Document:

EXHIBIT 4.3

                       WARRANTECH CORPORATION 401(k) PLAN

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                             WARRANTECH CORPORATION
                                   401(K) PLAN

Defined Contribution Plan 8.0

Restated January 1, 1997

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(1) TABLE OF CONTENTS

INTRODUCTION

ARTICLE I             FORMAT AND DEFINITIONS

  Section  1.01   --- Format
  Section  1.02   --- Definitions

ARTICLE II            PARTICIPATION

  Section  2.01   --- Active Participant
  Section  2.02   --- Inactive Participant
  Section  2.03   --- Cessation of Participation
  Section  2.04   --- Adopting Employers - Single Plan

ARTICLE III           CONTRIBUTIONS

  Section  3.01   --- Employer Contributions
  Section  3.01A  --- Rollover Contributions
  Section  3.02   --- Forfeitures
  Section  3.03   --- Allocation
  Section  3.04   --- Contribution Limitation
  Section  3.05   --- Excess Amounts

ARTICLE IV            INVESTMENT OF CONTRIBUTIONS

  Section  4.01   --- Investment of Contributions
  Section  4.01A  --- Investment in qualifying Employer Securities

ARTICLE V             BENEFITS

  Section  5.01   --- Retirement Benefits
  Section  5.02   --- Death Benefits
  Section  5.03   --- Vested Benefits
  Section  5.04   --- When Benefits Start
  Section  5.05   --- Withdrawal Benefits
  Section  5.06   --- Loans to Participants
  Section  5.07   --- Distributions Under Qualified Domestic Relations Orders

ARTICLE VI            DISTRIBUTION OF BENEFITS

  Section  6.01   --- Automatic Forms of Distribution
  Section  6.02   --- Optional Forms of Distribution
  Section  6.02A  --- Distributions in Qualifying Employer Securities
  Section  6.03   --- Election Procedures
  Section  6.04   --- Notice Requirements

RESTATEMENT JANUARY 1, 1997               3
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ARTICLE VII           DISTRIBUTION REQUIREMENTS

  Section  7.01   --- Application
  Section  7.02   --- Definitions
  Section  7.03   --- Distribution Requirements

ARTICLE VIII          TERMINATION OF PLAN

ARTICLE IX            ADMINISTRATION OF PLAN

  Section  9.01   --- Administration
  Section  9.02   --- Expenses
  Section  9.03   --- Records
  Section  9.04   --- Information Available
  Section  9.05   --- Claim and Appeal Procedures
  Section  9.06   --- Delegation of Authority
  Section  9.07   --- Exercise of Discretionary Authority
  Section  9.08   --- Voting and Tender of Qualifying Employer Securities

ARTICLE X             GENERAL PROVISIONS

  Section  10.01  --- Amendments
  Section  10.02  --- Direct Rollovers
  Section  10.03  --- Mergers and Direct Transfers
  Section  10.04  --- Provisions Relating to the Insurer and Other Parties
  Section  10.05  --- Employment Status
  Section  10.06  --- Rights to Plan Assets
  Section  10.07  --- Beneficiary
  Section  10.08  --- Nonalienation of Benefits
  Section  10.09  --- Construction
  Section  10.10  --- Legal Actions
  Section  10.11  --- Small Amounts
  Section  10.12  --- Word Usage
  Section  10.13  --- Change in Service Method
  Section  10.14  --- Military Service

ARTICLE XI            TOP-HEAVY PLAN REQUIREMENTS

  Section 11.01   --- Application
  Section 11.02   --- Definitions
  Section 11.03   --- Modification of Vesting Requirements
  Section 11.04   --- Modification of Contributions
  Section 11.05   --- Modification of Contribution Limitation

PLAN EXECUTION

                                  INTRODUCTION

RESTATEMENT JANUARY 1, 1997               4
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      The Primary Employer previously established a 401(k) plan on January 1,
1993.

      The Primary Employer is of the opinion that the plan should be changed. It
believes that the best means to accomplish these changes is to completely
restate the plan's terms, provisions and conditions. The restatement, effective
January 1, 1997, is set forth in this document and is substituted in lieu of the
prior document.

      This restatement is made retroactively to reflect the law changes made
through the Internal Revenue Service Restructuring and Reform Act of 1998. The
provisions of this Plan apply as of the effective date of the restatement except
as provided in the attached addendums which reflect the operation of the Plan
between the effective date of the restatement and the date this restatement is
adopted and identify those provisions which are not amended retroactively.

      The restated plan continues to be for the exclusive benefit of employees
of the Employer. All persons covered under the plan on December 31, 1996, shall
continue to be covered under the restated plan with no loss of benefits.

      It is intended that the plan, as restated, shall qualify as a profit
sharing plan under the Internal Revenue Code of 1986, including any later
amendments to the Code.

RESTATEMENT JANUARY 1, 1997               5
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(i) ARTICLE I

                             FORMAT AND DEFINITIONS

SECTION 1.01--FORMAT.

Words and phrases defined in the DEFINITIONS SECTION of Article I shall have
that defined meaning when used in this Plan, unless the context clearly
indicates otherwise.

These words and phrases have an initial capital letter to aid in identifying
them as defined terms.

SECTION 1.02--DEFINITIONS.

      ACCOUNT means, for a Participant, his share of the Plan Fund and
      Qualifying Employer Securities Fund. Separate accounting records are kept
      for those parts of his Account that result from:

      (a)   Elective Deferral Contributions

      (b)   Matching Contributions

      (c)   Qualified Nonelective Contributions

      (d)   Rollover Contributions

      A Participant's Account shall be reduced by any distribution of his Vested
      Account and by any Forfeitures. A Participant's Account shall participate
      in the earnings credited, expenses charged and any appreciation or
      depreciation of the Investment Fund. His Account is subject to any minimum
      guarantees applicable under the Annuity Contract or other investment
      arrangement and to any expenses associated therewith.

      ACP TEST means the nondiscrimination test described in Code Section
      401(m)(2) as provided for in subparagraph (d) of the EXCESS AMOUNTS
      SECTION of Article III.

      ACTIVE PARTICIPANT means an Eligible Employee who is actively
      participating in the Plan according to the provisions in the ACTIVE
      PARTICIPANT SECTION of Article II.

      ADOPTING EMPLOYER means an employer which is a Controlled Group member and
      which is listed in the ADOPTING EMPLOYERS - SINGLE PLAN SECTION of Article
      II.

      ADP TEST means the nondiscrimination test described in Code Section
      401(k)(3) as provided for in subparagraph (c) of the EXCESS AMOUNTS
      SECTION of Article III.

      AFFILIATED SERVICE GROUP means any group of corporations, partnerships or
      other organizations of which the Employer is a part and which is
      affiliated within the meaning of Code Section 414(m) and regulations
      thereunder. Such a group includes at least two organizations one of which
      is either a service organization (that is, an organization the principal
      business of which is performing services), or an organization the
      principal business of which is performing management functions on a
      regular and continuing basis. Such service is of a type historically
      performed by employees. In the case of a management organization, the
      Affiliated Service Group shall include organizations related, within the
      meaning of Code Section 144(a)(3), to either the management organization
      or the organization for

RESTATEMENT JANUARY 1, 1997               6
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      which it performs management functions. The term Controlled Group, as it
      is used in this Plan, shall include the term Affiliated Service Group.

      ALTERNATE PAYEE means any spouse, former spouse, child or other dependent
      of a Participant who is recognized by a qualified domestic relations order
      as having a right to receive all, or a portion of, the benefits payable
      under the Plan with respect to such Participant.

      ANNUAL COMPENSATION means, for a Plan Year, the Employee's Compensation
      for the Compensation Year ending with or within the consecutive 12-month
      period ending on the last day of the Plan Year.

      ANNUITY CONTRACT means the annuity contract or contracts into which the
      Trustee enters with the Insurer for guaranteed benefits, for the
      investment of Contributions in separate accounts, and for the payment of
      benefits under this Plan. The term Annuity Contract as it is used in this
      Plan shall include the plural unless the context clearly indicates the
      singular is meant.

      ANNUITY STARTING DATE means, for a Participant, the first day of the first
      period for which an amount is payable as an annuity or any other form.

      BENEFICIARY means the person or persons named by a Participant to receive
      any benefits under this Plan when the Participant's dies. See the
      BENEFICIARY SECTION of Article X.

      CLAIMANT means any person who makes a claim for benefits under this Plan.
      See the CLAIM AND APPEAL PROCEDURES SECTION of Article IX.

      CODE means the Internal Revenue Code of 1986, as amended.

      COMPENSATION means, except for purposes of the CONTRIBUTION LIMITATION
      SECTION of Article III and Article XI, the total earnings, except as
      modified in this definition, paid or made available to an Employee by the
      Employer during any specified period.

      "Earnings" in this definition means wages within the meaning of Code
      Section 3401(a) and all other payments of compensation to an Employee by
      the Employer (in the course of the Employer's trade or business) for which
      the Employer is required to furnish the Employee a written statement under
      Code Sections 6041(d), 6051(a)(3), and 6052. Earnings must be determined
      without regard to any rules under Code Section 3401(a) that limit the
      remuneration included in wages based on the nature or location of the
      employment or the services performed (such as the exception for
      agricultural labor in Code Section 3401(a)(2)). The amount reported in the
      "Wages, Tips and Other Compensation" box on Form W-2 satisfies this
      definition.

      For any Self-employed Individual, Compensation means Earned Income.

      For the purposes of determining the amount of Elective Deferral
      Contributions and Matching Contributions Compensation shall exclude
      reimbursements or other expense allowances, fringe benefits (cash and
      noncash), moving expenses, deferred compensation (other than elective
      contributions), and welfare benefits.

      Compensation shall also include elective contributions. For this purpose,
      elective contributions are amounts contributed by the Employer pursuant to
      a salary reduction agreement and which are not includible in the gross
      income of the Employee under Code Section 125, 402(e)(3), 402(h)(1)(B), or
      403(b). Elective contributions also include compensation deferred under a
      Code Section 457 plan maintained by the Employer and employee

RESTATEMENT JANUARY 1, 1997               7
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      contributions "picked up" by a governmental entity and, pursuant to Code
      Section 414(h)(2), treated as Employer contributions. For years beginning
      after December 31, 1997, elective contributions shall also include amounts
      contributed by the Employer pursuant to a salary reduction agreement and
      which are not includible in the gross income of the Employee under Code
      Section 132(f)(4).

      For purposed of the EXCESS AMOUNTS SECTION of Article III, the Employer
      may elect to use an alternative nondiscriminatory definition of
      Compensation in accordance with the regulations under Code Section 414(s).

      For Plan Years beginning on or after January 1, 1994, the annual
      Compensation of each Participant taken into account for determining all
      benefits provided under the Plan for any determination period shall not
      exceed $150,000, as adjusted for increases in the cost-of-living in
      accordance with Code Section 401(a)(17)(B). The cost-of-living adjustment
      in effect for a calendar year applies to any determination period
      beginning in such calendar year.

      If a determination period consists of fewer than 12 months, the annual
      limit is an amount equal to the otherwise applicable annual limit
      multiplied by a fraction. The numerator of the fraction is the number of
      months in the short determination period, and the denominator of the
      fraction is 12.

      If Compensation for any prior determination period is taken into account
      in determining a Participant's contributions or benefits for the current
      Plan Year, the Compensation for such prior determination period is subject
      to the applicable annual compensation limit in effect for that
      determination period. For this purpose, in determining contributions or
      benefits in Plan Years beginning on or after January 1, 1994, the annual
      compensation limit in effect for determination periods beginning before
      that date is $150,000.

      Compensation means, for a Leased Employee, Compensation for the services
      the Leased Employee performs for the Employer, determined in the same
      manner as the Compensation of Employees who are not Leased Employees,
      regardless of whether such Compensation is received directly from the
      Employer of from the leasing organization.

      COMPENSATION YEAR means the consecutive 12-month period ending on the last
      day of the Plan Year, including corresponding periods before January 1,
      1993.

      CONTINGENT ANNUITANT means an individual named by the Participant to
      receive a lifetime benefit after the Participant's death in accordance
      with a survivorship life annuity.

      CONTRIBUTIONS means:

               Elective Deferral Contributions
               Matching Contributions
               Qualified Nonelective Contributions
               Rollover Contributions

      as set out in Article III, unless the context clearly indicates only
      specific contributions are meant.

      CONTROLLED GROUP means any group of corporations, trades or businesses of
      which the Employer is a part that are under common control. A Controlled
      Group includes any group of corporations, trades or businesses, whether or
      not incorporated, which is either a parent-subsidiary group, a
      brother-sister group, or a combined group within the meaning of Code
      Section 414(b), Code Section 414(c) and regulations thereunder and, for
      purposes of determining contribution limitations under the CONTRIBUTION
      LIMITATION SECTION of Article III, as modified by Code Section 415(h) and,
      for the purpose of identifying Leased Employees, as modified by Code
      Section 144(a)(3). The

RESTATEMENT JANUARY 1, 1997               8
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      term Controlled Group, as it is used in this Plan, shall include the term
      Affiliated Service Group and any other employer required to be aggregated
      with the Employer under Code Section 414(o) and the regulations
      thereunder.

      DIRECT ROLLOVER means a payment by the Plan to the Eligible Retirement
      Plan specified by the Distributee.

      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 Code Section
      414(p), are Distributees with regard to the interest of the spouse or
      former spouse.

      EARNED INCOME means, for a Self-employed Individual, net earnings from
      self-employment in the trade or business for which this Plan is
      established if such Self-employed Individual's personal services are a
      material income producing factor for that trade or business. Net earnings
      shall be determined without regard to items not included in gross income
      and the deductions properly allocable to or chargeable against such items.
      Net earnings shall be reduced for the employer contributions to the
      Employer's qualified retirement plan(s) to the extent deductible under
      Code Section 404.

      Net earnings shall be determined with regard to the deduction allowed to
      the Employer by Code Section 164(f) for taxable years beginning after
      December 31, 1989.

      ELECTIVE DEFERRAL CONTRIBUTIONS means Contributions made by the Employer
      to fund this Plan in accordance with elective deferral agreements between
      Eligible Employees and the Employer.

      Elective deferral agreements shall be made, changed, or terminated
      according to the provisions of the EMPLOYER CONTRIBUTIONS SECTION of
      Article III.

      Elective Deferral Contributions shall be 100% vested and subject to the
      distribution restrictions of Code Section 401(k) when made. See the WHEN
      BENEFITS START SECTION of Article V.

      ELIGIBILITY BREAK IN SERVICE means an Eligibility Computation Period in
      which an Employee is credited with 500 or fewer Hours-of-Service. An
      Employee incurs an Eligibility Break in Service on the last day of an
      Eligibility Computation Period in which he has an Eligibility Break in
      Service.

      ELIGIBILITY COMPUTATION PERIOD means a consecutive 12-month period. The
      first Eligibility Computation Period begins on an Employee's Employment
      Commencement Date. Later Eligibility Computation Periods shall be
      consecutive 12-month periods ending on the last day of each Plan Year that
      begins after his Employment Commencement Date.

      To determine an Eligibility Computation Period after an Eligibility Break
      in Service, the Plan shall use the consecutive 12-month period beginning
      on an Employee's Reemployment Commencement Date as if his Reemployment
      Commencement Date were his Employment Commencement Date.

      ELIGIBILITY SERVICE means one year of service for each Eligibility
      Computation Period that has ended and in which an Employee is credited
      with at least 1,000 Hours-of-Service.

      However, Eligibility Service is modified as follows:

      Period of Military Duty included:

RESTATEMENT JANUARY 1, 1997               9
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      A Period of Military Duty shall be included as service with the Employer
      to the extent it has not already been credited. For purposes of crediting
      Hours-of-Service during the Period of Military Duty, an Hour-of-Service
      shall be credited (without regard to the 501 Hour-of-Service limitation)
      for each hour an Employee would normally have been scheduled to work for
      the Employer during such period.

Controlled Group service included:

      An Employee's service with a member firm of a Controlled Group while both
      that firm and the Employer were members of the Controlled Group shall be
      included as service with the Employer.

ELIGIBLE EMPLOYEE means any Employee of the Employer who meets the following
requirement. His employment classification with the Employer is not one of the
following:

      Bargaining class (represented by a bargaining unit for collective
      bargaining purposes). A bargaining unit shall not include any organization
      more than half of whose members are employees who are owners, officers, or
      executives of the Employer.

      Non-resident alien with no U. S. source income.

      Puerto Rican Employees.

      Employees working outside of the United States.

ELIGIBLE RETIREMENT PLAN means an individual retirement account described in
Code Section 408(a), an individual retirement annuity described in Code Section
408(b), an annuity plan described in Code Section 403(a) or a qualified trust
described in Code Section 401(a), 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.

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: (i) any distribution that is one of a series of
substantially equal periodic payments (not less frequently than annually) made
for the life (or life expectancy) of the Distributee or the joint lives (or
joint life expectancies) of the Distributee and the Distributee's designated
Beneficiary, or for a specified period of ten years or more; (ii) any
distribution to the extent such distribution is required under Code Section
401(a)(9); (iii) any hardship distributions described in Code Section
401(k)(2)(B)(i)(IV) received after December 31, 1998; (iv) 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); and (v) any other distribution(s) that is reasonably expected to
total less than $200 during a year.

EMPLOYEE means an individual who is employed by the Employer or any other
employer required to be aggregated with the Employer under Code Sections 414(b),
(c), (m) or (o). A Controlled Group member is required to be aggregated with the
Employer.

The term Employee shall include any Self-employed Individual treated as an
employee of any employer described in the preceding paragraph as provided in
Code Section 401(C)(1). The term Employee shall also include any Leased Employee
deemed to be an employee of any employer described in the preceding paragraph as
provided in Code Section 414(n) or (o).

RESTATEMENT JANUARY 1, 1997               10
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EMPLOYER means, except for the purposes of the CONTRIBUTION LIMITATION SECTION
of Article III, the Primary Employer. This will also include any successor
corporation or firm of the Employer which shall, by written agreement, assume
the obligations of this Plan or any Predecessor Employer which maintained this
Plan.

EMPLOYER CONTRIBUTIONS means

      Elective Deferral Contributions
      Matching Contributions
      Qualified Nonelective Contributions

as set out in Article III and contributions made by he Employer to fund this
Plan in accordance with the provisions of the MODIFICATION OF CONTRIBUTIONS
SECTION of Article XI, unless the context clearly indicates only specific
contributions are meant.

EMPLOYMENT COMMENCEMENT DATE means the date an Employee first performs an
Hour-of-Service.

ENTRY DATE means the date an Employee first enters the Plan as an Active
Participant. See the ACTIVE PARTICIPANT SECTION of Article II.

ERISA means the Employee Retirement Income Security Act of 1974, as amended.

FISCAL YEAR means the Primary Employer's taxable year. The last day of the
Fiscal Year is March 31.

FORFEITURE means the part, if any, of a Participant's Account that is forfeited.
See the FORFEITURES SECTION of Article III.

FORFEITURE DATE means, as to a Participant, the date the Participant incurs five
consecutive Vesting Breaks in Service.

HIGHLY COMPENSATED EMPLOYEE means any Employee who:

(a)   was a 5 percent owner at any time during the year or the preceding year,
      or

(b)   for the preceding year had compensation from the Employer in excess of
      $80,000 and, if the Employer so elects, was in the top-paid group for the
      preceding year. The $80,000 amount is adjusted at the same time and in the
      same manner as under Code Section 415(d), except that the base period is
      the calendar quarter ending September 30, 1996.

For this purpose the applicable year of the plan for which a determination is
being made is called a determination year and the preceding 12-month period is
called a look-back year. If the Employer makes a calendar year data election,
the look-back year shall be the calendar year beginning with or within the
look-back year. The Plan may not use such election to determine whether
Employees are Highly Compensated Employees on account of being a 5 percent
owner.

In determining who is a Highly Compensated Employee the Employer does not make a
top-paid group election. In determining who is a Highly Compensated Employee the
Employer does not make a calendar year data election.

Calendar year data elections and top-paid group elections, once made, apply for
all subsequent years unless changed

RESTATEMENT JANUARY 1, 1997               11
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by the Employer. If the Employer makes one election, the Employer is not
required to make the other. If both elections are made, the look-back year in
determining the top-paid group must be the calendar year beginning with or
within the look-back year. These elections must apply consistently to the
determination years of all plans maintained by the Employer which reference the
highly compensated employee definition in Code Section 414(q), except as
provided in Internal Revenue Service Notice 97-45 (or superceding guidance). The
consistency requirement will not apply to determination years beginning with or
within the 1997 calendar year, and for determination years beginning on or after
January 1, 1998 and before January 1, 2000, satisfaction of the consistency
requirement is determined without regard to any nonretirement plans of the
Employer.

The determination of who is a highly compensated former Employee is based on the
rules applicable to determining Highly Compensated Employee status as in effect
for that determination year, in accordance with section 1.414(q)-1T, A-4 of the
temporary Income Tax Regulations and Internal Revenue Service Notice 97-45.

In determining whether an Employee is a Highly Compensated Employee for years
beginning in 1997, the amendments to Code Section 414(q) stated above are
treated as having been in effect for years beginning in 1996.

The determination of who is a Highly Compensated Employee, including the
determinations of the number and identity of Employees in the top-paid group,
the compensation that is considered, and the identity of the 5 percent owners,
shall be made in accordance with Code Section 414(q) and the regulations
thereunder.

HOUR-OF-SERVICE means the following:

(a)   Each hour for which an Employee is paid, or entitled to payment, for
      performing duties for the Employer during the applicable computation
      period.

(b)   Each hour for which an Employee is paid, or entitled to payment, by the
      Employer because of a period of time in which no duties are performed
      (irrespective of whether the employment relationship has terminated) due
      to vacation, holiday, illness, incapacity (including disability), layoff,
      jury duty, military duty or leave of absence. Notwithstanding the
      preceding provisions of this subparagraph (b), no credit will be given to
      the Employee

      (1)   for more than 501 Hours-of-Service under this subparagraph (b)
            because of any single continuous period in which the Employee
            performs no duties (whether or not such period occurs in a single
            computation period); or

      (2)   for an Hour-of-Service for which the Employee is directly or
            indirectly paid, or entitled to payment, because of a period in
            which no duties are performed if such payment is made or due under a
            plan maintained solely for the purpose of complying with applicable
            worker's or workmen's compensation, or unemployment compensation or
            disability insurance laws; or

      (3)   for an Hour-of-Service for a payment which solely reimburses the
            Employee for medical or medically related expenses incurred by him.

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

RESTATEMENT JANUARY 1, 1997               12
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(c)   Each hour for which back pay, irrespective of mitigation of damages, is
      either awarded or agreed to by the Employer. The same Hours-of-Service
      shall not be credited both under subparagraph (a) or subparagraph (b)
      above (as the case may be) and under this subparagraph (c). Crediting of
      Hours-of-Service for back pay awarded or agreed to with respect to periods
      described in subparagraph (b) above will be subject to the limitations set
      forth in that subparagraph.

The crediting of Hours-of-Service above shall be applied under the rules of
paragraphs (b) and (c) of the Department of Labor Regulation 2530.200b-2
(including any interpretations or opinions implementing such rules); which
rules, by this reference, are specifically incorporated in full within this
Plan. The reference to paragraph (b) applies to the special rule for determining
hours of service for reasons other than the performance of duties such as
payments calculated (or not calculated) on the basis of units of time and the
rule against double credit. The reference to paragraph (c) applies to the
crediting of hours of service to computation periods.

Hours-of-Service shall be credited for employment with any other employer
required to be aggregated with the Employer under Code Sections 414(b), (c), (m)
or (o) and the regulations thereunder for purposes of eligibility and vesting.
Hours-of-Service shall also be credited for any individual who is considered an
employee for purposes of this Plan pursuant to Code Section 414(n) or (o) and
the regulations thereunder.

Solely for purposes of determining whether a one-year break in service has
occurred for eligibility or vesting purposes, during a Parental Absence an
Employee shall be credited with the Hours-of-Service which otherwise would
normally have been credited to the Employee but for such absence, or in any case
in which such hours cannot be determined, eight Hours-of-Service per day of such
absence. The Hours-of-Service credited under this paragraph shall be credited in
the computation period in which the absence begins if the crediting is necessary
to prevent a break in service in that period; or in all other cases, in the
following computation period.

INACTIVE PARTICIPANT means a former Active Participant who has an Account. See
the INACTIVE PARTICIPANT SECTION of Article II.

INSURER means Principal Life Insurance Company and any other insurance company
or companies named by the Trustee or Primary Employer.

INVESTMENT FUND means the total of Plan assets, excluding the guaranteed benefit
policy portion of any Annuity Contract. All or a portion of these assets may be
held under the Trust Agreement.

The Investment Fund shall be valued at current fair market value as of the
Valuation Date. The valuation shall take into consideration investment earnings
credited, expenses charged, payments made, and changes in the values of the
assets held in the Investment Fund.

The Investment Fund shall be allocated at all times to Participants, except as
otherwise expressly provided in the Plan. The Account of a Participant shall be
credited with its share of the gains and losses of the Investment Fund. That
part of a Participant's Account invested in a funding arrangement which
establishes one or more accounts or investment vehicles for such Participant
thereunder shall be credited with the gain or loss from such accounts or
investment vehicles. The part of a Participant's Account which is invested in
other funding arrangements shall be credited with a proportionate share of the
gain or loss of such investments. The share shall be determined by multiplying
the gain or loss of the investment by the ratio of the part of the Participant's
Account invested in such funding arrangement to the total of the Investment Fund
invested in such funding arrangement.

INVESTMENT MANAGER means any fiduciary (other than a trustee or Named Fiduciary)

RESTATEMENT JANUARY 1, 1997               13
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(a)   who has the power to manage, acquire, or dispose of any assets of the
      Plan; and

(b)   who (i) is registered as an investment advisor under the Investment
      Advisors Act of 1940; (ii) is not registered as an investment advisor
      under such Act by reason of paragraph (1) of section 203A(a) of such Act,
      is registered as an investment advisor under the laws of the state
      (referred to in such paragraph (1)) in which it maintains its principle
      office and place of business, and, at the time it last filed the
      registration form most recently filed by it with such state in order to
      maintain its registration under the laws of such state, also filed a copy
      of such form with the Secretary of Labor, (iii) is a bank, as defined in
      that Act; or (iv) is an insurance company qualified to perform services
      described in subparagraph (a) above under the laws of more than one state;
      and

(c)   who has acknowledged in writing being a fiduciary with respect to the
      Plan.

LATE RETIREMENT DATE means the first day of any month which is after the date a
Participant's Normal Retirement Date and on which retirement benefits begin. If
a Participant continues to work for the Employer after his Normal Retirement
Date, his Late Retirement Date shall be the earliest first day of the month on
or after he ceases to be an Employee. An earlier or a later Retirement Date may
apply if the Participant so elects. An earlier Retirement Date may apply if the
Participant is age 70 1/2. See the WHEN BENEFITS START SECTION of Article V.

LEASED EMPLOYEE means any person (other than an employee of the recipient) who,
pursuant to an agreement between the recipient and any other person ("leasing
organization"), has performed services for the recipient (or for the recipient
and related persons determined in accordance with Code Section 414(n)(6)) on a
substantially full time basis for a period of at least one year, and such
services are performed under primary direction or control by the recipient.
Contributions or benefits provided by the leasing organization to a Leasing
Employee, which are attributable to service performed for the recipient
employer, shall be treated as provided by the recipient employer.

A Leased Employee shall not be considered an employee of the recipient if:

(a)   such employee is covered by a money purchase pension plan providing (i) a
      nonintegrated employer contribution rate of at least 10 percent of
      compensation, as defined in Code Section 415(c)(3), but including amounts
      contributed pursuant to a salary reduction agreement which are excludible
      from the employee's gross income under Code Sections 125, 402(e)(3),
      402(h)(1)(B) or 403(b), (ii) immediate participation, and (iii) full and
      immediate vesting, and

(b)   Leased Employees do not constitute more than 20 percent of the recipient's
      nonhighly compensated workforce.

LOAN ADMINISTRATOR means the person(s) or position(s) authorized to administer
the Participant loan program.

The Loan Administrator is Karen Kindermann.

MATCHING CONTRIBUTIONS means contributions made by the Employer to fund this
Plan which are contingent on a Participant's Elective Deferral Contributions.
See the EMPLOYER CONTRIBUTIONS SECTION of Article III.

MONTHLY DATE means each Yearly Date and the same day of each following month
during the Plan Year beginning on such Yearly Date.

RESTATEMENT JANUARY 1, 1997               14
<PAGE>

NAMED FIDUCIARY means the person or persons who have authority to control and
manage the operation and administration of the Plan.

The Named Fiduciary is the Employer.

NONHIGHLY COMPENSATED EMPLOYEE means an Employee of the Employer who is not a
Highly Compensated Employee.

NONVESTED ACCOUNT means the excess, if any, of a Participant's Account over his
Vested Account.

NORMAL FORM means a single life annuity with installment refund.

NORMAL RETIREMENT AGE means the age at which the Participant's normal retirement
benefit becomes nonforfeitable if he is an Employee. A Participant's Normal
Retirement Age is 65.

NORMAL RETIREMENT DATE means the date the Participant reaches his Normal
Retirement Age. Unless otherwise provided in this Plan, a Participant's
retirement benefits shall begin on a Participant's Normal Retirement Date if he
has ceased to be an Employee on such date and has a Vested Account. Even if the
Participant is an Employee on his Normal Retirement Date, he may choose to have
his retirement benefit begin on such date. See the WHEN BENEFITS START SECTION
of Article V.

OWNER-EMPLOYEE means a Self-employed Individual who, in the case of a sole
proprietorship, owns the entire interest in the unincorporated trade or business
for which this Plan is established. If this Plan is established for a
partnership, an Owner-employee means a Self-employed Individual who owns more
than 10 percent of either the capital interest or profits interest in such
partnership.

OPTIONAL CONTRIBUTIONS means contributions by Participants which are not
required as a condition of employment or participation, but are required for
obtaining additional benefits from Employer Contributions. See the OPTIONAL
CONTRIBUTIONS BY PARTICIPANTS SECTION of Article III.

PARENTAL ABSENCE means an Employee's absence from work:

(a)   by reason of pregnancy of the Employee,

(b)   by reason of birth of a child of the Employee,

(c)   by reason of the placement of a child with the Employee in connection with
      adoption of such child by such Employee, or

(d)   for purposes of caring for such child for a period beginning immediately
      following such birth or placement.

PARTICIPANT means either an Active Participant or an Inactive Participant.

PERIOD OF MILITARY DUTY means, for an Employee

(a)   who served as a member of the armed forces of the United States, and

RESTATEMENT JANUARY 1, 1997               15
<PAGE>

(b)   who was reemployed by the Employer at a time when the Employee had a right
      to reemployment in accordance with seniority rights as protected under
      Chapter 43 of Title 38 of the U. S. Code,

the period of time from the date the Employee was first absent from active work
for the Employer because of such military duty to the date the Employee was
reemployed.

PLAN means the 401(k) plan of the Employer set forth in this document, including
any later amendments to it.

PLAN ADMINISTRATOR means the person or persons who administer the Plan.

The Plan Administrator is the Employer.

PLAN FUND means the total of the Investment Fund and the guaranteed benefit
policy portion of any Annuity Contract. The Investment Fund shall be valued as
stated in it definition. The guaranteed benefit policy portion of any Annuity
Contract shall be determined in accordance with the terms of the Annuity
Contract and, to the extent that such Annuity Contract allocates values to
Participants, allocated to Participants in accordance with its terms. The total
value of all amounts held under the Plan Fund shall equal the value of the
aggregate Participant's Accounts under the Plan.

PLAN YEAR means a period beginning on a Yearly Date and ending on the day before
the next Yearly Date.

PREDECESSOR EMPLOYER means a firm of which the Employer was once a part (e.g.,
due to a spin off or change of corporate status) or a firm absorbed by the
Employer because of a merger or acquisition (stock or asset, including a
division or an operation of such company).

PRIMARY EMPLOYER means Warrantech Corporation.

QUALIFIED JOINT AND SURVIVOR ANNUITY means, for a Participant who has a spouse,
an immediate survivorship life annuity with installment refund, where the
survivorship percentage is 50% and the Contingent Annuitant is the Participant's
spouse. A former spouse will be treated as the spouse to the extent provided
under a qualified domestic relations order as described in Code Section 414(p).

The amount of benefit payable under the Qualified Joint and Survivor Annuity
shall be the amount of benefit which may be provided by the Participant's Vested
Account.

QUALIFIED MATCHING CONTRIBUTIONS means Matching Contributions which are 100
percent vested and subject to the distribution restrictions of Code Section
401(k) when made. See the EMPLOYER CONTRIBUTIONS SECTION of Article III and the
WHEN BENEFITS START SECTION of Article V.

QUALIFIED NONELECTIVE CONTRIBUTIONS means contributions made by the Employer to
fund this Plan (other than Elective Deferral Contributions and Qualified
Matching Contributions) which are 100% vested and subject to the distribution
restrictions of Code Section 401(k) when made. See the EMPLOYER CONTRIBUTIONS
SECTION of Article III and the WHEN BENEFITS START SECTION of Article V.

QUALIFIED PRERETIREMENT SURVIVOR ANNUITY means a single life annuity with
installment refund payable to the surviving spouse of a Participant who dies
before his Annuity Starting Date. A former spouse will be treated as the
surviving spouse to the extent provided under a qualified domestic relations
order as described in Code Section 414(p).

RESTATEMENT JANUARY 1, 1997               16
<PAGE>

QUALIFYING EMPLOYER SECURITIES means any security which is issued by the
Employer or any Controlled Group member and which meets the requirements of Code
Section 409(I) and ERISA Section 407(d)(5). This shall also include any
securities that satisfied the requirements of the definition when these
securities were assigned to the Plan.

QUALIFYING EMPLOYER SECURITIES FUND means that part of the assets of the Trust
Fund that are designated to be held primarily or exclusively in Qualifying
Employer Securities for the purpose of providing benefits for Participants.

QUARTERLY DATE means each Yearly Date and the third, sixth and ninth Monthly
Date after each Yearly Date which is within the same Plan Year.

REEMPLOYMENT COMMENCEMENT DATE means the date an Employee first performs an
Hour-of-Service following an Eligibility or a Vesting Break in Service,
whichever applies.

REENTRY DATE means the date a former Active Participant reenters the Plan. See
the ACTIVE PARTICIPANT SECTION of Article II.

RETIREMENT DATE means the date a retirement benefit will begin and is a
Participant's Normal or Late Retirement Date, as the case may be.

ROLLOVER CONTRIBUTIONS means the Rollover Contributions which are made by an
Eligible Employee or an Inactive Participant according to the provisions of the
ROLLOVER CONTRIBUTIONS SECTION of Article III.

SELF-EMPLOYED INDIVIDUAL means, with respect to any Fiscal Year, an individual
who has Earned Income for the Fiscal Year (or who would have Earned Income but
for the fact the trade or business for which this Plan is established did not
have net profits for such Fiscal Year).

TOTALLY AND PERMANENTLY DISABLED means the total and permanent inability to meet
the requirements of the Participant's customary employment which can be expected
to last for a continuous period of not less than 12 months.

TRUST AGREEMENT means an agreement of trust between the Primary Employer and
Trustee established for the purpose of holding and distributing the Trust Fund
under the provisions of the Plan. The Trust Agreement may provide for the
investment of all or any portion of the Trust Fund in the Annuity Contract.

TRUST FUND means the total funds held under the Trust Agreement.

TRUSTEE means the party or parties named in the Trust. The term Trustee as it is
used in this Plan is deemed to include the plural unless the context clearly
indicates the singular is meant.

VALUATION DATE means the date on which the value of the assets of the Investment
Fund is determined. The value of each Account which is maintained under this
Plan shall be determined on the Valuation Date. In each Plan Year, the Valuation
Date shall be the last day of the Plan Year. At the discretion of the Plan
Administrator, Trustee, or Insurer (whichever applies), assets of the Investment
Fund may be valued more frequently. These dates shall also be Valuation Dates.

RESTATEMENT JANUARY 1, 1997               17
<PAGE>

VESTED ACCOUNT means the vested part of a Participant's Account. The
Participant's Vested Account is equal to that part of his Account which results
from Contributions which were 100% vested when made before his Vesting
Percentage is 100% and is equal to his Account when his Vesting Percentage is
100%.

The Participant's Vested Account is nonforfeitable.

VESTING BREAK IN SERVICE means a Vesting Computation Period in which an Employee
is credited with 500 or fewer Hours-of-Service. An Employee incurs a Vesting
Break in Service on the last day of a Vesting Computation Period in which he has
a Vesting Break in Service.

VESTING COMPUTATION PERIOD means a consecutive 12-month period ending on the
last day of each Plan Year, including corresponding consecutive 12-month periods
before January 1, 1993.

VESTING PERCENTAGE means the percentage used to determine the nonforfeitable
portion of a Participant's Account attributable to Employer Contributions which
were not 100% vested when made.

A Participant's Vesting Percentage is shown in the following schedule opposite
the number of whole years of his Vesting Service.

                   VESTING SERVICE                      VESTING
                    (whole years)                     PERCENTAGE

                     Less than 3                            0
                      3 or more                           100

The Vesting Percentage for a Participant who is an Employee on or after the date
he reaches his Normal Retirement Age shall be 100%. The Vesting Percentage for a
Participant who is an Employee on the date he becomes Totally and Permanently
Disabled or dies shall be 100%.

If the schedule used to determine a Participant's Vesting Percentage is changed,
the new schedule shall not apply to a Participant unless he is credited with an
Hour-of-Service on or after the date of the change and the Participant's
nonforfeitable percentage on the day before the date of the change is not
reduced under this Plan. The amendment provisions of the AMENDMENT SECTION of
Article X regarding changes in the computation of the Vesting Percentage shall
apply.

VESTING SERVICE means one year of service for each Vesting Computation Period in
which an Employee is credited with at least 1,000 Hours-of-Service.

However, Vesting Service is modified as follows:

Period of Military Duty included:

      A Period of Military Duty shall be included as service with the Employer
      to the extent it has not already been credited. For purposes of crediting
      Hours-of-Service during the Period of Military Duty, an Hour-of-Service
      shall be credited (without regard to the 501 Hour-of-Service limitation)
      for each hour an Employee would normally have been scheduled to work for
      the Employer during such period.

Controlled Group service included:

RESTATEMENT JANUARY 1, 1997               18
<PAGE>

      An Employee's service with a member firm of a Controlled Group while both
      that firm and the Employer were members of the Controlled Group shall be
      included as service with the Employer.

YEARLY DATE means January 1, 1993, and the same day of each following year.

YEARS OF SERVICE means an Employee's Vesting Service disregarding any
modifications which exclude service.

RESTATEMENT JANUARY 1, 1997               19
<PAGE>

                                   ARTICLE II

                                  PARTICIPATION

SECTION 2.01--ACTIVE PARTICIPANT.

      (a)   An Employee shall first become an Active Participant (begin active
            participation in the Plan) on the earliest Quarterly Date on which
            he is an Eligible Employee and has met both of the eligibility
            requirements set forth below. This date is his Entry Date.

            (1)   He has completed one year of Eligibility Service before his
                  Entry Date.

            (2)   He is age 21 or older.

            Each Employee who was an Active Participant under the Plan on
            December 31, 1996, shall continue to be an Active Participant if he
            is still an Eligible Employee on January 1, 1997, and his Entry Date
            shall not change.

            If a person has been an Eligible Employee who has met all the
            eligibility requirements above, but is not an Eligible Employee on
            the date which would have been his Entry Date, he shall become an
            Active Participant on the date he again becomes an Eligible
            Employee. This date is his Entry Date.

            In the event an Employee who is not an Eligible Employee becomes an
            Eligible Employee, such Eligible Employee shall become an Active
            Participant immediately if such Eligible Employee has satisfied the
            eligibility requirements above and would have otherwise previously
            become an Active Participant had he met the definition of Eligible
            Employee., This date is his Entry Date.

      (b)   An Inactive Participant shall again become an Active Participant
            (resume active participation in the Plan) on the date he again
            performs an Hour-of-Service as an Eligible Employee. This date is
            his Reentry Date.

            Upon again becoming an Active Participant, he shall cease to be an
            Inactive Participant.

      (c)   A former Participant shall again become an Active Participant
            (resume active participation in the Plan) on the date he again
            performs an Hour-of-Service as an Eligible Employee. This date is
            his Reentry Date.

      There shall be no duplication of benefits for a Participant under this
      Plan because of more than one period as an Active Participant.

SECTION 2.02--INACTIVE PARTICIPANT.

      An Active Participant shall become an Inactive Participant (stop accruing
benefits under the Plan) on the earlier of the following:

      (a)   The date the Participant ceases to be an Eligible Employee, or

      (b)   The effective date of complete termination of the Plan under Article
            VIII.

      An Employee or former Employee who was an Inactive Participant under the
Plan on December 31, 1996, shall continue to be an Inactive Participant on
January 1, 1997. Eligibility for any benefits payable to the Participant or on
his

RESTATEMENT JANUARY 1, 1997               20
<PAGE>

behalf and the amount of the benefits shall be determined according to the
provisions of the prior document, unless otherwise stated in this document.

SECTION 2.03--CESSATION OF PARTICIPATION.

      A Participant shall cease to be a Participant on the date he is no longer
an Eligible Employee and his Account is zero.

SECTION 2.04--ADOPTING EMPLOYERS - SINGLE PLAN.

      Each of the Controlled Group members listed below is an Adopting Employer.
Each Adopting Employer listed below participates with the Employer in this Plan.
An Adopting Employer's agreement to participate in this Plan shall be in
writing.

      The Employer has the right to amend the Plan. An Adopting Employer does
not have the right to amend the Plan.

      If the Adopting Employer did not maintain its plan before its date of
adoption specified below, its date of adoption shall be the Entry Date for any
of its Employees who have met the requirements in the ACTIVE PARTICIPANT SECTION
of Article II as of that date. Service with and Compensation from an Adopting
Employer shall be included as service with and Compensation from the Employer.
Transfer of employment, without interruption, between an Adopting Employer and
another Adopting Employer or the Employer shall not be considered an
interruption of service. The Employer's Fiscal Year defined in the DEFINITIONS
SECTION of Article I shall be the Fiscal Year used in interpreting this Plan for
Adopting Employers.

      Contributions made by an Adopting Employer shall be treated as
Contributions made by the Employer. Forfeitures arising from those Contributions
shall be used for the benefit of all Participants.

      An employer shall not be an Adopting Employer if it ceases to be a
Controlled Group member. Such an employer may continue a retirement plan for its
Employees in the form of a separate document. This Plan shall be amended to
delete a former Adopting Employer from the list below.

      If (i) an employer ceases to be an Adopting Employer or the Plan is
amended to delete an Adopting Employer and (ii) the Adopting Employer does not
continue a retirement plan for the benefit of its Employees, partial termination
may result and the provisions of Article VIII shall apply.

                               ADOPTING EMPLOYERS

NAME                             DATE OF ADOPTION

Warrantech Automotive, Inc.                  January 1, 1993

Warrantech Consumer
Products Services, Inc.                      January 1, 1993

Warrantech Help Desk, Inc.                   January 1, 1993

Warrantech Home Service Company              January 1, 1993

Warrantech International, Inc.               January 1, 1993
Warrantech Direct, Inc.                      January 1, 1993

RESTATEMENT JANUARY 1, 1997               21
<PAGE>

                                   ARTICLE III

                                  CONTRIBUTIONS

SECTION 3.01--EMPLOYER CONTRIBUTIONS.

      Employer Contributions shall be made without regard to current or
accumulated net income, earnings, or profits of the Employer. Notwithstanding
the foregoing, the Plan shall continue to be designed to qualify as a profit
sharing plan for purposes of Code Sections 401(a), 402, 412, and 417. Such
Contributions shall be equal to the Employer Contributions as described below:

      (a)   The amount of each Elective Deferral Contribution for a Participant
            shall be equal to a portion of Compensation as specified in the
            elective deferral agreement. An Employee who is eligible to
            participate in the Plan may file an elective deferral agreement with
            the Employer. The Participant shall modify or terminate the elective
            deferral agreement by filing a new elective deferral agreement. The
            elective deferral agreement may not be made retroactively and shall
            remain in effect until modified or terminated.

            The elective deferral agreement to start or modify Elective Deferral
            Contributions shall be effective on the first day of the first pay
            period following the pay period in which the Participant's Entry
            Date (Reentry Date, if applicable) or any following Quarterly Date
            occurs. The elective deferral agreement must be entered into on or
            before the date it is effective.

            The elective deferral agreement to stop Elective Deferral
            Contributions may be entered into on any date. Such elective
            deferral agreement shall be effective on the first day of the pay
            period following the pay period in which the elective deferral
            agreement is entered into.

            Elective Deferral Contributions cannot be more than 20% of
            Compensation for the pay period.

            Elective Deferral Contributions are fully (100%) vested and
            nonforfeitable.

      (b)   Matching Contributions

            (1)   The Employer may make discretionary Matching Contributions.
                  The percentage of Elective Deferral Contributions matched, if
                  any, shall be a percentage as determined by the Employer.
                  Elective Deferral Contributions which are over a percentage of
                  Compensation won't be matched. The percentage shall be
                  determined by the Employer.

                  Matching Contributions are calculated based on Elective
                  Deferral Contributions and Compensation for the pay period.
                  Matching Contributions shall be made for all persons who were
                  Active Participants at any time during that pay period.

            (2)   The Employer may make additional Matching Contributions if the
                  total Matching Contributions determined below are greater than
                  the amount of Matching Contributions determined in (1) above
                  for the Plan Year. This additional matching contribution shall
                  be a Qualified Matching Contribution. Additional Marching
                  Contributions, if any, shall be made for all persons who were
                  Active Participants at any time during the Plan Year.

                  Total Matching Contributions for the Plan Year shall be a
                  percentage of Elective Deferral Contributions

RESTATEMENT JANUARY 1, 1997               22
<PAGE>

                  and shall be calculated based on Elective Deferral
                  Contributions and Compensation for the Plan Year. The
                  percentage shall be determined by the Employer. The percentage
                  must be equal to or greater than the percentage determined by
                  (1) above.

                  Elective Deferral Contributions which are over a percentage of
                  Compensation won't be matched. The percentage is the
                  percentage determined in (1) above or a greater percentage
                  determined by the Employer.

                  Total Matching Contributions for the Plan Year shall be based
                  on a two step tiered formula like the one used in (1) above
                  and shall be calculated based on Elective Deferral
                  Contributions and Compensation for the Plan Year. The
                  percentages (both the rate of match and the level of Elective
                  Deferral Contributions matched) shall be determined by the
                  Employer. The percentages in the formula must be equal to or
                  greater than the percentages specified in the formula in (1)
                  above and the rate of Matching Contributions cannot increase
                  as Elective Deferral Contributions increase.

                  The amount of additional Matching Contributions determined in
                  (1) above for the Plan Year from total matching Contributions
                  for the Plan Year.

            Any percentage determined by the Employer shall apply to all
            eligible persons for the entire Plan Year.

            Qualified Matching Contributions shall be made only for Nonhighly
            Compensated Employees.

            Matching Contributions are subject to the Vesting Percentage,
            Qualified Matching Contributions are 100% vested and subject to the
            distribution restriction of Code Section 401(k) when made.

      (c)   Qualified Nonelective Contributions may be made for each Plan Year
            in an amount determined by the Employer.

            Qualified Nonelective Contributions are 100% vested and subject to
            the distribution restrictions of Code Section 401(k) when made.

      No Participant shall be permitted to have Elective Deferral Contributions,
as defined in the EXCESS AMOUNTS SECTION of this article, made under this Plan,
or any other qualified plan maintained by the Employer, during any taxable year,
in excess of the dollar limitation contained in Code Section 402(g) in effect at
the beginning of such taxable year.

      An elective deferral agreement (or change thereto) must be made in such
manner and in accordance with such rules as the Employer may prescribe
(including by means of voice response or other electronic system under
circumstances the Employer permits) and may not be made retroactively.

      Employer Contributions are allocated according to the provisions of the
ALLOCATION SECTION of this article.

      The Employer may make all or any portion of the following Contributions,
which are to be invested in Qualifying Employer Securities, to the Trustee in
the form of Qualifying Employer Securities:

      Matching Contributions
      Qualified Matching Contributions

      A portion of the Plan assets resulting from Employer Contributions (but
not more than the original amount of those

RESTATEMENT JANUARY 1, 1997               23
<PAGE>

Contributions) may be returned if the Employer Contributions are made because of
a mistake of fact or are more than the amount deductible under Code Section 404
(excluding any amount which is not deductible because the Plan is disqualified).
The amount involved must be returned to the Employer within one year after the
date the Employer Contributions are made by mistake of fact or the date the
deduction is disallowed, whichever applies. Except as provided under this
paragraph and Article VIII, the assets of the Plan shall never be used for the
benefit of the Employer and are held for the exclusive purpose of providing
benefits to Participants and their Beneficiaries and for defraying reasonable
expenses of administering the Plan.

SECTION 3.01A--ROLLOVER CONTRIBUTIONS.

      A Rollover Contribution may be made by an Eligible Employee or an Inactive
Participant if the following conditions are met:

      (a)   The Contribution is of amounts distributed from a plan that
            satisfies the requirements of Code Section 401(a) or from a
            "conduit" individual retirement account described in Code Section
            408(d)(3)(A). In the case of an Inactive Participant, the
            Contribution must be of an amount distributed from another plan of
            the Employer, or a plan of a Controlled Group member, that satisfies
            the requirements of Code Section 401(a).

      (b)   The Contribution is of amounts that the Code permits to be
            transferred to a plan that meets the requirements of Code Section
            401(a).

      (c)   The Contribution is made in the form of a direct rollover under Code
            Section 401(a)(31) or is a rollover made under 402(c) or
            408(d)(3)(A) within 60 days after the Eligible Employee or Inactive
            Participant receives the distribution.

      (d)   The Eligible Employee or Inactive Participant furnishes evidence
            satisfactory to the Plan Administrator that the proposed rollover
            meets conditions (a), (b), and (c) above.

      A Rollover Contribution shall be allowed in cash only and must be made
according to procedures set up by the Plan Administrator.

      If the Eligible Employee is not an Active Participant when the Rollover
Contribution is made, he shall be deemed to be an Active Participant only for
the purposes of investment and distribution of the Rollover Contribution.
Employer Contributions shall not be made for or allocated to the Eligible
Employee until the time he meets all of the requirements to become an Active
Participant.

      Rollover Contributions made by an Eligible Employee or Inactive
Participant shall be credited to his Account. The part of the Participant's
Account resulting from Rollover Contributions is fully (100%) vested and
nonforfeitable at all times. A separate accounting record shall be maintained
for that part of his Rollover Contributions consisting of voluntary
contributions which were deducted from the Participant's gross income for
Federal income tax purposes.

SECTION 3.02--FORFEITURES.

      The Nonvested Account of a Participant shall be forfeited as of the
earlier of the following:

      (a)   the date the Participant dies (if prior to such date he had ceased
            to be an Employee), or

      (b)   the Participant's Forfeiture Date.

RESTATEMENT JANUARY 1, 1997               24
<PAGE>

All or a part of a Participant's Nonvested Account shall be forfeited before
such earlier date if, after he ceases to be an Employee, he receives, or is
deemed to receive, a distribution of his entire Vested Account or a distribution
of his Vested Account derived from Employer Contributions which were not 100%
vested when made, under the RETIREMENT BENEFITS SECTION of Article V, the VESTED
BENEFITS SECTION of Article V or the SMALL AMOUNTS SECTION of Article X. The
forfeiture shall occur as of the date the Participant receives, or is deemed to
receive, the distribution. If a Participant receives, or is deemed to receive,
his entire Vested Account, his entire Nonvested Account shall be forfeited. If a
Participant receives a distribution of his Vested Account from Employer
Contributions which were not 100% vested when made, but less than his entire
Vested Account from such Contributions, the amount to be forfeited shall be
determined by multiplying his Nonvested Account from such Contributions by a
fraction. The numerator of the fraction is the amount of the distribution
derived from Employer Contributions which were not 100% vested when made and the
denominator of the fraction is his entire Vested Account derived from such
Contributions on the date of distribution.

      A Forfeiture shall also occur as described in the EXCESS AMOUNTS SECTION
of this article.

      Forfeitures shall be determined at least once during each Plan Year.
Forfeitures may first be used to pay administrative expenses. Forfeitures of
Matching Contributions which relate to excess amounts as provided in the EXCESS
AMOUNTS SECTION of this article, which have not been used to pay administrative
expenses, shall be applied to reduce the earliest Employer Contributions made
after the Forfeitures are determined. Any other Forfeitures which have not been
used to pay administrative expenses shall be applied to reduce the earliest
Employer Contributions made after the Forfeitures are determined. Upon their
application to reduce Employer Contributions, Forfeitures shall be deemed to be
Employer Contributions.

      If a Participant again becomes an Eligible Employee after receiving a
distribution which caused all or a portion of his Vested Account to be
forfeited, he shall have the right to repay to the Plan the entire amount of the
distribution he received (excluding any amount of such distribution resulting
from Contributions which were 100% vested when made). The repayment must be made
in a single sum (repayment in installments is not permitted) before the earlier
of the date five years after the date he again becomes an Eligible Employee or
the end of the first period of five consecutive Vesting Breaks in Service which
begin after the date of the distribution.

      If the Participant makes the repayment above, the Plan Administrator shall
restore to his Account an amount equal to his Nonvested Account which was
forfeited on the date of distribution, unadjusted for any investment gains or
losses. If no amount is to be repaid because the Participant was deemed to have
received a distribution, or only received a distribution of Contributions which
were 100% vested when made, and he again performs an Hour-of-Service as an
Eligible Employee within the repayment period, the Plan Administrator shall
restore the Participant's Account as if he had made a required repayment on the
date he performed such Hour-of-Service. Restoration of the Participant's Account
shall include restoration of all Code Section 411(d)(6) protected benefits with
respect to that restored Account, according to applicable Treasury regulations.
Provided, however, the Plan Administrator shall not restore the Nonvested
Account if (i) a Forfeiture Date has occurred after the date of the distribution
and on or before the date of repayment and (ii) that Forfeiture Date would
result in a complete forfeiture of the amount the Plan Administrator would
otherwise restore.

      The Plan Administrator shall restore the Participant's Account by the
close of the Plan Year following the Plan Year in which repayment is made.
Permissible sources for the restoration of the Participant's Account are
Forfeitures or special Employer Contributions. Such special Employer
Contributions shall be made without regard to profits. The repaid and restored
amounts are not included in the Participant's Annual Addition, as defined in the
CONTRIBUTION LIMITATION SECTION of this article.

RESTATEMENT JANUARY 1, 1997               25
<PAGE>

SECTION 3.03--ALLOCATION.

      A person meets the allocation requirements of this section if he was an
Active Participant at any time during the Plan Year.

      Elective Deferral Contributions shall be allocated to Participants for
whom such Contributions are made under the EMPLOYER CONTRIBUTIONS SECTION of
this article. Such Contributions shall be allocated when made and credited to
the Participant's Account.

      Matching Contributions and Qualified Matching Contributions shall be
allocated to the persons for whom such Contributions are made under the EMPLOYER
CONTRIBUTIONS SECTION of this article. Such Contributions calculated based on
Elective Deferral Contributions and Compensation for the pay period shall be
allocated when made and credited to the person's Account. Such Contributions
calculated based on Elective Deferral Contributions and Compensation for the
Plan Year shall be allocated as of the last day of the Plan Year and shall be
credited to the person's Account. Qualified Matching Contributions are allocated
to persons who meet the allocation requirements of this section.

      Qualified Nonelective Contributions shall be allocated as of the last day
of the Plan Year to each person who was an Active Participant at any time during
the Plan Year. Such Qualified Nonelective Contributions shall be allocated only
to Nonhighly Compensated Employees. The amount allocated to such person for the
Plan Year shall be equal to such Qualified Nonelective Contributions multiplied
by the ratio of such person's Annual Compensation for the Plan Year to the total
Annual Compensation of all such persons. This amount shall be credited to the
person's Account.

      If Leased Employees are Eligible Employees, in determining the amount of
Employer Contributions allocated to a person who is a Leased Employee,
contributions provided by the leasing organization which are attributable to
services such Leased Employee performs for the Employer shall be treated as
provided by the Employer. Those contributions shall not be duplicated under this
Plan.

SECTION 3.04--CONTRIBUTION LIMITATION.

      (a)   Definitions. For the purpose of determining the contribution
            limitation set forth in this section, the following terms are
            defined:

            ANNUAL ADDITIONS means the sum of the following amounts credited to
            a Participant's account for the Limitation Year:

            (1) employer contributions;

            (2) employee contributions; and

            (3) forfeitures.

            Annual Additions to a defined contribution plan shall also include
            the following:

            (4) amounts allocated, after March 31, 1984, to an individual
            medical account, as defined in Code Section 415(I)(2), which are
            part of a pension or annuity plan maintained by the Employer,

            (5) amounts derived from contributions pat or accrued after December
            31, 1985, in taxable years ending after such date, which are
            attributable to post-retirement medical benefits, allocated to the
            separate account of a

                                       26
<PAGE>

            key employee, as defined in Code Section 419(d)(3), under a welfare
            benefit fund, as defined in Code Section 419(e), maintained by the
            Employer; and

            (6) allocations under a simplified employee pension.

            For this purpose, any Excess Amount applied under (e) below in the
            Limitation Year to reduce Employer Contributions shall be considered
            Annual Additions for such Limitation Year.

            COMPENSATION means wages within the meaning of Code Section 3401(a)
            and all other payments of compensation to an Employee by the
            Employer (in the course of the Employer's trade or business) for
            which the Employer is required to furnish the Employee a written
            statement under Code Sections 6041(d), 6051(a)(3), and 6052.
            Compensation must be determined without regard to any rules under
            Code Section 3401(a) that limit the remuneration included in wages
            based on the nature or location of the employment or the services
            performed (such as the exception for agricultural labor in Code
            Section 3401(a)(2)). The amount reported in the "Wages, Tips and
            Other Compensation" box on Form W-2 satisfies this definition.

            For any Self-employed Individual, Compensation shall mean Earned
            Income.

            For purposed of applying the limitations of this section,
            Compensation for a Limitation Year is the Compensation actually paid
            or made available in gross income during such Limitation year.

            For Limitation Years beginning after December 31, 1997, for purposes
            of applying the limitations of this section, Compensation paid or
            made available during such Limitations Year shall include any
            elective deferral (as defined in Code Section 402(g)(3)), and any
            amount which is contributed or deferred by the Employer at the
            election of the Employee and which is not includible in the gross
            income of the Employee by reason of Code Section 125, 132(f)(4), or
            457.

            DEFINED BENEFIT PLAN FRACTION means a fraction, the numerator of
            which is the sum of the Participant's Projected Annual Benefits
            under all the defined benefit plans (whether or not terminated)
            maintained by the Employer, and the denominator of which is the
            lesser of (i) 125 percent of the dollar limitation determined for
            the Limitation Year under Code Sections 415(b)(1)(A) and (d) or (ii)
            140 percent of the Highest Average Compensation, including any
            adjustments under Code Section 415(b)(5).

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

            DEFINED CONTRIBUTION DOLLAR LIMITATION means, for Limitation Years
            beginning after December 31, 1994, $30,000, as adjusted under Code
            Section 415(d).

            DEFINED CONTRIBUTION PLAN FRACTION means a fraction, the numerator
            of which is the sum of the Annual Additions to the Participant's
            account under all the defined contribution plans (whether or not
            terminated) maintained by the Employer for the current and all prior
            Limitation Years (including the Annual

RESTATEMENT JANUARY 1, 1997               27
<PAGE>

            Additions attributable to the Participant's nondeductible employee
            contributions to all defined benefit plans, whether or not
            terminated, maintained by the Employer, and the Annual Additions
            attributable to all welfare benefit funds, individual medical
            accounts, and simplified employee pensions, maintained by the
            Employer), and the denominator of which is the sum of the maximum
            aggregated amounts for the current and all prior Limitation Years of
            service with the Employer (regardless of whether a defined
            contribution plan was maintained by the Employer). The maximum
            aggregate amount in any Limitation Year is the lesser of (i) 125
            percent of the dollar limitation under Code Section 415(c)(1)(A)
            after adjustment under Code Section 415(d) or (ii) 35 percent of the
            Participant's Compensation for such year.

            If the Employee was a participant as of the end of the first day of
            the first Limitation Year beginning after December 31, 1986, in one
            or more defined contribution plans maintained by the Employer which
            were in existence on May 6, 1986, the numerator of this fraction
            will be adjusted if the sum of this fraction and the Defined Benefit
            Fraction would otherwise exceed 1.0 under the terms of this Plan.
            Under the adjustment, an amount equal to the product of (i) the
            excess of the sum of the fractions over 1.0 times (ii) the
            denominator of this fraction, will be permanently subtracted from
            the numerator of this fraction. The adjustment is calculated using
            the fractions as they would be computed as of the end of the last
            Limitation Year beginning before January 1, 1987, and disregarding
            any changes in the terms and conditions of the plan made after May
            5,1986, but using the Code Section 415 limitation applicable to the
            first Limitation Year beginning on or after January 1, 1987.

            The Annual Addition for any Limitation Year beginning before January
            1, 1987, shall not be recomputed to treat all employee contributions
            as Annual Additions.

            EMPLOYER means the employer that adopts this Plan, and all members
            of a controlled group of corporations (as defined in Code Section
            414(b) as modified by Code Section 415(h)), all commonly controlled
            trades or businesses (as defined in Code Section 415(c) as modified
            by Code Section 415(h)) or affiliated service groups (as defined in
            Code Section 414(m)) of which the adopting employer is a part, and
            any other entity required to be aggregated with the employer
            pursuant to regulations under Code Section 414(o).

            EXCESS AMOUNT means the excess of the Participant's Annual Additions
            for the Limitation Year over the Maximum Permissible Amount.

            HIGHEST AVERAGE COMPENSATION means the average Compensation for the
            three consecutive Limitation Years while he was an Employee (actual
            consecutive Limitation Years while he was an Employee, if employed
            less than three years) that produces the highest average.

            LIMITATION YEAR means the consecutive 12-month period ending on the
            last day of each plan Year, including corresponding consecutive
            12-month periods before January 1, 1993. If the Limitation Year is
            other than the calendar year, execution of this Plan (or any
            amendment to this Plan changing the Limitation Year) constitutes the
            Employer's adoption of a written resolution electing the Limitation
            Year. If the Limitation Year is amended to a different consecutive
            12-month period, the new Limitation Year must begin on a date within
            the Limitation Year in which the amendment is made.

            MAXIMUM PERMISSIBLE AMOUNT means the maximum Annual Addition that
            may be contributed or allocated to a Participant's Account under the
            Plan for any Limitation Year. This amount shall not exceed the
            lesser of:

            (1)   The Defined Contribution Dollar Limitation, or

RESTATEMENT JANUARY 1, 1997               28
<PAGE>

            (2)   25 percent of the Participant's Compensation for the
                  Limitation Year.

            The compensation limitation referred to in (2) shall not apply to
            any contribution for medical benefits (within the meaning of Code
            Section 401(h) or 419A(f)(2)) which is otherwise treated as an
            Annual Addition under Code Section 415(I)(1) or 419A(d)(2).

            If a short Limitation Year is created because of an amendment
            changing the Limitation Year to a different consecutive 12-month
            period, the Maximum Permissible Amount will not exceed the Defined
            Contribution Dollar Limitation multiplied by the following fraction:

                       Number of months in the short Limitation Year
                       ---------------------------------------------
                                            12

            PROJECTED ANNUAL BENEFIT means the annual retirement benefit
            (adjusted to an actuarially equivalent straight life annuity if such
            benefit is expressed in a form other than a straight life annuity or
            qualified joint and survivor annuity) to which the Participant would
            be entitled under the terms of the plan assuming:

            (1) the Participant will continue employment until normal retirement
            age under the plan (or current age, if later), and

            (2) the Participant's Compensation for the current Limitation Year
            and all other relevant factors used to determine benefits under the
            Plan will remain constant for all future Limitation Years.

      (b)   If the Participant does not participate in, and has never
            participated in, another qualified plan maintained by the Employer
            or a welfare benefit fund, as defined in Code Section 419(e),
            maintained by the Employer, or an individual medical account, as
            defined in Code Section 415(I)(2), maintained by the Employer, or a
            simplified employee pension, as defined in Code Section 408(k),
            maintained by the Employer, which provides an Annual Addition, the
            amount of Annual Additions which may be credited to the
            Participant's Account for any Limitation Year shall not exceed the
            lesser of the Maximum Permissible Amount or any other limitation
            contained in this Plan. If the Employer Contribution that would
            otherwise be contributed or allocated to the Participant's Account
            would cause the Annual Additions for the Limitation Year to exceed
            the Maximum Permissible Amount, the amount contributed or allocated
            shall be reduced so that the Annual Additions for the Limitation
            Year will equal the Maximum Permissible Amount.

      (c)   Prior to determining the Participant's actual Compensation for the
            Limitation Year, the Employer may determine the Maximum Permissible
            Amount for a Participant on the basis of a reasonable estimation of
            the Participant's Compensation for the Limitation Year, uniformly
            determined for all Participants similarly situated.

      (d)   As soon as is administratively feasible after the end of the
            Limitation Year, the Maximum Permissible Amount for the Limitation
            Year will be determined on the basis of the Participant's actual
            Compensation for the Limitation Year.

      (e)   If a reasonable error in estimating a Participant's Compensation for
            the Limitation Year, a reasonable error in determining the amount of
            elective deferrals (within the meaning of Code Section 402(g)(3))
            that may be made with respect to any individual under the limits of
            Code Section 415, or under other facts and circumstances allowed by
            the Internal Revenue Service, there is an Excess Amount, the excess
            will be disposed of as follows:

RESTATEMENT JANUARY 1, 1997               29
<PAGE>

            (1) Any Elective Deferral Contributions that are not the basis for
            Matching Contributions (plus attributable earnings), to the extent
            they would reduce the Excess Amount, will be distributed to the
            Participant.

            (2) If after the application of (1) above an Excess Amount still
            exists, any Elective Deferral Contributions that are the basis for
            Matching Contributions (plus attributable earnings), to the extent
            they would reduce the Excess Amount, will distributed to the
            Participant. Concurrently with the distribution of such Elective
            Deferral Contributions, any Matching Contributions which relate to
            any Elective Deferral Contributions distributed in the preceding
            sentence, to the extent such application would reduce the Excess
            Amount, will be applied as provided in (3) or (4) below:

            (3) If after the application of (2) above an Excess Amount still
            exists, and the Participant is covered by the Plan at the end of the
            Limitation Year, the Excess Amount un the Participant's Account will
            be used to reduce Employer Contributions for such Participant in the
            next Limitation year, and each succeeding Limitation Year if
            necessary.

            (4) If after the application of (2) above an Excess Amount still
            exists, and the Participant is not covered by the Plan at the end of
            the Limitation Year, the Excess Amount will be held unallocated in a
            suspense account. The suspense account will be applied to reduce
            future Employer Contributions for all remaining Participants in the
            next Limitation Year, and each succeeding Limitation Year if
            necessary.

            (5) If a suspense account is in existence at any time during the
            Limitation Year pursuant to this (e), it will participate in the
            allocation of investment gains or losses. If a suspense account is
            in existence at any time during a particular Limitation Year, all
            amounts in the suspense account must be allocated and reallocated to
            Participant's Accounts before any Employer Contributions may be made
            to the Plan for that Limitation Year. Excess Amounts held in a
            suspense account may not be distributed to Participant's or former
            Participants.

      (f)   This (f) applies if, in addition to this Plan, the Participant is
            covered under another qualified defined contribution plan maintained
            by the Employer, as welfare benefit fund maintained by the Employer,
            an individual medical account maintained by the Employer, or a
            simplified employee pension maintained by the Employer which
            provides an Annual Addition during any Limitation Year. The
            aggregate Annual Additions under all such qualified defined
            contribution plans, welfare benefit funds, individual medical
            accounts, and simplified employee pensions for the Limitation Year
            will not exceed the Maximum Permissible Amount. Any reduction
            necessary shall be made first to the profit sharing plans, then to
            all other such qualified defined contribution plans and welfare
            benefit funds, individual medical accounts, and simplified employee
            pensions and, if necessary, by reducing first those that were most
            recently allocated. Welfare benefit funds and individual medical
            accounts shall be deemed to be allocated first. However, Elective
            Deferral Contributions shall be the last contributions reduce before
            the welfare benefit fund or individual medical account is reduced.

      (g)   If the Employer maintains, or at any time maintained, a qualified
            defined benefit plan covering any Participant in this Plan, the sum
            of the Participant's Defined Benefit Plan Fraction and Defined
            Contribution Plan Fraction will not exceed 1.0 in any Limitation
            Year. The Projected Annual Benefit shall be limited first. If the
            Participant's annual benefit(s) equal his Projected Annual Benefit,
            as limited, then Annual Additions to the defined contribution
            plan(s) shall be limited to the extent needed to reduce the sum to
            1.0 in the same manner in which the Annual Additions are limited to
            meet the Maximum Permissible Amount. This subparagraph shall cease
            to apply effective as of the first Limitation Year beginning on or
            after January 1, 2000.

RESTATEMENT JANUARY 1, 1997               30
<PAGE>

SECTION 3.05--EXCESS AMOUNTS.

(a)   Definitions. For the purposes of this section, the following terms are
      defined:

      ACP means the average (expressed as a percentage) of the Contribution
      Percentages of the Eligible Participants in a group.

      ADP means the average (expressed as a percentage) of the Deferral
      Percentages of the Eligible Participants in a group.

      AGGREGATE LIMIT means the greater of:

      (1)   The sum of:

            (i)   125 percent of the greater of the ADP of the Nonhighly
                  Compensated Employees for the prior Plan Year or the ACP of
                  the Nonhighly Compensated Employees under the Plan subject to
                  Code Section 401(m) for the Plan Year beginning with or within
                  the prior Plan Year of the cash or deferred arrangement, and

            (ii)  the lesser of 200 percent or two percent plus the lesser of
                  such ADP or ACP.

      (2)   The sum of:

            (i)   125 percent of the lesser of the ADP of the Nonhighly
                  Compensated Employees for the prior Plan Year or the ACP of
                  Nonhighly Compensated Employees under the Plan subject to Code
                  Section 401(m) for the Plan Year beginning with or within the
                  prior Plan Year of the cash or deferred arrangement, and

            (ii)  the lesser of 200 percent or two percent plus the greater of
                  such ADP or ACP.

      If the Employer has elected to use the current testing method, then, in
      calculating the Aggregate Limit for a particular Plan Year, the Nonhighly
      Compensated Employees' ADP and ACP for that Plan Year, instead of the
      prior Plan Year, is used.

      CONTRIBUTION PERCENTAGE means the ratio (expressed as a percentage) of the
      Eligible Participant's Contribution Percentage Amounts to the Eligible
      Participant's Compensation for the Plan Year (whether or not the Eligible
      Participant was an Eligible Participant for the entire Plan Year. In
      modification of the foregoing, Compensation shall be limited to the
      Compensation received while an Eligible Participant. For an Eligible
      Participant for whom such Contribution Percentage Amounts for the Plan
      Year are zero, the percentage is zero.

      CONTRIBUTION PERCENTAGE AMOUNTS means the sum of the Participant
      Contributions and Matching Contributions (that are not Qualified Matching
      Contributions taken into account for purposes of the ADP Test) made under
      the Plan on behalf of the Eligible Participant for the Plan Year. Such
      Contribution Percentage Amounts shall not include Matching Contributions
      that are forfeited either to correct Excess Aggregate Contributions or
      because the Contributions to which they relate are Excess Elective
      Deferrals, Excess Contributions, or Excess Aggregate Contributions. Under
      such rules as the Secretary of the Treasury shall prescribe, in
      determining the Contribution Percentage the Employer may elect to include
      Qualified Nonelective Contributions under this Plan which were not used in
      computing the Deferral Percentage. The Employer may also elect to use
      Elective Deferral Contributions in computing the Contribution Percentage
      so long as the ADP

RESTATEMENT JANUARY 1, 1997               31
<PAGE>

      Test is met before the Elective Deferral Contributions are used in the ACP
      Test and continues to be met following the exclusion of those Elective
      Deferral Contributions that are used to meet the ACP Test.

DEFERRAL PERCENTAGE means the ratio (expressed as a percentage) of Elective
Deferral Contributions under this Plan on behalf of the Eligible Participant for
the Plan Year to the Eligible Participant's Compensation for the Plan Year
(whether or not the Eligible Participant was an Eligible Participant for the
entire Plan Year). In modification of the foregoing, Compensation shall be
limited to the Compensation received while an Eligible Participant. The Elective
Deferral Contributions used to determine the Deferral Percentage shall include
Excess Elective Deferrals (other than Excess Elective Deferrals of Nonhighly
Compensated Employees that arise solely from Elective Deferral Contributions
made under this Plan or any other plans of the Employer or a Controlled Group
member), but shall exclude Elective Deferral Contributions that are used in
computing the Contribution Percentage (provided the ADP Test is satisfied both
with and without exclusion of these Elective Deferral Contributions). Under such
rules as the Secretary of the Treasury shall prescribe, the Employer may elect
to include Qualified Nonelective Contributions and Qualified Matching
Contributions under this Plan in computing the Deferral Percentage. For an
Eligible Participant for whom such contributions on his behalf for the Plan Year
are zero, the percentage is zero.

ELECTIVE DEFERRAL CONTRIBUTIONS means any employer contributions made to a plan
at the election of a Participant, in lieu of cash compensation, and shall
include contributions made pursuant to a salary reduction agreement or other
deferral mechanism. With respect to any taxable year, a participant's Elective
Deferral Contributions are the sum of all employer contributions made on behalf
of such participant pursuant to an election to defer under any qualified cash or
deferred arrangement described in Code Section 401(k), any salary reduction
simplified employee pension plan described in Code Section 408(k)(6), any SIMPLE
IRA plan described in Code Section 408(p), any eligible deferred compensation
plan under Code Section 457, any plan described under Code Section 501(c)(18),
and any employer contributions made on behalf of a participant for the purchase
of an annuity contract under Code Section 403(b) pursuant to a salary reduction
agreement. Elective Deferral Contributions shall not include any deferrals
properly distributed as excess annual additions.

ELIGIBLE PARTICIPANT means, for purposes of determining the Deferral Percentage,
      any Employee who is otherwise entitled to make Elective Deferral
      Contributions under the terms of the Plan for the Plan Year. Eligible
      Participant means, for purposes of determining the Contribution
      Percentage, any Employee who is eligible (i) to make a Participant
      Contribution or an Elective Deferral Contribution (if the Employer takes
      such contributions into account in the calculation of the Contribution
      Percentage), or (ii) to receive a Matching Contribution (including
      forfeitures) or a Qualified Matching Contribution. If a Participant
      Contribution is required as a condition of participation in the Plan, any
      Employee who would be a Participant in the Plan if such Employee made such
      a contribution shall be treated as an Eligible Participant on behalf of
      whom no Participant Contributions are made.

      EXCESS AGGREGATE CONTRIBTUIONS means, with respect to any Plan Year, the
      excess of:

      (1)   The aggregate Contribution Percentage Amounts taken into account in
            computing the numerator of the Contribution Percentage actually made
            on behalf of Highly Compensated Employees for such Plan Year, over

      (2)   The maximum Contribution Percentage Amounts permitted by the ACP
            Test (determined by hypothetically reducing contributions made on
            behalf of Highly Compensated Employees in order of their
            Contribution Percentages beginning with the highest of such
            percentages).

      Such determination shall be made after first determining Excess Elective
      Deferrals and then determining Excess Contributions.

RESTATEMENT JANUARY 1, 1997               32
<PAGE>

      EXCESS CONTRIBUTIONS means, with respect to any Plan Year, the excess of:

      (1)   The aggregate amount of employer contributions actually taken into
            account in computing the Deferral Percentage of Highly Compensated
            Employees for such Plan Year, over

      (2)   The maximum amount of such contributions permitted by the ADP Test
            (determined by hypothetically reducing contributions made on behalf
            of Highly Compensated Employees in the order of the Deferral
            Percentages, beginning with the highest of such percentages).

      Such determination shall be made after first determining Excess Elective
      Deferrals.

      EXCESS ELECTIVE DEFERRALS means those Elective Deferral Contributions that
      are includible in a Participant's gross income under Code Section 402(g)
      to the extent such Participant's Elective Deferral Contributions for a
      taxable year exceed the dollar limitation under such Code section. Excess
      Elective Deferrals shall be treated as Annual Additions, as defined in the
      CONTRIBUTION LIMITATION SECTION of this article, under the Plan, unless
      such amounts are distributed no later than the first April 15 following
      the close of the Participant's taxable year.

      MATCHING CONTRIBUTIONS means employer contributions made to this or any
      other defined contribution plan, or to a contract described in Code
      Section 403(b), on behalf of a participant on account of a Participant
      Contribution made by such participant, or on account of a participant's
      Elective Deferral Contributions, under a plan maintained by the employer
      or a Controlled Group member.

      PARTICIPANT CONTRIBUTIONS means contributions made to the plan by or on
      behalf of a participant that are included in the participant's gross
      income in the year in which made and that are maintained under a separate
      account to which earnings and losses are allocated.

      QUALIFIED MATCHING CONTRIBUTIONS means Matching Contributions which are
      subject to the distribution and nonforfeitability requirements under Code
      Section 401(k) when made.

      QUALIFIED NONELECTIVE CONTRIBUTIONS means any employer contributions
      (other than Matching Contributions) which an employee may not elect to
      have paid to him in cash instead of being contributed to the plan and
      which are subject to the distribution and nonforfeitability requirements
      under Code Section 401(k) when made.

(b)   EXCESS ELECTIVE DEFERRALS. A Participant may assign to this Plan any
      Excess Elective Deferrals made during a taxable year of the Participant by
      notifying the Plan Administrator in writing on or before the first
      following March 1 of the amount of the Excess Elective Deferrals to be
      assigned to the Plan. A Participant is deemed to notify the Plan
      Administrator of any Excess Elective Deferrals that arise by taking into
      account only those Elective Deferral Contributions made to this Plan and
      any other plan of the Employer or a Controlled Group member. The
      Participant's claim for Excess Elective Deferrals shall be accompanied by
      the Participant's written statement that if such amounts are not
      distributed, such Excess Elective Deferrals will exceed the limit imposed
      on the Participant by Code Section 402(g) for the year in which the
      deferral occurred. The Excess Elective Deferrals assigned to this Plan
      cannot exceed the Elective Deferral Contributions allocated under this
      Plan for such taxable year.

      Notwithstanding any other provisions of the Plan, Elective Deferral
      Contributions in an amount equal to the

RESTATEMENT JANUARY 1, 1997               33
<PAGE>

      Excess Elective Deferrals assigned to this Plan, plus any income and minus
      any loss allocable thereto, shall be distributed no later than April 15 to
      any Participant to whose Account Excess Elective Deferrals were assigned
      for the preceding year and who claims Excess Elective Deferrals for such
      taxable year.

      The Excess Elective Deferrals shall be adjusted for income or loss. The
      income or loss allocable to such Excess Elective Deferrals shall be equal
      to the income or loss allocable to the Participant's Elective Deferral
      Contributions for the taxable year in which the excess occurred multiplied
      by a fraction. The numerator of the fraction is the Excess Elective
      Deferrals. The denominator of the fraction is the closing balance without
      regard to any income or loss occurring during such taxable year (as of the
      end of such taxable year) of the Participant's Account resulting from
      Elective Deferral Contributions.

      Any Matching Contributions which were based on the Elective Deferral
      Contributions which are distributed as Excess Elective Deferrals, plus any
      income and minus any loss allocable thereto, shall be forfeited.

(c)   ADP Test. As of the end of each Plan Year after Excess Elective Deferrals
            have been determined, the Plan must satisfy the ADP Test. The ADP
            Test shall be satisfied using the prior year testing method, unless
            the Employer has elected to use the current year testing method.

      (1)   Prior Year Testing Method. The ADP for a Plan Year for Eligible
            Participants who are Highly Compensated Employees for each Plan Year
            and the prior year's ADP for Eligible Participants who were
            Nonhighly Compensated Employees for the prior Plan Year must satisfy
            one of the following tests:

            (i) The ADP for a Plan Year for Eligible Participants who are Highly
            Compensated Employees for the Plan Year shall not exceed the prior
            year's ADP for Eligible Participants who were Nonhighly Compensated
            Employees for the prior Plan Year multiplied by 1.25; or

            (ii) The ADP for a Plan Year for Eligible Participants who are
            Highly Compensated Employees for the Plan Year:

                  A. shall not exceed the prior year's ADP for Eligible
            Participants who were Nonhighly Compensated Employees for the prior
            Plan Year multiplied by 2, and

                  B. the difference between such ADPs is not more than 2.

            If this is not a successor plan, for the first Plan Year the Plan
            permits any Participant to make Elective Deferral Contributions, for
            purposes of the foregoing tests, the prior year's Nonhighly
            Compensated Employees' ADP shall be 3 percent, unless the Employer
            has elected to use the Plan Year's ADP for these Eligible
            Participants.

      (2)   Current Year Testing Method. The ADP for a Plan Year for Eligible
            Participants who are Highly Compensated Employees for each Plan Year
            and the ADP for Eligible Participants who are Nonhighly Compensated
            Employees for the Plan Year must satisfy one of the following tests:

            (i) The ADP for a Plan Year for Eligible Participants who are Highly
            Compensated Employees for the Plan Year shall not exceed the ADP for
            Eligible Participants who are Nonhighly Compensated Employees for
            the Plan Year multiplied by 1.25; or

RESTATEMENT JANUARY 1, 1997               34
<PAGE>

            (ii) The ADP for a Plan Year for Eligible Participants who are
            Highly Compensated Employees for the Plan Year:

            A. shall not exceed the ADP for Eligible Participants who are
            Nonhighly Compensated Employees for the Plan Year multiplied by 2,
            and

            B. the difference between such ADPs is not more than 2.

            If the Employer has elected to use the current year testing method,
            that election cannot be changed unless (i) the Plan has been using
            the current year testing method for the preceding five Plan Years,
            or if less, the number of Plan Years the Plan has been in existence;
            or (ii) the Plan otherwise meets one of the conditions specified in
            Internal Revenue Service Notice 98-1 (or superseding guidance) for
            changing from the current year testing method.

      A Participant is a Highly Compensated Employee for a particular Plan Year
      if he meets the definition of a Highly Compensated Employee in effect for
      that Plan Year. Similarly, a Participant is a Nonhighly Compensated
      Employee for a particular Plan Year f he does not meet the definition of a
      Highly Compensated Employee in effect for that Plan Year.

      The Deferral Percentage for any Eligible Participant who is a Highly
      Compensated Employee for the Plan Year and who is eligible to have
      Elective Deferral Contributions (and Qualified Nonelective Contributions
      or Qualified Matching Contributions, or both, if treated as Elective
      Deferral Contributions for purposes of the ADP Test) allocated to his
      account under two or more arrangements described in Code Section 401(k)
      that are maintained by the Employer or a Controlled Group member shall be
      determined as if all such Elective Deferral Contributions (and, if
      applicable, such Qualified Nonelective Contributions or Qualified Matching
      Contributions, or both) were made under a single arrangement. If a Highly
      Compensated Employee participates in two or more cash or deferred
      arrangements that have different plan years, all cash or deferred
      arrangements ending with or within the same calendar year shall be treated
      as a single arrangement. The foregoing notwithstanding, certain plans
      shall be treated as separate if mandatorily disaggregated under the
      regulations under Code Section 401(k). If the Employer elects to apply
      Code Section 410(b)(4)(B) to satisfy the requirements of Code Section
      410(b), the Employer may elect to do a single ADP Test for the mandatorily
      disaggregated plans for Plan Years beginning after December 31, 1998 in
      accordance with Code Section 401(k) and the regulations thereunder.

      In the event this Plan satisfies the requirements of Code Sections 401(k),
      401(a)(4), or 410(b) only if aggregated with one or more other plans, or
      if one or more other plans satisfy the requirements of such Code sections
      only if aggregated with this Plan, then this section shall be applied by
      determining the Deferral Percentage of Employees as if all such plans were
      a single plan. Any adjustments to the Nonhighly Compensated Employee ADP
      for the prior year shall be made in accordance with Internal Revenue
      Service Notice 98-1 (or superseding guidance), unless the Employer has
      elected to use the current year testing method. Plans may be aggregated in
      order to satisfy Code Section 401(k) only if they have the same plan year
      and use the same testing method for the ADP Test.

      For purposes of the ADP Test, Elective Deferral Contributions, Qualified
      Nonelective Contributions and Qualified Matching Contributions must be
      made before the end of the 12-month period immediately following the Plan
      Year to which the contributions relate.

      The Employer shall maintain records sufficient to demonstrate satisfaction
      of the ADP Test and the amount of

RESTATEMENT JANUARY 1, 1997               35
<PAGE>

      Qualified Nonelective Contributions or Qualified Matching Contributions,
      or both, used in such test.

      If the Plan Administrator should determine during the Plan Year that the
      ADP Test is not being met, the Plan Administrator may limit the amount of
      future Elective Deferral Contributions of the Highly Compensated
      Employees.

      Notwithstanding any other provisions of this Plan, Excess Contributions,
      plus any income and minus any loss allocable thereto, shall be distributed
      no later than the last day of each Plan Year to Participants to whose
      Accounts such Excess Contributions were allocated for the preceding Plan
      Year. Excess Contributions are allocated to the Highly Compensated
      Employees with the largest amount of employer contributions taken into
      account in calculating the ADP Test for the year in which the excess
      arose, beginning with the Highly Compensated Employee with the largest
      amount of such employer contributions and continuing in descending order
      until all of the Excess Contributions have been allocated. For purposes of
      the preceding sentence, the "largest amount" is determined after
      distribution of any Excess Contributions. If such excess amounts are
      distributed more than 2 1/2 months after the last day of the Plan Year in
      which such excess amounts arose, a 10 percent excise tax shall be imposed
      on the employer maintaining the plan with respect to such amounts.

      Excess Contributions shall be treated as Annual Additions, as defined in
      the CONTRIBUTION LIMITATION SECTION of this article.

      The Excess Contributions shall be adjusted for income or loss. The income
      or loss allocable to such Excess Contributions allocated to each
      Participant shall be equal to the income or loss allocable to the
      Participant's Elective Deferral Contributions (and, if applicable,
      Qualified Nonelective Contributions or Qualified Matching Contributions,
      or both) for the Plan Year in which the excess occurred multiplied by a
      fraction. The numerator of the fraction is the Excess Contributions. The
      denominator of the fraction is the closing balance without regard to any
      income or loss occurring during such Plan Year (as of the end of such Plan
      Year) of the Participant's Account resulting from Elective Deferral
      Contributions (and Qualified Nonelective Contributions or Qualified
      Matching Contributions, or both, such contributions are included in the
      ADP Test).

      Excess Contributions allocated to a Participant shall be distributed from
      the Participant's Account resulting from Elective Deferral Contributions.
      If such Excess Contributions exceed the balance in the Participant's
      Account resulting from Elective Deferral Contributions, the balance shall
      be distributed from the Participant's Account resulting from Qualified
      Matching Contributions (if applicable) and Qualified Nonelective
      Contributions, respectively.

      Any Matching Contributions which were based on the Elective Deferral
      Contributions which are distributed as Excess Contributions, plus any
      income and minus any loss allocable thereto, shall be forfeited.

(d)   ACP Test. As of the end of each Plan Year, the Plan must satisfy the ACP
      Test. The ACP Test shall be satisfied using the prior year testing method,
      unless the Employer has elected to use the current year testing method.

      (1)   Prior Year Testing Method. The ACP for a Plan Year for Eligible
            Participants who are Highly Compensated Employees for each Plan Year
            and the prior year's ACP for Eligible Participants who were
            Nonhighly Compensated Employees for the prior Plan Year must satisfy
            one of the following tests:

            (i)   The ACP for a Plan Year for Eligible Participants who are
                  Highly Compensated Employees for

RESTATEMENT JANUARY 1, 1997               36
<PAGE>

                  the Plan Year shall not exceed the prior year's ACP for
                  Eligible Participants who were Nonhighly Compensated Employees
                  for the prior Plan Year multiplied by 1.25; or

                  (ii) The ACP for a Plan Year for Eligible Participants who are
                  Highly Compensated Employees for the Plan Year:

                        A. shall not exceed the prior year's ACP for Eligible
                        Participants who were Nonhighly Compensated Employees
                        for the prior Plan Year multiplied by 2, and

                        B. the difference between such ACPs is not more than 2.

            If this is not a successor plan, for the first Plan Year the Plan
            permits any Participant to make Participant Contributions, provides
            for Matching Contributions, or both, for purposes of the foregoing
            tests, the prior year's Nonhighly Compensated Employees' ACP shall
            be 3 percent, unless the Employer has elected to use the Plan Year's
            ACP for these Eligible Participants.

      (2)   Current Year Testing Method. The ACP for a Plan Year for Eligible
            Participants who are Highly Compensated Employees for each Plan Year
            and the ACP for Eligible Participants who are Nonhighly Compensated
            Employees for the Plan Year must satisfy one of the following tests:

            (i) The ACP for a Plan Year for Eligible Participants who are Highly
            Compensated Employees for the Plan Year shall not exceed the ACP for
            Eligible Participants who are Nonhighly Compensated Employees for
            the Plan Year multiplied by 1.25; or

            (ii) The ACP for a Plan Year for Eligible Participants who are
            Highly Compensated Employees for the Plan Year:

            A. shall not exceed the ACP for Eligible Participants who are
            Nonhighly Compensated Employees for the Plan Year multiplied by 2,
            and

            B. the difference between such ACPs is not more than 2.

            If the Employer has elected to use the current year testing method,
            that election cannot be changed unless (i) the Plan has been using
            the current year testing method for the preceding five Plan Years,
            or is less, the number of Plan Years the Plan has been in existence;
            or (ii) the Plan otherwise meets one of the conditions specified in
            Internal Revenue Service Notice 98-1 (or superseding guidance) for
            changing from the current year testing method.

      A Participant is a Highly Compensated Employee for a particular Plan Year
      if he meets the definition of a Highly Compensated Employee in effect for
      that Plan Year. Similarly, a Participant is a Nonhighly Compensated
      Employee for a particular Plan Year if he does not meet the definition of
      a Highly Compensated Employee in effect for that Plan Year.

      Multiple Use. If one or more Highly Compensated Employees participate in
      both a cash or deferred arrangement and a plan subject to the ACP Test
      maintained by the Employer or a Controlled Group member, and the sum of
      the ADP and ACP of those Highly Compensated Employees subject to either or
      both tests exceeds the Aggregate Limit, then the Contribution Percentage
      of those Highly Compensated Employees who also participate in a cash or
      deferred arrangement will be reduced in the manner described below for
      allocating

RESTATEMENT JANUARY 1, 1997               37
<PAGE>

      Excess Aggregate Contributions so that the limit is not exceeded. The
      amount by which each Highly Compensated Employee's Contribution Percentage
      is reduced shall be treated as an Excess Aggregate Contribution. The ADP
      and ACP of the Highly Compensated Employees are determined after any
      corrections required to meet the ADP Test and ACP Test and are deemed to
      be the maximum permitted under such tests for the Plan Year. Multiple use
      does not occur if either the ADP or ACP of the Highly Compensated
      Employees does not exceed 1.25 multiplied by the ADP and ACP,
      respectively, of the Nonhighly Compensated Employees.

      The Contribution Percentage for any Eligible Participant who is a Highly
      Compensated Employee for the Plan Year and who is eligible to have
      Contribution Percentage Amounts allocated to his account under two or more
      plans described in Code Section 401(a) or arrangements described in Code
      Section 401(k) that are maintained by the Employer or a Controlled Group
      member shall be determined as if the total of such Contribution Percentage
      Amounts was made under each plan. If a Highly Compensated Employee
      participates in two or more cash or deferred arrangements that have
      different plan years, all cash or deferred arrangements ending with or
      within the same calendar year shall be treated as a single arrangement.
      The foregoing notwithstanding, certain plans shall be treated as separate
      if mandatorily disaggregated under the regulations under Code Section
      401(m). If the Employer elects to apply Code Section 410(b)(4)(B) to
      satisfy the requirements of Code Section 410(b), the Employer may elect to
      do a single ACP Test for the mandatorily disaggregate plans for Plan Years
      beginning after December 31, 1998 in accordance with Code Section 401(m)
      and the regulations thereunder.

      In the event that this Plan satisfies the requirements of Code Sections
      401(m), 401(a)(4), or 410(b) only if aggregated with one or more other
      plans, or if one or more other plans satisfy the requirements of such Code
      sections only if aggregated with this Plan, then this section shall be
      applied by determining the Contribution Percentage of Employees as if all
      such plans were a single plan. Any adjustments to the Nonhighly
      Compensated Employee ACP for the prior year shall be made in accordance
      with Internal Revenue Service Notice 98-1 (or superseding guidance),
      unless the Employer has elected to use the current year testing method.
      Plans may be aggregated in order to satisfy Code Section 401(m) only if
      they have the same plan year and use the same testing method for the ACP
      Test.

      For purposes of the ACP Test, Participant Contributions are considered to
      have been made in the Plan Year in which contributed to the Plan. Matching
      Contributions and Qualified Nonelective Contributions will be considered
      to have been made for a Plan Year if made no later than the end of the
      12-month period beginning on the day after the close of the Plan Year.

      The Employer shall maintain records sufficient to demonstrate satisfaction
      of the ACP Test and the amount of Qualified Nonelective Contributions or
      Qualified Matching Contributions, or both, used in such test.

      Notwithstanding any other provisions of this Plan, Excess Aggregate
      Contributions, plus any income and minus any loss allocable thereto, shall
      be forfeited, if not vested, or distributed, if vested, no later than the
      last day of each Plan Year to Participants to whose Accounts such Excess
      Aggregate Contributions were allocated for the preceding Plan Year. Excess
      Aggregate Contributions are allocated to the Highly Compensated Employees
      with the largest Contribution Percentage Amounts taken into account in
      calculating the ACP Test for the year in which the excess arose, beginning
      with the Highly Compensated Employee with the largest amount of such
      Contribution Percentage Amounts and continuing in descending order until
      all of the Excess Aggregate Contributions have been allocated. For
      purposes of the preceding sentence, the "largest amount" is determined
      after distribution of any Excess Aggregate Contributions. If such Excess
      Aggregate Contributions are distributed more than 2 1/2 months after the
      last day of the Plan Year in which such excess amounts arose , a 10
      percent excise tax shall be imposed on the employer maintaining the plan
      with respect to such amounts.

RESTATEMENT JANUARY 1, 1997               38
<PAGE>

      Excess Aggregate Contributions shall be treated as Annual Additions, as
      defined in the CONTRIBUTION LIMITATION SECTION of this article.

      The Excess Aggregate Contributions shall be adjusted for income or loss.
      The income or loss allocable to such Excess Aggregate Contributions
      allocated to each Participant shall be equal to the income or loss
      allocable to the Participant's Contribution Percentage Amounts for the
      Plan Year in which the excess occurred multiplied by a fraction. The
      numerator of the fraction is the Excess Aggregate Contributions. The
      denominator of the fraction is the closing balance without regard to any
      income or loss occurring during such Plan Year (as of the end of such Plan
      Year) of the Participant's Account resulting from Contribution Percentage
      Amounts.

      Excess Aggregate Contributions allocated to each Participant shall be
      distributed from the Participant's Account resulting from Participant
      Contributions that are not required as a condition of employment or
      participation or for obtaining additional benefits from Employer
      Contributions. If such Excess Aggregate Contributions exceed the balance
      in the Participant's Account resulting from such Participant's
      Contributions, the balance shall be forfeited, if not vested, or
      distributed, if vested, on a pro-rata basis from the Participant's Account
      resulting from Contribution Percentage Amounts.

(e)   Employer Elections. The Employer has not made an election to use the
      current year testing method.

RESTATEMENT JANUARY 1, 1997               39
<PAGE>

                                   ARTICLE IV

                           INVESTMENT OF CONTRIBUTIONS

SECTION 4.01--INVESTMENT AND TIMING OF CONTRIBUTIONS.

     The handling of Contributions is governed by the provisions of the Trust
Agreement, the Annuity Contract, and any other funding arrangement in which the
Plan Fund is or may be held or invested. To the extent permitted by the Trust
Agreement, Annuity Contract or other funding arrangement, the parties named
below shall direct the Contributions to the guaranteed benefit policy portion of
the Annuity Contract, any of the investment options available under the Annuity
Contract, or any of the investment vehicles available under the Trust Agreement
and may request the transfer of amounts resulting from those Contributions
between such investment options and investment vehicles or the transfer of
amounts between the guaranteed benefit policy portion of the Annuity Contract
and such investment options and investment vehicles. A Participant may not
direct the Trustee or Insurer to invest the Participant's Account in
collectibles. Collectibles mean any work of art, rug or antique, metal or gem,
stamp or coin, alcoholic beverage or other tangible personal property specified
by the Secretary of Treasury. However, for tax years beginning after December
31, 1997, certain coins and bullion as provided in Code Section 408(m)(3) shall
not be considered collectibles. To the extent that a Participant who has
investment direction fails to give timely direction, the Primary Employer shall
direct the investment of his Account. If the Primary Employer has investment
direction, such Account shall be invested ratably in the guaranteed benefit
policy portion of the Annuity Contract, the investment options available under
the Annuity Contract, or the investment vehicles available under the Trust
Agreement in the same manner as the Accounts of all other Participants who do
not direct their investments. The Primary Employer shall have investment
direction for amounts which have not been allocated to Participants. To the
extent an investment is no longer available, the Primary Employer may require
that amounts currently held in such investment be reinvested in other
investments.

     At least annually, the Named Fiduciary shall review all pertinent Employee
information and Plan data in order to establish the funding policy of the Plan
and to determine appropriate methods of carrying out the Plan's objectives. The
Named Fiduciary shall inform the Trustee and any Investment Manager of the
Plan's short-term and long-term financial needs so the investment policy can be
coordinated with the Plan's financial requirements.

     (a)  Employer Contributions other than Matching Contributions, Qualified
          Matching Contributions and Elective Deferral Contributions: The
          Participant shall direct the investment of such Employer Contributions
          and transfer of assets resulting from those Contributions.

     (b)  Elective Deferral Contributions: The Participant shall direct the
          investment of Elective Deferral Contributions and transfer of assets
          resulting from those Contributions.

     (c)  Matching Contributions and Qualified Matching Contributions: The
          trustee shall direct the investment of such Matching Contributions and
          Qualified Matching Contributions to purchase Qualifying Employer
          Securities. Any Matching Contributions and Qualified Matching
          Contributions invested in this manner shall be subject to the
          investment direction of the Participant.

     (d)  Rollover Contributions: The Participant shall direct the investment of
          Rollover Contributions and transfer of assets resulting from those
          Contributions.

     However, the Named Fiduciary may delegate to the Investment Manager
investment discretion for Contributions and amounts which are not subject to
Participant direction.

RESTATEMENT JANUARY 1, 1997            40
<PAGE>

     The Employer shall pay to the Insurer or Trustee, as applicable, the
Elective Deferral Contributions, Qualified Matching Contribution, and Qualified
Nonelective Contributions for each Plan Year not later than the end of the
12-month period immediately following the Plan Year for which they are deemed to
be paid.

     All Contributions are forwarded by the Employer to the Trustee to be
deposited in the Trust Fund or to the Insurer to be deposited under the Annuity
Contract, as applicable. Contributions that are accumulated through payroll
deductions shall be paid to the Trustee or Insurer, as applicable, by the
earlier of (i) the date the Contributions can reasonably be segregated from the
Employer's assets, or (ii) the 15th business day of the month following the
month in which the Contributions would otherwise have been paid in cash to the
Participant.

SECTION 4.01A--INVESTMENT IN QUALIFYING EMPLOYER SECURITIES.

     All or some portion of the Participant's Account may be invested in
Qualifying Employer Securities. Once an investment in the Qualifying Employer
Securities Fund is made available to Participants, it shall continue to be
available unless the Plan is amended to disallow such available investment. In
the absence of an election to invest in Qualifying Employer Securities,
Participant shall be deemed to have elected to have their Accounts invested
wholly in other investment options of the Investment Fund. Once an election is
made, it shall be considered to continue until a new election is made.

     For purposes of determining the annual valuation of the Plan, and for
reporting to Participants and regulatory authorities, the assets of the Plan
shall be valued at least annually on the Valuation Date which corresponds to the
last day of the Plan Year. The fair market value of Qualifying Employer
Securities shall be determined on such Valuation Date. The prices of Qualifying
Employer Securities as of the date of the transaction shall apply for purposes
of valuing distributions and other transactions of the Plan to the extent such
value is representative of the fair market value of such securities in the
opinion of the Plan Administrator. The value of a Participant's Account held in
the Qualifying Employer Securities Fund may be expressed in units.

     If the Qualifying Employer Securities are not publicly traded, or if an
extremely thin market exists for such securities so that reasonable valuation
may not be obtained from the market place, then such securities must be valued
at least annually by an independent appraiser who is not associated with the
Employer, the Plan Administrator, the Trustee, or any person related to any
fiduciary under the Plan. The independent appraiser may be associated with a
person who is merely a contract administrator with respect to the Plan, but who
exercises no discretionary authority and is not a plan fiduciary.

     If there is a public market for Qualifying Employer Securities of the type
held by the Plan, then the Plan Administrator may use as the value of the
securities the price at which such securities trade in such market. If the
Qualifying Employer Securities do not trade on the relevant date or if the
market is very thin on such date, then the Plan Administrator may use for the
valuation the next preceding trading day on which the trading prices are
representative of the fair market value of such securities in the opinion of the
Plan Administrator.

     Cash dividends payable on the Qualifying Employer Securities shall be
reinvested in additional shares of such securities. In the event of any cash or
stock dividend or any stock split, such dividend or split shall be credited to
the Accounts based on the number of shares of Qualifying Employer Securities
credited to each Account as of the payable date of such dividend or split.

     All purchases of Qualifying Employer Securities shall be made at a price,
or prices, which, in the judgment of the Plan Administrator, do not exceed the
fair market value of such securities.

     In the event that the Trustee acquires Qualifying Employer Securities by
purchase from a "disqualified person" as defined in Code Section 4975(e)(2) or
from a "party-in-interest" as defined in ERISA Section 3(14), the terms of such

RESTATEMENT JANUARY 1, 1997            41
<PAGE>

purchase shall contain the provision that in the event that there is a final
determination by the Internal Revenue Service, the Department of Labor, or court
of competent jurisdiction that the fair market value of such securities as of
the date of purchase was less than the purchase price paid by the Trustee, then
the seller shall pay or transfer, as the case may be, to the Trustee an amount
of cash or shares of Qualifying Employer Securities equal in value to the
difference between the purchase price and such fair market value for all such
shares. In the event that cash or shares of Qualifying Employer Securities are
paid or transferred to the Trustee under this provision, such securities shall
be valued at their fair market value as of the date of such purchase, and
interest at a reasonable rate from the date of purchase to the date of payment
or transfer shall be paid by the seller on the amount of cash paid.

     The Plan Administrator may direct the Trustee to sell, resell or otherwise
dispose of Qualifying Employer Securities to any person, including the Employer,
provided that any such sales to any disqualified person or a party-in-interest,
including the Employer, will be made at not less than the fair market value and
no commission will be charged. Any such sale shall be made in conformance with
ERISA Section 408(e).

     The Employer is responsible for compliance with any applicable Federal or
state securities law with respect to all aspects of the Plan. If the Qualifying
Employer Securities or interest in this Plan are required to be registered in
order to permit investment in the Qualifying Employer Securities Fund as
provided in this section, then such investment will not be effective until the
later of the effective date of the Plan or the date such registration or
qualification is effective. The Employer, at its own expense, will take or cause
to be taken any and all such actions as may be necessary or appropriate to
effect such registration or qualification. Further, if the Trustee is directed
to dispose of any Qualifying Employer Securities held under the Plan under
circumstances which require registration or qualification of the securities
under applicable Federal or state securities laws, the Employer will, at its own
expense, take or cause to be taken any and all such action as may be necessary
or appropriate to effect such registration or qualification. The Employer is
responsible for all compliance requirements under Section 16 of the Securities
Act.

RESTATEMENT JANUARY 1, 1997            42
<PAGE>

                                    ARTICLE V

                                    BENEFITS

SECTION 5.01--RETIREMENT BENEFITS.

     On a Participant's Retirement Date, his Vested Account shall be distributed
to him according to the distribution of benefits provisions of Article VI and
the provisions of the SMALL AMOUNTS SECTION of Article X.

SECTION 5.02--DEATH BENEFITS.

     If a Participant dies before his Annuity Starting Date, his Vested Account
shall be distributed according to the distribution of benefits provisions of
Article VI and the provisions of the SMALL AMOUNTS SECTION of Article X.

SECTION 5.03--VESTED BENEFITS.

     If an Inactive Participant's Vested Account is not payable under the SMALL
AMOUNTS SECTION of Article X, he may elect, but is not required, to receive a
distribution of his Vested Account after he ceases to be an Employee. The
Participant's election shall be subject to his spouse's consent as provided in
the ELECTION PROCEDURES SECTION of Article VI. A distribution under this
paragraph shall be a retirement benefit and shall be distributed to the
Participant according to the distribution for benefits provisions of Article VI.

     A Participant may not elect to receive a distribution under the provisions
of this section after he again becomes an Employee until he subsequently ceases
to be an Employee and meets the requirements of this section.

     If an Inactive Participant does not receive an earlier distribution, upon
his Retirement Date or death, his Vested Account shall be distributed according
to the provisions of the RETIREMENT BENEFITS SECTION or the DEATH BENEFITS
SECTION of Article V.

     The Nonvested Account of an inactive Participant who has ceased to be an
Employee shall remain a part of his Account until it becomes a Forfeiture.
However, if he again becomes an Employee so that his Vesting Percentage can
increase, the Nonvested Account may become a part of his Vested Account.

SECTION 5.04--WHEN BENEFITS START.

     (a) Unless otherwise elected, benefits shall begin before the 60th day
following the close of the Plan Year in which the latest date below occurs:

      (1)   The date the Participant attains age 65 (Normal Retirement Age, if
            earlier).

      (2)   The tenth anniversary of the Participant's Entry Date.

      (3)   The date the Participant ceases to be an Employee.

     Notwithstanding the foregoing, the failure of a Participant and spouse to
consent to a distribution while a benefit is immediately distributable, within
the meaning of the ELECTION PROCEDURES SECTION of Article VI, shall be deemed to
be an election to defer the start of benefits sufficient to satisfy this
section.

RESTATEMENT JANUARY 1, 1997            43
<PAGE>

     The Participant may elect to have his benefits begin after the latest date
for beginning benefits described above, subject to the following provisions of
this section. The Participant shall make the election in writing. Such election
must be made before his Normal Retirement Date or the date he ceases to be an
Employee, if later. The election must describe the form of distribution and the
date the benefits will begin. The Participant shall not elect a date for
beginning benefits or a form of distribution that would result in a benefit
payable when he dies which would be more than incidental within the meaning of
governmental regulations.

     Benefits shall begin on an earlier date if otherwise provided in the Plan.
For example, the Participant's Retirement Date or Required Beginning Date, as
defined in the DEFINITIONS SECTION of Article VII.

     (b) The Participant's Vested Account which results from Elective Deferral
Contributions, Qualified Matching Contributions, and Qualified Nonelective
Contributions may not be distributed to a Participant or to his Beneficiary (or
Beneficiaries) in accordance with the Participant's or Beneficiary's (or
Beneficiaries') election, earlier than separation from service, death, or
disability. Such amount may also be distributed upon:

            (1) Termination of the Plan, as permitted in Article VIII.

            (2) The disposition by the Employer, if the Employer is a
      corporation, to an unrelated corporation of substantially all of the
      assets, within the meaning of Code Section 409(d)(2), used on trade or
      business of the Employer if the Employer continues to maintain the Plan
      after the disposition, but only with respect to Employees who continue
      employment with the corporation acquiring such assets.

            (3) The disposition by the Employer, if the Employer is a
      corporation, to an unrelated entity of the Employer's interest in a
      subsidiary, within the meaning of Code Section 409(d)(3), if the Employer
      continues to maintain the Plan, but only with respect to Employees who
      continue employment with such subsidiary.

            (4) The attainment of age 59 1/2 as permitted in the WITHDRAWAL
      BENEFITS SECTION of this article.

            (5) The hardship of the Participant as permitted in the WITHDRAWAL
      BENEFITS SECTION of this article.

          All distributions that may be made pursuant to one or more of the
foregoing distributable events will be a retirement benefit and shall be
distributed to the Participant according to the distribution of benefit
provisions of Article VI. In addition, distributions that are triggered by (1),
(2) and (3) above must be made in a lump sum. A lump sum shall include a
distribution of an annuity contract.

SECTION 5.05--WITHDRAWAL BENEFITS.

     A Participant, who has been an Active Participant for at least five years,
may withdraw any part of his Vested Account which results from the following
Contributions:

     Matching Contributions
     Additional Contributions
     Discretionary Contributions

     A Participant's earliest Entry Date shall be used to determine his
eligibility for such a withdrawal.

     A Participant who has attained age 59 1/2 may withdraw any part of his
Vested Account which results from the

RESTATEMENT JANUARY 1, 1997            44
<PAGE>

following Contributions:

     Elective Deferral Contributions
     Matching Contributions
     Qualified Nonelective Contributions
     Qualified Matching Contributions
     Rollover Contributions

A Participant may make only two such withdrawals in any 12-month period.

     A Participant may withdraw any part of his Vested Account which results
from the following Contributions

     Elective Deferral Contributions
     Matching Contributions
     Rollover Contributions

in the event of hardship due to an immediate and heavy financial need.
Withdrawals from the Participant's Account resulting from Elective Deferral
Contributions shall be limited to the amount of the Participant's Elective
Deferral Contributions. Immediate and heavy financial need shall be limited to:
(i) expenses incurred or necessary for medical care, described in Code Section
213(d), of the Participant, the Participant's spouse, or any dependents of the
Participant (as defined in Code Section 152); (ii) purchase (excluding mortgage
payments) of a principal residence for the Participant; (iii) payment of tuition
related educational fees, and room and board expenses, for the next 12 months of
post-secondary education for the Participant, his spouse, children or
dependents; (iv) the need to prevent the eviction of the Participant from his
principal residence or foreclosure on the mortgage of the Participant's
principal residence; or (v) any other distribution which is deemed by the
Commissioner of Internal Revenue to be made on account of immediate and heavy
financial need as provided in Treasury regulations.

     No withdrawal shall be allowed which is not necessary to satisfy such
immediate and heavy financial need. Such withdrawal shall be deemed necessary
only if all of the following requirements are met: (i) the distribution is not
in excess of the amount of the immediate and heavy financial need (including
amounts necessary to pay any Federal, state or local income taxes or penalties
reasonably anticipated to result from the distribution); (ii) the Participant
has obtained all distributions, other than hardship distributions, and all
nontaxable loans currently available under all plans maintained by the Employer;
(iii) the Plan, and all other plans maintained by the Employer, provide that the
Participant's elective contributions and participant contributions will be
suspended for at least 12 months after receipt of the hardship distribution; and
(iv) the Plan, and all other plans maintained by the Employer, provide that the
Participant may not make elective contributions for the Participant's taxable
year immediately following the taxable year of the hardship distribution in
excess of the applicable limit under Code Section 402(g) for such next taxable
year less the amount of such Participant's elective contributions for the
taxable year of the hardship distribution. The Plan will suspend elective
contributions and participant contributions for 12 months and limit elective
deferrals as provided in the preceding sentence. A Participant shall not cease
to be an Eligible Participant, as defined in the EXCESS AMOUNTS SECTION of
Article III, merely because his elective contributions or employee contributions
are suspended.

     A request for withdrawal shall be made in such manner and in accordance
with such rules as the Employer will prescribe for this purpose (including by
means of voice response or other electronic means under circumstances the
Employer permits). Withdrawals shall be a retirement benefit and shall be
distributed to the Participant according to the distribution of benefits
provisions of Article VI. A forfeiture shall not occur solely as a result of a
withdrawal.

RESTATEMENT JANUARY 1, 1997            45
<PAGE>

SECTION 5.06--LOANS TO PARTICIPANTS.

     Loans shall be made available to all Participants on a reasonably
equivalent basis. For purposes of this section, and unless otherwise specified,
Participant means any Participant or Beneficiary who is a party-in-interest, as
defined in ERISA. Loans shall not be made to Highly Compensated Employees in an
amount greater than the amount made available to other Participants.

     No loans will be made to any shareholder-employee or Owner-employee. For
purposes of this requirement, a shareholder-employee means an employee or
officer of an electing small business (Subchapter S) corporation who owns (or is
considered as owning within the meaning of Code Section 318(a)(1)), on any day
during the taxable year of such corporation, more than 5 percent of the
outstanding stock of the corporation.

     A loan to a Participant shall be a Participant-directed investment of his
Account. The portion of the Participant's Account held in Qualifying Employer
Securities Fund may be redeemed for purposes of a loan on a pro-rata basis with
the Participant's other investment options. The loan is a Trust Fund investment
but no Account other than the borrowing Participant's Account shall share in the
interest paid on the loan or bear any expense or loss incurred because of the
loan.

     The number of outstanding loans shall be limited to two. The minimum amount
of any loan shall be $1,000.

     Loans must be adequately secured and bear a reasonable rate of interest.

     The amount of the loan shall not exceed the maximum amount that may be
treated as a loan under Code Section 72(p) (rather than a distribution) to the
Participant and shall be equal to the lesser of (a) or (b) below:

     (a)  $50,000 reduced by the highest outstanding loan balance of loans
          during the one-year period ending on the day before the new loan is
          made.

     (b)  The greater of (1) or (2), reduced by (3) below:

          (1) One-half of the Participant's Vested Account.

          (2)  $10,000.

          (3) Any outstanding loan balance on the date the new loan is made.

For purposes of this maximum, a Participant's Vested Account does not include
any accumulated deductible employee contributions, as defined in Code Section
72(o)(5)(B), and all qualified employer plans, as defined in Code Section
72(p)(4), of the Employer and any Controlled Group member shall be treated as
one plan.

     The foregoing notwithstanding, the amount of such loan shall not exceed 50
percent of the amount of the Participant's Vested Account reduced by any
outstanding loan balance on the date the new loan is made. For purposes of this
maximum, a Participant's Vested Account, does not include any accumulated
deductible employee contributions, as defined in Code Section 72(o)(5)(B). No
collateral other than a portion of the Participant's Vested Account (as limited
above) shall be accepted. The Loan Administrator shall determine if the
collateral is adequate for the amount of the loan requested.

     A Participant must obtain the consent of his spouse, if any, to the use of
the Vested Account as security for the loan. Spousal consent shall be obtained
no earlier than the beginning of the 90-day period that ends on the date on
which the loan to be so secured is made. The consent must be in writing, must
acknowledge the effect of the loan, and must be witnessed by

RESTATEMENT JANUARY 1, 1997            46
<PAGE>

a plan representative or a notary public. Such consent shall thereafter be
binding with respect to the consenting spouse or any subsequent spouse with
respect to that loan. A new consent shall be required if the Vested Account is
used for collateral upon renegotiation, extension, renewal, or other revision of
the loan. No consent shall be required if subparagraph (d) of the ELECTION
PROCEDURES SECTION of Article VI applies.

     If a valid spousal consent has been obtained in accordance with the above,
or spousal consent is not required, then, notwithstanding any other provision of
this Plan, the portion of the Participant's Vested Account used as a security
interest held by the Plan by reason of a loan outstanding to the Participant
shall be taken into account for purposes of determining the amount of the Vested
Account payable at the time of the death or distribution, but only if the
reduction is used as repayment of the loan. If spousal consent is required and
less than 100% of the Participant's Vested Account (determined without regard to
the preceding sentence) is payable to the surviving spouse, then the Vested
Account shall be adjusted by first reducing the Vested Account by the amount of
the security used as repayment of the loan, and then determining the benefit
payable to the surviving spouse.

     Each loan shall bear a reasonable fixed rate of interest to be determined
by the Loan Administrator. In determining the interest rate, the Loan
Administrator shall take into consideration fixed interest rates currently being
charged by commercial lenders for loans of comparable risk on similar terms and
for similar durations, so that the interest will provide for a return
commensurate with rates currently charged by commercial lenders for loans made
under similar circumstances. The Loan Administrator shall not discriminate among
Participants in the matter of interest rates; but loans granted at different
times may bear different interest rates in accordance with the current
appropriate standards.

     The loan shall by its terms require that repayment (principal and interest)
be amortized in level payments, not less frequently than quarterly, over a
period not extending beyond five years from the date of the loan. If the loan is
used to acquire a dwelling unit, which within a reasonable time (determined at
the time the loan is made) will be used as the principal residence of the
Participant, the repayment period may extend beyond five years from the date of
the loan. The period of repayment for any loan shall be arrived at by mutual
agreement between the Loan Administrator and the Participant and if the loan is
for a principal residence, shall not be made for a period longer than the
repayment period consistent with commercial practices.

     The Participant shall make an application for a loan in such a manner and
in accordance with such rules as the Employer shall prescribe for this purpose
(including by means of voice response or other electronic means under
circumstances the Employer permits). The application must specify the amount and
duration requested.

     Information contained in the application for the loan concerning the
income, liabilities, and assets of the Participant will be evaluated to
determine whether there is a reasonable expectation that the Participant will be
able to satisfy payments on the loan as due. Additionally, the Loan
Administrator will pursue any appropriate further investigations concerning the
creditworthiness and credit history of the Participant to determine whether a
loan should be approved.

     Each loan shall be fully documented in the form of a promissory note signed
by the Participant for the face amount of the loan, together with interest
determined as specified above.

     There will be an assignment of collateral to the Plan executed at the time
the loan is made.

     In those cases where repayment through payroll deduction is available,
installments are so payable, and a payroll deduction agreement shall be executed
by the Participant at the time the loan is made. Loan repayments that are
accumulated through payroll deduction shall be paid to the Trustee by the
earlier of (i) the date the loan repayments can reasonably be segregated from
the Employer's assets, or (ii) the 15th business day of the month following the
month in which such amounts would otherwise have been paid in cash to the
Participant.

RESTATEMENT JANUARY 1, 1997            47
<PAGE>

     Where payroll deduction is not available, payments in cash are to be timely
made. Any payment that is not by payroll deduction shall be made payable to the
Employer or the Trustee, as specified in the promissory note, and delivered to
the Loan Administrator, including prepayments, service fees and penalties, if
any, and other amounts due under the note. The Loan Administrator shall deposit
such amounts into the Plan as soon as administratively practicable after they
are received, but in no event later than the 15th business day of the month
after they are received.

     The promissory note may provide for reasonable late payment penalties and
service fees. Any penalties or service fees shall be applied to all Participants
in a nondiscriminatory manner. If the promissory note so provides, such amounts
may be assessed and collected from the Account of the Participant as part of the
loan balance.

     Each loan may be paid prior to maturity, in full, without penalty or
service fee, except as may be set out in the promissory note.

     The Plan shall suspend loan payments for a period not exceeding one year
during which an approved unpaid leave of absence occurs other than a military
leave of absence. The Loan Administer shall provide the Participant a written
explanation of the effect of the suspension of payments upon his loan.

     If a Participant separates from service (or takes a leave of absence) from
the Employer because of service on the military and does not receive a
distribution of his Vested Account, the Plan shall suspend loan payments until
the Participant's completion of military service or until the Participant's
fifth anniversary of commencement of military service, if earlier, as permitted
under Code Section 414(u). The Loan Administrator shall provide the Participant
a written explanation of the effect of his military service upon his loan.

     If any payment of principal and interest, or any portion thereof, remains
unpaid for more than 90 days after due, the loan shall be in default. For
purposes of Code Section 72(p), the Participant shall then be treated as having
received a deemed distribution regardless of whether or not a distributable
event has occurred.

     Upon default, the Plan has the right to pursue any remedy available by law
to satisfy the amount due, along with accrued interest, including the right to
enforce its claim against the security pledged and execute upon the collateral
as allowed by law. The entire principal balance whether or not otherwise then
due, along with accrued interest, shall become immediately due and payable
without demand or notice, and subject to collection or satisfaction by any
lawful means, including specifically, but not limited to, the right to enforce
the claim against the security pledged and to execute upon the collateral as
allowed by law.

     In the event of default, foreclosure on the note and attachment of security
or use of amounts pledged to satisfy the amount then due shall not occur until a
distributable event occurs in accordance with the Plan, and shall not occur to
an extent greater than the amount then available upon any distributable event
which has occurred under the Plan.

     All reasonable costs and expenses, including but not limited to attorney's
fees, incurred by the Plan in connection with any default or in any proceeding
to enforce any provision of a promissory note or instrument by which a
promissory note for a Participant loan is secured, shall be assessed and
collected from the Account of the Participant as part of the loan balance.

     If payroll deduction is being utilized, in the event that a Participant's
available payroll deduction amounts in any given month are insufficient to
satisfy the total amount due, there will be an increase in the amount taken
subsequently, sufficient to make up the amount that is then due. If any amount
remains past due more than 90 days, the entire principal amount, whether or not
otherwise then due, along with interest then accrued, shall become due and
payable, as above.

RESTATEMENT JANUARY 1, 1997            48
<PAGE>

     If no distributable event has occurred under the Plan at the time that the
Participant's Vested Account would otherwise be used under this provision to pay
any amount due under the outstanding loan, this will not occur until the time,
or in excess of the extent to which, a distributable event occurs under the
Plan. An outstanding loan will become due and payable in full 60 days after a
Participant ceases to be an Employee and a party-in-interest as defined in ERISA
or after complete termination of the Plan.

SECTION 5.07--DISTRIBUTION UNDER QUALIFIED DOMESTIC RELATIONS ORDERS.

     The Plan specifically permits distributions to an Alternate Payee under a
qualified domestic relations order as defined in Code Section 414(p), at any
time, irrespective of whether the Participant has attained his earliest
retirement age, as defined in Code Section 414(p), under the Plan. A
distribution to an Alternate Payee before the Participant has attained his
earliest retirement age is available only if the order specifies that
distribution shall be made prior to the earliest retirement age or allows the
Alternate Payee to elect a distribution prior to the earliest retirement age.

     Nothing in this section shall permit a participant to receive a
distribution at a time otherwise not permitted under the Plan nor shall it
permit the Alternate Payee to receive a form of payment not permitted under the
Plan.

     The benefit payable to an Alternate Payee shall be subject to the
provisions of the SMALL AMOUNTS SECTION of Article X if the value of the benefit
does not exceed $5,000 ($3,500 for Plan Years beginning before August 6, 1997).

     The Plan Administrator shall establish reasonable procedures to determine
the qualified status of a domestic relations order. Upon receiving a domestic
relations order, the Plan Administer shall promptly notify the Participant and
the Alternate Payee named in the order, in writing, of the receipt of the order
and the Plan's procedures for determining the qualified status of the order.
Within a reasonable period of time after receiving the domestic relations order,
the Plan Administrator shall determine the qualified status of the order and
shall notify the Participant and each Alternate Payee, in writing, of its
determination. The Plan Administrator shall provide notice under this paragraph
by mailing to the individual's address specified in the domestic relations
order, or in a manner consistent with Department of Labor regulations. The Plan
Administer may treat as qualified any domestic relations order entered into
before January 1, 1985, irrespective of whether it satisfies all the
requirements described in Code Section 414(p).

     If any portion of the Participant's Vested Account is payable during the
period the Plan Administrator is making its determination of the qualified
status of the domestic relations order, a separate accounting shall be made of
the amount payable. If the Plan Administrator determined the order is a
qualified domestic relations order within 18 months of the date amounts are
first payable following receipt of the order, the payable amounts shall be
distributed in accordance with the order. If the Plan Administrator does not
make its determination of the qualified status of the order within the 18-month
determination period, the payable amounts shall be distributed in the manner the
Plan would distribute if the order did not exist and the order shall apply
prospectively if the Plan Administrator later determines the order is a
qualified domestic relations order.

     The Plan shall make payments or distributions required under this section
by separate benefit checks or other separate distribution to the Alternate
Payee(s).

RESTATEMENT JANUARY 1, 1997            49
<PAGE>

                                   ARTICLE VI

                            DISTRIBUTION OF BENEFITS

SECTION 6.01--AUTOMATIC FORMS OF DISTRIBUTION.

     Unless an optional form of benefit is selected pursuant to a qualified
election within the election period (see the ELECTION PROCEDURES SECTION of this
article), the automatic form of benefit payable to or on behalf of a Participant
is determined as follows:

     (a)  Retirement Benefits. The automatic form of retirement benefit for a
          Participant who does not die before his Annuity Starting Date shall
          be:

          (1)  The Qualified Joint and Survivor Annuity for a Participant who
               has a spouse.

          (2)  The Normal Form for a Participant who does not have spouse.

     (b)  Death Benefits. The automatic form of death benefit for a Participant
          who dies before his Annuity Starting Date shall be:

          (1)  A Qualified Preretirement Survivor Annuity for a Participant who
               has a spouse on the date of his death. The spouse may elect to
               start receiving the death benefit on any first day of the month
               on or after the Participant dies and before the date the
               Participant would have been age 70 1/2. If the spouse dies before
               benefits start, the Participant's Vested Account, determined as
               of the date of the spouse's death, shall be paid to the spouse's
               Beneficiary.

          (2)  A single-sum payment to the Participant's Beneficiary for a
               Participant who does not have a spouse who is entitled to a
               Qualified Preretirement Survivor Annuity.

          Before a death benefit will be paid on account of the death of a
          Participant who does not have a spouse who is entitled to a Qualified
          Preretirement Survivor Annuity, it must be established to the
          satisfaction of a plan representative that the Participant does not
          have such a spouse.

SECTION 6.02--OPTIONAL FORMS OF DISTRIBUTION.

     (a)  Retirement Benefits. The optional forms of retirement benefit shall be
          the following: (i) a straight life annuity; (ii) single life annuities
          with certain periods of 5, 10 or 15 years; (iii) a single life annuity
          with installment refund; (iv) survivorship life annuities with
          installment refund and survivorship percentages of 50%, 66 2/3% or
          100%; (v) fixed period annuities for any period of whole months which
          is not less than 60 and does not exceed the Life Expectancy, as
          defined in Article VII, of the Participant where the Life Expectancy
          is not recalculated; and (vi) a full flexibility option. A single sum
          payment is also available for that portion of a Participant's Account
          which is not held in the Qualifying Employer Securities Fund. That
          portion of a Participant's Account which is held in the Qualifying
          Employer Securities Fund may be distributed in kind.

          The full flexibility option shall not be available for that part of a
          Participant's Vested Account which he cannot receive in a single sum.

RESTATEMENT JANUARY 1, 1997            50
<PAGE>

          The full flexibility option is an optional form of benefit under which
          the Participant receives a distribution each calendar year, beginning
          with the calendar year in which his Annuity Starting Date occurs. The
          Participant may elect the amount to be distributed each year (not less
          than $1,000). The amount payable in his first Distribution Calendar
          Year, as defined in Article VII, must satisfy the minimum distribution
          requirements of Article VII for such year. Distributions for later
          Distribution Calendar Years, as defined in Article VII, must satisfy
          the minimum distribution requirements of Article VII for such years.
          If the Participant's Annuity Starting Date does not occur until his
          second Distribution Calendar Year, as defined in Article VII, the
          amount payable for such year must satisfy the minimum distribution
          requirements of Article VII for both the first and second Distribution
          Calendar Years, as defined in Article VII.

          If the Plan is amended to eliminate or restrict an optional form of
          distribution and the Plan provides a single sum distribution form that
          is otherwise identical to the optional form of distribution eliminated
          or restricted, the amendment shall not apply to any distribution with
          an Annuity Starting Date earlier than the first day of the second Plan
          Year following the Plan Year in which the amendment is adopted.

          Election of an optional firm is subject to the qualified election
          provisions of the ELECTION PROCEDURES SECTION of this article and the
          distribution requirements of Article VII.

          Any annuity contract distributed shall be nontransferable. The terms
          of any annuity contract purchased and distributed by the Plan to a
          Participant or spouse shall comply with the requirements of this Plan.

     (b)  Death benefits. The optional forms of death benefit are a single-sum
          payment and any annuity that is an optional form of retirement
          benefit. However, the full flexibility option shall not be available
          if the Beneficiary is not the spouse of the deceased Participant.

          Election of an optional form is subject to the qualified election
          provisions of the ELECTION PROCEDURES SECTION of this Article and the
          distribution requirements of Article VII.

SECTION 6.02A--DISTRIBUTIONS IN QUALIFYING EMPLOYER SECURITIES.

     In lieu of the case distributions permitted under Section 6.02 above, any
portion of the Participant's Vested Account held in the Qualifying Employer
Securities Fund may be distributed in kind upon the election of the Participant.
Fractional shares valued as of the most recent Valuation Date shall be paid in
cash. The distribution shall include any dividends (cash or stock) on such whole
shares or any additional shares received as a result of a stock split or any
other adjustment to such whole shares since the Valuation Date preceding the
date of distribution.

     Election of such distribution is subject to the qualified election
provisions of Article VI.

SECTION 6.03--ELECTION PROCEDURES.

     The Participant, Beneficiary, or spouse shall make any election under this
section in writing. The Plan Administrator may require such individual to
complete and sign any necessary documents as to the provisions to be made. Any
election permitted under (a) and (b) below shall be subject to the qualified
election provisions of (c) below.

     (a)  Retirement Benefits. A Participant may elect his Beneficiary or
          Contingent Annuitant and may elect to have retirement benefits
          distributed under any of the optional forms of retirement benefit
          available in the OPTIONAL FORMS OF DISTRIBUTION SECTION of this
          article.

RESTATEMENT JANUARY 1, 1997            51
<PAGE>

     (b)  Death Benefits. A Participant may elect his Beneficiary and may elect
          to have death benefits distributed under any of the optional forms of
          death benefit available in the OPTIONAL FORMS OF DISTRIBUTION SECTION
          of this article.

          If the Participant has not elected an optional form of distribution
          for the death benefit payable to his Beneficiary, the Beneficiary may,
          for his own benefit, elect the form of distribution, in like manner as
          a Participant.

          The Participant may waive the Qualified Preretirement Survivor Annuity
          by naming someone other than his spouse as Beneficiary.

          In lieu of the Qualified Preretirement Survivor Annuity described in
          the AUTOMATIC FORMS OF DISTRIBUTION SECTION of this article, the
          spouse may, for his own benefit, waive the Qualified Preretirement
          Survivor Annuity by electing to have the benefit distributed under any
          of the optional forms of death benefit described in the OPTIONAL FORMS
          OF DISTRIBUTION SECTION of this article.

     (c)  Qualified Election. The Participant, Beneficiary or spouse may make an
          election at any time during the election period. The Participant,
          Beneficiary, or spouse may revoke the election made (or make a new
          election) at any time and any number of times during the election
          period. An election is effective only if it meets the consent
          requirements below.

          (1) Election Period for Retirement Benefits. The election period as to
          retirement benefits is the 90-day period ending on the Annuity
          Starting Date. An election to waive the Qualified Joint and Survivor
          Annuity may not be made before the date the Participant is provided
          with the notice of the ability to waive the Qualified Joint and
          Survivor Annuity. If the Participant elects a full flexibility option,
          he may revoke his election at any time before his first Distribution
          Calendar Year, as defined in Article VII. When he elects to have
          benefits begin again, he shall have a new Annuity Starting Date. His
          election period for this election is the 90-day period ending on the
          Annuity Starting Date for the optional form of retirement benefit
          elected.

          (2) Election Period for Death Benefits. A Participant may make an
          election as to death benefits at any time before he dies. The spouse's
          election period begins on the date the Participant dies and ends on
          the date benefits begin. The Beneficiary's election period begins on
          the date the Participant dies and ends on the date benefits begin.

               An election to waive the Qualified Preretirement Survivor Annuity
          may not be made by the Participant before the date he is provided with
          the notice of the ability to waive the Qualified Preretirement
          Survivor Annuity. A Participant's election to waive the Qualified
          Preretirement Survivor Annuity which is made before the first day of
          the Plan Year in which he reaches age 35 shall become invalid on such
          date. An election made by a Participant after he ceases to be an
          Employee will not become invalid on the first day of the Plan Year in
          which he reaches age 35 with respect to death benefits from that part
          of his Account resulting from Contributions made before he ceased to
          be an Employee.

          (3) Consent to Election. If the Participant's Vested Account exceeds
          $5,000 ($3,500 for Plan Years beginning before August 6, 1997), any
          benefit which is (i) immediately distributable or (ii) payable in a
          form other than a Qualified Joint and Survivor Annuity or a Qualified
          Preretirement Survivor Annuity, requires the consent of the
          Participant and the Participant's spouse (or where either the
          Participant or the spouse has died, the survivor). Such consent shall
          also be required if the Participant's Vested Account at the time of
          any prior distribution exceeded $5,000 ($3,500 for Plan Years
          beginning before August 6, 1997). The rule in the

RESTATEMENT JANUARY 1, 1997            52
<PAGE>

          preceding sentence shall not apply effective October 17, 2000.
          However, consent will still be required if the participant had
          previously had an Annuity Starting Date with respect to any portion of
          such Vested Account.

          The consent of the Participant or spouse to a benefit which is
          immediately distributable must not be made before the date the
          Participant or spouse is provided with the notice of the ability to
          defer the distribution. Such consent shall be made in writing.

          The consent shall not be made more than 90 days before the Annuity
          Starting Date. Spousal consent is not required for a benefit which is
          immediately distributable in a Qualified Joint and Survivor Form.
          Furthermore, if spousal consent is not required because the
          Participant is electing an optional form of retirement benefit that is
          not a life annuity pursuant to (d) below, only the Participant need
          consent to the distribution of a benefit payable in a form that is not
          a life annuity and which is immediately distributable. Neither the
          consent of the Participant nor the Participant's spouse shall be
          required to the extent that a distribution is required to satisfy Code
          Section 401(a)(9) or Code Section 415.

          In addition, upon termination of this Plan, if the Plan does not offer
          an annuity option (purchased from a commercial provider), and if the
          Employer (or any entity within the same Controlled Group) does not
          maintain another defined contribution plan (other than an employee
          stock ownership plan as defined in Code Section 4975(e)(7)), the
          Participant's Account balance will, without the Participant's consent,
          be distributed to the Participant. However, if any entity within the
          same Controlled Group maintains another defined contribution plan
          (other than an employee stock ownership plan as defined in Code
          Section 4975(e)(7)) then the Participant's Account will be
          transferred, without the Participant's consent, to the other plan if
          the Participant does not consent to an immediate distribution.

          A benefit is immediately distributable if any part of the benefit
          could be distributed to the Participant (or surviving spouse) before
          the Participant attains (or would have attained if not deceased) the
          older of Normal Retirement Age or age 62.

          If the Qualified Joint and Survivor Annuity is waived, the spouse has
          the right to limit consent only to a specific Beneficiary or a
          specific form of benefit. The spouse can relinquish one or both such
          rights. Such consent shall be made in writing. The consent shall not
          be made more than 90 days before the Annuity Starting Date.

          If the Qualified Preretirement Survivor Annuity is waived, the spouse
          has the right to limit consent only to a specific Beneficiary. Such
          consent shall be in writing. The spouse's consent shall be witnessed
          by a plan representative or notary public. The spouse's consent must
          acknowledge the effect of the election, including that the spouse had
          the right to limit consent only to a specific Beneficiary or a
          specific form of benefit, if applicable, and that the relinquishment
          of one or both such rights was voluntary. Unless the consent of the
          spouse expressly permits designations by the Participant without a
          requirement of further consent by the spouse, the spouse's consent
          must be limited to the form of benefit, if applicable, and the
          Beneficiary (including any Contingent Annuitant), class of
          Beneficiaries, or contingent Beneficiary named in the election.

          Spousal consent is not required, however, if the Participant
          establishes to the satisfaction of the plan representative that the
          consent of the spouse cannot be obtained because there is no spouse or
          the spouse cannot be located. A spouse's consent under this paragraph
          shall not be valid with respect to any other spouse. A Participant may
          revoke a prior election without the consent of the spouse. Any new
          election will require a new spousal consent, unless the consent of the
          spouse expressly permits such election by the Participant without
          further consent by the spouse. A spouse's consent may be revoked at
          any time within the Participant's

RESTATEMENT JANUARY 1, 1997            53
<PAGE>

          election period.

     (d)  Special Rule for Profit Sharing Plan. This subparagraph (d) applies if
          the Plan is not a direct or indirect transferee after December 31,
          1984, of a defined benefit plan, money purchase plan, target benefit
          plan, stock bonus plan, or profit sharing plan which is subject to the
          survivor annuity requirements of Code Section 401(a)(11) and 417. If
          the above condition is met, spousal consent is not required for
          electing an optional form of retirement benefit that is not a life
          annuity. If such condition is not met, such consent requirements shall
          be operative.

SECTION 6.04--NOTICE REQUIREMENTS.

     (a)  Optional Forms of Retirement Benefit and Right to Defer. The Plan
          Administrator shall furnish to the Participant and the Participant's
          spouse a written explanation of the optional forms of retirement
          benefit in the OPTIONAL FORMS OF DISTRIBUTION SECTION of this article,
          including the material features and relative values of these options,
          in a manner that would satisfy the notice requirements of Code Section
          417(a)(3) and the right of the Participant and the Participant's
          spouse to defer distribution until the benefit is no longer
          immediately distributable.

          The Plan Administrator shall furnish the written explanation by a
          method reasonably calculated to reach the attention of the Participant
          and the Participant's spouse no less than 30 days and no more than 90
          days before the Annuity Starting Date.

          The Participant (and spouse, if applicable) may waive the 30-day
          election period if the distribution of the elected form of retirement
          benefit begins more than 7 days after the Plan Administrator provides
          the Participant (and spouse, if applicable) the written explanation
          provided that: (i) the Participant has been provided with information
          that clearly indicates that the Participant has at least 30 days to
          consider the decision of whether or not to elect a distribution and a
          particular distribution option, (ii) the Participant is permitted to
          revoke any affirmative distribution election at least until the
          Annuity Starting Date, or, it later, at any time prior to the
          expiration of the 7-day period that begins the day after the
          explanation is provided to the Participant, and (iii) the Annuity
          Starting Date is a date after the date that the written explanation
          was provided to the Participant.

     (b)  Qualified Joint and Survivor Annuity. The Plan Administrator shall
          furnish to the Participant a written explanation of the following: the
          terms and conditions of the Qualified Joint and Survivor Annuity; the
          Participant's right to make, and the effect of, an election to waive
          the Qualified Joint and Survivor Annuity; the rights of the
          Participant's spouse; and the right to revoke an election and the
          effect of such a revocation.

          The Plan Administrator shall furnish the written explanation by a
          method reasonably calculated to reach the attention of the Participant
          no less than 30 days, and no more than 90 days, before the Annuity
          Starting Date.

          The Participant (and spouse, if applicable) may waive the 30-day
          election period if the distribution of the elected form of retirement
          benefit begins more than 7 days after the Plan Administrator provides
          the Participant (and spouse, if applicable) the written explanation
          provided that: (i) the Participant has been provided with information
          that clearly indicates that the Participant has at least 30 days to
          consider whether to waive the Qualified Joint and Survivor Annuity and
          elect (with spouse consent, if applicable) a form of distribution
          other than a Qualified Joint and Survivor Annuity, (ii) the
          Participant is permitted to revoke any affirmative distribution
          election at least until the Annuity Starting Date, or, it later, at
          any time prior to the expiration of the 7-day period that begins the
          day after the explanation of the Qualified Joint and Survivor

RESTATEMENT JANUARY 1, 1997            54
<PAGE>

          Annuity is provided to the Participant, and (iii) the Annuity Starting
          Date is a date after the date that the written explanation was
          provided to the participant.

          After the written explanation is given, a Participant or spouse may
          make a written request for additional information. The written
          explanation must be personally delivered or mailed (first class mail,
          postage prepaid) to the Participant or spouse within 30 days from the
          date of the written request. The Plan Administrator does not need to
          comply with more than one such request by a Participant or spouse.

          The Plan Administrator's explanation shall be written in nontechnical
          language and will explain the terms and conditions of the Qualified
          Joint and Survivor Annuity and the financial effect upon the
          Participant's benefit (in terms of dollars per benefit payment) of
          electing not to have benefits distributed in accordance with the
          Qualified Joint and Survivor Annuity.

     (c)  Qualified Preretirement Survivor Annuity. The Plan Administrator shall
          furnish to the Participant a written explanation of the following: the
          terms and conditions of the Qualified Preretirement Survivor Annuity;
          the Participant's right to make, and the effect of, an election to
          waive the Qualified Preretirement Survivor Annuity; the rights of the
          Participant's spouse; and the right to revoke an election and the
          effect of such a revocation.

          The Plan Administrator shall furnish the written explanation by a
          method reasonably calculated to reach the attention of the Participant
          within the applicable period. The applicable period for a Participant
          is whichever of the following periods ends last:

          (1)  the period beginning one year before the date the individual
               becomes a Participant and ending one year after such date; or

          (2)  the period beginning one year before the date the Participant's
               spouse is first entitled to a Qualified Preretirement Survivor
               Annuity and ending one year after such date.

          If such notice is given before the period beginning with the first day
          of the Plan Year in which the Participant attains age 32 and ending
          with the close of the Plan Year preceding the Plan Year in which the
          Participant attains age 35, an additional notice shall be given within
          such period. If a Participant ceases to be an Employee before
          attaining age 35, an additional notice shall be given within the
          period beginning one year before the date he ceases to be an Employee
          and ending one year after such date.

          After the written explanation is given, a Participant or spouse may
          make a written request for additional information. The written
          explanation must be personally delivered or mailed (first class mail,
          postage prepaid) to the Participant or spouse within 30 days from the
          date of the written request. The Plan Administrator does not need to
          comply with more than one such request by a Participant or spouse.

          The Plan Administrator's explanation shall be written in nontechnical
          language and will explain the terms and conditions of the Qualified
          Preretirement Survivor Annuity and the financial effect upon the
          spouse's benefit (in terms of dollars per benefit payment) of electing
          not to have benefits distributed in accordance with the Qualified
          Preretirement Survivor Annuity.

RESTATEMENT JANUARY 1, 1997            55
<PAGE>

                                   ARTICLE VII

                            DISTRIBUTION REQUIREMENTS

SECTION 7.01 - APPLICATION.

The optional forms of distribution are only those provided in Article VI. An
optional form of distribution shall not be permitted unless it meets the
requirements of this article. The timing of any distribution must meet the
requirements of this article.

SECTION 7.02 - DEFINITIONS.

For purposes of this article, the following terms are defined:

APPLICABLE LIFE EXPECTANCY means Life Expectancy (or Joint and Last Survivor
Expectancy) calculated using the attained age of the Participant (or Designated
Beneficiary) as of the Participant's (or Designated Beneficiary's) birthday in
the applicable calendar year reduced by one for each calendar year which has
elapsed since the date Life Expectancy was first calculated. If Life Expectancy
is being recalculated, the Applicable Life Expectancy shall be the Life
Expectancy so recalculated. The applicable calendar year shall be the first
Distribution Calendar Year, and if Life Expectancy is being recalculated, such
succeeding calendar year.

DESIGNATED BENEFICIARY means the individual who is designated as the beneficiary
under the Plan in accordance with Code Section 401(a)(9) and the regulations
thereunder.

DISTRIBUTION CALENDAR YEAR means a calendar year for which a minimum
distribution is required. For distributions beginning before the Participant's
death, the first Distribution Calendar Year is the calendar year immediately
preceding the calendar year which contains the Participant's Required Beginning
Date. For distributions beginning after the Participant's death, the first
Distribution Calendar Year is the calendar year in which distributions are
required to begin pursuant to (e) of the DISTRIBUTION REQUIREMENTS SECTION of
this article.

5-PERCENT OWNER means a 5-percent owner as defined in Code Section 416. A
Participant is treated as a 5-percent Owner for purposes of this article if such
Participant is a 5-percent Owner at any time during the Plan Year ending with or
within the calendar year in which such owner attains age 70 1/2.

In addition, a Participant is treated as a 5-percent Owner for purposes of this
article if such Participant becomes a 5-percent Owner in a later Plan Year. Such
Participant's Required Beginning Date shall not be later than the April 1 of the
calendar year following the calendar year in which such later Plan Year ends.

Once distributions have begun to a 5-percent Owner under this article, they must
continue to be distributed, even if the Participant ceases to be a 5-percent
Owner in a subsequent year.

JOINT AND LAST SURVIVOR EXPECTANCY means joint and last survivor expectancy
computed using the expected return multiples in Table VI of section 1.72-9 of
the Income Tax Regulations.

Unless otherwise elected by the Participant by the time distributions are
required to begin, life expectancies shall be recalculated annually. Such
election shall be irrevocable as to the Participant and shall apply to all
subsequent years. The life expectancy of a nonspouse Beneficiary may not be
recalculated.

RESTATEMENT JANUARY 1, 1997            56
<PAGE>

LIFE EXPECTANCY means life expectancy computed using the expected return
multiples in Table V of section 1.72-9 of the Income Tax Regulations.

Unless otherwise elected by the Participant (or spouse, in the case of
distributions described in (e)(2)(ii) of the DISTRIBUTION REQUIREMENTS SECTION
of this article) by the time distributions are required to begin, life
expectancy shall be recalculated annually. Such election shall be irrevocable as
to the Participant (or spouse) and shall apply to all subsequent years. The life
expectancy of a nonspouse Beneficiary may not be recalculated.

PARTICIPANT'S BENEFIT means:

(a)   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 or forfeitures
      allocated to the Account balance as of the dates in the valuation calendar
      year after the Valuation Date and decreased by distributions made in the
      valuation calendar year after the Valuation Date.

(b)   Exception for Second Distribution Calendar Year. For purposes of (a)
      above, if any portion of the minimum distribution for the first
      Distribution Calendar Year is made in the second Distribution Calendar
      Year on or before the Required Beginning Date, the amount of the minimum
      distribution made in the second Distribution Calendar Year shall be
      treated as if it had been made in the immediately preceding Distribution
      Calendar Year.

REQUIRED BEGINNING DATE means, for a Participant who is a 5-percent Owner, the
April 1 of the calendar year following the calendar year in which he attains age
70 1/2.

Required Beginning Date means, for any Participant who is not a 5-percent Owner,
the April 1 of the calendar year following the later of the calendar year in
which he attains age 70 1/2 or the calendar year in which he retires.

The preretirement age 70 1/2 distribution option is only eliminated with respect
to Participants who reach age 70 1/2 in or after a calendar year that begins
after the later of December 31, 1998, or the adoption date of the amendment
which eliminated such option. The preretirement age 70 1/2 distribution is an
optional form of benefit under which benefits payable in a particular
distribution form (including any modifications that may be elected after
benefits begin) begin at a time during the period that begins on or after
January 1 of the calendar year in which the Participant attains age 70 1/2 and
ends April 1 of the immediately following calendar year.

The options available for Participants who are not 5-percent Owners and attained
age 70 1/2 in calendar years before the calendar year that begins after the
later of December 31, 1998, or the adoption date of the amendment which
eliminated the preretirement age 70 1/2 distribution shall be the following. Any
such Participant attaining age 70 1/2 in years after 1995 may elect by April 1
of the calendar year following the calendar year in which he attained age 70 1/2
(or by December 31, 1997 in the case of a Participant attaining age 70 1/2 in
1996) to defer distributions until the calendar year following the calendar year
in which he retires. Any such Participant attaining age 70 1/2 in years after
1995 shall begin receiving distributions by the April 1 of the calendar year
following the year in which he attained age 70 1/2 (or by December 31, 1997 in
the case of a Participant attaining age 70 1/2 in 1996), a new Annuity Starting
Date upon recommencement.

SECTION 7.03 - DISTRIBUTION REQUIREMENTS.

(a) General Rules.

      (1)   Subject to the AUTOMATIC FORMS OF DISTRIBUTION SECTION of Article
            VI, joint and survivor annuity requirements, the requirements of
            this article shall apply to any distribution of a Participant's

RESTATEMENT JANUARY 1, 1997            57
<PAGE>

            interest and shall take precedence over any inconsistent provisions
            of this Plan. Unless otherwise specified, the provisions of this
            article apply to calendar years beginning after December 31, 1984.

      (2)   All distributions required under this article shall be determined
            and made in accordance with the proposed regulations under Code
            Section 401(a)(9), including the minimum distribution incidental
            benefit requirement of section 1.401(a)(9)-2 of the proposed
            regulations.

      (3)   With respect to distributions under the Plan made for calendar years
            beginning on or after January 1, 2001, the Plan will apply the
            minimum distribution requirements of Code Section 401(a)(9) in
            accordance with the regulations under Code Section 401(a)(9) that
            were proposed on January 17, 2001, notwithstanding any provision of
            the Plan to the contrary. These provisions shall continue in effect
            until the end of the last calendar year beginning before the
            effective date of final regulations under Code Section 401(a)(9) or
            such other date as may be specified in guidance published by the
            Internal Revenue Service.

(b)   Required Beginning Date. The entire interest of a Participant must be
      distributed or begin to be distributed no later than the Participant's
      Required Beginning Date.

(c)   Limits on Distribution Periods. As of the first Distribution Calendar
      Year, distributions, if not made in a single sum, may only be made over
      one of the following periods (or combination thereof):

      (1) the life of the Participant,

      (2)   the life of the Participant and a Designated Beneficiary,

      (3)   a period certain not extending beyond the Life Expectancy of the
            Participant, or

      (4)   a period certain not extending beyond the Joint and Last Survivor
            Expectancy of the Participant and a Designated Beneficiary.

(d)   Determination of Amount to be Distributed Each Year. If the Participant's
      interest is to be distributed in other than a single sum, the following
      minimum distribution rules shall apply on or after the Required Beginning
      Date:

      (1) Individual Account:

            (i) If a Participant's Benefit is to be distributed over

                  (A)   a period not extending beyond the Life Expectancy of the
                        Participant or the Joint Life and Last Survivor
                        Expectancy of the Participant and the Participant's
                        Designated Beneficiary, or

                  (B)   a period not extending beyond the Life Expectancy of the
                        Designated Beneficiary,
                        the amount required to be distributed for each calendar
                        year beginning with the distributions for the first
                        Distribution Calendar Year, must be at least equal to
                        the quotient obtained by dividing the Participant's
                        Benefit by the Applicable Life Expectancy.

            (ii)  For calendar years beginning before January 1, 1989, if the
                  Participant's spouse is not the

RESTATEMENT JANUARY 1, 1997            58
<PAGE>

                  Designated Beneficiary, the method of distribution selected
                  must assure that at least 50 percent of the present value of
                  the amount available for distribution is paid within the Life
                  Expectancy of the Participant.

            (iii) For each calendar years beginning after December 31, 1988, the
                  amount to be distributed each year, beginning with
                  distributions for the first Distribution Calendar Year shall
                  not be less than the quotient obtained by dividing the
                  Participant's Benefit by the lesser of:

                  (A)   the Applicable Life Expectancy, or

                  (B)   if the Participant's spouse is not the Designated
                        Beneficiary, the applicable divisor determined from the
                        table set forth in Q&A-4 of section 1.40(a)(9)-2 of the
                        proposed regulations.

                        Distributions after the death of the Participant shall
                        be distributed using the Applicable Life Expectancy in
                        (1)(i) above as the relevant divisor without regard to
                        section 1.401(a)(9)-2 of the proposed regulations.

            (iv)  The minimum distribution required for the Participant's first
                  Distribution Calendar Year must be made on or before the
                  Participant's Required Beginning Date. The minimum
                  distribution for other calendar years, including the minimum
                  distribution for the Distribution Calendar Year in which the
                  Participant's Required Beginning Date occurs, must be made on
                  or before December 31 of that Distribution Calendar Year.

      (2)   Other Forms. If the Participant's Benefit is distributed in the form
            of an annuity purchased from an insurance company, distributions
            thereunder shall be made in accordance with the requirements of Code
            Section 401(a)(9) and the proposed regulations thereunder.

(e) Death Distribution Provisions.

      (1)   Distribution Beginning Before Death. If the Participant dies after
            distribution of his interest has begun, the remaining portion of
            such interest will continue to be distributed at least as rapidly as
            under the method of distribution being used prior to the
            Participant's death.

      (2) Distribution Beginning After Death.

            (i)   If the Participant dies before distribution of his interest
                  begins, distribution of the Participant's entire interest
                  shall be completed by December 31 of the calendar year
                  containing the fifth anniversary of the Participant's death
                  except to the extent that an election is made to receive
                  distributions in accordance with A or B below:

                  (A)   if any portion of the Participant's interest is payable
                        to a Designated Beneficiary, distributions may be made
                        over the life or over a period certain not greater than
                        the Life Expectancy of the Designated Beneficiary
                        beginning on or before December 31 of the calendar year
                        immediately following the calendar year in which the
                        Participant died;

                  (B)   if the Designated Beneficiary is the Participant's
                        surviving spouse, the date distributions are required to
                        begin in accordance with A above shall not be earlier
                        than the later of:

RESTATEMENT JANUARY 1, 1997            59
<PAGE>

                        (1)   December 31 of the calendar year immediately
                              following the calendar year in which the
                              Participant died, or

                        (2)   December 31 of the calendar year in which the
                              Participant would have attained age 70 1/2.

            (ii)  If the Participant has not made an election pursuant to this
                  (e)(2) by the time of his death, the Participant's Designated
                  Beneficiary must elect the method of distribution no later
                  than the earlier of:

                  (A)   December 31 of the calendar year in which distributions
                        would be required to begin under this subparagraph, or

                  (B)   December 31 of the calendar year which contains the
                        fifth anniversary of the date of death of the
                        Participant.

            (iii) If the Participant has no Designated Beneficiary, or if the
                  Designated Beneficiary does not elect a method of
                  distribution, distribution of the Participant's entire
                  interest must be completed by December 31 of the calendar year
                  containing the fifth anniversary of the Participant's death.

      (3)   For purposed of (e)(2) above, if the surviving spouse dies after the
            Participant, but before payments to such spouse begin, the
            provisions of (e)(2) above, with the exception of (e)(2)(i)(B)
            therein, shall be applied as if the surviving spouse were the
            Participant.

      (4)   For purposes of this (e), distribution of a Participant's interest
            is considered to begin on the Participant's Required Beginning Date
            (or if (e)(3) above is applicable, the date distribution is required
            to begin to the surviving spouse pursuant to (e)(2) above). If
            distribution in the form of an annuity irrevocable begins to the
            Participant before the Required Beginning Date, the date
            distribution is considered to begin is the date distribution
            actually begins.

RESTATEMENT JANUARY 1, 1997            60
<PAGE>

                                  ARTICLE VIII

                               TERMINATION OF PLAN

     The Employer expects to continue the Plan indefinitely but reserves the
right to terminate the Plan in whole or in part at any time upon giving written
notice to all parties concerned. Complete discontinuance of Contributions
constitutes complete termination of the Plan.

     The Account of each Participant shall be fully (100%) vested and
nonforfeitable as of the effective date of complete termination of the Plan. The
Account of each Participant who is included in the group of Participants deemed
to be affected by the partial termination of the Plan shall be fully (100%)
vested and nonforfeitable as of the effective date of the partial termination of
the Plan. The Participant's Account shall continue to participate in the
earnings credited, expenses charged, and any appreciation or depreciation of the
Investment Fund until his Vested Account is distributed.

     A Participant's Account which does not result from the Contributions listed
below may be distributed to the Participant after the effective date of the
complete termination of the Plan:

     Elective Deferral Contributions
     Qualified Nonelective Contributions
     Qualified Matching Contributions

     A Participant's Account resulting form such Contributions may be
distributed upon complete termination of the Plan, but only if neither the
Employer nor any Controlled Group member maintain or establish a successor
defined contribution plan (other than an employer stock ownership plan as
defined in Code Section 4975(e)(7), a simplified employee pension plan as
defined in Code Section 408(k) or a SIMPLE IRA plan as defined in Code Section
408(p)) and such distribution is made in a lump sum. A distribution under this
article shall be a retirement benefit and shall be distributed to the
Participant according to the provisions of Article VI.

     The Participant's entire Vested Account shall be paid in a single sum to
the Participant as of the effective date of complete termination of the Plan if
(i) the requirements for distribution of Elective Deferral Contributions in the
above paragraph are met and (ii) consent of the Participant is not required in
the ELECTION PROCEDURES SECTION of Article VI to distribute a benefit which is
immediately distributable. This is a small amounts payment. The small amounts
payment is in full settlement of all benefits otherwise payable.

     Upon complete termination of the Plan, no more Employees shall become
Participants and no more Contributions shall be made.

     The assets of this Plan shall not be paid to the Employer at any time,
except that, after the satisfaction of all liabilities under the Plan, any
assets remaining may be paid to the Employer. The payment may not be made if it
would contravene any provision of law.

RESTATEMENT JANUARY 1, 1997            61
<PAGE>

                                   ARTICLE IX

                           ADMINISTRATION OF THE PLAN

SECTION 9.01--ADMINISTRATION.

     Subject to the provisions of this article, the Plan Administrator has
complete control of the administration of the Plan. The Plan Administrator has
all the powers necessary for it to properly carry out its administrative duties.
Not in limitation, but in amplification of the foregoing, the Plan Administrator
has complete discretion to construe or interpret the provisions of the Plan,
including ambiguous provisions, if any, and to determine all questions that may
arise under the Plan, including all questions relating to the eligibility of
Employees to participate in the Plan and the amount of benefit to which any
Participant, Beneficiary, spouse or Contingent Annuitant may become entitled.
The Plan Administrator's decisions upon all matters within the scope of its
authority shall be final.

     Unless otherwise set out in the Plan or Annuity Contract, the Plan
Administrator may delegate record keeping and other duties which are necessary
for the administration of the Plan to any person or firm which agrees to accept
such duties. The Plan Administrator shall be entitled to rely upon all tables,
valuations, certificates and reports furnished by the consultant or actuary
appointed by the Plan Administrator and upon all opinions given by any counsel
selected or approved by the Plan Administrator.

     The Plan Administrator shall receive all claims for benefits by
Participants, former Participants, Beneficiaries, spouses, and Contingent
Annuitants. The Plan Administrator shall determine all facts necessary to
establish the right of any Claimant to benefits and the amount of those benefits
under the provisions of the Plan. The Plan Administrator may establish rules and
procedures to be followed by Claimants in filing claims for benefits, in
furnishing and verifying proofs necessary to determine age, and in any other
matters required to administer the Plan.

(b) SECTION 9.02--EXPENSES

Expenses of the Plan, to the extent that the Employer does not pay such
expenses, may be paid out of assets of the Plan provided that such payment is
consistent with ERISA. Such expenses include, but are not limited to, expenses
for bonding required by ERISA; expenses for record keeping and other
administrative services; fees and expenses of the Trustee or Annuity Contract;
expenses for investment education service; and direct costs that the Employer
incurs with respect to the Plan.

SECTION 9.03--RECORDS.

     All acts and determinations of the Plan Administrator shall be duly
recorded. All these records, together with other documents necessary for the
administration of the Plan, shall be preserved in the Plan Administrator's
custody.

     Writing (handwriting, typing, printing), photostating, photographing,
microfilming, magnetic impulse, mechanical or electrical recording, or other
forms of data compilation shall be acceptable means of keeping records.

SECTION 9.04--INFORMATION AVAILABLE.

     Any Participant in the Plan or any Beneficiary may examine copies of the
Plan description, latest annual report, any bargaining agreement, this Plan, the
Annuity Contract or any other instrument under which the Plan was established or
is operated. The Plan Administrator shall maintain all of the items listed in
this section in its office, or in such other place or places as it may designate
in order to comply with governmental regulations. These items may be examined
during

RESTATEMENT JANUARY 1, 1997            62
<PAGE>

reasonable business hours. Upon the written request of a Participant or
Beneficiary receiving benefits under the Plan, the Plan Administrator shall
furnish him with a copy of any of these items. The Plan Administrator may make a
reasonable charge to the requesting person for the copy.

SECTION 9.05--CLAIM AND APPEAL PROCEDURES.

     A Claimant must submit any required forms and pertinent information when
making a claim for benefits under the Plan.

     If a claim for benefits under the Plan is denied, the Plan Administrator
shall provide adequate written notice to the Claimant whose claim for benefits
under the Plan has been denied. The notice must be furnished within 90 days of
the date that the claim is received by the Plan Administrator. The Claimant
shall be notified in writing within this initial 90-day period if special
circumstances require an extension of time needed to process the claim and the
date by which the Plan Administrator's decision is expected to be rendered. The
written notice shall be furnished no later than 180 days after the date the
claim was received by the Plan Administrator.

     The Plan Administrator's notice to the Claimant shall specify the reason
for the denial; specify references to pertinent Plan provisions on which denial
is based; describe any additional material and information needed for the
Claimant to perfect his claim for benefits; explain why the material and
information is needed; inform the Claimant that any appeal he wishes to make
must be in writing to the Plan Administrator within 60 days after receipt of the
Plan Administrator's notice of denial of benefits and that failure to make the
written appeal within such 60-day period renders the Plan Administrator's
determination of such denial final, binding and conclusive.

     If the Claimant appeals to the Plan Administrator, the Claimant (or his
authorized representative) may submit in writing whatever issues and comments
the Claimant (or his authorized representative) feels are pertinent. The
Claimant (or his authorized representative) may review pertinent Plan documents.
The Plan Administrator shall reexamine all facts related to the appeal and make
a final determination as to whether the denial of benefits is justified under
the circumstances. The Plan Administrator shall advise the Claimant of its
decision within 60 days of his written request for review, unless special
circumstances (such as a hearing) would make rendering a decision within the
60-day limit unfeasible. The Claimant must be notified within the 60-day limit
if an extension is necessary. The Plan Administrator shall render a decision on
a claim for benefits no later than 120 days after the request for review is
received.

SECTION 9.06--DELEGATION OF AUTHORITY.

     All or any part of the administrative duties and responsibilities under
this article may be delegated by the Plan Administrator to a retirement
committee. The duties and responsibilities of the retirement committee shall be
set out in a separate written agreement.

SECTION 9.07--EXERCISE OF DISCRETIONARY AUTHORITY

     The Employer, Plan Administrator, and any other person or entity who has
authority with respect to the management, administration, or investment of the
Plan may exercise that authority in its/his full discretion, subject only to the
duties imposed under ERISA. This discretionary authority includes, but is not
limited to, the authority to make any and all factual determinations and
interpret all terms and provisions of the Plan documents relevant to the issue
under consideration. The exercise of authority will be binding upon all persons;
will be given deference in all courts of law, and will not be overturned or set
aside by any court of law unless found to be arbitrary and capricious or made in
bad faith.

SECTION 9.08--VOTING AND TENDER OF QUALIFYING EMPLOYER SECURITIES

RESTATEMENT JANUARY 1, 1997            63
<PAGE>

     The Employer (or the Named Fiduciary or the Investment Manager as
designated by the Employer) will have the voting rights for Qualifying Employer
Securities. Before each meeting of shareholders, the Employer shall cause to be
sent to each person with power to control such voting rights a copy of any
notice and any other information provided to shareholders and, if applicable, a
form for instructing the Trustee how to vote at such meeting (or any adjournment
thereof) the number of full and fractional shares subject to such person's
voting control. The Trustee may establish a deadline in advance of the meeting
by which such forms must be received in order to be effective.

     Tender rights or exchange offers for Qualifying Employer Securities will be
determined by the Employer (or the Named Fiduciary or the Investment Manager as
designated by the Employer). As soon as practicable after the commencement of a
tender or exchange offer for Qualifying Employer Securities, the Employer shall
cause each person with power to control the response to such tender or exchange
offer to be advised in writing the terms of the offer and, if applicable, to be
provided with a form for instructing the Trustee, or for revoking such
instruction, to tender or exchange shares of Qualifying Employer Securities, to
the extent permitted under the terms of such offer. In advising such persons of
the terms of the offer, the Employer may include statements from the board of
directors setting forth its position with respect to the offer.

RESTATEMENT JANUARY 1, 1997            64
<PAGE>

                                    ARTICLE X

                               GENERAL PROVISIONS

SECTION 10.01--AMENDMENTS.

     The Employer may amend this Plan at any time, including any remedial
retroactive changes (within the time specified by Internal Revenue Service
regulations) to comply with any law or regulation issued by any governmental
agency to which the Plan is subject.

     An amendment may not diminish or adversely affect any accrued interest or
benefit of Participants or their Beneficiaries nor allow reversion or diversion
of Plan assets to the Employer at any time, except as may be required to comply
with any law or regulation issued by any governmental agency to which the Plan
is subject.

     No amendment to this Plan shall be effective to the extent that it has the
effect of decreasing a Participant's accrued benefit. However, a Participant's
Account may be reduced to the extent permitted under Code Section 412(c)(8). For
purposes of this paragraph, a Plan amendment which has the effect of decreasing
a Participant's Account with respect to benefits attributable to service before
the amendment shall be treated as reducing an accrued benefit. Furthermore, if
the vesting schedule of the Plan is amended, in the case of an Employee who is a
Participant as of the later of the date such amendment is adopted or the date it
becomes effective, the nonforfeitable percentage (determined as of such date) of
such Employee's right to his employer-derived accrued benefit shall not be less
than his percentage computed under the Plan without regard to such amendment.

     No amendment to the Plan shall be effective to eliminate or restrict an
optional form of benefit with respect to benefits attributable to service before
the amendment except as provided in the MERGERS AND DIRECT TRANSFERS SECTION of
this article and below:

     (a)  The Plan is amended to eliminate or restrict the ability of a
          Participant to receive payment of his Account balance under a
          particular optional form of benefit and the amendment satisfies the
          condition in (1) and the Plan satisfies the condition in (2) below:

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

          (2)  The Plan provides that the amendment shall not apply to any
               distribution with an Annuity Starting Date earlier than the
               earlier of:

               (i)  the 90th day after the date the Participant receiving the
                    distribution has been furnished a summary that reflects the
                    amendment and that satisfies the ERISA requirements at 29
                    CFR 2520.104b-3 relating to a summary of material
                    modifications, or

               (ii) the first day of the second Plan Year following the Plan
                    Year in which the amendment is adopted.

     (b)  The Plan is amended to eliminate or restrict in-kind distributions and
          the conditions in Q&A 2(b)(2)(iii) in

RESTATEMENT JANUARY 1, 1997            65
<PAGE>

          section 1.411(d)-4 of the regulations are met.

     If, as a result of an amendment, an Employer Contribution is removed that
is not 100% immediately vested when made, the applicable vesting schedule shall
remain in effect after the date of such amendment. The Participant shall not
become immediately 100% vested in such Contributions as a result of the
elimination of such Contribution except as otherwise specifically provided in
the Plan.

     An amendment shall not decrease a Participant's vested interest in the
Plan. If an amendment to the Plan, or a deemed amendment in the case of a change
in top-heavy status of the Plan as provided in the MODIFICATION OF VESTING
REQUIREMENTS SECTION of Article XI, changes the computation of the percentage
used to determine that portion of a Participant's Account attributable to
Employer Contributions which is nonforfeitable (whether directly or indirectly),
each Participant or former Participant

     (c)  who has completed at least three Years of Service on the date the
          election period described below ends (five Years of Service if the
          Participant does not have at least one Hour-of-Service in a Plan Year
          beginning after December 31, 1988) and

     (d)  whose nonforfeitable percentage will be determined on any date after
          the date of the change

may elect, during the election period, to have the nonforfeitable percentage of
his Account that results from Employer Contributions determined without regard
to the amendment. This election may not be revoked. If after the Plan is
changed, the Participant's nonforfeitable percentage will at all times be as
great as it would have been if the change had not been made, no election needs
to be provided. The election period shall begin no later than the date the Plan
amendment is adopted, or deemed adopted in the case of a change in the top-heavy
status of the Plan, and end no earlier than the 60th day after the latest of the
date the amendment is adopted (deemed adopted) or becomes effective, or the date
the Participant is issued written notice of the amendment (deemed amendment) by
the Employer or the Plan Administrator.

SECTION 10.02--DIRECT ROLLOVERS.

     Notwithstanding any provision of the Plan to the contrary that would
otherwise limit a Distributee's election under this section, a Distributee may
elect, at the time and in the manner prescribed by the Plan Administrator, to
have any portion of an Eligible Rollover Distribution paid directly to an
Eligible Retirement Plan, specified by the Distributee in a Direct Rollover.

     Any distributions made under the SMALL AMOUNTS SECTION of this article (or
which are small amounts payments made under Article VIII at complete termination
of the Plan) which are Eligible Rollover Distributions and for which the
Distributee has not elected to either have such distribution paid to him or to
an Eligible Retirement Plan shall be paid to the Distributee.

SECTION 10.03--MERGERS AND DIRECT TRANSFERS.

     The Plan may not be merged or consolidated with, nor have its assets or
liabilities transferred to, any other retirement plan, unless each Participant
in the plan would (if the plan then terminated) receive a benefit immediately
after the merger, consolidation or transfer which is equal to or greater than
the benefit the Participant would have been entitled to receive immediately
before the merger, consolidation or transfer (if this Plan had then terminated).
The Employer may enter into merger agreements or direct transfer of assets
agreements with the employers under other retirement plans which are qualifiable
under Code Section 401(a), including an elective transfer, and may accept the
direct transfer of plan assets, or may transfer plan assets, as a party to any
such agreement. The Employer shall not consent to, or be a party to a merger,

RESTATEMENT JANUARY 1, 1997            66
<PAGE>

consolidation, or transfer of assets with a defined benefit plan if such action
would result in a defined benefit feature being maintained under this Plan.

     Notwithstanding any provision of the Plan to the contrary, to the extent
any optional form of benefit under the Plan permits a distribution prior to the
Employee's retirement, death, disability, or severance from employment, and
prior to plan termination, the optional form of benefit is not available with
respect to benefits attributable to assets (including the post-transfer earnings
thereon) and liabilities that are transferred, within the meaning of Code
Section 414(l), to this Plan from a money purchase pension plan qualified under
Code Section 401(a) (other than any portion of those assets and liabilities
attributable to voluntary employee contributions).

     The Plan may accept a direct transfer of plan assets on behalf of an
Eligible Employee. If the Eligible Employee is not an Active Participant when
the transfer is made, the Eligible Employee shall be deemed to be an Active
Participant only for the purpose of investment and distribution of the
transferred assets. Employer Contributions shall not be made for or allocated to
the Eligible Employee, until the time he meets all of the requirements to become
an Active Participant.

     The Plan shall hold, administer, and distribute the transferred assets as a
part of the Plan. The Plan shall maintain a separate account for the benefit of
the Employee on whose behalf the Plan accepted the transfer in order to reflect
the value of the transferred assets.

     Unless a transfer of assets to the Plan is an elective transfer as
described below, the Plan shall apply the optional forms of benefit protections
described in the AMENDMENTS SECTION of this article to all transferred assets.

     A Participant's protected benefits may be eliminated upon transfer between
qualified defined contribution plans if the conditions in Q&A 3(b)(1) in section
1.411(d)-4 of the regulations are met. The transfer must meet all of the other
applicable qualification requirements.

     A participant's protected benefits may be eliminated upon transfer between
qualified plans (both defined benefit and defined contribution) if the
conditions in Q&A 3(c)(1) section 1.411(d)-4 of the regulations are met.
Beginning January 1, 2002, if the Participant is eligible to receive an
immediate distribution of his entire nonforfeitable accrued benefit in a single
sum distribution that would consist entirely of an eligible rollover
distribution under Code Section 401(a)(31), such transfer will be accomplished
as a direct rollover under Code Section 401(a)(31). The rules applicable to
distributions under the plan would apply to the transfer, but the transfer would
not be treated as a distribution for purposes of the minimum distribution
requirements of Code Section 401(a)(9).

SECTION 10.04--PROVISIONS RELATING TO THE INSURER
               AND OTHER PARTIES.

     The obligations of an Insurer shall be governed solely by the provisions of
the Annuity Contract. The Insurer shall not be required to perform any act not
provided in or contrary to the provisions of the Annuity Contract. Each Annuity
Contract when purchased shall comply with the Plan. See the CONSTRUCTION SECTION
of this article.

     Any issuer or distributor of investment contracts or securities is governed
solely by the terms of its policies, written investment contract, prospectuses,
security instruments, and any other written agreements entered into with the
Trustee with regard to such investment contracts or securities.

     Such Insurer, issuer or distributor is not a party to the Plan, nor bound
in any way by the Plan provisions. Such parties shall not be required to look to
the terms of this Plan, nor to determine whether the Employer, the Plan
Administrator, the Trustee, or the Named Fiduciary have the authority to act in
any particular manner or to make any contract or agreement.

RESTATEMENT JANUARY 1, 1997            67
<PAGE>

     Until notice of any amendment or termination of this Plan or a change in
Trustee has been received by the Insurer at its home office or an issuer or
distributor at their principal address, they are and shall be fully protected in
assuming that the Plan has not been amended or terminated and in dealing with
any party acting as Trustee according to the latest information which they have
received at their home office or principal address.

SECTION 10.05--EMPLOYMENT STATUS.

     Nothing contained in this Plan gives an Employee the right to be retained
in the Employer's employ or to interfere with the Employer's right to discharge
any Employee.

SECTION 10.06--RIGHTS TO PLAN ASSETS.

     An Employee shall not have any right to or interest in any assets of the
Plan upon termination of his employment or otherwise except as specifically
provided under this Plan, and then only to the extent of the benefits payable to
such Employee according to the Plan provisions.

     Any final payment or distribution to a Participant or his legal
representative or to any Beneficiaries, spouse or Contingent Annuitant of such
Participant under the Plan provisions shall be in full satisfaction of all
claims against the Plan, the Named Fiduciary, the Plan Administrator, the
Insurer, the Trustee, and the Employer arising under or by virtue of the Plan.

SECTION 10.07--BENEFICIARY.

     Each Participant may name a Beneficiary to receive any death benefit (other
than any income payable to a Contingent Annuitant) that may arise out of his
participation in the Plan. The Participant may change his Beneficiary from time
to time. Unless a qualified election has been made, for purposes of distributing
any death benefits before the Participant's Retirement Date, the Beneficiary of
a Participant who has a spouse who is entitled to a Qualified Preretirement
Survivor Annuity shall be the Participant's spouse. The Participant's
Beneficiary designation and any change of Beneficiary shall be subject to the
provisions of the ELECTION PROCEDURES SECTION of Article VI. It is the
responsibility of the Participant to give written notice to the Insurer of the
name of the Beneficiary on a form furnished for that purpose.

     With the Employer's consent, the Plan Administrator may maintain records of
Beneficiary designations for Participants before their Retirement Dates. In that
event, the written designations made by Participants shall be filed with the
Plan Administrator. If a Participant dies before his Retirement Date, the Plan
Administrator shall certify to the Insurer the Beneficiary designation on its
records for the Participant.

     If there is no Beneficiary named or surviving when a Participant dies, the
Participant's Beneficiary shall be the Participant's surviving spouse, or where
there is no surviving spouse, the executor or administrator of the Participant's
estate.

SECTION 10.08--NONALIENATION OF BENEFITS.

     Benefits payable under the Plan are not subject to the claims of any
creditor of any Participant, Beneficiary, spouse or Contingent Annuitant. A
Participant, Beneficiary, spouse or Contingent Annuitant does not have any
rights to alienate, anticipate, commute, pledge, encumber or assign any of such
benefits, except in the case of a loan as provided in the LOANS TO PARTICIPANTS
SECTION of Article V. The preceding sentences shall also apply to the creation,
assignment, or recognition of a right to any benefit payable with respect to a
Participant according to a domestic relations order, unless such

RESTATEMENT JANUARY 1, 1997            68
<PAGE>

order is determined by the Plan Administrator to be a qualified domestic
relations order, as defined in Code Section 414(p), or any domestic relations
order entered before January 1, 1985. The preceding sentences shall not apply to
any offset of a Participant's benefits provided under the Plan against an amount
the Participant is required to pay the Plan with respect to a judgment, order,
or decree issued, or a settlement entered into, on or after August 5, 1997,
which meets the requirements of Code Section 401(a)(13)(C) or (D).

SECTION 10.09--CONSTRUCTION.

     The validity of the Plan or any of its provisions is determined under and
construed according to Federal law and, to the extent permissible, according to
the laws of the state in which the Employer has its principal office. In case
any provision of this Plan is held illegal or invalid for any reason, such
determination shall not affect the remaining provisions of this Plan, and the
Plan shall be construed and enforced as if the illegal or invalid provision had
never been included.

     In the event of any conflict between the provisions of the Plan and the
terms of any Annuity Contract issued hereunder, the provisions of the Plan
control.

SECTION 10.10--LEGAL ACTIONS.

     No person employed by the Employer, no Participant, former Participant or
their Beneficiaries, or any other person having or claiming to have an interest
in the Plan is entitled to any notice of process. A final judgment entered in
any such action or proceeding shall be binding and conclusive on all persons
having or claiming to have an interest in the Plan.

SECTION 10.11--SMALL AMOUNTS.

If consent of the Participant is not required for a benefit which is immediately
distributable in the ELECTION PROCEDURES SECTION of Article VI, a Participant's
entire Vested Account shall be paid in a single sum as of the earliest of his
Retirement Date, the date he dies, or the date he ceases to be an Employee for
any other reason. For purposes of this section, if the Participant's Vested
Account is zero, the Participant shall be deemed to have received a distribution
of such Vested Account. If a Participant would have received a distribution
under the first sentence of this paragraph but for the fact that the
Participant's consent was needed to distribute a benefit which is immediately
distributable, and if at a later time consent would not be needed to distribute
a benefit which is immediately distributable and such Participant has not become
an Employee, such Vested Account shall be paid in a single sum. This is a small
amounts payment.

     If a small amounts payment is made as of the date the Participant dies, the
small amounts payment shall be made to the Participant's Beneficiary (spouse if
the death benefit is payable to the spouse). If a small amounts payment is made
while the Participant is living, the small amounts payment shall be made to the
Participant. The small amounts payment is in full settlement of all benefits
otherwise payable.

     No other small amounts payments shall be made.

SECTION 10.12--WORD USAGE.

     The masculine gender, where used in this Plan, shall include the feminine
gender and the singular words, as used in this Plan, may include the plural,
unless the context indicates otherwise.

     The words in writing and written, where used in this Plan, shall include
any other forms, such as voice response or other electronic system, as permitted
by any governmental agency to which the Plan is subject.

RESTATEMENT JANUARY 1, 1997            69
<PAGE>

SECTION 10.13--CHANGE IN SERVICE METHOD

     (a)  Change of Service Method Under This Plan. If this Plan is amended to
          change the method of crediting service from the elapsed time method to
          the hours method for any purposed under this Plan, the Employee's
          service shall be equal to the sum of (1), (2), and (3) below:

          (1) The number of whole years of service credited to the Employee
          under the Plan as of the date the change is effective.

          (2) One year of service for the applicable computation period in which
          the change is effective if he is credited with the required number of
          Hours-of-Service. If the Employer does not have sufficient records to
          determine the Employee's actual Hours-of-Service in that part of the
          service period before the effective date of change, the
          Hours-of-Service shall be determined using an equivalency. For any
          month in which he would be required to be credited with one
          Hour-of-Service, the Employee shall be deemed for purposes of this
          section to be credited with 190 Hours-of-Service.

          (3) The Employee's service determined under this Plan using the hours
          method after the end of the computation period in which the change in
          service method was effective.

     If this Plan is amended to change the method of crediting service from the
hours method to the elapsed time method for any purpose under this Plan, the
Employee's service shall be equal top the sum of (4), (5), and (6) below:

          (4) The number of whole years of service credited to the Employee
          under the Plan as of the beginning of the computation period in which
          the change in service method is effective.

          (5) The greater of (i) the service that would be credited the Employee
          for that entire computation period using the elapsed time method or
          (ii the service credited to him under the Plan as of the date the
          change is effective.

          (6) The Employee's service determined under this Plan using the
          elapsed time method after the end of the applicable computation period
          in which the change of service method was effective.

     (b)  Transfers Between Plans with Difference Service Methods. If an
          Employee has been a participant in another plan of the Employer which
          credited service under the elapsed time method for any purpose which
          under this Plan is determined using the hours method, then the
          Employee's service shall be equal to the sum of (1), (2), and (3)
          below:

          (1) The number of whole years of service credited to the Employee
          under the plan as of the date he became an Eligible Employee under
          this Plan.

          (2) One year of service for the applicable computation period in which
          he became an Eligible Employee if he is credited with the required
          number of Hours-of-Service. If the Employer does not have sufficient
          records to determine the Employee's actual Hours-of-Service in that
          part of the service period before the date he became an Eligible
          Employee, the Hours-of-Service shall be determined using an
          equivalency. For any month in which he would be required to be
          credited with one Hour-of-Service, the Employee shall be deemed for
          purposes of this section to be credited with 190 Hours-of-Service.

          (3) The Employee's service determined under this Plan using the hours
          method after the end of the

RESTATEMENT JANUARY 1, 1997            70
<PAGE>

          computation period in which he became an Eligible Employee.

          If an Employee has been a participant in another plan of the Employer
          which credited service under the hours method for any purpose which
          under this Plan is determined using the elapsed time method, then the
          Employee's service shall be equal to the sum of (4), (5), and (6)
          below:

          (4) The number of whole years of service credited to the Employee
          under the other plan as of the beginning of the computation period
          under that plan in which he became an Eligible Employee under this
          Plan.

          (5) The greater of (i) the service that would be credited to the
          Employee for that entire computation period using the elapsed time
          method or (ii) the service credited to him under the other plan as of
          the date he became an Eligible Employee under this Plan.

          (6) The Employee's service determined under this Plan using the
          elapsed time method after the end of the applicable computation period
          under the other plan in which he became an Eligible Employee.

     If the Employee has been a participant in a Controlled Group member's plan
which credited service under a different method than is used in this Plan, in
order to determine entry and vesting, the provisions in (b) above shall apply as
though the Controlled Group member's plan were a plan of the Employer.

     Any modification of service contained in this Plan shall be applicable to
the service determined pursuant to this section.

SECTION 10.14--MILITARY SERVICE.

     Notwithstanding any provision of this Plan to the contrary, the Plan shall
provide contributions, benefits, and service credit with respect to qualified
military service in accordance with Code Section 414(u). Loan repayments shall
be suspended under this Plan as permitted under Code Section 414(u).

RESTATEMENT JANUARY 1, 1997            71
<PAGE>

                                   ARTICLE XI

                           TOP-HEAVY PLAN REQUIREMENTS

SECTION 11.01--APPLICATION.

     The provisions of this article shall supersede all other provisions in the
Plan to the contrary.

     For the purpose of applying the Top-heavy Plan requirements of this
article, all members of the Controlled Group shall be treated as one Employer.
The term Employer, as used in this article, shall be deemed to include all
members of the Controlled Group, unless the term as used clearly indicates only
the Employer is meant.

     The accrued benefit or account of a participant which results from
deductible employee contributions shall not be included for any purpose under
this article.

     The minimum vesting and contribution provisions of the MODIFICATION OF
VESTING REQUIREMENTS and MODIFICATION OF CONTRIBUTIONS SECTIONS of this article
shall not apply to any Employee who is included in a group of Employees covered
by a collective bargaining agreement which the Secretary of Labor finds to be a
collective bargaining agreement between employee representatives and one or more
employers, including the Employer, if there is evidence that retirement benefits
were the subject of good faith bargaining between such representatives. For this
purpose, the term "employee representatives" does not include any organization
more than half of whose members are employees who are owners, officers, or
executives.

SECTION 11.02--DEFINITIONS.

     For the purposes of this article the following terms are defined:

     AGGREGATION GROUP means

     (a)  each of the Employer's qualified plans in which a Key Employee is a
          participant during the Plan Year containing the Determination Date
          (regardless of whether the plan was terminated) or one of the four
          preceding Plan Years,

     (b)  each of the Employer's other qualified plans which allows the plan(s)
          described in (a) above to meet the nondiscrimination requirement of
          Code Section 401(a)(4) or the minimum coverage requirement of Code
          Section 410, and

     (c)  any of the Employer's other qualified plans not included in (a) or (b)
          above which the Employer desires to include as part of the Aggregation
          Group. Such a qualified plan shall be included only if the Aggregation
          Group would continue to satisfy the requirements of Code Section
          401(a)(4) and Code Section 410.

     The plans in (a) and (b) above constitute the "required" Aggregation Group.
     The plans in (a), (b), and (c) above constitute the "permissive"
     Aggregation Group.

     COMPENSATION means compensation as defined in the CONTRIBUTION LIMITATION
     SECTION of Article III. For purposes of determining who is a Key Employee
     in years beginning before January 1, 1998, Compensation shall include, in
     addition to compensation as defined in the CONTRIBUTION LIMITATION SECTION
     of Article III, elective contributions. Elective contributions are amounts
     excludible from the gross income of the Employee under

RESTATEMENT JANUARY 1, 1997            72
<PAGE>

     Code Sections 125, 402(e)(3), 402(h)(1)(B) or 403(b), and contributed by
     the Employer, at the Employee's election, to a Code Section 401(k)
     arrangement, a simplified employee pension, cafeteria plan or tax-sheltered
     annuity. Elective contributions also include amounts deferred under a Code
     Section 457 plan maintained by the Employer.

     DETERMINATION DATE means as to any plan, for any plan year subsequent to
     the first plan year, the last day of the preceding plan year. For the first
     plan year of the plan, the last day of that year.

     KEY EMPLOYEE means any Employee or former Employee (and the Beneficiaries
     of such Employee) who at any time during the determination period was

     (a)  an officer of the Employer if such individual's annual Compensation
          exceeds 50 percent of the dollar limitation under Code Section
          415(b)(1)(A),

     (b)  an owner (or considered an owner, under Code Section 318) of one of
          the ten largest interests in the Employer if such individual's annual
          Compensation exceeds 100 percent of the dollar limitation under Code
          Section 415(c)(1)(A),

     (c)  a five-percent owner of the Employer, or

     (d)  a one-percent owner of the Employer who has annual Compensation of
          more than $150,000.

     The determination period is the Plan Year containing the Determination Date
and the four preceding Plan Years.

     The determination of who is a Key Employee shall be made according to Code
Section 416(i)(1) and the regulations thereunder.

     NON-KEY EMPLOYEE means any Employee who is not a Key Employee.

     PRESENT VALUE means the present value of a participant's accrued benefit
     under a defined benefit plan. For purposes of establishing Present Value to
     compute the Top-heavy Ratio, any benefit shall be discounted only for 7.5%
     interest and mortality according to the 1971 Group Annuity Table (Male)
     without the 7% margin but with projection by Scale E from 1971 to the later
     of (a) 1974, or (b) the year determined by adding the age to 1920, and
     wherein for females the male age six years younger is used.

     TOP-HEAVY PLAN means a plan which is a top-heavy plan for any plan year
     beginning after December 31, 1983. This Plan shall be top-heavy if any of
     the following conditions exist:

     (a)  The Top-heavy Ratio for this Plan exceeds 60 percent and this Plan is
          not part of any required Aggregation Group or permissive Aggregation
          Group.

     (b)  This Plan is a part of a required Aggregation Group, but not part of a
          permissive Aggregation Group, and the Top-heavy Ratio for the required
          Aggregation Group exceeds 60 percent.

     (c)  This Plan is a part of a required Aggregation Group and part of a
          permissive Aggregation Group and the Top-heavy Ratio for the
          permissive Aggregation Group exceeds 60 percent.

     TOP-HEAVY RATIO means:

RESTATEMENT JANUARY 1, 1997            73
<PAGE>

     (a)  If the Employer maintains one or more defined contribution plans
          (including any simplified employee pension plan) and the Employer has
          not maintained any defined benefit plan which during the five-year
          period ending on the Determination Date(s) has or has had accrued
          benefits, the Top-heavy Ratio for this Plan alone or for the required
          or permissive Aggregation Group, as appropriate, is a fraction, the
          numerator of which is the sum of the account balances of all Key
          Employees as of the Determination Date(s) (including any part of any
          account balance distributed in the five-year period ending on the
          Determination Date(s)), and the denominator of which is the sum of all
          account balances (including any part of any account balance
          distributed in the five-year period ending on the Distribution
          Date(s)), both computed in accordance with Code Section 416 and the
          regulations thereunder. Both the numerator and denominator of the
          Top-heavy Ratio are increased to reflect any contribution not actually
          made as of the Determination Date, but which is required to be taken
          into account on that date under Code Section 416 and the regulations
          thereunder.

     (b)  If the Employer maintains one or more defined contribution plans
          (including any simplified employee pension plan) and the Employer
          maintains or has maintained one or more defined benefit plans which
          during the five-year period ending on the Determination Date(s) has or
          has had accrued benefits, the Top-heavy Ratio for any required or
          permissive Aggregation Group, as appropriate, is a fraction, the
          numerator of which is the sum of the account balances under the
          aggregated defined contribution plan or plans of all Key Employees
          determined in accordance with (a) above, and the Present Value of
          accrued benefits under the aggregated defined benefit plan or plans
          for all Key Employees as of the Determination Date(s), and the
          denominator of which is the sum of the account balances under the
          aggregated defined contribution plan or plans for all participants,
          determined in accordance with (a) above, and the Present Value of
          accrued benefits under the defined benefit plan or plans for all
          participants as of the Determination Date(s), all determined in
          accordance with Code Section 416 and the regulations thereunder. The
          accrued benefits under a defined benefit plan in both the numerator
          and denominator of the Top-heavy Ratio are increased for any
          distribution of an accrued benefit made in the five-year period ending
          on the Determination Date.

     (c)  For purposes of (a) and (b) above, the value of account balances and
          the Present Value of accrued benefits will be determined as of the
          most recent Valuation Date that falls within or ends with the 12-month
          period ending on the Determination Date, except as provided in Code
          Section 416 and the regulations thereunder for the first and second
          plan years of a defined benefit plan. The account balances and accrued
          benefits of a participant (i) who is not a Key Employee but who was a
          Key Employee in a prior year or (ii) who has not been credited with at
          least an hour of service with any employer maintaining the plan at any
          time during the five-year period ending on the Determination Date will
          be disregarded. The calculation of the Top-heavy Ratio and the extent
          to which distributions, rollovers and transfers are taken into account
          will be made in accordance with Code Section 416 and the regulations
          thereunder. Deductible employee contributions will not be taken into
          account for purposes of computing the Top-heavy Ratio. When
          aggregating plans, the value of account balances and accrued benefits
          will be calculated with reference or the Determination Dates that fall
          within the same calendar year.

          The accrued benefit of a participant other than a Key Employee shall
          be determined under (i) the method, if any, that uniformly applies for
          accrual purposes under all defined benefit plans maintained by the
          Employer, or (ii) if there is no such method, as if such benefit
          accrued not more rapidly than the slowest accrual rate permitted under
          the fractional rule of Code Section 411(b)(1)(C).

SECTION 11.03--MODIFICATION OF VESTING REQUIREMENTS.

     If a Participant's Vesting Percentage determined under Article I is not at
least as great as his Vesting Percentage would be if it were determined under a
schedule permitted in Code Section 416, the following shall apply. During any
Plan

RESTATEMENT JANUARY 1, 1997            74
<PAGE>

Year in which the Plan is a Top-heavy Plan, the Participant's Vesting Percentage
shall be the greater of the Vesting Percentage determined under Article I or the
schedule below.

                  VESTING SERVICE           NONFORFEITABLE
                   (whole years)              PERCENTAGE.

                    Less than 3                     0
                     3 or more                    100

     The schedule above shall not apply to Participants who are not credited
with an Hour-of-Service after the Plan first becomes a Top-heavy Plan. The
Vesting Percentage determined above applies to the portion of the Participant's
Account which is multiplied by a Vesting Percentage to determined his Vested
Account, including benefits accrued before the effective date of Code Section
416 and benefits accrued before this Plan became a Top-heavy Plan.

     If, in a later Plan Year, this Plan is not a Top-heavy Plan, a
Participant's Vesting Percentage shall be determined under Article I. A
Participant's Vesting Percentage determined under either Article I or the
schedule above shall never be reduced and the election procedures of the
AMENDMENTS SECTION of Article X shall apply when changing to or from the
schedule as though the automatic change were the result of an amendment.

     The part of the Participant's Vested Account resulting from the minimum
contributions required pursuant to the MODIFICATION OF CONTRIBUTIONS SECTION of
this article (to the extent required to be nonforfeitable under Code Section
416(b)) may not be forfeited under Code Section 411(a)(3)(B) or (D).

SECTION 11.04--MODIFICATION OF CONTRIBUTIONS.

     During any Plan Year in which this Plan is a Top-heavy Plan, the Employer
shall make a minimum contribution as of the last day of the Plan Year for each
Non-key Employee who is an Employee on the last day of the Plan Year and who was
an Active Participant at any time during the Plan Year. A Non-key Employee is
not required to have a minimum number of hours-of-service or minimum amount of
Compensation in order to be entitled to this minimum. A Non-key Employee who
fails to be an Active Participant merely because his Compensation is less than a
stated amount or merely because of a failure to make mandatory participant
contributions or, in the case of a cash or deferred arrangement, elective
contributions shall be treated as if he were an Active Participant. The minimum
is the lesser of (a) or (b) below:

     (a)  Three percent of such person's Compensation for such Plan Year.

     (b)  The "highest percentage" of Compensation for such Plan Year at which
          the Employer's contributions are made for or allocated to any Key
          Employee. The highest percentage shall be determined by dividing the
          Employer Contributions made for or allocated to each Key Employee
          during the Plan Year by the amount of his Compensation for such Plan
          Year, and selecting the greatest quotient (expressed as a percentage).
          To determine the highest percentage, all of the Employer's defined
          contribution plans within the Aggregation Group shall be treated as
          one plan. The minimum shall be the amount in (a) above if this Plan
          and a defined benefit plan of the Employer are required to be included
          in the Aggregation Group and this Plan enables the defined benefit
          plan to meet the requirements of Code Section 401(a)(4) or 410.

     For purposes of (a) and (b) above, Compensation shall be limited by Code
Section 401(a)(17).

     If the Employer's contributions and allocations otherwise required under
the defined contribution plan(s) are at least equal to the minimum above, no
additional contribution shall be required. If the Employer's total contributions
and

RESTATEMENT JANUARY 1, 1997            75
<PAGE>

allocations are less than the minimum above, the Employer shall contribute the
difference for the Plan Year.

     The minimum contribution applies to all of the Employer's defined
contribution plans in the aggregate which are Top-heavy Plans. A minimum
contribution under a profit sharing plan shall be made without regard to whether
or not the Employer has profits.

     If a person who is otherwise entitled to a minimum contribution above is
also covered under another defined contribution plan of the Employer's which is
a Top-heavy Plan during that same Plan Year, any additional contribution
required to meet the minimum above shall be provided in this Plan.

     If a person who is otherwise entitled to a minimum contribution above is
also covered under a defined benefit plan of the Employer's which is a Top-heavy
Plan during that same Plan Year, the minimum benefits for him shall not be
duplicated. The defined benefit plan shall provide an annual benefit for him on,
or adjusted to, a straight life basis equal to the lesser of:

     (c) two percent of his average compensation multiplied by his years of
service, or

     (d) 20 percent of his average compensation.

     Average compensation and years of service shall have the meaning set forth
in such defined benefit plan for this purpose.

     For purposes of this section, any employer contribution made according to a
salary reduction or similar arrangement and employer contributions which are
matching contributions, as defined in Code Section 401(m), shall not apply in
determining if the minimum contribution requirement has been met, but shall
apply in determining the minimum contribution required.

     The requirements of this section shall be met without regard to any Social
Security contribution.

SECTION 11.05--MODIFICATION OF CONTRIBUTION LIMITATION.

     If the provisions of subparagraph (g) of the CONTRIBUTION LIMITATION
SECTION of Article III are applicable for any Limitation Year during which this
Plan is a Top-heavy Plan, the contribution limitations shall be modified. The
definitions of Defined Benefit Plan Fraction and Defined Contribution Plan
Fraction in the CONTRIBUTION LIMITATION SECTION of Article III shall be modified
by substituting "100 percent" in lieu of "125 percent." In addition, an
adjustment shall be made to the numerator of the Defined Contribution Plan
Fraction. The adjustment is a reduction of that numerator similar to the
modification of the Defined Contribution Plan Fraction described in the
CONTRIBUTION LIMITATION SECTION of Article III, and shall be made with respect
to the last Plan Year beginning before January 1, 1984.

     The modifications in the paragraph above shall not apply with respect to a
Participant so long as employer contributions, forfeitures or nondeductible
employee contributions are not credited to his account under this or any of the
Employer's other defined contribution plans and benefits do not accrue for such
Participant under the Employer's defined benefit plan(s), until the sum of his
Defined Contribution and Defined Benefit Plan Fractions is less than 1.0.

     The modification of the contribution limitation shall not apply if both of
the following requirements are met:

     (a)  This Plan would not be a Top-heavy Plan if "90 percent" were
          substituted for "60 percent" in the definition of Top-heavy Plan.

RESTATEMENT JANUARY 1, 1997            76
<PAGE>

     (b)  A Non-key Employee who is covered only under a defined benefit plan of
          the Employer, accrues a minimum benefit on, or adjusted to, a straight
          life basis equal to the lesser of (i) three percent of his average
          compensation multiplied by his years of service or (ii) 30 percent of
          his average compensation. Average compensation and years of service
          shall have the meaning set forth in such defined benefit plan for this
          purpose.

          The account of a Non-key Employee who is covered only under one or
          more defined contribution plans of the Employer, is credited with a
          minimum employer contribution under such plan(s) equal to four percent
          of the person's Compensation for each plan year in which the plan is a
          Top-heavy Plan.

          If a Non-key Employee is covered under both defined contribution and
          defined benefit plans of the Employer, (i) a minimum accrued benefit
          for such person equal to the amount determined above for a person who
          is covered only under a defined benefit plan is accrued in the defined
          benefit plan(s) or (ii) a minimum contribution equal to 7.5 percent of
          the person's Compensation for a plan year in which the plans are
          Top-heavy Plans will be credited to his account under the defined
          contribution plans.

     This section shall cease to apply effective as of the first Limitation Year
     beginning on or after January 1, 2000.

RESTATEMENT JANUARY 1, 1997            77
<PAGE>

     By executing this Plan, the Primary Employer acknowledges having counseled
to the extent necessary with selected legal and tax advisors regarding the
Plan's legal and tax implications.

     Executed this ___25th_______ day of ______February________________________,
2002__.

                                       WARRANTECH CORPORATION

                                       By:  /s/ Richard F. Gavino
                                           ----------------------------------

                                                  E.V.P./C.F.O.
                                           ----------------------------------
                                                      Title

                                             Defined Contribution Plan 8.0

RESTATEMENT JANUARY 1, 1997            78
<PAGE>

                                                                     DC PLAN 7.7

     The Adopting Employer must agree to participate in or adopt the Plan in
writing. If this has not already been done, it may be done by signing below.

                                    Warrantech Automotive, Inc.

                                    By:/s/ Richard F. Gavino

                                    Title: E.V.P/C.F.O

                                    Date:  2-25-02

                                    Warrantech Consumer Products Services, Inc.

                                    By:/s/ Richard F. Gavino

                                    Title: E.V.P/C.F.O

                                    Date:  2-25-02

                                    Warrantech Help Desk, Inc.

                                    By:/s/ Richard F. Gavino

                                    Title: E.V.P/C.F.O

                                    Date:  2-25-02

                                    Warrantech Home Service Company

                                    By:/s/ Richard F. Gavino

                                    Title: E.V.P/C.F.O

                                    Date:  2-25-02

<PAGE>

                                    Warrantech International, Inc.

                                    By:/s/ Richard F. Gavino

                                    Title: E.V.P/C.F.O

                                    Date:  2-25-02

                                    Warrantech Direct, Inc.

                                    By:/s/ Richard F. Gavino

                                    Title: E.V.P/C.F.O

                                    Date:  2-25-02

                                       2DSE Fishman Group
                            2002 STOCK INCENTIVE PLAN

         1.       Purpose.

         The purpose of this Plan is to enable DSE Fishman, Inc. and its
affiliates to recruit and retain capable employees for the successful conduct of
its business and to provide an additional incentive to directors, officers and
other eligible key employees, consultants and advisors upon whom rest major
responsibilities for the successful operation and management of the Company and
its affiliates.

         2.       Definitions.

         For purposes of the Plan:

                           2.1      "Adjusted  Fair Market Value" means,  in the
event of a Change in Control,  the greater of (i) the highest price per Share of
Common Stock paid to holders of the Shares of Common Stock in any transaction
(or series of transactions) constituting or resulting in a Change in Control or
ii) the highest Fair Market Value of a Share during the ninety (90) day period
ending on the date of a Change in Control.

                           2.2      "Affiliate Corporation" or "Affiliate" shall
mean any corporation,  directly or indirectly, through one of more
intermediaries, controlling, controlled by or under common control with the
Company.

                           2.3      "Agreement"  means the  written  agreement
between the Company and an Optionee evidencing the grant of an Award.

                           2.4      "Award"  means an Incentive  Stock Option,
Nonqualified  Stock Option or Stock Appreciation Right granted or to be granted
pursuant to the Plan.

                           2.5      "Board" means the Board of Directors of the
Company.

                                       1

<PAGE>

                           2.6      "Cause" means:

                                    (a)     Solely with respect to  Nonemployee
Directors,  the  commission  of an act of fraud or an act of  embezzlement,
misappropriation  or conversion of assets or opportunities of the Company or any
Affiliate, and

                                    (b)     For all other  purposes,  unless
otherwise  defined  in the  Agreement evidencing a particular Award, an Optionee
(other than a Nonemployee Director)(i) intentional failure to perform reasonably
assigned duties, (ii) dishonesty or willful misconduct in the performance of
duties, (iii) involvement in a transaction in connection with the performance of
duties to the Company which transaction is adverse to the interests of the
Company and which is engaged in for personal profit, or (iv) willful violation
of any law, rule or regulation in connection with the performance of duties
(other than traffic violations or similar offenses).

                           2.7      "Change in  Capitalization"  means any
increase or reduction in the Number of Shares, or any change (including, but not
limited to, a change in value) in the Shares or exchange of Shares for a
different number or kind of shares or other securities of the Company, by reason
of a reclassification, recapitalization, merger, consolidation, reorganization,
spin-off, split-up, issuance of warrants or rights or debentures, stock
dividend, stock split or reverse stock split, combination or exchange of shares,
repurchase of shares, change in corporate structure or otherwise.

                           2.8      A "Change in Control" shall mean the
occurrence  during the term of the Plan of either of any "person" (as such term
is used in Section 13(c) and 14(d) of the Exchange Act), other than a trustee or
other fiduciary holding securities under an employee benefit plan of the Company
or a corporation owned directly or indirectly by the stockholders of the
Company, is or becomes the "beneficial owner" (as defined in Rule 13d-3 under
the Exchange Act), directly or indirectly, of Securities of the Company
representing 50% or more of the total voting power represented by the Company's
then outstanding voting securities, except that the issuance of shares of Common
Stock in a public offering made pursuant to the Securities Act of 1933, as
amended shall not constitute a Change of Control.

                                       2

<PAGE>

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

                           2.10     "Committee"  means a committee, as described
in Section 3.1, appointed by the Board to administer the Plan and to perform the
functions set forth herein.

                           2.11     "Company"  means  DSE  Fishman,   Inc.
(including  any  and  all  subsidiaries currently existing or hereafter acquired
or established).

                           2.12     "Director  Option"  means an Option for
Shares,  Stock  Appreciation  Rights or Units granted pursuant to Section 6.

                           2.13     "Disability"  means a physical or mental
infirmity which impairs an Optionee's ability to perform substantially his or
her duties for a period of one hundred eighty (180) consecutive days.

                           2.14  "Disinterested  Director"  means a director of
the Company who is  "disinterested" within the meaning of Rule 16b-3 under the
Exchange Act.

                           2.15 "Eligible Individual" means any director (other
than a Nonemployee Director), officer or employee of, or consultant or advisor
to, the Company or an Affiliate who is receiving cash compensation and who is
designated by the Committee as eligible to receive Awards subject to the
conditions set forth herein.

                           2.16 "Employee Option" means an option granted
pursuant to Section 5.

                           2.17 "Exchange Act" means the Securities Exchange Act
of 1934, as amended.

                           2.18 "Fair Market Value" on any date means the
 average of the high and low sales prices of the Shares on such date on the
principal securities exchange on which such Shares are listed, or if such Shares
are not so listed or admitted to trading, the arithmetic mean of the per Share
closing bid price and closing asked price per Share on such date as quoted on
the quotation system of the Nasdaq Stock Market, Inc. or such other market
in which such prices are regularly quoted, or, if there have been no published
bid or asked quotations with respect to Shares on such date, the Fair Market
Value as established by the Incentive Stock Option, in accordance with Section
422 of the Code.

                                       3
<PAGE>

                           2.19 "Incentive Stock Option" means an Option
satisfying the requirements of Section 422 of the Code and designated by the
Committee as an Incentive Stock Option.

                           2.20  "Nonemployee  Director" means a director of the
Company who is not an employee of the Company or an Affiliate.

                           2.21 "Nonqualified Stock Option" means an Option
which is not an Incentive Stock Option.

                           2.22 "Option" means a Nonqualified Stock Option, an
Incentive Stock Option, a Director Option, an Employee Option or any or all of
them.

                           2.23 "Optionee" means a person to whom an Option is
being granted under the Plan.

                           2.24 "Outside Director" means a director of the
Company who is an "outside director" within the meaning of Section 162(m) of the
Code and the regulations promulgated thereunder.

                           2.25 "Parent" means any corporation which is a parent
corporation (within the meaning of Section 424(e)of the Code) with respect to
the Company.

                           2.26 "Plan" means The 2002 DSE Fishman, Inc. Stock
Option Plan.

                           2.27 "Shares" means the common stock,  par value
$.001 per share, of the Company and any securities or other consideration
issuable in respect of Shares in connection with a Change in Capitalization or
Change in Control.

                           2.28 "Stock  Appreciation  Right" or  "SARs"  means a
right to receive  all or some portion of the increase in the value of the Shares
as provided in Section 8 hereof.

                                       4

<PAGE>

                           2.29     "Subsidiary"  means any corporation which is
a subsidiary corporation (within the meaning of Section 424(f) of the Code) with
respect to the Company.

                           2.30     "Successor Corporation" means a corporation,
or a parent or subsidiary thereof within the meaning of 424(a) of the Code,
which issues or assumes a stock option in a transaction to which Section 424(a)
of the Code applies.

                           2.31     "Ten Percent  Stockholder" means an Eligible
Individual,  who, at the time an Incentive Stock Option is to be granted to him
or her owns (within the meaning of Section 422(b) (6) of the Code) stock
possessing more than ten percent (10%) of the total combined voting power of all
classes of stock of the Company, or of a Parent or a Subsidiary thereof.

         3.       Administration.

                           3.1 The Plan shall be  administered  by the Committee
which shall hold meetings at such times as may be necessary for the proper
administration of the Plan. The Committee shall keep minutes of its meetings. A
quorum shall consist of not fewer than two (2) members of the Committee and a
majority of a quorum may authorize any action. Any decision or determination
reduced to writing and signed by a majority of all of the members shall be as
fully effective as if made by a majority vote at a meeting duly called and held.
The Committee shall consist of at least two (2) directors of the Company. If the
Board of Directors has any Disinterested Directors or Outside Directors, at
least one such Disinterested or Outside Director shall be on the Committee. No
member of the Committee shall be liable for any action, failure to act,
determination or interpretation made in good faith with respect to this Plan or
any transaction hereunder, except for liability arising from his or her own
willful misfeasance, gross negligence or reckless disregard of his or her
duties. The Company hereby agrees to indemnify each member of the Committee for
all costs and expenses and, to the extent permitted by applicable law, any
liability incurred in connection with defending against, responding to,
negotiating for the settlement of or otherwise dealing with any claim, cause of
action or dispute of any kind arising in connection with any actions in
administering this Plan or in authorizing or denying authorization to any
transaction hereunder.

                                       5

<PAGE>

                           3.2      Subject to the express terms and  conditions
set forth  herein,  the Committee shall have the power from time to time to:

                                    (a) determine those Eligible Individuals to
whom Employee Options shall be granted under the Plan and the number of Employee
Options to be granted and to prescribe the terms and conditions (which need not
be identical) of each such Employee Option, including the purchase price per
Share subject to each Employee Option, and make any amendment or modification to
any Option Agreement consistent with the terms of this Plan;

                                    (b) construe and  interpret the Plan and the
Options  granted  hereunder and to establish, amend and revoke rules and
regulations for the administration of the Plan, including, but not limited to,
correcting any defect or supplying any omission, or reconciling any
inconsistency in the Plan or in any Agreement, in the manner and to the extent
it shall deem necessary or advisable so that the Plan complies with applicable
law, including Rule 16b-3 under the Exchange Act and the Code to the extent
applicable, and otherwise to make the Plan fully effective. All decisions and
determinations by the Committee or the exercise of this power shall be final,
binding and conclusive upon the Company, its Affiliate Corporations, the
Options, and all other persons having any interest therein;

                                    (c)  determine  the duration  and  purposes
for leaves of absence which may be granted to an Optionee on an individual basis
without  constituting  a  termination  of employment or service for purposes of
this Plan;

                                    (d) exercise its discretion  with respect to
the powers and rights  granted to it as set forth in the Plan; and

                                    (e)  exercise such powers and perform such
acts as it deems  necessary  or advisable to promote the best interests of the
Company with respect to the Plan.

         4.       Stock Subject to the Plan.

                  4.1 The maximum number of Shares that may be made the subject
of Options granted under the Plan is 1,500,000. Upon a Change in Capitalization
the maximum number of Shares shall be adjusted in number and kind pursuant to
Section 11. The Company shall reserve for purposes of the Plan, out of its
authorized but unissued Shares or out of Shares held in the Company's treasury,

                                       6

<PAGE>

or partly out of each, such number of Shares as shall be determined by the
Board.

                  4.2 Upon the granting of an Option, the number of Shares
available under Section 4.1 for the granting of further Options shall be reduced
by the number of shares subject to such Option granted. Whenever any outstanding
Option or portion thereof expires, is canceled or is otherwise terminated for
any reason without having been exercised or payment having been made in respect
of the entire Option, the Shares allocable to the expired, canceled or otherwise
terminated portion of the Option may again be the subject of Options granted
hereunder.

         5.       Option Grants for Eligible Individuals.

                  5.1 Authority of Committee. Subject to the provisions of the
Plan, the Committee shall have full and final authority to select those Eligible
Individuals who will receive Employee Options, the terms and conditions of which
shall be set forth in an Agreement.

                  5.2 Purchase Price. The purchase price or the manner in which
the purchase price is to be determined for Shares under each Employee Option
shall be determined by the Committee and set forth in the Agreement; provided,
however, that the purchase price per Share under each Incentive Stock Option
shall not be less than 100% of the Fair Market Value of a Share on the date the
Incentive Stock Option is granted (110% in the case of an Incentive Stock Option
granted to a Ten-Percent Stockholder).

                  5.3 Maximum Duration.Employee Options granted hereunder shall
be for such term as the Committee shall determine, provided that an Incentive
Stock Option granted hereunder shall not be exercisable after the expiration of
ten (10) years from the date it is granted (five (5) years in the case of an
Incentive Stock Option granted to a Ten-Percent Stockholder), and a Nonqualified
Stock Option shall not be exercisable after the expiration of ten (10) years
from the date it is granted. The Committee may, subsequent to the granting of
any Employee Option, extend the term thereof but in no event shall the term as
so extended exceed the maximum term provided for in the preceding sentence.

                                       7

<PAGE>

                 5.4 Vesting. Subject to Section 7.5 hereof, each Employee
Option shall become exercisable in such installments (which need not be equal)
and at such times as may be designated by the Committee and set forth in the
Agreement. To the extent not exercised, installments shall accumulate and be
exercisable, in whole or in part, at any time after becoming exercisable, but
not later than the date the Employee Option expires. The Committee may
accelerate the exercisability of any Option or portion thereof at any time.

                  5.5 Modification. No modification of an Employee Option shall
adversely alter or impair any rights or obligations under the Employee Option
without the Optionee's consent.

        6.       Option Grants for Nonemployee Directors.

           6.1 Purchase Price. The purchase price for Shares or SARs under each
Director Option shall be not less than to 100% of the Fair Market Value of such
Shares on the date immediately preceding the date of the grant unless
specifically determined to be otherwise by the Committee.

                  6.2 Vesting. Subject to Sections 6.3 and 7.5 each Director
Option shall become exercisable within four (4) equal annual installments
beginning on the date of grant; provided, however, that the Optionee continues
to serve as a Director as of such dates. If an Optionee ceases to serve as a
Director for any reason, the Optionee shall have no rights with respect to that
portion of a Director Option which has not then vested pursuant to the preceding
sentence and the Optionee shall automatically forfeit that portion of the
Director Option which remains unvested.

                  6.3 Limitations on Amendment. The provisions in this Section 6
and Section 7.1 shall not be amended more than once every six (6) months, other
than to comport with changes in the Code or the rules and regulations
thereunder.

         7.       Terms and Conditions Applicable to All Options.

                  7.1 Duration. Each Option shall terminate on the date which is
the  tenth anniversary of the grant date, unless terminated earlier as follows:

                                       8

<PAGE>

                           (a)      If an  Optionee's  employment or service
terminates  for any reason other than Disability, death or Cause, the Optionee
may for a period of three (3) months after such termination exercise his or her
Option to the extent, and only to the extent, such Option or portion thereof was
vested and exercisable as of the date of the Optionee's employment or service
terminated, after which time the Option shall automatically terminate in full.

                           (b)      If an Optionee's  employment or service
terminates by reason of the Optionee's Disability, the Optionee may, for a
period of one (1) year after such termination, exercise his or her Option to the
extent, and only to the extent, such Option or portion thereof was vested and
exercisable as of the date the Optionee's employment or service terminated,
after which time the Option shall automatically terminate in full.

                           (c)      If an  Optionee's  employment  or  service
terminates  for  Cause,  the Option granted to the Optionee hereunder shall
immediately terminate in full and no rights thereunder may be exercised.

                           (d)      If an Optionee dies while employed or in the
service of the  Company or an Affiliate or within the three (3) month or twelve
(12) month period described in clause (a) or (b), respectively, of this Section
7.1 the Option granted to the Optionee may be exercised at any time within
twelve (12) months after the Optionee's death by the person or persons to whom
such rights under the Option shall pass by will, or by the laws of descent and
distribution, after which time the Option shall terminate in full; provided,
however, that an Option may be exercised to the extent, and only to the extent,
such Option or portion thereof was exercisable on the date of death or earlier
termination of the Optionee's services as a Director.

Notwithstanding clauses (a) through (d) above, the Agreement evidencing the
grant of an Employee Option may, in the Committee's sole and absolute
discretion, set forth additional or different terms and conditions applicable to
Employee Options upon a termination or change in status of the employment or
service of an Eligible Individual. Such terms and conditions may be determined
at the time the Employee Option is granted or thereafter.

                                       9

<PAGE>

                  7.2 Non-transferability. No Option granted hereunder shall be
transferable by the Optionee to whom granted except by will or the laws of
descent and distribution, and an Option may be exercised during the lifetime of
such Optionee only by the Optionee or his or her guardian or legal
representative. The terms of such Option shall be final, binding and conclusive
upon the beneficiaries, executors, administrators, heirs and successors of the
Optionee.

                  7.3 Method of Exercise. The exercise of an option shall be
made only by a written notice delivered in person or by mail to the Secretary or
Chief Financial Officer of the Company at the Company's principal executive
office, specifying the number of Shares to be purchased and accompanied by
payment therefor and otherwise in accordance with the Agreement pursuant to
which the Option was granted. The purchase price for any Shares purchased
pursuant to the exercise of an Option shall be paid in full in cash upon such
exercise. Notwithstanding the foregoing, the Committee shall have discretion to
determine at the time of grant of each Employee Option or at any later date (up
to and including the date of exercise) that the form of payment acceptable in
respect of the exercise of such Employee Option may consist of either of the
following (or any combination thereof): (i) cash or (ii) the transfer of Shares
to the Company upon such terms and conditions as determined by the Committee.
The Optionee shall deliver the Agreement evidencing the Option to the Secretary
or Chief Financial Officer of the Company who shall endorse thereon a notation
of such exercise and return such Agreement to the Optionee. No fractional Shares
(or cash in lieu thereof) shall be issued upon exercise of an Option and the
number of Shares that may be purchased upon exercise shall be rounded to the
nearest number of whole Shares.

                  7.4 Rights of Optionees. No Optionee shall be deemed for any
purpose to be the owner of any Shares subject to any Option unless and until (i)
the Option shall have been exercised pursuant to the terms thereof, (ii) the
Company shall have issued and delivered the Shares to the Optionee and (iii) the
Optionee's name shall have been entered as a stockholder of record on the books
of the Company. Thereupon, the Optionee shall have full voting, dividend and
other ownership rights with respect to such Shares, subject to such terms and
conditions as may be set forth in the applicable Agreement.

                                       10

<PAGE>

                 7.5 Effect of Change in Control. In the event of a Change in
Control, all Options outstanding on the date of such Change in Control shall
become immediately and fully vested and exercisable. In addition, to the extent
set forth in an Agreement evidencing the grant of an Employee Option, an
Optionee will be permitted to surrender for cancellation within sixty (60) days
after such Change in Control, any Employee Option or portion of an Employee
Option to the extent not yet exercised and the Optionee will be entitled to
receive a cash payment in an amount equal to the excess, if any of (x) (A) in
the case of a Nonqualified Stock Option, the greater of (1) the Fair Market
Value, on the date preceding the date of surrender, of the Shares subject to the
Employee Option or portion thereof surrendered or (2) the Adjusted Fair Market
Value of the Shares subject to the Employee Option or portion thereof
surrendered or (B) in the case of an Incentive Stock Option, the Fair Market
Value, on the date preceding the date of surrender, of the Shares subject to the
Employee Option or portion thereof surrendered, over (y) the aggregate purchase
price for such Shares under the Employee Option or portion thereof surrendered;
provided, however, that in the case of an Employee Option granted within six (6)
months prior to the Change in Control to any Optionee who may be subject to
liability under Section 16(b) of the Exchange Act, such Optionee shall be
entitled to surrender for cancellation his or her Option during the sixty (60)
day period commencing upon the expiration of six (6) months from the date of
grant of any such Employee Option. In the event an Optionee's employment or
service with the Company is terminated by the Company following a Change in
Control, each Option held by the Optionee that was exercisable as of the date of
termination of the Optionee's employment or service shall remain exercisable for
a period ending not before the earlier of the first anniversary of the
termination of the Optionee's employment or service or the expiration of the
stated term of the Option.

         8. Stock Appreciation Rights.The Committee may, in its discretion,
either alone or in connection with the grant of an Employee Option, grant Stock
Appreciation Rights in accordance with the Plan, the terms and conditions of
which shall be set forth in an Agreement. If granted in connection with an
Option, a Stock Appreciation Right shall cover the same Shares covered by the
Option (or such lesser number of Shares as the Committee may determine) and
shall, except as provided in this Section 8, be subject to the same terms.

                                       11

<PAGE>

                8.1 Time of Grant. A Stock Appreciation Right may be granted
(i) at any time if unrelated to an Option, or (ii) if related to an Option,
either at the time of grant, or at any time thereafter during the term of the
Option.

                  8.2      Stock Appreciation Right Related to an Option.

                           (a)  Exercise.   Subject  to  Section  8.8,  a  Stock
Appreciation Right granted  in connection with an Option shall be exercisable at
such time or times and only to the extent that the related Options are
exercisable, and will not be transferable except to the extent the related
Option may be transferable. A Stock Appreciation Right granted in connection
with an Incentive Stock Option shall be exercisable only if the Fair Market
Value of a Share on the date of exercise exceeds the purchase price specified in
the related Incentive Stock Option Agreement.

                           (b) Amount  Payable.  Upon the  exercise  of a Stock
Appreciation Right related to an Option, the holder shall be entitled to receive
an amount determined by multiplying (A) the excess of the Fair Market Value of a
Share on the date preceding the date of exercise of such Stock Appreciation
Right over the per Share purchase price under the related Option, by (B) the
number of Shares as to which such Stock Appreciation Right is being exercised.
Notwithstanding the foregoing, the Committee may limit, in any manner, the
amount payable with respect to any Stock Appreciation Right by including such a
limit in the Agreement evidencing the Stock Appreciation Right at the time it is
granted.

                           (c)  Treatment of Related Options and Stock
Appreciation Rights Upon Exercise. Upon the exercise of a Stock Appreciation
Right granted in connection with an Option, the Option shall be canceled to the
extent of the number of Shares as to which the Stock Appreciation Right is
exercised, and upon the exercise of an Option granted in connection with a Stock
Appreciation Right or the surrender of such Option pursuant to Section 7.3, the
Stock Appreciation Right shall be canceled to the extent of the number of Shares
as to which the Option is exercised or surrendered.

                                       12
<PAGE>

                  8.3      Stock Appreciation Right Unrelated to an Option.
The Committee may grant to Eligible Individuals Stock Appreciation Rights
unrelated to Options. Stock Appreciation Rights unrelated to Options shall not
have a term of greater than ten (10) years. Upon exercise of a Stock
Appreciation Right unrelated to an Option, the holder shall be entitled to
contain such terms and conditions as to exercisability (subject to Section 8.8),
vesting and duration as the Committee shall determine, but, in no event, shall
they have a term of greater than ten (10) years. Upon exercise of a Stock
Appreciation Right unrelated to an Option, the holder shall be entitled to
receive an amount determined by multiplying (A) the excess of the Fair Market
Value of a Share on the date preceding the date of exercise of such Stock
Appreciation Right over the Fair Market Value of a Share on the date the Stock
Appreciation Right was granted, by (B) the number of Shares as to which the
Stock Appreciation Right is being exercised. Notwithstanding the foregoing, the
Committee may limit, in any manner, the amount payable with respect to any Stock
Appreciation Right by including such a limit in the Agreement evidencing the
same Stock Appreciation Right at the time it is granted.

                  8.4 Method of Exercise. Stock Appreciation Rights shall be
exercised by a holder only by a written notice delivered in person or by mail to
the Secretary or Chief Financial Officer of the Company at the Company's
principal executive office, specifying the number of Shares with respect to
which the Stock Appreciation Right is being exercised. If requested by the
Committee, the holder shall deliver the Agreement evidencing the Stock
Appreciation Right being exercised and the Agreement evidencing any related
Option to the Secretary or Chief Financial Officer of the Company who shall
endorse thereon a notation of such exercise and return such Agreement to the
holder.

                  8.5 Form of Payment. Payment of the amount determined under
Sections 8.2(b) or 8.3 may be made in the discretion of the Committee, solely in
whole Shares in a number determined at their Fair Market Value in the date
preceding the date of exercise of the Stock Appreciation Right, or solely in
cash, or in a combination of cash and Shares. If the Committee decides to make
full payment in Shares and the amount payable results in a fractional Share,
payment for the fractional Share will be made in cash. Notwithstanding the
foregoing, no payment in the form of cash may be made upon the exercise of a
Stock Appreciation Right pursuant to Sections 8.2(b) or 8.3 to an officer of the
Company who is subject to liability under Section 16(b) of the Exchange Act,

                                       13

<PAGE>

unless the exercise of such Stock Appreciation Right is made either (i) during
the period beginning on the third business day and ending on the twelfth
business day following the date of release for publication of the Company's
quarterly or annual statements of earnings (the "Window Period") or (ii)
pursuant to an irrevocable election to receive cash made at least six (6) months
prior to the exercise of such Stock Appreciation Right.

                  8.6 Modification. No modification of an Award shall adversely
alter or impair any rights or obligations under the Agreement without the
holder's consent.

                  8.7 Effect of Change in Control. In the event of a Change in
Control, all Stock Appreciation Rights shall become immediately and fully
exercisable. In addition, to the extent set forth in an Agreement evidencing the
grant of a Stock Appreciation Right, a holder will be entitled to receive a
payment in cash or stock, in either case, with a value equal to the excess, if
any, of (A) the greater of (x) the Fair Market Value, on the date preceding the
date of exercise, of the underlying Shares subject to the Stock Appreciation
Right or portion thereof exercised and (y) the Adjusted Fair Market Value, on
the date preceding the date of exercise, of the Shared over (B) the aggregate
Fair Market Value, on the date the Stock Appreciation Right was granted, of the
Shares subject to the Stock Appreciation Right or portion thereof exercised;
provided, however, that in the case of a Stock Appreciation Right granted within
six (6) months of the Change in Control to any holder who may be subject to
liability under Section 15(b) of the Exchange Act, such holder shall be entitled
to exercise his or her Stock Appreciation Right during the sixty (60) day period
commencing upon the expiration of six months from the date of grant of any such
Stock Appreciation Right. In the event of a holder's employment or service with
the Company is terminated by the Company following a Change in Control, each
Stock Appreciation Right held by the holder that was exercisable as of the date
of termination of the holder's employment or service shall remain exercisable
for a period ending but not before the earlier of the first anniversary of the
termination of the holder's employment or service or the expiration of the
stated term of the Stock Appreciation Right.

                                       14

<PAGE>

         9.       Adjustment Upon Changes in Capitalization.

                  (a) In the event of a Change in Capitalization, the Committee
shall conclusively determine the appropriate adjustments, if any, to the (i)
maximum number of Shares with respect to which Options may be granted under the
Plan, (ii) maximum number of Shares with respect to which Options may be granted
to any Eligible Individual during the term of the Plan, (iii) the number of
Shares which are subject to outstanding Options granted under the Plan, and the
purchase price therefor, if applicable, and (iv) the number of Shares in respect
of which Director Options are to be granted under Section 6.

                  (b) Any such adjustment in the Shares subject to Incentive
Stock Options (including any adjustments in the purchase price) shall be made in
such manner as not to constitute a modification as defined by Section 424(h)(3)
of the Code and only to the extent otherwise permitted by Sections 422 and 424
of the Code.

                  (c) If, by reason of a Change of Capitalization, an Optionee
shall be entitled to exercise an Option with respect to new, additional or
different shares of stock, such new, additional or different shares shall
thereupon be subject to all of the conditions, restrictions and performance
criteria which were applicable to the Shares subject to the Option, prior to
such Change in Capitalization.

         10. Effect of Certain Transactions. Subject to Sections 7.5 and 8.7 or
as otherwise provided in an Agreement, in the event of (i) the liquidation or
dissolution of the Company or (ii) a merger or consolidation of the Company, the
Plan and the Options issued hereunder shall continue in effect in accordance
with their respective terms.

         11.      Interpretation.

                  (a) The Plan is intended to comply with Rule 16b-3 promulgated
under the Exchange Act and the Committee shall interpret and administer the
provisions of the Plan or any Agreement in a manner consistent therewith. Any
provisions inconsistent with such Rule shall be inoperative and shall not affect
the validity of the Plan.

                  (b) The Director Options described in Section 6 are intended
to qualify as formula awards under Rule 16b-3 promulgated under the Exchange Act
(thereby preserving the disinterested status of Nonemployee Directors receiving

                                       15

<PAGE>

such Awards) and the Committee shall generally interpret and administer the
provisions of the Plan or any Agreement in a manner consistent therewith. Any
provisions inconsistent with the foregoing intent shall be inoperative and shall
interpret and administer the provisions of the Plan or any Agreement in a manner
consistent therewith. Any provisions inconsistent with the foregoing intent
shall be inoperative and shall not affect the validity of the Plan.

                  (c) Unless otherwise expressly stated in the relevant
Agreement, each Option granted under the Plan is intended to be
performance-based compensation within the meaning of Section 162(m)(4)(C) of the
Code. The Committee shall not be entitled to exercise any discretion otherwise
authorized hereunder with respect to such Options if the ability to exercise
such discretion or the exercise of such discretion itself would cause the
compensation attributable to such Options to fail to qualify as
performance-based compensation.

         12.      Pooling Transactions.

                  Notwithstanding anything contained in the Plan or any
Agreement to the contrary, in the event of a Change in Control which is also
intended to constitute a Pooling Transaction, the Committee shall take such
actions, if any, which are specifically recommended by an independent public
accounting firm engaged by the Company to the extent reasonably necessary in
order to assure that the Pooling Transaction will qualify as such, including but
not limited to (i) deferring the vesting, exercise, payment or settlement in
respect of any Option, (ii) providing that the payment or settlement in respect
of any Option be made in the form of cash, Shares or securities of a successor
or acquiree of the Company, or a combination of the foregoing, and (iii)
providing for the extension of term of any Option to the extent necessary to
accommodate the foregoing, but not beyond the maximum term permitted for any
Option.

         13.      Termination and Amendment of the Plan.

                  The Plan shall terminate on the preceding the tenth
anniversary of the date of its adoption by the stockholders of the Company, and
no Option may be granted thereafter. Subject to Section 6.5, the Board may
sooner terminate the Plan, and the Board may at any time and from time to time
amend, modify or suspend the Plan; provided, however, that:

                                       16
<PAGE>

                  (a) No such amendment, modification, suspension or termination
shall impair or adversely alter any Award already granted under the Plan, except
with the consent of the Optionee or holder of an SAR nor shall any amendment,
modification or termination deprive any Optionee or holder of an SAR of any
Shares which he or she may have acquired through or as a result of the Plan; and

                  (b) To the extent necessary under Section 16(b) of the
Exchange Act and the rules and regulations promulgated thereunder or other
applicable law, no amendment shall be effective unless approved by the
stockholders of the Company in accordance with applicable law and regulations.

         14.      Non-Exclusivity of the Plan.

                  The adoption of the Plan by the Board shall not be construed
as amending, modifying or rescinding any previously approved incentive
arrangement or as creating any limitations on the power of the Board to adopt
such other incentive arrangements as it may deem desirable, including, without
limitation, the granting of stock options otherwise than under the Plan, and
such arrangements may be either applicable generally or only in specific cases.

         15.      Limitation of Liability.

                  As illustrative of the limitations of liability of the
Company, but not intended to be exhaustive thereof, nothing in the Plan shall be
construed to:

                           (a)      give any person any right to be granted an
Option  other  than at the sole discretion of the Committee;

                           (b)      give any person any rights whatsoever with
respect  to  Shares  except as specifically provided in the Plan;

                           (c)      limit in any way the right of the Company to
terminate  the  employment  of any person at any time; or

                           (d)      be evidence of any agreement or
understanding,  expressed or implied, that the Company will employ any person at
any particular rate of compensation or for any particular period of time.

                                       17

<PAGE>

         16.      Regulations and Other Approvals; Governing Law.

                  16.1 Except as to matters of Federal law, this Plan and the
rights of all persons claiming hereunder shall be construed and determined in
accordance with the laws of the State of New York.

                  16.2 The obligation of the Company to sell or deliver Shares
with respect to Options granted under the Plan shall be subject to all
applicable laws, rules and regulations, including all applicable Federal and
state securities laws, and the obtaining of all such approvals by governmental
agencies as may be deemed necessary or appropriate by the Committee.

                  16.3 The Board may make such changes as may be necessary or
appropriate to comply with the rules and regulations of any government
authority, or to obtain for Eligible Individuals granted Incentive Stock Options
the tax benefits under the applicable provisions of the Code and regulations
promulgated thereunder.

                  16.4 Each Option is subject to the requirement that, if at any
time the Committee determines, in its discretion, that the listing, registration
or qualification of Shares issuable pursuant to the Plan is required by any
securities exchange or under any state or federal law, or the consent or
approval or any governmental regulatory body is necessary or desirable as a
condition of, or in connection with, the grant of an Option or the issuance of
Shares, no Options shall be granted or payment made or Shares issued, in whole
or in part, unless listing, registration, qualification, consent or approval has
been effected or obtained free of any conditions as acceptable to the Committee.

                  16.5 Notwithstanding anything contained in the Plan or any
Agreement to the contrary, in the event that the disposition of Shares acquired
pursuant to the Plan is not covered by a then current registration statement
under the Securities Act of 1933, as amended (the "Securities Act"), and is not
otherwise exempt from such registration, such Shares shall be restricted against
transfer to the extent required by the Securities Act and Rule 144 or other
regulations thereunder. The Committee may require an individual receiving Shares

                                       18

<PAGE>

pursuant to an Award granted under the Plan, as a condition precedent to receipt
of such Shares, to represent and warrant to the Company in writing that the
Shares acquired by such individual are acquired without a view to any
distribution thereof and will not be sold or transferred other than pursuant to
an exemption applicable under the Securities Act as amended, or the rules and
regulations promulgated thereunder. The certificates evidencing any of such
Shares shall be appropriately amended to reflect their status as restricted
securities as aforesaid.

         17.      Miscellaneous.

                  17.1 Multiple Agreements. The terms of each Award granted to
an Eligible Individual may differ from other Awards granted under the Plan at
the same time, or at some other time. The Committee may also grant more than one
Award to a given Eligible Individual during the term of the Plan, either in
addition to, or in substitution for, one or more Awards previously granted to
that Eligible Individual.

                  17.2     Withholding of Taxes.

                           (a) At such  times as an  Optionee  or holder  of an
SAR recognizes  taxable  income in connection with the receipt of Shares or cash
hereunder (a "Taxable Event"), the Optionee or holder shall pay other amounts as
may be required by law to be withheld by the Company in issuance or release from
escrow of such Shares or the payment of such cash. The Company shall have the
right to deduct from any payment of cash to an Optionee or holder an amount
equal to the Withholding Taxes in satisfaction of the obligation to pay
Withholding Taxes. In satisfaction of the obligation to pay Withholding Taxes to
the Company, the Optionee or holder may make a written election (the "Tax
Election"), which may be accepted or rejected in the discretion of the Committee
to have withheld a portion of the Shares then issuable to him or her having an
aggregate Fair Market Value, on the date preceding the date of such issuance,
equal to the Withholding Taxes, provided that in respect of an Optionee or
holder who may be subject to liability under Section 16(b) of the Exchange Act
either; (i)(A) the Tax Election is made at least six (6) months prior to the
date of the Taxable Event and (B) the Tax Election is irrevocable with respect
to all Taxable Events of a similar nature occurring prior to the expiration of
six (6) months following a revocation of the Tax Election; or (ii)(A) the Tax

                                       19

<PAGE>

Election is made at least six (6) months after the date the Award was granted,
(B) the Award is exercised during the Window Period and (C) the Tax Election is
made during the Window Period in which the related Award is exercised or prior
to such Window Period and subsequent to the immediately preceding Window Period.
Notwithstanding the foregoing, the Committee may, by the adoption of rules or
otherwise, (i) modify this Section 17.2 (other than as regards Director Options)
or impose such other restrictions or limitations on Tax Elections to be made at
such times and subject to such other conditions as the Committee determines will
constitute exempt transactions under Section 16(b) of the Exchange Act.

                           (b)      If an Optionee  makes a disposition,  within
the meaning of Section 424 (c) of the Code and regulations promulgated
thereunder, of any Share or Shares issued to such Optionee pursuant to the
exercise of an Incentive Stock Option within the two-year period commencing on
the day after the date of the grant or within the one-year period commencing on
the day after the date of transfer of such Share or Shares to the Optionee
pursuant to such exercise, the Optionee shall, within ten (10) days of such
disposition, notify the Company thereof, by delivery of written notice to the
Company at its principal executive office.

                  17.3      Effective Date. The effective date of the Plan shall
be July 15, 2002.

                                       20

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