Document:

Exhibit 10.5

FARMER BROS. CO.

AMENDED AND RESTATED

EMPLOYEE STOCK OWNERSHIP PLAN

Effective January 1, 2000

as Amended by Amendment No. 1

(Effective as of January 1, 2002)

as Amended by Amendment No. 2

(Effective as of January 1, 2003)

and as Amended by Amendment No. 3

(Effective as of December 17, 2003)

 

FARMER BROS. CO.

EMPLOYEE STOCK OWNERSHIP PLAN

ARTICLE 1.         DEFINITIONS

1.01                           “Account” means the Account established for a Member
pursuant to Section 9.03 into which shall be credited the contributions made on
a Member’s behalf, Company Stock released from the Suspense Account for the
Member, and earnings on those contributions and that Company Stock.

1.02                           “Affiliate” means any company which is a member of a
controlled group of corporations (as defined in Section 414(b) of the Code)
which also includes as a member the Company; any trade or business under common
control (as defined in Section 414(c) of the Code) with the Company; any
organization (whether or not incorporated) which is a member of an affiliated service
group (as defined in Section 414(m) of the Code) which includes the Company;
and any other entity required to be aggregated with the Company pursuant to
regulations under Section 414(o) of the Code.  Notwithstanding the foregoing, for purposes of
Sections 1.27 and 3.03, the definitions in Sections 414(b) and (c) of the Code
shall be modified by substituting the phrase “more than 50 percent” for the
phrase “at least 80 percent” each place it appears in Section 1563(a)(1) of the
Code.

1.03                           “Annual Dollar Limit” means $150,000, as adjusted from time
to time for cost of living in accordance with Section 401(a)(17)(B) of the
Code.  The Annual Dollar Limit for Plan
Years beginning after December 31, 2001, shall not exceed $200,000, as adjusted
for cost-of-living increases in accordance with Section 401(a)(17)(B) of the
Code.

1.04                           “Beneficiary” means any person, persons or entity designated
by a Member to receive any benefits payable in the event of the Member’s death.
 However, a married Member’s spouse shall
be the Member’s Beneficiary unless or until he or she elects another
Beneficiary with Spousal Consent.  If no
Beneficiary designation is in effect at the Member’s death, or if no person,
persons or entity so designated survives the Member, the Member’s surviving
spouse, if any, shall be deemed to be the Beneficiary; otherwise the
Beneficiary shall be the personal representative of the estate of the Member.

1.05                           “Board of Directors” means the Board of Directors of the
Company or any authorized committee thereof.

1.06                           “Break in Service” means an event affecting forfeitures,
which shall occur when an Employee is credited with less than 500 Hours of
Service in any Plan Year.  However, if an
Employee is absent from work immediately following his or her active
employment, irrespective of whether the Employee’s employment is terminated,
because of the Employee’s pregnancy, the birth of the Employee’s child, the
placement of a child with the Employee in connection with the adoption of that
child by the Employee or for purposes of caring for that child for a period
beginning immediately following that birth or placement, a Break in Service
shall occur only if the Member does not return to work within one (1) year of
the date he or she began his or her leave from active employment for the
above-stated reasons.  A Break in Service
shall not occur during an approved leave of absence or during a period of
military service that is included in the Employee’s Vesting Service pursuant to
Section 1.34.

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1.07                           “Code” means the Internal Revenue Code of 1986, as amended
from time to time.

1.08                           “Committee” means the persons named by the Board of
Directors to administer and supervise the Plan as provided in Article 9.

1.09                           “Company” means Farmer Bros. Co.

1.10                           “Company Stock” means the shares of common stock of the
Company or shares of preferred or preference stock of the Company that are
convertible into such common stock provided that, in either event, such stock
is an “employer security” within the meaning of Section 409(1) of the Code.

1.11                           “Compensation” means wages as defined under Section 3401(a)
of the Code (for purposes of income tax withholding at the source), but
determined without regard to any rules under Section 3401(a) of the Code that
limit the remuneration included in wages based on the nature or location of the
employment or the services performed.  However,
notwithstanding the foregoing, for purposes of this Plan, Compensation shall:
(a) include any salary deferral reductions pursuant to Section 401(k) of the
Code or pursuant to a cafeteria plan as defined in Section 125 of the Code; (b)
any imputed income for automobile allowance or company-paid life insurance for
the Member (including amounts for which the Employer or Affiliated Employer is
required to furnish a written statement pursuant to Section 6052 of the Code); and
(c) not exceed the maximum statutory Annual Dollar Limit.

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1.12                           “Disability” means total and permanent physical or mental
disability, as determined under the Company’s long-term disability program as
in effect from time to time.

1.13                           “Effective Date” means January 1, 2000.

1.14                           “Eligible Employee” means an Employee regularly employed by
an Employer who receives stated compensation other than a pension, severance
pay, retainer, or fee under contract; however, the term “Eligible Employee”
excludes (a) any person who is included in a unit of Employees covered by a
collective bargaining agreement which does not provide for his or her
membership in the Plan, and (b) any non-resident alien with no US-source
income.  In addition, any person
classified as an independent contractor or consultant by the Employer shall,
during such period, be excluded from the definition of Eligible Employee,
regardless of such person’s reclassification for such period by the Internal
Revenue Service for tax withholding purposes.

1.15                           “Employee” means any individual who is employed by the
Employer or an Affiliate as a common law employee of the Employer or Affiliate,
regardless of whether the individual is an “Eligible Employee,” and any Leased
Employee.

1.16                           “Employer” means the Company or any successor by merger,
purchase or otherwise, with respect to its Employees; or any other company
participating in the Plan as provided in Section 12.03, with respect to its Employees.

 4
 

1.17                           “Employer Contributions” means all amounts contributed
pursuant to Section 3.01 of the Plan.

1.18                           “ERISA” means the Employee Retirement Income Security Act of
1974, as amended from time to time.

1.19                           “Financed Shares” means shares of Company Stock, whether
allocated or unallocated, which have been purchased by means of an Exempt Loan.

1.20                           “Hour of Service” means, with respect to any applicable
computation period,

(a)                                  each
hour for which the Employee is paid or entitled to payment for the performance
of duties for the Employer or an Affiliate; and

(b)                                 each
hour for which the Employee is paid or entitled to payment by the Employer or
an Affiliate 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, but not more than 501 hours for any single
continuous period; and each hour for which back pay, irrespective of mitigation
of damages, is either awarded or agreed to by the Employer or an Affiliate,
excluding any hour credited under (a) or (b), which shall be credited to the computation
period or periods to which the award, agreement or payment pertains rather than
to the 

 5
 

                                                computation
period in which the award, agreement or payment is made.

No hours shall be credited on account of any period
during which the Employee performs no duties and receives payment solely for
the purpose of complying with unemployment compensation, workers’ compensation
or disability insurance laws. The Hours of Service credited shall be determined
as required by Title 29 of the Code of Federal Regulations, Sections
2530.200b-2(b) and (c).  Notwithstanding
the forgoing, solely to the extent required by law, an Employee who is absent
from employment because of an authorized leave of absence under the Family and
Medical Leave Act of 1993 shall receive credit for Hours of Service during such
absence.

1.21                           “Leased Employee” means any person performing services for
the Employer or an Affiliate as a leased employee as defined in Section 414(n)
of the Code.  In the case of any person
who is a Leased Employee before or after a period of service as an Eligible
Employee, the entire period during which he or she has performed services as a
Leased Employee shall be counted as service as an Eligible Employee for all
purposes of the Plan, except that he or she shall not, by reason of that
status, become a Member of the Plan.

1.22                           “Member” means any person included in the membership of the
Plan as provided in Article 2.

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1.23                           “Plan” means the Farmer Bros. Co. Employee Stock Ownership
Plan, as set forth in this document or as amended from time to time.

1.24                           “Plan Year” means the 12-month period beginning on any
January 1.

1.25                           “Retirement” means termination of employment from an
Employer and all Affiliates after the earlier of (a) attainment of age 65 or
(b) attainment of age 55 and completion of ten (10) years of Vesting Service.

1.26                           “Severance Date” means the earlier of (a) the date an
Employee quits, retires, is discharged or dies, or (b) the last day of an
authorized leave of absence, or if later, the first anniversary of the date on
which an Employee is first absent from service, with or without pay, for any
reason such as vacation, sickness, Disability, layoff or leave of absence.

1.27                           “Suspense Account” means the account comprised of
unallocated shares of Company Stock maintained in accordance with Section 5.03.

1.28                           “Spousal Consent” means the written consent of a Member’s
spouse to the Member’s designation of a specified Beneficiary.  The spouse’s consent shall be witnessed by a
Plan representative or notary public.  The consent of the spouse shall also acknowledge
the effect on him or her of the Member’s election.  The requirement for Spousal Consent may be
waived by the Committee if it believes there is no spouse, that the spouse
cannot be located, that a legal separation has occurred, or because of such
other circumstances as may be established by applicable law.

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1.29                           “Trust” or “Trust Fund”
means the fund established by the Board of Directors as part of the Plan into
which contributions are to be made and from which benefits are to be paid in
accordance with the terms of the Plan.

1.30                           “Trustee” means the trustee or trustees holding the funds of
the Plan as provided in Article 10.

1.31                           “Valuation Date” means the last business day of each
calendar quarter.

1.32                           “Vesting Service” means the summation of the Years of
Service an Employee has been credited since the Employee’s hire date.  An Employee shall earn one (1) “Year of Service” for each Plan Year during which he/she is
credited with at least one thousand (1,000) Hours of Service.

Notwithstanding the foregoing, the following apply for
purposes of crediting vesting within this section:

(a)                                  If
an Employee is absent from the service of the Employer or any Affiliate because
of service in the Armed Forces of the United States and he or she returns to
service with the Employer, or an Affiliate, having applied to return while his
or her reemployment rights were protected by law, the absence shall be included
in his or her Vesting Service;

(b)                                 If
an Employee’s employment terminates after he or she has vested in his or her
Account pursuant to Section 6.01 and he or she is reemployed, his or her
Vesting Service after reemployment shall 

 8
 

                                                be
aggregated with his or her previous period or periods of Vesting Service; and

(c)                                  If
an Employee’s employment terminates before he or she has vested in his or her
Account pursuant to Section 6.01 and he or she is reemployed after he or she
has incurred a Break in Service, his or her Vesting Service after reemployment
shall be aggregated with his or her previous period or periods of Vesting
Service (other than Vesting Service not required to be aggregated pursuant to
this paragraph (c) by reason of a prior termination of employment) if the date
of such reemployment is prior to the date as of which such Employee had
incurred five (5) consecutive Breaks in Service.

ARTICLE 2.         MEMBERSHIP

2.01                           Membership

Each Eligible Employee shall become a Member on the
Plan’s Effective Date as long as he or she is at least age eighteen (18).  Each other Eligible Employee shall be eligible
to become a Member on the first day of the Plan Year coinciding with or immediately
following the date he or she has attained his or her 18th birthday, provided he
or she is an Eligible Employee.

2.02                           Reemployment of Former Eligible Employees and Former Members

Any person reemployed by the Employer as an Eligible
Employee, who was previously a Member or who was previously eligible to become
a Member, shall 

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become a Member immediately upon reemployment.  Any person reemployed by the Employer as an
Eligible Employee, who was not previously eligible to become a Member, shall
become a Member upon completing the eligibility requirements described in
Section 2.01.

2.03                           Transferred Members

Notwithstanding any provision of the Plan to the
contrary, a Member who remains in the employ of the Employer or an Affiliate
but ceases to be an Eligible Employee shall continue to be a Member of the Plan
but shall only be eligible to receive allocations of Employer Contributions
with respect to Compensation.

2.04                           Termination of Membership

A Member’s membership shall terminate on his or her
Severance Date unless he or she is entitled to benefits under the Plan, in
which event his or her membership shall terminate when those benefits are
distributed to him or her in full.

ARTICLE 3.         CONTRIBUTI0NS

3.01                           Employer Contributions

(a)                                  The
Employer may make Employer Contributions to the Plan on account of any Plan
Year, in Company Stock or cash, in the manner and amount to be determined by
the Board of Directors. Employer Contributions shall be made on behalf of each
Member who (i) is an Eligible Employee on the last day of the Plan Year and who
completed at least 1,000 Hours of Service during such 

 10
 

                                                Plan
Year; or (ii) is an Eligible Employee who terminated employment during such
Plan Year by reason of death, Disability, or Retirement.  At the time of determining an Employer
Contribution for a Plan Year, the Board of Directors may specify a target
percentage of Compensation with respect to allocations for such Plan Year.  In no event, however, shall the Employer
Contributions for any Plan Year exceed the maximum amount deductible from the
Employer’s income for that Plan Year under Section 404(a)(3)(A) of the Code or
any statute of similar import.  The
Employer Contributions shall be paid to the Trust Fund no later than the time
(including extensions) prescribed by law for the filing of the Employer’s
federal income tax return for the year for which the contributions are made;

(b)                                 Except
as provided in Section 5.04, shares of Company Stock released from the Suspense
Account for that Plan Year and any Employer Contributions for that Plan Year
not used to repay an Exempt Loan shall be allocated as of the last Valuation
Date (or such earlier Valuation Date as the Committee shall determine) in the
Plan Year to the Accounts of Members on behalf of whom contributions were made
for that Plan Year pursuant to paragraph (a), in the ratio that the
Compensation of each such Member bears to the total Compensation of all such
Members for the Plan Year, subject to the limitations described in Section
3.03.  In no event 

 11
 

                                                shall
more than one-third of the Employer Contributions to the Plan be allocated to
Members who are highly compensated employees as defined in Section 414(q) of
the Code; and

(c)                                  Notwithstanding
paragraphs (a) and (b) above, each Employer may make an additional Employer
Contribution to the Plan, in Company Stock or cash, at a time and in an amount
determined by the Board of Directors.  Such
contribution, or shares of Company Stock released from the Suspense Account by
reason of the use of such contribution to repay an Exempt Loan, shall be
allocated to the Accounts of Members who were entitled to an allocation under
paragraph (b) for the preceding Plan Year and who terminated employment during
the period beginning with the first day of the Plan Year in which such additional
contribution is made and ending on a date specified by the Board of Directors
at the time of determining the additional contribution, and to such Members who
have not terminated service, in an amount which, when added to the initial
allocation for the preceding Plan Year, results in a total allocation for such
Plan Year equal to the target percentage of each such Member’s Compensation for
the preceding Plan Year which had been specified by the Board of Directors when
determining the Employer Contribution under paragraph (a).  Any allocation of an additional contribution
made pursuant to this paragraph (c) shall be made as of the last Valuation Date
in the Plan Year preceding the 

 12
 

                                                Plan
Year in which such contribution is made unless otherwise specified by the Board
of Directors, shall be subject to the limitation of Section 3.03, and shall
comply with the last sentence of paragraph (b).

3.02                           Member Contributions

No Member shall be required or permitted to make any
contributions under this Plan.

3.03                           Maximum Annual Additions

(a)                                  The
annual addition to a Member’s Account for any Plan Year, which shall be
considered the “limitation year” for purposes of Section 415 of the Code, when
added to the Member’s annual addition for that Plan Year under any other qualified
defined contribution plan of the Employer or an Affiliate, shall not exceed an
amount which is equal to the lesser of (i) 25 percent of his or her aggregate
remuneration for that Plan Year or (ii) $30,000, as adjusted pursuant to
Section 415(d) of the Code.  Notwithstanding
the foregoing, for limitation years beginning on or after January 1, 2002,
the annual additions that may be contributed or allocated to a Member’s Account
under the Plan shall not exceed the lesser of:

(i)                                     Forty
Thousand Dollars ($40,000), as adjusted for increases in the cost of living
under Section 415(d) of the Code, or

 13
 

(ii)                                  One
Hundred Percent (100%) of the Member’s aggregate remuneration for that Plan Year.

The compensation limit
referred to in (ii) above shall not apply to any contribution for medical
benefits after separation from service (within the meaning of 401(h) or Section
419A(f)(2) of the Code) which is otherwise treated as an annual addition;

(b)                                 For
purposes of this Section, the “annual addition” to a Member’s Account under
this Plan or any other qualified defined contribution plan (including a deemed
qualified defined contribution plan under a qualified defined benefit plan)
maintained by the Employer or an Affiliate shall be the sum of:

(i)                                     the
total contributions made on the Member’s behalf by the Employer and all
Affiliates;

(ii)                                  all
Member contributions, exclusive of any rollover contributions;

(iii)                               forfeitures; and

(iv)                              amounts
described in Sections 415(l)(1) and 419A(d)(2) allocated to the Member;

(c)                                  For
purposes of this Section, the term “remuneration” with respect to any Member
shall mean the wages, salaries and other amounts 

 14
 

                                                paid in
respect of such Member by the Employer or an Affiliate for personal services
actually rendered, and shall include amounts contributed by the Employer
pursuant to a salary reduction agreement which are not includible in the gross
income of the Employee under Section 125, 402(g) or 457 of the Code, but shall
exclude deferred compensation, stock options and other distributions which
receive special tax benefits under the Code;

(d)                                 In
the event that the Committee determines that the allocation of a contribution
would cause the restriction imposed by paragraph (a) to be exceeded,
allocations shall be reduced in the following order, but only to the extent
necessary to satisfy such restrictions:

(i)                                     first,
the annual additions under any other qualified defined contribution plan
maintained by an Employer or an Affiliate; and

(ii)                                  second,
the annual additions under this Plan.

(e)                                  If
the annual addition to a Member’s Account for any Plan Year, prior to the
application of the limitation set forth in paragraph (a) above, exceeds that
limitation due to a reasonable error in estimating a Member’s annual
compensation or in determining the amount of Employer Contributions that may be
made with respect to a Member under Section 415 of the Code, or as the result
of the allocation of forfeitures, the amount of contributions credited to the 

 15
 

                                                Member’s
Account in that Plan Year shall be adjusted to the extent necessary to satisfy
that limitation in accordance with the following order of priority:

(i)                                     first,
the annual additions under any other qualified defined contribution plan
maintained by an Employer or an Affiliate; and

(ii)                                  second,
the annual additions under this Plan.

If it becomes necessary
to make an adjustment in annual additions to a Member’s Account under this
Plan, either because of the limitations as applied to this Plan alone or as
applied to this Plan in combination with another plan, the excess annual
addition under this Plan with respect to the affected Member shall be
reallocated proportionately in the same manner as Employer Contributions are
allocated to the Accounts of other Members until the annual addition to the Account
of each Member reaches the limits of Section 415 of the Code.  If such limits are reached and there are
remaining excess Employer Contributions, such contributions shall be placed in
an unallocated suspense account and allocated in subsequent years before any Employer
Contributions are made.

3.04                           Return of Contributions

(a)                                  If
all or part of the Employer’s deductions for contributions to the Plan are
disallowed by the Internal Revenue Service, the portion of 

 16
 

                                                the
contributions to which that disallowance applies shall be returned to the
Employer without interest but reduced by any investment loss attributable to those
contributions, provided that the contribution is returned within one year after
the disallowance of deduction.  For this
purpose, all contributions made by the Employer are expressly declared to be
conditioned upon their deductibility under Section 404 of the Code; and

(b)                                 The
Employer may recover without interest the amount of its contributions to the
Plan made on account of a mistake of fact, reduced by any investment loss
attributable to those contributions, if recovery is made within one year after
the date of those contributions.

ARTICLE 4.         VALUATION OF THE ACCOUNTS

4.01                           Investment of the Trust Fund

(a)                                  Except
to the extent used to repay an Exempt Loan, Employer Contributions to the Plan
shall be invested in shares of Company Stock. Consistent with the Plan’s status
as an employee stock ownership plan under Section 4975(e)(7) of the Code, the
Trustee may keep such amounts of cash, securities or other property as it, in
its sole discretion, shall deem necessary or advisable as part of the Trust
Fund, all within the limitations specified in the trust agreement; and

 17
 

(b)                                 Dividends,
interest, and other distributions received on the assets held by the Trustee in
respect to the Trust Fund shall be reinvested in the Trust Fund, except as
otherwise may be provided in Article 5 with respect to dividends on Company
Stock.

4.02                           Valuation of the Trust Fund

The Trustee shall value the Trust Fund at least annually.
 On each Valuation Date there shall be
allocated to the Account of each Member his or her proportionate share of the
increase or decrease in the fair market value of his or her Account in the
Trust Fund.  Whenever an event requires a
determination of the value of the Member’s Account, the value shall be computed
as of the Valuation Date coincident with or immediately following the date of
determination, subject to the provisions of Section 4.03.

4.03                           Right to Change Procedures

The Committee reserves the right to change from time
to time the procedures used in valuing the Account or crediting (or debiting)
the Account if it determines, after due deliberation and upon the advice of
counsel and/or the current record keeper, that such an action is justified in
that it results in a more accurate reflection of the fair market value of
assets.  In the event of a conflict
between the provisions of this Article and such new administrative procedures,
those new administrative procedures shall prevail.

 18
 

4.04                           Statement of Account

At least once a year, each Member shall be furnished
with a statement setting forth the value of his or her Account and the vested portion
of his or her Account.

4.05                           Plan Expenses

To the extent the Company does not choose to pay for
them, all routine Plan administrative expenses for such services as Account
recordkeeping, required audits and governmental filings shall be paid by the
Plan.

ARTICLE 5.         ACQUISITION OF COMPANY STOCK WITH PROCEEDS

OF AN EXEMPT LOAN

5.01                           Purchase of Company Stock

(a)                                  The
Plan is an employee stock ownership plan (an “ESOP”), which is designed to
invest primarily in qualified employer securities.  The Board of Directors, in its discretion, may
direct the Trustee to acquire Company Stock with the proceeds of an Exempt Loan;
and

(b)                                 Company
Stock acquired by the Trustee hereunder may be purchased on an established
securities market, from the Company or from any other person or entity.  However, Company Stock acquired from a “disqualified
person,” as defined in Section 4975(e)(2) of the Code, may not be purchased at
a price in excess of “adequate consideration,” as defined in Section 3(18) of
ERISA.

 19
 

5.02                           Exempt Loan

An Exempt Loan shall be used primarily for the benefit
of Members and their Beneficiaries, shall be for a specific term, shall bear a
reasonable rate of interest, and shall not be payable on demand, except in the
event of default.  In the event of
default, the value of Plan assets transferred in satisfaction of the Exempt
Loan shall not exceed the amount of default.  An Exempt Loan may be secured by a collateral
pledge of the Company Stock acquired with the proceeds of such loan,
contributions (other than contributions of Company Stock) that are made under
the ESOP to meet its obligations under the Exempt Loan and earnings
attributable to such collateral and the investment of such contributions, but
no other assets of the Trust may be pledged as collateral for the Exempt Loan
and no lender shall have recourse against any assets of the Trust, except to
the extent permitted under Reg. §54.4975-7(b)(5).  Any pledge of Company Stock shall provide for
the release of shares so pledged on a pro rata basis as principal and interest
on the Exempt Loan are repaid by the Trustee; provided however, that an
alternative method of releasing such stock from encumbrance may be utilized if
permitted by applicable regulations under Section 4975 of the Code and the
Committee adopts such method.  Such stock
shall be allocated as provided in Section 3.01(b).

5.03                           Suspense Account; Dividends on Unallocated Stock

(a)                                  Company
Stock acquired with the proceeds of an Exempt Loan shall be held in the
Suspense Account and shall be allocated to the Members’ Accounts based on the
release of Company Stock from the 

 20
 

                                                Suspense
Account.  During the term of the Exempt
Loan, a number of shares of Company Stock shall be released per Plan Year equal
to the number of shares in the Suspense Account multiplied by a fraction, the
numerator of which shall be the amount of principal and interest paid by the
Trustee on the Exempt Loan for the Plan Year, and the denominator of which
shall be the sum of the numerator and the aggregate principal and interest to
be paid by the Trustee on the Exempt Loan for all future Plan Years; provided,
however, that an alternative method of releasing such stock from encumbrance
may be utilized if permitted by applicable regulations under Section 4975 of
the Code and the Committee adopts such method.  For this purpose, the number of future years
under the Exempt Loan must be definitely ascertainable and must be determined
without taking into account any possible extensions or renewal periods.  If the interest rate under the Exempt Loan is
variable, the interest to be paid in future years shall be computed by using
the interest rate applicable as of the end of the calendar year.  Shares may also be released from the Suspense
Account more frequently than annually, provided in such event that the total
number of shares of Company Stock released during a Plan Year shall not be less
than the number of shares that would have been released from the Suspense
Account during such Plan Year if such release had occurred on an annual basis;
and

 21
 

(b)                                 Any
cash dividends received by the Trustee on shares of Company Stock held in the
Suspense Account shall be applied to the payment of any outstanding obligations
of the Trust under any Exempt Loan (and shall be invested in an interest
bearing or other fixed income investment pending such payment) unless, in the
sole discretion of the Committee, the Trustee is directed to use such dividends
to buy additional shares of Company Stock.  Any shares of Company Stock released from the
Suspense Account due to application of such dividends to the repayment of an
Exempt Loan or purchased using such dividends shall be allocated to Members’
Accounts on the basis set forth in Section 3.01(b).

5.04                           Dividends on Allocated Shares

Unless, in the sole discretion of the Committee, the
Trustee is directed that dividends that are payable with respect to Company
Stock that is allocated to a Member’s Account may be (a) accumulated in the
Member’s Account and used to buy additional Company Stock, (b) paid directly to
the Member in cash (to the extent such direct payment may be effectuated), or
(c) paid to the Trust and distributed by the Trustee in cash to the Member not
later than 90 days after the close of the Plan Year in which paid to the Trust,
then such dividends shall be applied to the payment of outstanding obligations
of the Trust under any Exempt Loan; provided however, that this provision shall
only be effective if Company Stock with a fair market value not less than the
amount of dividends so applied is allocated to the Member’s Account for the
Plan Year in which the dividends were 

 22
 

paid to the Trust.  The excess, if any, of the fair market value
of Company Stock released from the Suspense Account by reason of the
application of dividends described in this Section 5.04 over the fair market
value of Company Stock allocated to a Member’s Account pursuant to the proviso
in the immediately preceding sentence shall be allocated among Members’
Accounts on the basis set forth in Section 3.01(b).

ARTICLE 6.         VESTED PORTION OF ACCOUNTS

6.01                           Vesting Schedule

(a)                                  A
Member shall be vested in, and have a nonforfeitable right to, his or her
Account upon completion of five (5) years of Vesting Service; and

(b)                                 Notwithstanding
the foregoing, a Member shall be 100 percent vested in, and have a
nonforfeitable right to, his or her Account upon death, Disability, or the
later of the attainment of his or her 55th birthday or the tenth anniversary of
the date he or she becomes a Member.

6.02                           Disposition of Forfeitures

Upon termination of employment of a Member who was not
vested in his or her Account, his or her Account shall be forfeited.  The Member shall be deemed to have received a
distribution of the zero, vested benefit upon his or her termination of
employment.  If the former Member is
reemployed by the Employer or an 

 23
 

Affiliate before incurring a period of Break in
Service of five years, his or her Account shall be restored.  The Committee shall direct the Trustee to
apply any amounts forfeited pursuant to this Section to (a) restore amounts
previously forfeited by the Member but required to be reinstated upon
resumption of employment, (b) reduce Employer contributions, or (c) reallocate
to Members in the same manner as contributions under Section 3.01(b).  If forfeitures arising during any Plan Year
are insufficient to restore forfeited amounts to the Accounts of Members
pursuant to this Section 6.02, the Employer shall contribute the balance
required for that purpose.

ARTICLE 7.         DISTRIBUTION AND TRANSFERS OF ACCOUNT

7.01                           Eligibility

(a)                                  Upon
a Member’s termination of employment, the vested portion of his or her Account,
as determined under Article 6, shall be distributed as provided in this Article;
and

(b)                                 An
eligible Member may, in accordance with Section 7.04, request a transfer or
distribution, whichever is applicable, from his or her Account, whether or not
he or she has terminated employment.

7.02                           Time of Distribution

(a)                                  Except
as otherwise provided in this Article, distribution of the vested portion of a
Member’s Account shall commence as soon as administratively practicable, but not
more than ninety (90) days, 

 24
 

                                                following
the later of (i) the last day of the Plan Year in which a Member incurs a Break
in Service or (ii) the Member’s 65th birthday (but not more than ninety (90)
days after the close of the Plan Year in which the later of (b)(i) or (b)(ii)
occurs);

(b)                                 A
Member whose employment is terminated for any reason shall be entitled, upon
written request, in accordance with procedures established by the Committee, to
receive distribution of the entire vested interest in the Member’s Account in
accordance with either this Section 7.02 or Section 7.06.  If the value of the vested portion of a Member’s
Account exceeds $5,000 and he or she does not consent in writing within 60 days
(or such other period prescribed by the Committee) of his or her Severance Date
to an immediate distribution to be made as soon thereafter as administratively
practicable, distribution of the vested interest in the Member’s Account shall
be made as soon as practicable following the Valuation Date coincident with or
immediately following the earliest of:

(i)                                     receipt
by the Committee at least sixty (60) days (or such other period prescribed by
the Committee) prior to such Valuation Date of the Member’s written request for
payment;

(ii)                                  the
Member’s attainment of age 65; or

 25
 

(iii)                               the Member’s death.

In the event an
allocation of Employer Contributions and/or forfeitures is made to the Member’s
Account pursuant to Article 3 or Article 6 following the date on which a
distribution is made hereunder, distribution of such contributions and/or
forfeitures shall be made to the Member or Beneficiary in a single sum as soon
as practicable following the date on which such allocation is made;

(c)                                  In
the case of the death of a Member before the distribution of his or her Account,
the vested portion of his or her Account shall be distributed to the Member’s
Beneficiary as soon as administratively practicable following the Valuation
Date coincident with or next following the Member’s date of death; and

(d)                                 The
amount of a distribution made pursuant to this Section 7.02 shall be determined
as of the applicable Valuation Date preceding the actual date of payment.

7.03                           Form and Manner of Distribution

(a)                                  Distributions
shall be paid in a single sum consisting of shares of Company Stock or cash, at
the election of the Member or his or her Beneficiary.  Unless the Member or Beneficiary elects to receive
the distribution in Company Stock, such distribution shall be paid entirely in
cash.  If the distribution is made in
Company Stock, any 

 26
 

                                                unpaid
dividends which may be due and any balance in the Account representing
fractional shares will be paid in cash.  If
the distribution is to be made in cash, the Trustee will, as soon as
practicable after the Valuation Date following its receipt of notice of such
distribution, sell the shares held in the Member’s Account. Such Member or
Beneficiary shall thereafter receive, entirely in cash, the proceeds of such
sale, plus an additional cash amount representing fractional shares and any
dividends that may be due;

(b)                                 Shares
of Company Stock distributed to Members pursuant to Section 7.03 (a) that at
the time of such distribution are not readily tradable on an established market
shall be subject to a put option which shall permit the Member to sell such
stock to the Company at any time during two option periods at the fair market
value of such shares (as of the most recent Valuation Date).  The first period shall be for at least 60 days
beginning on the date of distribution.  The
second period shall be for at least 60 days beginning on the first Valuation
Date in the calendar year following the year in which the distribution was
made.  The Company or the Committee may
direct the Trustee to purchase shares tendered to the Company under a put
option.  Payment for any shares of stock
sold under a put option shall be made in a lump sum or in substantially equal
annual installments over a period not exceeding five years, with interest
payable at a reasonable rate (as 

 27
 

                                                determined
by the Committee).  Except as may be
permitted under applicable law or regulations, the rights of a distributee of
Company Stock under this Section 7.03(b) shall survive the repayment of any
relevant Exempt Loan, the termination of the Plan, and any amendment of the
Plan; and

(c)                                  Notwithstanding
the preceding and at the discretion of the Committee, any portion of a Member’s
vested Account which consists of Financed Shares shall not be distributed until
any outstanding Exempt Loan has been completely repaid.

7.04                           Diversification of Account

(a)                                  Each
eligible Member (including each former Employee of an Employer) may make an
annual election to transfer his or her Account to a plan designated for such
purpose by the Committee.  The election
to effect such transfer shall be granted with respect to a period of six Plan
Years (“Election Period”) commencing with the Plan Year in which occurs the
later of the Member’s attainment of age 55 or the Member’s completion of ten
years of participation in the Plan.  For
each Plan Year within the Member’s Election Period a Member may elect, within
90 days of the close of such Plan Year, to transfer all or a portion of his or
her Account which is subject to this Section 7.04 (“Diversification Amount”).  The 

 28
 

                                                amount
in the Account subject to this Section 7.04 shall be the excess of (i) over
(ii) as follows:

(i)                                     25%
of the sum of (A) the balance of the Member’s Account, determined as of the
close of such Plan Year, and (B) the distributions received by and transfers
made as result of his or her prior elections (provided that “50%” shall be
substituted for “25%” for his or her final election within the Election
Period), minus; and

(ii)                                  the
distribution received by and transfers made by the Member pursuant to his or
her prior elections.

(b)                                 Notwithstanding
Section 7.04(a) above, the Committee may allow Members the following
diversification options in lieu of transfer to another plan:

(i)                                     Transfer
the Diversification Amount to an individual retirement account (IRA);

(ii)                                  Reallocate,
at the discretion of the Member, the Diversification Amount among at least three
(3) alternate investment options as chosen by the Committee for this purpose;
or

(iii)                               Distribute the Diversification
Amount in a single lump-sum payment directly to the Member.

 29
 

(c)                                  If
a Member elects to receive or have transferred an amount described in paragraph
(a) or (b) above, such distribution or transfer shall be made within 90 days
after the close of the applicable annual Election Period.

7.05                           Age 701⁄2 Required Distribution

(a)                                  Notwithstanding
any provision of the Plan to the contrary, if a Member is a 5-percent owner (as
defined in Section 416(i) of the Code), distribution of the Member’s Account
shall begin no later than the April 1 following the calendar year in which he
or she attains age 701⁄2.  No minimum
distribution payments will be made to a Member under the provisions of Section
401(a)(9) of the Code if the Member is not a 5-percent owner as defined above.  However, if a Member who is not a 5-percent
owner (as defined in Section 416(i) of the Code) attains age 701⁄2 prior to
January 1, 2000 and remains in service after the April 1 following the calendar
year in which he or she attains age 701⁄2, he or she may elect to have the
provisions of paragraph (b) apply as if the Member was a 5-percent owner.  Such election shall be made in accordance with
such administrative procedures as the Committee shall prescribe;

(b)                                 In
the event a Member is required to begin receiving payments while in service
under the provisions of paragraph (a) above, the 

 30
 

                                                Member
may elect to receive payments while in service in accordance with option (i) or
(ii), as follows:

(i)                                     A
Member may receive one lump-sum payment on or before the Member’s required
beginning date equal to his or her entire Account balance and annual lump-sum
payments thereafter of amounts accrued during each calendar year; or

(ii)                                  A
Member may receive annual payments of the minimum amount necessary to satisfy
the minimum distribution requirements of Section 401(a)(9) of the Code.  Such minimum amount will be determined on the
basis of the joint life expectancy of the Member and his or her Beneficiary.  Such life expectancy will be recalculated once
each year; however, the life expectancy of the Beneficiary will not be
recalculated if the Beneficiary is not the Member’s spouse.

An election under this
Section shall be made by a Member by giving written notice to the Committee
within the 90-day period prior to his or her required beginning date.  The commencement of payments under this
Section shall not constitute an annuity starting date for purposes of Sections
72, 401(a)(11) and 417 of the Code.  Upon
the Member’s subsequent termination of employment, payment of the Member’s
Account shall be made in accordance with the provisions of Section 7.02.  In the 

 31
 

event a Member fails to
make an election under this Section, payment shall be made in accordance with
clause (ii) above;

(c)                                  Distribution Made After December 31, 2000.  With respect to age 701⁄2 required distributions
made under the Plan for calendar years beginning on or after January 1, 2001,
the Plan will apply the minimum distribution requirements of Section 401(a)(9)
of the Code in accordance with the regulations under Section 401(a)(9) that
were proposed on January 7, 2001, notwithstanding any provision of the Plan to
the contrary.  This amendment shall continue
in effect until the end of the last calendar year beginning before the
effective date of final regulations under Section 401(a)(9) or such other date
as may be specified in guidance published by the Internal Revenue Service; and

(d)                                 Minimum Distribution Requirements For Plan Years Beginning on or after January
1, 2003

(1)                                  General
Rules

(i)                                     Effective Date.  The
provisions of this subsection will apply for purposes of determining required
minimum distributions for Plan Years beginning with the 2003 calendar
year.  Required minimum distributions for
Plan Years ending prior to January 1, 2003 shall be determined pursuant to
subsection (c) above;

 32
 

(ii)                                  Precedence.  The
requirements of this Article will take precedence over any inconsistent
provisions of the Plan; and

(iii)                               Requirements
of Treasury Regulations Incorporated.  All distributions required under this Article
will be determined and made in accordance with the Treasury regulations under
Section 401(a)(9) of the Code.

(2)                                  Time
and Manner of Distribution

(i)                                     Required Commencement Date. 
The Member’s entire interest will be distributed, or begin to be
distributed, to the Member no later than the date stipulated in Subsection
7.05(a) above;

(ii)                                  Death of Member Before Distributions Begin.  If the Member dies before distributions
begin, the Member’s entire interest will be distributed, or begin to be
distributed, no later than as follows:

(A)                              If
the Member’s surviving spouse is the Member’s sole Designated Beneficiary,
then, except as provided in any other section of the Plan, distributions to the
surviving spouse will begin by December 31 of the calendar year immediately 

 33
 

                                                following
the calendar year in which the Member died, or by December 31 of the calendar
year in which the Member would have attained age 701¤2, if later;

(B)                                If
the Member’s surviving spouse is not the Member’s sole Designated Beneficiary,
then, except as provided in any other section of the Plan, distributions to the
Designated Beneficiary will begin by December 31 of the calendar year
immediately following the calendar year in which the Member died;

(C)                                If
there is no Designated Beneficiary as of September 30 of the year following the
year of the Member’s death, the Member’s entire interest will be distributed by
December 31 of the calendar year containing the fifth anniversary of the Member’s
death; and

(D)                               If
the Member’s surviving spouse is the Member’s sole Designated Beneficiary and
the surviving spouse dies after the Member but before distributions to the
surviving spouse begin, this 

 34
 

                                                section,
other than subsection (A) above, will apply as if the surviving spouse were the
Member.

For purposes of this section and Section 7.05(d)(3) below, unless
Subsection 7.05(d)(2)(ii)(D) applies, distributions are considered to begin on
the Member’s Required Commencement Date. 
If Subsection 7.05(d)(2)(ii)(D) applies, distributions are considered to
begin on the date distributions are required to begin to the surviving spouse
under Subsection 7.05(d)(2)(ii)(A).  If
distributions under an annuity purchased from an insurance company irrevocably
commence to the Member before the Member’s Required Commencement Date (or to
the Member’s surviving spouse before the date distributions are required to
begin to the surviving spouse under Subsection 7.05(d)(2)(ii)(A)), the date
distributions are considered to begin is the date distributions actually
commence.

(iii)                               Forms of
Distribution.  Unless the
Member’s interest is distributed in the form of an annuity purchased from an
insurance company or in a single sum on or before the Required Commencement
Date, as of the first Distribution Calendar Year distributions will be made in
accordance with Plan Sections 7.05(d)(3) and 7.05(d)(4).  If the Member’s interest is distributed in
the form of an annuity purchased from an insurance company, distributions 

 35
 

                                                thereunder
will be made in accordance with the requirements of Section 401(a)(9) of the
Code and the Treasury regulations.

(3)                                  Required
Minimum Distributions During Member’s Lifetime

(i)                                     Amount of Required Minimum Distribution For Each Distribution Calendar
Year.  During the Member’s
lifetime, the minimum amount that will be distributed for each Distribution
Calendar Year is the lesser of:

(A)                              The
quotient obtained by dividing the Member’s Account Balance by the distribution
period in the Uniform Lifetime Table set forth in Section 1.401(a)(9)-9 of the
Treasury regulations, using the Member’s age as of the Member’s birthday in the
Distribution Calendar Year; or

(B)                                If
the Member’s sole Designated Beneficiary for the Distribution Calendar Year is
the Member’s spouse, the quotient obtained by dividing the Member’s Account
Balance by the number in the Joint and Last Survivor Table set forth in Section 1.401(a)(9)-9
of the Treasury regulations, using the Member’s and spouse’s attained ages as
of the Member’s and 

 36
 

                                                spouse’s
birthdays in the Distribution Calendar Year.

(ii)                                  Lifetime Required Minimum Distributions Continue Through Year of Member’s
Death.  Required minimum
distributions will be determined under this Section 7.05(d)(3) beginning with
the first Distribution Calendar Year and up to and including the Distribution
Calendar Year that includes the Member’s date of death.

(4)                                  Required
Minimum Distributions After Member’s Death.

(i)                                     Death On or After Date Distributions Begin

(A)                              Member Survived by Designated Beneficiary.  If the Member dies on or after the date
distributions begin and there is a Designated Beneficiary, the minimum amount
that will be distributed for each Distribution Calendar Year after the year of the
Member’s death is the quotient obtained by dividing the Member’s Account
Balance by the longer of the remaining Life Expectancy of the Member or the
remaining Life Expectancy of the Member’s Designated Beneficiary, determined as
follows:

 37
 

(I)                                    The
Member’s remaining Life Expectancy is calculated using the age of the Member in
the year of death, reduced by one for each subsequent year;

(II)                                If
the Member’s surviving spouse is the Member’s sole Designated Beneficiary, the
remaining Life Expectancy of the surviving spouse is calculated for each
Distribution Calendar year after the year of the Member’s death using the
surviving spouse’s age as of the spouse’s birthday in that year.  For Distribution Calendar Years after the
year of the surviving spouse’s death, the remaining Life Expectancy of the
surviving spouse is calculated using the age of the surviving spouse as of the
spouse’s birthday in the calendar year of the spouse’s death, reduced by one
for each subsequent calendar year; and

(III)                            If the Member’s surviving
spouse is not the Member’s sole Designated Beneficiary, the Designated
Beneficiary’s remaining Life Expectancy is calculated using the age of the 

 38
 

                                                beneficiary
in the year following the year of the Member’s death, reduced by one for each
subsequent year.

(B)                                No Designated Beneficiary. 
If the Member dies on or after the date distributions begin and there is
no Designated Beneficiary as of September 30 of the year after the year of the
Member’s death, the minimum amount that will be distributed for each
Distribution Calendar Year after the year of the Member’s death is the quotient
obtained by dividing the Member’s Account Balance by the Member’s remaining
Life Expectancy calculated using the age of the Member in the year of death,
reduced by one for each subsequent year.

(ii)                                  Death Before Date Distributions Begin.

(A)                              Member Survived by Designated Beneficiary.  Except as otherwise provided in the Plan, if
the Member dies before the date distributions begin and there is a Designated
Beneficiary, the minimum amount that will be distributed for each Distribution
Calendar Year after the year of the Member’s death is the quotient obtained by
dividing the Member’s 

 39
 

                                                Account
Balance by the remaining Life Expectancy of the Member’s Designated
Beneficiary, determined as provided in Section 7.05(d)(4);

(B)                                No Designated Beneficiary. 
If the Member dies before the date distributions begin and there is no
Designated Beneficiary as of September 30 of the year following the year of the
Member’s death, distribution of the Member’s entire interest will be completed
by December 31 of the calendar year containing the fifth anniversary of the
Member’s death; and

(C)                                Death of Surviving Spouse Before Distributions to Surviving Spouse Are
Required to Begin.  If the Member
dies before the date distributions begin, the Member’s surviving spouse is the
Member’s sole Designated Beneficiary, and the surviving spouse dies before
distributions are required to begin to the surviving spouse under Section
7.05(d)(2)(ii)(A), this Section 7.05(d)(4)(ii) will apply as if the surviving
spouse were the Member.

(e)                                  Definitions — The following definitions apply to Section
7.05(d) only.

 40
 

(i)                                     Designated Beneficiary. 
The individual who is designated as the Beneficiary under Plan Section
1.05 and is the Designated Beneficiary under Section 401(a)(9) of the Code and
Section 1.401(a)(9)-1, Q&A-4, of the Treasury regulations;

(ii)                                  Distribution Calendar Year. 
A calendar year for which a minimum distribution is required.  For distributions beginning before the Member’s
death, the first Distribution Calendar Year is the calendar year immediately
preceding the calendar year that contains the Member’s Required Commencement
Date.  For distributions beginning after
the Member’s death, the first Distribution Calendar Year is the calendar year
in which distributions are required to begin under Section 7.05(d)(2)(ii).  The required minimum distribution for the Member’s
first Distribution Calendar Year will be made on or before the Member’s Required
Commencement Date.  The required minimum
distribution for other Distribution Calendar Years, including the required
minimum distribution for the Distribution Calendar Year in which the Member’s
Required Commencement Date occurs, will be made on or before December 31 of
that Distribution Calendar Year;

 41
 

(iii)                               Life
Expectancy.  Life Expectancy
as computed by use of the Single Life Table in Section 1.401(a)(9)-9 of the
Treasury regulations;

(iv)                              Member’s Account Balance. 
The Account Balance as of the last Valuation Date in the calendar year
immediately preceding the Distribution Calendar Year (valuation calendar year)
increased by the amount of any contributions made and allocated or forfeitures
allocated to the Account Balance as of dates in the valuation calendar year
after the Valuation Date and decreased by distributions made in the valuation
calendar year after the Valuation Date. 
The Account Balance for the valuation calendar year includes any amounts
rolled over or transferred to the Plan either in the valuation calendar year or
in the Distribution Calendar Year if distributed or transferred in the
valuation calendar year; and

(v)                                 Required Commencement Date. 
The date specified in Section 7.05(a) of the Plan.

7.06                           Small Benefits

Notwithstanding any provision of the Plan to the
contrary, a lump-sum payment shall be made in lieu of all vested benefits if
the value of the vested portion of the Member’s Account as of his or her
termination of employment amounts to $5,000 

 42
 

or less.  The
lump-sum payment shall automatically be made as soon as administratively
practicable following the Member’s termination of employment but not later than
ninety (90) days after the Plan Year end in which he or she incurs a Break in
Service.

7.07                           Status of Account Pending Distribution

Until completely distributed under Section 7.03 or
7.05, the Account of a Member who is entitled to a distribution shall continue
to be invested as part of the funds of the Plan.

7.08                           Proof of Death and Right of Beneficiary or Other Person

The Committee may require and rely upon such proof of
death and such evidence of the right of any Beneficiary or other person to
receive the value of the Account of a deceased Member as the Committee may deem
proper and its determination of the right of that Beneficiary or other person
to receive payment shall be conclusive.

7.09                           Distribution Limitation

Notwithstanding any other provision of this Article 7,
all distributions from this Plan shall conform to the regulations issued under
Section 401(a)(9) of the Code, including the incidental death benefit
provisions of Section 401(a)(9)(G) of the Code.  Further, such regulations shall override any
Plan provision that is inconsistent with Section 401(a)(9) of the Code.

 43
 

7.10                           Direct Rollover of Certain Distributions

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 Committee, to have any portion of an eligible rollover distribution paid
directly to an eligible retirement plan specified by the distributee in a
direct rollover.  The following
definitions apply to the terms used in this Section:

(a)                                  “Eligible
rollover distribution” means any distribution of all or any portion of the balance
to the credit of the distributee, except that an eligible rollover distribution
does not include any distribution that is one of a series of substantially
equal periodic payments (not less frequently than annually) made for the life
(or life expectancy) of the distributee or the joint lives (or joint life
expectancies) of the distributee and the distributee’s designated Beneficiary,
or for a specified period of ten years or more, any distribution to the extent
such distribution is required under Section 401(a)(9) of the Code, and the
portion of any distribution that is not includible in gross income (determined
without regard to the exclusion for net unrealized appreciation with respect to
employer securities);

(b)                                 “Eligible
retirement plan” means 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 

 44
 

                                                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 distribution.  However, in the case of an eligible rollover
distribution to the surviving spouse, an eligible retirement plan is an
individual retirement account or individual retirement annuity.  Effective January 1, 2002, an eligible retirement
plan shall also mean an annuity contract described in Section 403(b) of the
Code and an eligible plan under Section 457(b) of the Code which is maintained
by a state, political subdivision of a state, or any agency or instrumentality
of a state or political subdivision of a state and which agrees to separately
account for amounts transferred into such plan from this Plan.  The definition of eligible retirement plan
shall also apply in the case of a distribution to a surviving spouse, or to a
spouse or former spouse who is an alternate payee under a qualified domestic
relations order, as defined in Section 414(p) of the Code;

(c)                                  “Distributee”
means 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;
and

 45
 

(d)                                 “Direct
rollover” means a payment by the Plan to the eligible retirement plan specified
by the distributee.

7.11                           Waiver of Notice Period

Except as provided in the following sentence, if the
value of the vested portion of a Member’s Account exceeds $5,000, an election
by the Member to receive a distribution prior to age 65 shall not be valid
unless the written election is made (i) after the Member has received the
notice required under Section 1.411(a)-11(c) of the Treasury regulations and (ii)
within a reasonable time before the effective date of the commencement of the
distribution as prescribed by said regulations.  If such distribution is one to which Sections
401(a)(11) and 417 of the Code do not apply, such distribution may commence
less than 30 days after the notice required under Section 1.411(a)-11(c) of the
Treasury regulations is given, provided that:

(a)                                  the
Committee clearly informs the Member that he or she 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

(b)                                 the
Member, after receiving the notice under Sections 411 and 417, affirmatively
elects a distribution.

 46
 

ARTICLE 8.         VOTING

8.01                           Voting Company Stock

(a)                                  Notwithstanding
any other provision of this Plan to the contrary, if any, but subject to the
provisions of this Article, the Trustee shall have no discretion or authority
to vote Company Stock held in the trust by the Trustee on any matter presented
for a vote by the stockholders of the Company except in accordance with timely
directions received by the Trustee from Members who have Company Stock
allocated to their Accounts under the Plan.  Each Member who has allocated Company Stock
shall, as the named fiduciary for this purpose, direct the Trustee with respect
to the vote of the Company Stock allocated to the Member’s Account and the
Trustee shall follow the directions of those Members who provide timely
instructions to the Trustee;

(b)                                 With
respect to Company Stock held in the Trust by the Trustee but not allocated to
the Accounts of Members, and with respect to Company Stock otherwise allocated
to Accounts of Members but for which no voting directions are timely received
by the Trustee, the Trustee shall vote a percentage of such shares in favor of
the proposed transaction that is equal to the percentage of allocated Common
Stock in Members’ Accounts for which voting directions are timely received from
Members that are in favor of such transaction, the Trustee shall vote a
percentage of such shares 

 47
 

                                                against
the proposed transaction equal to the percentage of allocated Common Stock in
Members’ Accounts for which voting directions are timely received from Members
that are not in favor of such transaction, and the Trustee shall abstain from
voting a percentage of shares for or against the proposed transaction equal to
the percentage of allocated Common Stock in 
Members’ Accounts for which abstention voting directions are timely
received from the Members;

(c)                                  In
the event a court of competent jurisdiction shall issue any order or any
opinion to the Plan, the Company or the Trustee, which shall, in the opinion of
counsel to the Company or the Trustee, invalidate under ERISA, in all
circumstances or in any particular circumstances, any provision or provisions
of this Section 8.01 regarding the manner in which Company Stock held in the
Trust shall be voted or cause any such provisions or provision to conflict with
ERISA, then, upon notice thereof to the Company or the Trustee, as the case may
be, such invalid or conflicting provisions of this Section 8.01 shall be given
no further force or effect.  In such
circumstances the Trustee shall nevertheless have no discretion to vote
allocated shares of Company Stock held in the Trust unless required under such
order or opinion but shall follow instructions received from Members and not
invalidated;

 48
 

(d)                                 In
the event that any option, right, warrant, or similar property derived from or
attributable to the ownership of the Company Stock allocated to Members shall
be granted, distributed, or otherwise issued which is and shall become
exercisable, each Member (or Beneficiary) shall be entitled to direct the
Trustee, in writing, to sell, exercise, distribute, or retain any such option,
right, warrant, or similar property.  The
securities acquired by the Trustee upon such exercise shall be held in a
special account or accounts.  For all
Plan purposes, all options, rights, warrants, or similar property described in
this paragraph (d) of Section 8.01 hereof shall be treated as income added to
the appropriate Accounts of Members (or Beneficiaries).  If, within a reasonable period of time after
the form soliciting direction from a Member (or Beneficiary), has been sent, no
written directions shall have been received by the Trustee from such Member (or
Beneficiary), the Trustee shall, in its sole discretion, sell, exercise, or
retain and keep unproductive of income such option, right, warrant, or similar
property for which no response has been received from such Member (or
Beneficiary) and also for options, rights, warrants, or similar property
derived from, or attributable to, the ownership of Company Stock not yet
allocated to any Member’s (or Beneficiary’s) Account; and

 49
 

(e)                                  The
Trustee shall, in accordance with timely directions received by the Trustee
from the Committee in its sole discretion, sell, exercise, or retain and keep
unproductive of income such option, right, warrant, or similar property
attributable to unallocated Company Stock held in the Suspense Account.

8.02                           Shareholder Communication

Notwithstanding anything to the contrary in this
Article 8, the Company shall make any and all communications or distributions
required under the Shareholder Communications Act of 1985 and any rules
thereunder.

ARTICLE 9.         ADMINISTRATION OF PLAN

9.01                           Appointment of Committee

The general administration of the Plan and the
responsibility for carrying out the provisions of the Plan shall be placed in a
Committee consisting of not more than three members of the Board of Directors,
at least two of whom are “independent directors” of the Company within the
meaning of NASDAQ Proposed Rule 4350(c)(1) (or its successor), and all of whom
shall be appointed and serve at the pleasure of the Board of Directors.  Any person who is appointed a member of the
Committee shall signify his or her acceptance by filing written acceptance with
the Board of Directors and the secretary of the Committee.  Any member of the Committee may resign by
delivering his or her written resignation to the Board of Directors and the secretary
of the Committee.

 50
 

9.02                           Duties of Committee

The Committee shall elect a chairman from their number
and a secretary who may be but need not be one of the members of the Committee;
may appoint from their number such subcommittees with such powers as they shall
determine; may authorize one or more of their number or any agent to execute or
deliver any instrument or make any payment on their behalf; may retain counsel,
employ agents and provide for such clerical, accounting, and consulting
services as they may require in carrying out the provisions of the Plan; may
instruct the Trustee to vote unallocated shares held in the Suspense Account at
the Committee’s discretion; and may allocate among themselves or delegate to
other persons all or such portion of their duties under the Plan, other than
those granted to the Trustee under the trust agreement adopted for use in
implementing the Plan, as they, in their sole discretion, shall decide.  The Board of Directors, in its sole and
absolute discretion, may delegate any or all of the duties of the Committee to
the Trustee as it may determine from time to time, upon the Trustee’s
acceptance of such duties.

9.03                           Individual Account

The Committee shall maintain, or cause to be
maintained, records showing the individual balances in each Member’s Account.  However, maintenance of those records and
Accounts shall not require any segregation of the funds of the Plan.

 51
 

9.04                           Meetings

The Committee shall hold meetings upon such notice, at
such place or places, and at such time or times as it may from time to time
determine.

9.05                           Action of Majority

Any act which the Plan authorizes or requires the
Committee to do may be done by a majority of its members.  The action of that majority expressed from
time to time by a vote at a meeting or in writing without a meeting shall
constitute the action of the Committee and shall have the same effect for all
purposes as if assented to by all members of the Committee at the time in
office.

9.06                           Compensation and Bonding

No member of the Committee shall receive any
compensation from the Plan for his or her services as such.  Except as may otherwise be required by law, no
bond or other security need be required of any member in that capacity in any
jurisdiction.

9.07                           Establishment of Rules

Subject to the limitations of the Plan, the Committee
from time to time shall establish rules for the administration of the Plan and
the transaction of its business.  The
Committee shall have discretionary authority to construe and interpret the Plan
(including, but not limited to, determination of an individual’s eligibility
for Plan participation, the right and amount of any benefit payable 

 52
 

under the Plan and the date on which any individual
ceases to be a Member).  The
determination of the Committee as to the interpretation of the Plan or any
disputed question shall be conclusive and final to the extent permitted by
applicable law.

9.08                           Prudent Conduct

The Committee shall use that degree of care, skill,
prudence and diligence that a prudent man acting in a like capacity and
familiar with such matters would use in his conduct of a similar situation.

9.09                           Service In More Than One Fiduciary Capacity

Any individual, entity or group of persons may serve
in more than one fiduciary capacity with respect to the Plan and/or the funds
of the Plan.

9.10                           Limitation of Liability

The Employer, the Board of Directors, the directors of
an Employer, the Committee, and any officer, employee or agent of the Employer
shall not incur any liability individually or on behalf of any other
individuals or on behalf of the Employer for any act or failure to act, made in
good faith in relation to the Plan or the funds of the Plan.  However, this limitation shall not act to
relieve any such individual or the Employer from a responsibility or liability
for any fiduciary responsibility, obligation or duty under Part 4, Title I of
ERISA.

 53
 

9.11                           Indemnification

The Committee, the Board of Directors, and the
officers, employees and agents of the Employer shall be indemnified against any
and all liabilities arising by reason of any act, or failure to act, in
relation to the Plan or the funds of the Plan, including, without limitation, expenses
reasonably incurred in the defense of any claim relating to the Plan or the
funds of the Plan, and amounts paid in any compromise or settlement relating to
the Plan or the funds of the Plan, except for actions or failures to act made
in bad faith.  The foregoing
indemnification shall be from the funds of the Plan to the extent of those
funds and to the extent permitted under applicable law; otherwise from the
assets of the Employer.

9.12                           Named Fiduciary

For purposes of ERISA, the Committee shall be the
named fiduciary of the Plan except or until otherwise determined by the Board
of Directors.

9.13                           Claims Procedure

The claims procedure hereunder shall be as provided
herein:

(a)                                  Claim.  A Member or
Beneficiary or other person who believes that he or she is being denied a
benefit to which he or she is entitled (hereinafter referred to as “Claimant”)
may file a written request for such benefit with the Committee setting forth
his claim;

 54
 

(b)                                 Response to Claim.  The
Committee shall respond within ninety (90) days of receipt of the claim.  However, upon written notification to the
Claimant, the response period may be extended for an additional ninety (90)
days for reasonable cause.  If the claim
is denied in whole or in part, the Claimant shall be provided with a written
opinion using nontechnical language setting forth:

(i)                                     The
specific reason or reasons for the denial;

(ii)                                  The
specific references to pertinent Plan provisions on which the denial is based;

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

(iv)                              Appropriate
information as to the steps to be taken if the Claimant wishes to submit the
claim for review; and

(v)                                 The
time limits for requesting a review.

(c)                                  Request for Review.  Within
sixty (60) days after the receipt by the Claimant of the written opinion
described above, the Claimant may request in writing that the Committee review
the determination

 55
 

The Claimant or his duly
authorized representative may review the pertinent documents and submit issues
and comments in writing for consideration by the Committee.  If the Claimant does not request a review of
the determination within such sixty (60) day period, he shall be barred from
challenging the determination; and

(d)                                 Review and Decision.  The Committee shall review the determination
within sixty (60) days after receipt of a Claimant’s request for review;
provided, however, that for reasonable cause such period may be extended to no
more than one hundred twenty (120) days.  After considering all materials presented by
the Claimant, the Committee will render a written opinion, written in a manner
calculated to be understood by the Claimant, setting forth the specific reasons
for the decision and containing specific references to the pertinent Plan
provisions on which the decision is based.

9.14                           Committee’s Decision Final

Subject to applicable law, any interpretation of the
provisions of the Plan and any decision on any matter within the discretion of
the Committee made by the Committee in good faith shall be binding on all
persons.  A misstatement or other mistake
of fact shall be corrected when it becomes known and the Committee shall make
such adjustment on account thereof as it considers equitable and practicable.

 56
 

ARTICLE 10.      MANAGEMENT OF FUNDS

10.01                     Trust
Agreement

All the funds of the Plan shall be held by a Trustee
appointed from time to time by the Board of Directors under a trust agreement
adopted, or as amended, by the Board of Directors for use in providing the
benefits of the Plan and paying its expenses not paid directly by the Employer.
 The Employer shall have no liability for
the payment of benefits under the Plan nor for the administration of the funds
paid over to the Trustee.

10.02                     Exclusive
Benefit Rule

Except as otherwise provided in the Plan, no part of
the corpus or income of the funds of the Plan shall be used for, or diverted
to, purposes other than for the exclusive benefit of Members and other persons
entitled to benefits under the Plan and paying the expenses of the Plan not
paid directly by the Employer.  No person
shall have any interest in, or right to, any part of the earnings of the funds
of the Plan, or any right in, or to, any part of the assets held under the
Plan, except as and to the extent expressly provided in the Plan.

ARTICLE 11.      GENERAL PROVISIONS

11.01                     Nonalienation

(a)                                  Except
as required by any applicable law or by paragraph (c), no benefit under the
Plan shall in any manner be anticipated, assigned or alienated, and any attempt
to do so shall be void.  However, 

 57
 

                                                payment
shall be made in accordance with the provisions of any judgment, decree, or
order which:

(i)                                     creates
for, or assigns to, a spouse, former spouse, child or other dependent of a
Member the right to receive all or a portion of the Member’s benefits under the
Plan for the purpose of providing child support, alimony payments or marital
property rights to that spouse, child or dependent;

(ii)                                  is
made pursuant to a State domestic relations law;

(iii)                               does not require the
Plan to provide any type of benefit, or any option, not otherwise provided
under the Plan; and

(iv)                              otherwise
meets the requirements of Section 206(d) of ERISA, as amended, as a “qualified
domestic relations order”, as determined by the Committee.

(b)                                 Notwithstanding
anything herein to the contrary, if the amount payable to the alternate payee
under the qualified domestic relations order is less than $5,000, such amount
shall be paid in one lump sum as soon as practicable following the
qualification of the order.  If the
amount exceeds $5,000, it may be paid as soon as practicable following the
qualification of the order if the qualified domestic relations order so
provides and the alternate payee consents thereto; otherwise it may not be
payable before the earlier 

 58
 

                                                of (i)
the Member’s termination of employment or (ii) the Member’s attainment of age
50; and

(c)                                  A
Member’s benefit under the Plan shall be offset or reduced by the amount the
Member is required to pay to the Plan under the circumstances set forth in
Section 401(a)(13)(C) of the Code.

11.02                     Conditions
of Employment Not Affected by Plan

The establishment of the Plan shall not confer any
legal rights upon any Eligible Employee or other person for a continuation of
employment, nor shall it interfere with the rights of the Employer to discharge
any Eligible Employee and to treat him or her without regard to the effect
which that treatment might have upon him or her as a Member or potential Member
of the Plan.

11.03                     Facility of
Payment

If the Committee shall find that a Member or other
person entitled to a benefit is unable to care for his or her affairs because
of illness or accident or because he or she is a minor, the Committee may
direct that any benefit due him or her, unless claim shall have been made for
the benefit by a duly appointed legal representative, be paid to his or her
spouse, a child, a parent or other blood relative, or to a person with whom he
or she resides.  Any payment so made
shall be a complete discharge of the liabilities of the Plan for that benefit.

 59
 

11.04                     Erroneous
Allocation

Notwithstanding any provision of the Plan to the
contrary, if a Member’s Account is credited with an erroneous amount due to a
mistake in fact or law, the Committee shall adjust such Account in such
equitable manner as it deems appropriate to correct the erroneous allocation.

11.05                     Information

Each Member, Beneficiary or other person entitled to a
benefit, before any benefit shall be payable to him or her or on his or her
account under the Plan, shall file with the Committee the information that it
shall require to establish his or her rights and benefits under the Plan.

11.06                     Top-Heavy Provisions
Prior to January 1, 2002

(a)           The
following definitions apply to the terms used in this Section:

(i)                                     “applicable
determination date” means the last day of the preceding Plan Year;

(ii)                                  “top-heavy
ratio” means the ratio of (A) the value of the aggregate of the Accounts under the
Plan for key employees to (B) the value of the aggregate of the Accounts under
the Plan for all key employees and non-key employees;

 60
 

(iii)                               “key employee” means an Employee
who is in a category of employees determined in accordance with the provisions
of Sections 416(i)(1) and (5) of the Code and any regulations thereunder, and
where applicable, on the basis of the Employee’s statutory compensation from
the Employer or an Affiliate;

(iv)                              “non-key
employee” means any Employee who is not a key employee;

(v)                                 “applicable
Valuation Date” means the Valuation Date coincident with or immediately
preceding the last day of the preceding Plan Year;

(vi)                              “required
aggregation group” means any other qualified plan(s) of the Employer or an
Affiliate in which there are members who are key employees or which enable(s)
the Plan to meet the requirements of Section 401(a)(4) or 410 of the Code; and

(vii)                           “permissive aggregation
group” means each plan in the required aggregation group and any other
qualified plan(s) of the Employer or an Affiliate in which all members are
non-key employees, if the resulting aggregation group continues to meet the
requirements of Sections 401(a)(4) and 410 of the Code.

 61
 

(b)                                 For
purposes of this Section, the Plan shall be “top-heavy” with respect to any
Plan Year if as of the applicable determination date the top-heavy ratio
exceeds 60 percent.  The top-heavy ratio
shall be determined as of the applicable Valuation Date in accordance with
Sections 416(g)(3) and (4) of the Code and Article 5 of this Plan, and shall
take into account any contributions made after the applicable Valuation Date
but before the last day of the Plan Year in which the applicable Valuation Date
occurs.  For purposes of determining whether
the Plan is top-heavy, the Account balances under the Plan will be combined with
the Account balances or the present value of accrued benefits under each other
plan in the required aggregation group, and, in the Employer’s discretion, may
be combined with the account balances or the present value of accrued benefits
under any other qualified plan in the permissive aggregation group.
Distributions made with respect to a Member under the Plan during the five-year
period ending on the applicable determination date shall be taken into account
for purposes of determining the top-heavy ratio; distributions under plans that
terminated within such five-year period shall also be taken unto account, if
any such plan contained key employees and therefore would have been part of the
required aggregation group;

(c)                                  The
following provisions shall be applicable to Members for any Plan Year with
respect to which the Plan is top-heavy:

 62
 

(i)                                     In
lieu of the vesting requirements specified in Section 6.01, a Member shall
be vested in, and have a nonforfeitable right to, his or her Account in
accordance with the following schedule:

	
  Years of Vesting Service

  	
   

  	
  Nonforfeitable Percentage

  	
   

  
	
  less than 2
  years

  	
   

  	
  0

  	
  %

  
	
  2 years

  	
   

  	
  20

  	
   

  
	
  3 years

  	
   

  	
  40

  	
   

  
	
  4 years

  	
   

  	
  60

  	
   

  
	
  5 or more years

  	
   

  	
  100

  	
   

  

 

provided that in no event shall the vested portion of
his or her Account be less than the vested portion determined under Section
6.01; and

(ii)                                  An
additional Employer contribution shall be allocated on behalf of each Member
(and each Eligible Employee eligible to become a Member) who is a non-key
employee, and who has not separated from service as of the last day of the Plan
Year, to the extent that the contributions made on his or her behalf under
Section 3.01 for the Plan Year would otherwise be less than 3 percent of his or
her remuneration.  However, if the greatest
percentage of remuneration contributed on behalf of a key employee under
Section 3.01 for the Plan Year would be less than 3 percent, that lesser
percentage shall be substituted for “3 

 63
 

                                                percent”
in the preceding sentence.  Notwithstanding
the foregoing provisions of this subparagraph (ii), no minimum contribution
shall be made under this Plan with respect to a Member (or an Employee eligible
to become a Member) if the required minimum benefit under Section 416(c)(1) of
the Code is provided to him or her by any other qualified pension plan of the
Employer or an Affiliate.  For the
purposes of this subparagraph (ii), remuneration has the same meaning as set
forth in Section 3.03(c).

(d)                                 If
the Plan is top-heavy with respect to a Plan Year and ceases to be top-heavy
for a subsequent Plan Year, the following provisions shall be applicable:

(i)                                     If
a Member has completed at least three years of Vesting Service on or before the
last day of the most recent Plan Year for which the Plan was top-heavy, the
vesting schedule set forth in paragraph (b)(i) shall continue to be applicable;
and

(ii)                                  If
a Member has completed at least two, but less than three, years of Vesting
Service on or before the last day of the most recent Plan Year for which the
Plan was top-heavy, the vesting provisions of Section 6.01 shall again be
applicable; provided, however, that in no event shall the 

 64
 

                                                vested
percentage of a Member’s Account be less than the percentage determined under
paragraph (b)(i) above as of the last day of the most recent Plan Year for
which the Plan was top-heavy.

11.07                     Top-Heavy
Provisions After December 31, 2001

(a)                                  Effective Date.  This Section
11.07 shall apply for purposes of determining whether the Plan is a top-heavy
plan under Section 416(g) of the Code for Plan Years beginning after December
31, 2001, and whether the Plan satisfies the minimum benefits requirements of
Section 416(c) of the Code for such years. 
This section amends the above Section 11.06 of the Plan;

(b)                                 Determination of Top-Heavy Status.  Key employee means any Employee or former Employee
(including any deceased Employee) who at any time during the Plan Year that
includes the determination date was an officer of the Employer having annual
compensation greater than $130,000 (as adjusted under Section 416(i)(1) of the
Code for Plan Years beginning after December 31, 2002), a 5-percent owner of
the Employer, or a 1-percent owner of the Employer having annual compensation
of more than $150,000.  For this purpose,
annual compensation means compensation within the meaning of Section 415(c)(3)
of the Code.  The determination of who is
a key employee will be made in accordance with 

 65
 

                                                Section
416(i) of the Code and the applicable regulations and other guidance of general
applicability issued thereunder; and

(c)                                  Determination of Present Values and Amounts.  This Section 11.07(c) shall apply for
purposes of determining the present values of accrued benefits and the amounts
of account balances of Employees as of the determination date.

(i)                                     Distributions During Year Ending on the Determination Date.  The present values of accrued benefits and
the amounts of Account balances of an Employee as of the determination date
shall be increased by the distributions made with respect to the Employee under
the Plan and any plan aggregated with the Plan under Section 416(g)(2) of the
Code during the 1-year period ending on the determination date.  The preceding sentence shall also apply to
distributions under a terminated plan which, had it not been terminated, would have
been aggregated with the Plan under Section 416(g)(2)(A)(i) of the Code.  In the case of a distribution made for a
reason other than separation from service, death, or Disability, this provision
shall be applied by substituting “5-year period” for “1-year period”; and

 66
 

(ii)                                  Employees not performing services during the year ending on the
determination date.  The
accrued benefits and Accounts of any individual who has not performed services
for the Employer during the 1-year period ending on the determination date
shall not be taken into account.

(d)                                 Minimum Benefits

(i)                                     Matching Contributions. 
Employer matching contributions shall be taken into account for purposes
of satisfying the minimum contribution requirements of Section 416(c)(2) of the
Code and the Plan.  The preceding
sentence shall apply with respect to matching contributions under the Plan or,
if the Plan provides that the minimum contribution requirement shall be met in
another plan, such other plan.  Employer
matching contributions that are used to satisfy the minimum contribution
requirements shall be treated as matching contributions for purposes of the
actual contribution percentage test and other requirements of Section 401(m) of
the Code; and

(ii)                                  Contributions under other plans.  The Employer may provide in the adoption
agreement that the minimum benefit requirement shall be met in another plan
(including another plan that consists solely of a cash or deferred 

 67
 

                                                arrangement
which meets the requirements of Section 401(k)(12) of the Code and matching
contributions with respect to which the requirements of Section 401(m)(11) of
the Code are met).

11.08                     Prevention
of Escheat

If the Committee cannot ascertain the whereabouts of
any person to whom a payment is due under the Plan, the Committee may, no
earlier than three years from the date such payment is due, mail a notice of
such due and owing payment to the last known address of such person, as shown
on the records of the Committee or the Employer.  If such person has not made written claim therefor
within three months of the date of the mailing, the Committee may, if it so
elects and upon receiving advice from counsel to the Plan, direct that such
payment and all remaining payments otherwise due such person be canceled on the
records of the Plan and the amount thereof applied to reduce the contributions
of the Employer.  Upon such cancellation,
the Plan and the Trust shall have no further liability therefor except that, in
the event such person or his or her Beneficiary later notifies the Committee of
his or her whereabouts and requests the payment or payments due to him or her
under the Plan, the amount so applied shall be paid to him or her in accordance
with the provisions of the Plan.

11.09                     Written
Elections

Any elections, notifications or designations made by a
Member pursuant to the provisions of the Plan shall be made in writing and
filed with the Committee in a 

 68
 

time and manner determined by the Committee under
rules uniformly applicable to all Employees similarly situated. The Committee
reserves the right to change from time to time the time and manner for making
notifications, elections or designations by Members under the Plan if it
determines after due deliberation that such action is justified in that it
improves the administration of the Plan.  In the event of a conflict between the
provisions for making an election, notification or designation set forth in the
Plan and such new administrative procedures, those new administrative
procedures shall prevail.

11.10                     Construction

(a)                                  The
Plan shall be construed, regulated and administered under ERISA and the laws of
the State of California, except where ERISA controls; and

(b)                                 The
titles and headings of the Articles and Sections in this Plan are for convenience
only. In the case of ambiguity or inconsistency, the text rather than the
titles or headings shall control.

ARTICLE 12.      AMENDMENT, MERGER AND TERMINATION

12.01                     Amendment of
Plan

The Board of Directors reserves the right at any time
and from time to time, and retroactively if deemed necessary or appropriate, to
amend in whole or in part any or all of the provisions of the Plan.  The Committee may amend the Plan, provided
such amendments would not significantly increase the cost of the Plan, 

 69
 

change the level of benefits provided under the Plan
or modify the underlying policy reflected by the Plan and provided, further,
that notwithstanding the above, the Committee may adopt any amendment necessary
to maintain the Plan’s qualified status under the applicable provisions of the
Code.  However, no amendment shall make
it possible for any part of the funds of the Plan to be used for, or diverted
to, purposes other than for the exclusive benefit of persons entitled to
benefits under the Plan.  No amendment
shall be made which has the effect of decreasing the balance of the Account of
any Member or of reducing the nonforfeitable percentage of the balance of the
Account of a Member below the nonforfeitable percentage computed under the Plan
as in effect on the date on which the amendment is adopted, or if later, the
date on which the amendment becomes effective.  Any action to amend the Plan by the Board of
Directors shall be taken in such manner as may be permitted under the by-laws
of the Company, and any action to amend the Plan by the Committee shall be
taken at a meeting held in person or by telephone or other electronic means or
by unanimous written consent in lieu of a meeting.

12.02                     Merger,
Consolidation or Transfer

The Plan may not be merged or consolidated with, and
its assets or liabilities may not be transferred to, any other plan unless each
person entitled to benefits under the Plan would, if the resulting plan were
then terminated, receive a benefit immediately after the merger, consolidation,
or transfer which is equal to or greater than the benefit he or she would have
been entitled to receive immediately before the merger, consolidation, or
transfer if the Plan had then terminated.

 70
 

12.03                     Additional Participating
Employers

(a)                                  If
any company is or becomes an Affiliate, the Board of Directors may include the Employees
of that Affiliate in the membership of the Plan upon appropriate action by that
Affiliate necessary to adopt the Plan unless the Board of Directors or its
delegate provides otherwise.  In that
event, or if any persons become Eligible Employees of an Employer as the result
of merger or consolidation or as the result of acquisition of all or part of
the assets or business of another company, the Board of Directors shall
determine to what extent, if any, previous service with .the Affiliate shall be
recognized under the Plan, but subject to the continued qualification of the Trust
for the Plan as tax-exempt under the Code; and

(b)                                 Any
Affiliate may terminate its participation in the Plan upon appropriate action
by it. In that event the funds of the Plan held on account of Members in the
employ of that Affiliate, and any unpaid balances of the Accounts of all
Members who have separated from the employ of that Affiliate, shall be
determined by the Committee.  Those funds
shall be distributed as provided in Section 12.04 if the Plan should be
terminated, or shall be segregated by the Trustee as a separate trust, pursuant
to certification to the Trustee by the Committee, continuing the Plan as a
separate plan for the employees of that Affiliate under which 

 71
 

                                                the
board of directors of that Affiliate shall succeed to all the powers and duties
of the Board of Directors, including the appointment of the members of the
Committee.

12.04                     Termination
of Plan

The Board of Directors, by action taken at a meeting
held in person or by telephone or other electronic means, or by unanimous
written consent in lieu of a meeting, may terminate the Plan or completely
discontinue Employer contributions under the Plan for any reason at any time.  In case of termination or partial termination
of the Plan, or complete discontinuance of Employer contributions to the Plan,
the rights of affected Members to their Accounts under the Plan as of the date
of the termination or discontinuance shall be nonforfeitable.  In the event of the Plan’s termination, the
total amount in each Member’s Account shall be distributed to him or her if
permitted by law or continued in trust for his or her benefit, as the Committee
shall direct.

 72EXHIBIT 10.1

	
  CONTRACT

  	
   

  	
  Scott Petroleum
  Corporation

  	
   

  	
  Biosource
  America, Inc.

  
	
   

  	
   

  	
  Owner

  	
   

  	
  Design/Builder

  
	
  CHANGE

  	
   

  	
  102
  Main Street

  	
   

  	
  600
  Dewey Boulevard

  
	
   

  	
   

  	
  Address

  	
   

  	
  Address

  
	
  ORDER

  	
   

  	
  Ima
  Bena, MS 38941

  	
   

  	
  Butte,
  MT 59701

  

 

	
  CONTRACT CHANGE ORDER NO.

  	
   

  	
  One

  	
   

  	
  CONTRACT CHANGE ORDER DATE

  	
   

  	
  6/21/2007

  

 

In
accordance with Articles 9, 10 and 11 of the Standard General Conditions of the
Contract between Owner and Design/Builder, Owner and Design Builder have agreed
to amending the Agreement dated March 31, 2006 as follows:

Consider this Change Order as Authority to perform
the following:

See attached Request for
Change Order One dated 5/14/07 for a description of changes:

1. 
Design/Builder Furnished Builders Risk Insurance

2.  Rental of Temporary Lighting in
Process Building

3.  Process Tank Farm Design and
Construction

4.  Contract Amendment to delete the
liquidated damages in Article 11

5.  Amend Exhibit B of Contract such that
a progress payment of $2,500,000 is deemed paid in full to Design/Builder upon
the execution of Change Order One and in return Design/Builder’s payment in the
amount of $2,500,000 to Scott Petroleum is deemed paid in full in accordance
with the Tolling and Offtake Agreement thereby eliminating timing issues with
respect to cash flow.

Exclusion #1:  This change order does not include the final
load out rack for the process tank farm that will be required for offloading of
acid, loadout of glycerin, loadout of glycertin bottoms & loadout of
biodiesel bottoms.  The boundary limits
of this change order are to the piping flange located at the northeast corner
of the process tank farm and does not include the exterior pipe support
structure, the load out arms and structure and any required instrumentation,
pumps, or spill equipment.

Exclusion #2:   This change order does not include the
required piping, instrumentation, and pumps necessary for completion of the
feedstock recirculation, and transfer pumps and piping from the two feedstock
tanks located in the terminal tank farm up to and through connection to the
northeast corner of the process tank farm. 
In addition, it does not include the methanol transfer pumps and piping
required to convey methanol from the terminal tank farm to the process tank
farm as well ending in the connection at the northeast corner of the process
tank farm.  Pipe head trace, insulation,
required support concrete pads, structure, power wiring, controls wiring,
instruments, pipes, pumps and connections from the edge of the Process Tank
Farm to the north and up to and through connections to the Terminal Tank Farm
Feedstock and methanol tanks are not included.

Exclusion #1 and #2 are anticipated to be included in
a future change order once the actual costs are defined and documented.

The SubContract Price as stated in Article 4.01 of the
Agreement shall be adjusted as follows:

Owner agrees to pay Design/Builder 50% of Change Order
One ($811,729.07) and Design/Builder agrees to absorb 50% of Change Order One
($811,729.07) upon execution of Change Order One.  Neither of these costs will be applied to the
Tolling Fee per the Tolling and Offtake Agreement.

	
  Contract Price

  	
   

  	
  $

  	
  12,500,000.00

  	
   

  
	
  Amount of
  Contract Price Adjusted This Change Order

  	
   

  	
  $

  	
  1,623,458.14

  	
   

  
	
  Revised Contract Price

  	
   

  	
  $

  	
  14,123,458.14

  	
   

  

 

The Contract Time as stated in Article 3.02 of the
Agreement shall be adjusted as follows:

	
  Contract Substantial Completion Date

  	
   

  	
  26-Mar-07

  	
   

  
	
  Amount of Contract Time Adjusted This Change Order

  	
   

  	
  189 days

  	
   

  
	
  Revised
  Contract Substantial Completion Date

  	
   

  	
  30-Sep-07

  	
   

  

 

	
  Submitted for Approval By:

  	
   

  	
  Approved
  and Accepted By:

  
	
  Scott
  Petroleum Corporation

  	
   

  	
  Biosource
  America, Inc.

  
	
  Owner

  	
   

  	
  Design/Builder

  
	
  /s/

  	
   

  	
  /s/ Dick Talley

  
	
  Project
  Manager

  	
   

  	
  Project
  Manager

  
	
  6/28/07

  	
   

  	
  6/21/07

  
	
  Date

  	
   

  	
  Date

  

 

Request for Change
Order One

May 14th, 2007 — Revised June 2nd, 2007

	
  Item

  	
   

  	
  Vendor

  	
   

  	
  FO Amount

  	
   

  	
  15% markup

  	
   

  	
  Total for Item

  	
   

  
	
  Builders Risk Insurance

  	
   

  	
  Lockton

  	
   

  	
  $

  	
  50,000

  	
   

  	
  $

  	
  7,500

  	
   

  	
  $

  	
  57,500

  	
   

  
	
  Light Towers

  	
   

  	
  Rental

  	
   

  	
  $

  	
  8,062

  	
   

  	
  $

  	
  1,209

  	
   

  	
  $

  	
  9,271

  	
   

  
	
  Process Tank Farm
  Foundation

  	
   

  	
  Malouf

  	
   

  	
  $

  	
  70,250

  	
   

  	
  $

  	
  10,538

  	
   

  	
  $

  	
  80,788

  	
   

  
	
  Process Tank Farm
  Concrete Design

  	
   

  	
  MFO

  	
   

  	
  $

  	
  27,960

  	
   

  	
  $

  	
  4,194

  	
   

  	
  $

  	
  32,154

  	
   

  
	
  Process Tank Farm
  Reinforcing Steel

  	
   

  	
  MFO

  	
   

  	
  $

  	
  34,250

  	
   

  	
  $

  	
  5,138

  	
   

  	
  $

  	
  39,388

  	
   

  
	
  Process Tank Farm
  Instruments

  	
   

  	
  ACE

  	
   

  	
  $

  	
  56,867

  	
   

  	
  $

  	
  8,530

  	
   

  	
  $

  	
  65,397

  	
   

  
	
  Process Tank Farm Flow
  Meters

  	
   

  	
  Micro
  Motion

  	
   

  	
  $

  	
  15,583

  	
   

  	
  $

  	
  2,338

  	
   

  	
  $

  	
  17,921

  	
   

  
	
  Process Tank Farm
  Controllers

  	
   

  	
  Rosemount

  	
   

  	
  $

  	
  12,253

  	
   

  	
  $

  	
  1,838

  	
   

  	
  $

  	
  14,091

  	
   

  
	
  Process Tank Farm Pumps

  	
   

  	
  JCI

  	
   

  	
  $

  	
  86,760

  	
   

  	
  $

  	
  13,014

  	
   

  	
  $

  	
  99,774

  	
   

  
	
  Process Tank Farm
  Piping

  	
   

  	
  Hayes
  Mechanical

  	
   

  	
  $

  	
  306,000

  	
   

  	
  $

  	
  45,900

  	
   

  	
  $

  	
  351,900

  	
   

  
	
  Process Tank Farm
  Electrical

  	
   

  	
  Town
  and Country

  	
   

  	
  $

  	
  257,000

  	
   

  	
  $

  	
  38,550

  	
   

  	
  $

  	
  295,550

  	
   

  
	
  Process Tank Farm Racks

  	
   

  	
  MFO

  	
   

  	
  $

  	
  126,095

  	
   

  	
  $

  	
  18,914

  	
   

  	
  $

  	
  145,009

  	
   

  
	
  Process Tank Farm
  Grounding

  	
   

  	
  Thompson
  Lightning Protection

  	
   

  	
  $

  	
  24,450

  	
   

  	
  $

  	
  3,668

  	
   

  	
  $

  	
  28,118

  	
   

  
	
  Process Tank Farm
  Insulation (Tanks & Pipes)

  	
   

  	
  Tracer

  	
   

  	
  $

  	
  286,603

  	
   

  	
  $

  	
  42,990

  	
   

  	
  $

  	
  329,593

  	
   

  
	
  Process Tank Farm
  P&ID’s and Piping Design

  	
   

  	
  Biosource

  	
   

  	
  $

  	
  49,569

  	
   

  	
  $

  	
  7,435

  	
   

  	
  $

  	
  57,005

  	
   

  
	
  Subtotal

  	
   

  	
   

  	
   

  	
  $

  	
  1,411,703

  	
   

  	
  $

  	
  211,755

  	
   

  	
  $

  	
  1,623,458

  	
   

  

 

Biosource Labor

 

	
  Personnel

  	
   

  	
  Activities

  	
   

  	
  Hours

  	
   

  	
  Rate

  	
   

  	
  Total

  	
   

  
	
  John Jackam

  	
   

  	
  PFD
  and P&ID Design

  	
   

  	
  120

  	
   

  	
  $

  	
  40.87

  	
   

  	
  $

  	
  4,904.40

  	
   

  
	
  Mark Chadek

  	
   

  	
  Pump
  Specification/Procure

  	
   

  	
  108

  	
   

  	
  $

  	
  40.87

  	
   

  	
  $

  	
  4,413.96

  	
   

  
	
  Jay Colelozier

  	
   

  	
  Instrument
  Specification/Procure

  	
   

  	
  128

  	
   

  	
  $

  	
  40.87

  	
   

  	
  $

  	
  5,231.36

  	
   

  
	
  Stacey Konda

  	
   

  	
  Piping
  Design

  	
   

  	
  264

  	
   

  	
  $

  	
  31.25

  	
   

  	
  $

  	
  8,250.00

  	
   

  
	
  Richard Williams

  	
   

  	
  Piping
  Layout/Stress Analysis

  	
   

  	
  168

  	
   

  	
  $

  	
  38.46

  	
   

  	
  $

  	
  6,461.28

  	
   

  
	
  Seth Robinson

  	
   

  	
  Piping
  Isometrics/Plan & Profile

  	
   

  	
  184

  	
   

  	
  $

  	
  28.85

  	
   

  	
  $

  	
  5,308.40

  	
   

  
	
  Lease on Software per
  Analysis Run

  	
   

  	
  Caesar
  Runs for Stress Analysis

  	
   

  	
  6

  	
   

  	
  $

  	
  2,500.00

  	
   

  	
  $

  	
  15,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  49,569.40

  	
   

  

 

The labor rates are raw
labor and do not include overhead, general and administrative or fringe
costs.  Moreover, costs for Project
Management, Construction and Site Management, administration, and other direct
costs including travel, lodging, per diem are not included.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}]]