of the Company,
each Participant, and every person claiming through or under a Participant, and
their respective heirs, successors, and assigns.

10.05    Deferral Elections under the Plan are intended to defer Participants'
recognition of income, for purposes of the Code, until their actual receipt of
payments from their Accounts, and the Plan shall be interpreted and administered
in a manner consistent with such intent.

                                      -19-

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