Document:

Exhibit 10.6

                       MICRONETICS, INC.
                           401(k) PLAN

                       Table of Contents

ARTICLE ONE--DEFINITIONS

 1.1  Account
 1.2  Administrator
 1.3  Beneficiary
 1.4  Break in Service
 1.5  Code
 1.6  Compensation
 1.7  Effective Date
 1.8  Employee
 1.9  Employer
1.10  Employment Date
1.11  Highly Compensated Employee
1.12  Hour of Service
1.13  Leased Employee
1.14  Nonhighly Compensated Employee
1.15  Normal Retirement Date
1.16  Participant
1.17  Plan
1.18  Plan Year
1.19  Trust
1.20  Trustee
1.21  Valuation Date
1.22  Year of Service

ARTICLE TWO--SERVICE DEFINITIONS AND RULES

 2.1  Year of Service
 2.2  Break in Service
 2.3  Leave of Absence
 2.4  Rule of Parity on Return to Employment
      2.5Service  in Excluded Job Classifications,  with  Related
      Companies
      or as a Leased Employee
 2.6  Special Rules Relating to Veterans Reemployment Rights

ARTICLE THREE--PLAN PARTICIPATION

 3.1  Participation
 3.2  Reemployment of Former Participant
 3.3  Termination of Eligibility
 3.4  Election Not to Participate

ARTICLE FOUR--ELECTIVE DEFERRALS, CONTRIBUTIONS, ROLLOVERS AND
TRANSFERS FROM OTHER PLANS

 4.1  Elective Deferrals
 4.2  Employer Contributions
 4.3  Rollovers and Transfers from Other Plans
 4.4  Employer Contributions Are Discretionary
 4.5  Timing of Contributions

ARTICLE FIVE--ACCOUNTING RULES

 5.1  Investment of Accounts and Accounting Rules
 5.2  Participants Omitted in Error

ARTICLE SIX--VESTING, RETIREMENT AND DISABILITY BENEFITS

 6.1  Vesting
 6.2  Forfeiture of Nonvested Balance
      6.3Return  to  Employment  Before  Distribution  of  Vested
      Account Balance
 6.4  Normal Retirement
 6.5  Permanent and Total Disability

ARTICLE SEVEN--MANNER AND TIME OF DISTRIBUTING BENEFITS

 7.1  Manner of Payment
 7.2  Time of Commencement of Benefit Payments
 7.3  Furnishing Information
 7.4  Minimum Distribution Rules for Installment Payments
 7.5  Joint and Survivor Annuity
 7.6  Death Benefit
 7.7  Designation of Beneficiary
 7.8  Time and Mode of Distributing Death Benefits
 7.9  Qualified Pre-Retirement Survivor Annuity
7.10  In-Service Withdrawals
7.11  Involuntary Cash-Outs
7.12  Direct Rollover of Eligible Rollover Distributions

ARTICLE EIGHT--ADMINISTRATION OF THE PLAN

 8.1  Plan Administration
 8.2  Claims Procedure
 8.3  Trust Agreement and Designation of Trustee

ARTICLE NINE--SPECIAL COMPLIANCE PROVISIONS

 9.1  Distribution of Excess Elective Deferrals
 9.2  Limitations on 401(k) Contributions
      9.3Nondiscrimination    Test    for    Employer    Matching
      Contributions
 9.4  Limitation on the Multiple Use Alternative

ARTICLE  TEN--LIMITATIONS ON ANNUAL ADDITIONS TO A  PARTICIPANT'S
ACCOUNT

10.1  Rules and Definitions

ARTICLE ELEVEN--AMENDMENT AND TERMINATION

11.1  Amendment
11.2  Termination of the Plan

ARTICLE TWELVE--TOP-HEAVY PROVISIONS

12.1  Applicability
12.2  Definitions
      12.3     Allocation of Employer Contributions  for  a  Top-
      Heavy Plan Year
12.4  Vesting
ARTICLE THIRTEEN--LOANS AND HARDSHIP DISTRIBUTIONS

13.1  Loans
13.2  Hardship Distributions

ARTICLE FOURTEEN--MISCELLANEOUS PROVISIONS

14.1  Plan Does Not Affect Employment
14.2  Successor to the Employer
14.3  Repayments to the Employer
14.4  Benefits not Assignable
14.5  Merger of Plans
14.6  Investment Experience not a Forfeiture
14.7  Distribution to Legally Incapacitated Person
14.8  Construction
14.9  Governing Documents
14.10 Governing Law
14.11 Headings
14.12 Counterparts
14.13 Location of Participant or Beneficiary Unknown

ARTICLE FIFTEEN--MULTIPLE EMPLOYER PROVISIONS

15.1  Adoption of the Plan
15.2  Service
15.3  Plan Contributions
15.4  Determining Compensation
15.5  Transferring Employees
15.6  Delegation of Authority
15.7  Termination

SIGNATURE PAGE

                 MICRONETICS, INC. 401(k) PLAN

WHEREAS,  Micronetics, Inc. adopted the Micronetics, Inc.  401(k)
Plan  (hereinafter referred to as the "Plan") for the benefit  of
its Employees, effective as of January 1, 1996; and

WHEREAS, the MVS Applications 401(k) & Savings Plan and the  Enon
Microwave,  Inc.  401(k)  Plan merged with  and  into  the  Plan,
effective December 31, 2004; and

WHEREAS,  Microwave & Video Systems, Inc., Enon  Microwave,  Inc.
and   Microwave   Concepts,  Inc.  (hereinafter,  together   with
Micronetics, Inc., collectively referred to as the
the  "Employer")  became  Participating Employers  of  the  Plan,
effective December 31, 2004; and

WHEREAS,  Article IX of said Plan provides that the Employer  may
amend the Plan; and

WHEREAS, the Employer wishes to amend the Plan; and

WHEREAS,  it is intended that the Plan is to be a qualified  plan
under  Section 401(a) of the Internal Revenue Code and is  to  be
for   the  exclusive  benefit  of  the  Participants  and   their
Beneficiaries; and

NOW,  THEREFORE, the Plan is hereby amended by restating the Plan
in its entirety as follows:
                       ARTICLE ONE--DEFINITIONS

For  purposes  of  the  Plan,  unless the context  or  an  alternative
definition  specified within another Article provides  otherwise,  the
following words and phrases shall have the definitions provided:

1.1    "ACCOUNT"  shall  mean  the  individual  bookkeeping   accounts
maintained for a Participant under the Plan which shall record (a) the
Participant's  allocations of Employer contributions, (b)  amounts  of
Compensation  deferred  to  the  Plan pursuant  to  the  Participant's
election, (c) any amounts transferred to this Plan under Article  Four
from  another  qualified retirement plan, and (d)  the  allocation  of
Trust investment experience.

1.2   "ADMINISTRATOR" shall mean the Plan Administrator appointed from
time  to  time  in  accordance with the provisions  of  Article  Eight
hereof.

1.3   "BENEFICIARY"  shall  mean any person, trust,  organization,  or
estate  entitled to receive payment under the terms of the  Plan  upon
the death of a Participant.

1.4  "BREAK IN SERVICE" is defined in Article Two.

1.5   "CODE" shall mean the Internal Revenue Code of 1986, as  amended
from time to time.

1.6   "COMPENSATION" shall mean the compensation paid to a Participant
by the Employer for the Plan Year which is reportable on Form W-2, but
exclusive  of  any  program  of deferred  compensation  or  additional
benefits  payable  other  than in cash.   Compensation  shall  include
elective  contributions that are made by the Employer on behalf  of  a
Participant  that  are  not  includible in  gross  income  under  Code
Sections  125,  402(e)(3), 402(h)(1)(B), 403(b), and, for  Plan  Years
beginning on or after January 1, 2001, 132(f)(4).

For  purposes  of  determining who is a Highly  Compensated  Employee,
Compensation  shall  mean  compensation as  defined  in  Code  Section
414(q)(4).

In addition to other applicable limitations set forth in the Plan, and
notwithstanding any other provisions of the Plan to the contrary,  the
annual compensation of each Employee taken into account under the Plan
shall not exceed the OBRA '93 annual compensation limit.  The OBRA '93
annual compensation limit is $150,000, as adjusted by the Commissioner
for  increases  in  the  cost-of-living  in  accordance  with  Section
401(a)(17)(B)  of the Code.  The cost-of-living adjustment  in  effect
for  a  calendar year applies to any period, not exceeding 12  months,
over which compensation is determined (determination period) beginning
in  such  calendar year.  If a determination period consists of  fewer
than  12  months,  the  OBRA  '93 annual compensation  limit  will  be
multiplied  by  a fraction, the numerator of which is  the  number  of
months  in the determination period, and the denominator of  which  is
12.
Any  reference in this Plan to the limitation under Section 401(a)(17)
of  the  Code  shall mean the OBRA '93 annual compensation  limit  set
forth in this provision.

If  compensation  for  any prior determination period  is  taken  into
account  in determining an Employee's benefits accruing in the current
Plan  Year,  the compensation for that prior determination  period  is
subject  to the OBRA '93 annual compensation limit in effect for  that
prior  determination period.  For this purpose, the  OBRA  '93  annual
compensation  limit is $150,000, as adjusted by the  Commissioner  for
increases   in   the   cost-of-living  in  accordance   with   Section
401(a)(17)(B) of the Code.

1.7   "EFFECTIVE DATE."  The Plan's initial Effective Date was January
1, 1996.  The Effective Date of this restated Plan, on and after which
it supersedes the terms of the existing Plan document, is December 31,
2004,  except  where  the  provisions  of  the  Plan  shall  otherwise
specifically  provide.   The rights of any Participant  who  separated
from  the  Employer's service prior to this date shall be  established
under the terms of the Plan and Trust as in effect at the time of  the
Participant's   separation  from  service,  unless   the   Participant
subsequently returns to service with the Employer.  Rights of  spouses
and beneficiaries of such Participants shall also be governed by those
documents.

1.8   "EMPLOYEE"  shall mean a common law employee  of  the  Employer.
Employee  shall  not  include  any individual  who  the  Employer  has
classified  as  an  independent contractor solely on  account  of  his
reclassification by the Internal Revenue Service as an employee.

1.9   "EMPLOYER" shall mean the Employer named as party to  the  Plan,
and shall include any successor(s) thereto which adopt this Plan.  If,
under state law, the Employer at any time is not governed by directors
but   instead  by  its  stockholders,  or  if  the  Employer   is   an
unincorporated  business  and is governed  by  its  owners,  reference
herein  to  the  Board of Directors shall be deemed to  refer  to  the
individual(s) empowered to vote on the Employer's affairs.

1.10   "EMPLOYMENT  DATE" shall mean the first date  as  of  which  an
Employee  is credited with an Hour of Service, provided that,  in  the
case  of  a  Break in Service, the Employment Date shall be the  first
date  thereafter as of which an Employee is credited with an  Hour  of
Service.

1.11  "HIGHLY COMPENSATED EMPLOYEE" shall mean:

  (a) Any Employee of the Employer who:

       (1)  was  a five percent (5%) owner of the Employer (as defined
in  Section 416(i)(1) of the Code) during the current or the preceding
year; or

       (2) for the preceding year:

            (A)  had  Compensation  from the  Employer  in  excess  of
$80,000  (as  adjusted  by the Secretary of the Treasury  pursuant  to
Section 415(d) of the Code); and
            (B)  was  in  the  top-paid group  of  Employees  for  the
preceding year.

  (b)  A  former  Employee shall be treated as  a  Highly  Compensated
Employee if: (1) such Employee was a Highly Compensated Employee  when
such  Employee  separated from service, or (2)  such  Employee  was  a
Highly Compensated Employee at any time after attaining age 55.

  (c)  The  determination  of  who is a Highly  Compensated  Employee,
including  the  determination  of  the  number  and  identity  of  the
Employees  in  the  top-paid group, will be made  in  accordance  with
Section  414(q)  of  the Code, the regulations  thereunder  and  other
applicable guidance.

  (d)  For  purposes  of  this Section 1.11, the  term  "Compensation"
means  compensation  within the meaning of Section  415(c)(3)  of  the
Code.  The determination will be made without regard to Sections  125,
402(e)(3),  402(h)(1)(B), and, for Plan Years beginning  on  or  after
January  1,  2001, 132(f)(4) of the Code, and in the case of  employer
contributions  made pursuant to a salary reduction agreement,  without
regard to Section 403(b) of the Code.  For Plan Years beginning  after
December  31,  1997,  for  purposes of this  Section  1.11,  the  term
"Compensation"  means  compensation  within  the  meaning  of  Section
415(c)(3) of the Code.

  (e)  For  purposes of this Section 1.11, an Employee is in the  top-
paid  group of Employees for any year if such Employee is in the group
consisting  of  the  top twenty percent (20%) of  the  Employees  when
ranked on the basis of Compensation paid during such year.

The  provisions  of  this Section 1.11 are effective  for  Plan  Years
beginning after December 31, 1996, except that, in determining whether
an  Employee is a Highly Compensated Employee in 1997, this  provision
is treated as having been in effect in 1996.

1.12  "HOUR OF SERVICE" shall mean:

  (a)   each hour for which an Employee is paid or entitled to payment
for the performance of duties for the Employer.  These hours shall  be
credited  to  the  Employee for the computation period  in  which  the
duties are performed; and

  (b)   each  hour  for  which an Employee is  paid,  or  entitled  to
payment,  by the Employer on account of a period of time during  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.  No more than 501 Hours of  Service  shall  be
credited under this subsection for any single continuous period during
which no duties are performed  (whether or not such period occurs in a
single computation period).  An hour for which an Employee is directly
or  indirectly paid, or entitled to payment, on account  of  a  period
during  which  no  duties are performed shall not be credited  to  the
Employee if such payment is made or due under a plan maintained solely
for the purpose of complying with applicable worker's compensation, or
unemployment compensation
or  disability insurance laws.  Hours of Service shall not be credited
for  a  payment  which solely reimburses an Employee  for  medical  or
medically  related  expenses  by  the  Employee.   Hours  under   this
subsection  shall  be  calculated and  credited  pursuant  to  Section
2530.200b-2(b) and (c) of the Department of Labor regulations which is
incorporated herein by this reference; and

  (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 subsection  (a)  or
subsection  (b),  as the case may be, and under this  subsection  (c).
These  hours  shall  be credited to the Employee for  the  computation
period or periods to which the award or agreement pertains rather than
the  computation period in which the award, agreement, or  payment  is
made.

1.13   "LEASED EMPLOYEE" shall mean any person (other than an Employee
of the Employer) who pursuant to an agreement between the Employer and
any  other person ("leasing organization") has performed services  for
the  Employer  (or for the Employer and related persons determined  in
accordance with Section 414(n)(6) of the Code) 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  Employer.   A
person will not be considered a Leased Employee if the total number of
Leased  Employees  does  not exceed 20% of the  Nonhighly  Compensated
Employees employed by the Employer, and if any such person is  covered
by  a  money  purchase  pension plan providing:  (a)  a  nonintegrated
employer contribution rate of at least 10% of compensation, as defined
in  Section  415(c)(3) of the Code, but including amounts  contributed
pursuant to a salary reduction agreement which are excludable from the
employee's gross income under Section 125, 402(e)(3), 402(h)(1)(B), or
403(b)  of  the Code; (b) immediate participation; and  (c)  full  and
immediate  vesting.  The provisions of this Section 1.13 are effective
for Plan Years beginning after December 31, 1996.

1.14   "NONHIGHLY COMPENSATED EMPLOYEE" shall mean an Employee of  the
Employer who is not a Highly Compensated Employee.

1.15   "NORMAL  RETIREMENT  DATE"  shall  mean  a  Participant's  65th
birthday.

1.16   "PARTICIPANT"  shall mean any Employee who  has  satisfied  the
eligibility requirements of Article Three and who is participating  in
the  Plan, including any such Employee who elects not to make elective
deferrals under Section 4.1.

1.17  "PLAN" shall mean this Plan as set forth herein and as it may be
amended from time to time.

1.18  "PLAN YEAR" shall mean the 12-consecutive-month period beginning
January 1 and ending December 31.

1.19  "TRUST" shall mean the Trust Agreement entered into between  the
Employer and the Trustee forming part of this Plan, together with  any
amendments thereto.  "Trust Fund" shall mean any and all property held
by  the  Trustee pursuant to the Trust Agreement, together with income
therefrom.
1.20   "TRUSTEE" shall mean the Trustee or Trustees appointed  by  the
Employer, and any successors thereto.

1.21  "VALUATION DATE" shall mean each day of the Plan Year.

1.22   "YEAR  OF  SERVICE"  or "SERVICE" and the  special  rules  with
respect to crediting Service are in Article Two of the Plan.
              ARTICLE TWO--SERVICE DEFINITIONS AND RULES

Service  is  the  period  of  employment  credited  under  the   Plan.
Definitions and special rules related to Service are as follows:

2.1  YEAR OF SERVICE

  (a)   Service  For  Eligibility.  For  purposes  of  eligibility  to
participate in the Plan under Section 3.1, a Year of Service, if  ever
required,  shall  be  determined as follows:  The initial  eligibility
computation  period shall be the twelve (12)-consecutive-month  period
commencing  on  an  Employee's Employment Date.  If  the  Employee  is
credited  with  1,000  or  more  Hours  of  Service  in  that  initial
eligibility  computation period, he will be credited with  a  Year  of
Service  for eligibility as of the last day of such twelve  (12)-month
computation period.  If the Employee does not complete 1,000  or  more
Hours of Service in that initial twelve (12)-month computation period,
he  shall be credited with a Year of Service for eligibility  when  he
completes 1,000 or more Hours of Service in any subsequent Plan Year.

A Participant on an unpaid leave of absence pursuant to the Employer's
normal  personnel policies shall be credited hours at  his  regularly-
scheduled  weekly  rate  while on such leave,  provided  the  Employer
acknowledges  in  writing that the leave is with its approval.   These
Hours of Service will be credited only for purposes of determining  if
a Break in Service has occurred and, unless specified otherwise by the
Employer  in  writing,  shall  not  be  credited  for  eligibility  to
participate  in  the  Plan, vesting, or qualification  to  receive  an
allocation of Employer contributions.  Hours of Service during a  paid
leave of absence will be credited as provided in Section 1.12.

For any individual who is absent from work for any period by reason of
the individual's pregnancy, birth of the individual's child, placement
of  a  child  with the individual in connection with the  individual's
adoption of the child, or by reason of the individual's caring for the
child  for  a  period beginning immediately following  such  birth  or
placement,  the  Plan  shall treat as Hours  of  Service,  solely  for
determining if a Break in Service has occurred, the following Hours of
Service:

       (1)   the Hours of Service which otherwise normally would  have
been credited to such individual but for such absence; or

       (2)   in  any  case  where  the  Administrator  is  unable   to
determine  the Hours of Service, on the basis of an assumed eight  (8)
Hours per day.

  (b)    Service   For  Vesting.   For  purposes  of  determining   an
Employee's  nonforfeitable  right  to  that  portion  of  his  Account
attributable to Employer contributions under Section 6.1, an  Employee
shall  receive  credit  for each of the twelve (12)-month  computation
periods  commencing on his Employment Date (or reemployment date)  and
anniversaries of that date and ending on the date a Break  in  Service
begins.  An Employee will also receive credit for any Break in Service
of less than twelve (12) consecutive months.  Fractional periods of  a
year will be expressed in terms of days.

A Participant on an unpaid leave of absence pursuant to the Employer's
normal  personnel policies shall be credited with at least an Hour  of
Service  for  each  twelve (12)-consecutive-month  computation  period
while  on  such leave, provided the Employer acknowledges  in  writing
that  the leave is with its approval.  These Hours of Service will  be
credited  only for purposes of determining if a Break in  Service  has
occurred  and, unless specified otherwise by the Employer in  writing,
shall  not  be  credited for eligibility to participate in  the  Plan,
vesting,  or  qualification  to  receive  an  allocation  of  Employer
contributions.  However, if the Participant fails to return to Service
prior  to the expiration of such authorized leave, a Break in  Service
will  be  deemed  to have commenced on the date such authorized  leave
began.

For any individual who is absent from work for any period by reason of
the individual's pregnancy, birth of the individual's child, placement
of  a  child  with the individual in connection with the  individual's
adoption of the child, or by reason of the individual's caring for the
child  for  a  period beginning immediately following  such  birth  or
placement, the twelve (12)-consecutive-month period beginning  on  the
first  anniversary  of  the  first date  of  such  absence  shall  not
constitute a Break in Service.

2.2  BREAK IN SERVICE.  For purposes of eligibility to participate  in
the  Plan under Section 3.1, a Break in Service shall be each 12-month
computation period, as used for computing Years of Service in  Section
2.1(a),  in which an Employee is not credited with at least 500  Hours
of Service.

For  purposes of determining Years of Service for vesting purposes,  a
Break  in  Service shall be a continuous period, as used for computing
Years  of  Service  in Section 2.1(b), in which  an  Employee  is  not
employed  by  the Employer.  Such period shall begin on the  date  the
Employee  retires, quits, is discharged or dies or,  if  earlier,  the
twelve  (12)-month  anniversary of the  date  on  which  the  Employee
otherwise ceased employment with the Employer.

2.3   RULE OF PARITY ON RETURN TO EMPLOYMENT.  An Employee who returns
to employment after a Break in Service shall retain credit for his pre-
Break Years of Service, subject to the following rules:

  (a)  If a Participant incurs five (5) or more consecutive Breaks  in
Service, any Years of Service performed thereafter shall not  be  used
to  increase the vesting in his Account accrued prior to such five (5)
or  more consecutive Breaks in Service.  Separate accounting shall  be
maintained   thereafter  with  respect  to  that   portion   of   such
Participant's Account accrued before and after such Breaks in  Service
occurred.

  (b)   If when a Participant incurred a Break in Service, he had  not
completed sufficient Years of Service to be vested in his Account, his
pre-Break  Years of Service shall be disregarded for vesting  purposes
if  his  consecutive Breaks in Service equal or exceed the greater  of
five (5) or the aggregate number of pre-Break Years of Service.

2.4   SERVICE IN EXCLUDED JOB CLASSIFICATIONS, WITH RELATED COMPANIES,
OR AS A LEASED EMPLOYEE.

  (a)    Preamble.   An  Employee  is  not  eligible  to  receive   an
allocation of Employer contributions or to participate under the  Plan
if  his job classification is specifically excluded under Section 3.1.
However,  Employees in an ineligible job classification are  entitled,
together  with  Leased  Employees and  Employees  of  certain  related
businesses,  to  credit  for their Service  in  the  event  that  such
Employees become employed in an eligible job classification.

  (b)  Definitions.

       (1)   Eligible Classification:  An Employee will be  considered
in  an  eligible class of Employees for such period when his  Employer
has  adopted the Plan and such Employee is not in an ineligible  class
of Employees.

       (2)    Ineligible   Classification:   An   Employee   will   be
considered in an ineligible class of Employees for any period when:

            (A)  the Employee is a Leased Employee;

            (B)   the  Employee  is employed in a  job  classification
which is excluded under Section 3.1; or

            (C)   the Employee is an employee of an employer who is  a
member  of  a controlled group of businesses or an affiliated  service
group (as defined in Section 414 of the Code), which employer has  not
adopted this Plan.

  (c)   Service  Rules  for  Ineligible  Classifications.   Hours   of
Service  in an ineligible classification will be credited for purposes
of  determining Years of Service for eligibility to participate in the
Plan  under Section 3.1 and for purposes of determining the Employee's
vesting percentage in the event the Employee participates in the Plan.

  (d)   Construction.  This Section is included in the Plan to  comply
with  the Code provisions regarding the crediting of Service, and  not
to   extend   any   additional  rights  to  Employees  in   ineligible
classifications  other than as required by the  Code  and  regulations
thereunder.

2.5    SPECIAL  RULES  RELATING  TO  VETERANS'  REEMPLOYMENT   RIGHTS.
Notwithstanding   any  provision  of  this  Plan  to   the   contrary,
contributions, benefits and service credit with respect  to  qualified
military service will be provided in accordance with Section 414(u) of
the   Code.    The  provisions  of  this  Section  2.6  are  effective
December 12, 1994.
                  ARTICLE THREE--PLAN PARTICIPATION

3.1  PARTICIPATION.  All Employees participating in this Plan prior to
the  Plan's restatement shall continue to participate, subject to  the
terms  hereof.   Each other Employee shall become a Participant  under
the Plan effective as of the first day of the month coincident with or
next  following the later of the Employee's completion  of  three  (3)
Months of Service or attainment of age 21.

For  purposes of this Section 3.1, an Employee shall be deemed to have
completed   three  (3)  Months  of  Service  on  the  three  (3)-month
anniversary of his Employment Date.

3.2    REEMPLOYMENT  OF  FORMER  PARTICIPANT.   A  Participant   whose
participation  ceased because of termination of  employment  with  the
Employer will immediately participate upon his reemployment and  shall
be eligible to make elective deferrals upon reemployment.

3.3   TERMINATION  OF  ELIGIBILITY.  If  a  Participant  shall  become
ineligible  to  participate in the Plan because the Participant's  job
classification is specifically excluded under Section 3.1  or  Section
2.5(b)(2),  such  Participant shall continue to vest  in  his  Account
under  the Plan for each Year of Service completed while an ineligible
Employee until such time as his Account is distributed to him pursuant
to  the terms of the Plan.  If a Participant becomes ineligible during
a  Plan Year, such Participant shall receive an allocation of Employer
contributions   under  Section  4.2  based  upon   the   Participant's
Compensation  as  determined  as of his  termination  of  eligibility,
provided  such  Participant is eligible to receive  an  allocation  of
Employer  contributions  under Section 4.2.   Any  such  Participant's
Account  shall  continue  to  share in the  allocation  of  investment
experience under Section 5.1.

3.4   ELECTION  NOT TO PARTICIPATE.  An Employee may, subject  to  the
approval of the Employer, elect voluntarily not to participate in  the
Plan.  The election not to participate in the Plan is irrevocable  and
must  be  communicated  to  the Employer, in  writing,  prior  to  the
Participant's date of initial eligibility to participate in the Plan.
           ARTICLE FOUR--ELECTIVE DEFERRALS, CONTRIBUTIONS,
               ROLLOVERS AND TRANSFERS FROM OTHER PLANS

4.1  ELECTIVE DEFERRALS.

  (a)   Elections.   A  Participant may elect in writing  to  defer  a
portion  of his Compensation up to the maximum amount which  will  not
cause the Plan to violate the provisions of Sections 9.2 and 10.1,  or
cause  the  Plan to exceed the maximum amount allowable as a deduction
to  the  Employer under Code Section 404.  A Participant may elect  in
writing  to  defer all or a portion of any cash bonus received  during
the  Plan  Year  on  a single sum basis; provided, however,  that  the
limitation in the preceding sentence with respect to Compensation  for
the  entire  Plan Year is not exceeded. The amount of a  Participant's
Compensation  that  is deferred in accordance with  the  Participant's
election  shall  be  withheld by the Employer from  the  Participant's
Compensation on a ratable basis throughout the Plan Year and/or  on  a
nonratable, single-sum basis.  The amount deferred on behalf  of  each
Participant  shall  be contributed by the Employer  to  the  Plan  and
allocated to the Participant's Account.

  (b)  Changes in Election.  A Participant may prospectively elect  to
change  or revoke the amount (or percentage) of his elective  deferral
during  the  Plan Year by filing an election with the  Employer.   The
Participant shall be entitled to change the amount (or percentage)  of
his  elective deferral which change shall be effective as of the  next
payroll  period.  A Participant's revocation of his elective deferrals
shall be effective as soon as possible following his election to cease
deferrals.   A  Participant who has revoked his elective deferral  may
reenter  the Plan on any payroll period following his prior revocation
of deferrals.

  (c)   Limitations  on  Deferrals.  No  Participant  shall  defer  an
amount which exceeds $9,500, or such amount in effect at the beginning
of  the  calendar year as adjusted for cost-of-living increases  under
Section  402(g)(5)  of  the  Code.  All  other  plans,  contracts,  or
arrangements  of  the  Employer which permit  elective  deferrals  (as
defined in Code Section 402(g)(3)) shall be aggregated with this  Plan
in the calculation of the aforementioned limitation.

  (d)   Administrative Rules.  All elections made under  this  Section
4.1, including the amount and frequency of deferrals, shall be subject
to  the rules of the Administrator which shall be consistently applied
and which may be changed from time to time.

4.2  EMPLOYER CONTRIBUTIONS.

  (a)   Allocation of Employer Matching Contributions.  For each  Plan
Year,  the  Employer may contribute to the Plan,  on  behalf  of  each
Participant  eligible  under Section 4.2(b) a  discretionary  matching
contribution  equal  to  a  percentage of the  eligible  Participant's
elective deferrals that each such Participant is making under  Section
4.1.
The Employer, by action of its Board of Directors, shall determine the
amount, if any, of the Employer matching contribution.  The Employer's
Board of Directors may also determine to raise, suspend or reduce  its
contributions under this Section for any Plan Year.  Allocations under
this Section shall be subject to the special rules of Section 12.3  in
any Plan Year when the Plan is a Top-Heavy Plan.

Notwithstanding the foregoing, for the Plan Year ending  December  31,
2004,  the amount of Employer matching contribution to be made to  the
Account of each eligible Participant shall not be less than the amount
determined in accordance with the applicable plan document  in  effect
with respect to such eligible Participant prior to this restatement.

Effective  January  1,  2005, forfeitures which  arise  from  Employer
matching   contributions  shall  be  used  to  reduce   any   Employer
contribution.  Prior to January 1, 2005, forfeitures shall be used  in
accordance with the applicable plan document in effect prior  to  this
restatement.

  (b)   Eligibility  for  Employer  Matching  Contributions.   To   be
eligible for a share of Employer matching contributions under  Section
4.2(a),  an  Employee  must (1) be qualified as  a  Participant  under
Section 3.1 and (2) have made elective deferrals under Section 4.1.

  (c)   Discretionary  Employer Contributions.   In  addition  to  any
Employer  matching contributions made under Section  4.2(a),  Employer
contributions may be made at the discretion of the Board of  Directors
of  the  Employer  for  any  Plan Year,  subject  to  limits  for  tax
deductions under the Code and provided that the special allocation  in
Section 12.3 has been satisfied if the Plan is a Top-Heavy Plan.

Effective  January 1, 2005, forfeitures which arise from discretionary
Employer   contributions  shall  be  used  to  reduce   any   Employer
contribution.  Prior to January 1, 2005, forfeitures shall be used  in
accordance with the applicable plan document in effect prior  to  this
restatement.

  (d)   Eligibility for Discretionary Employer Contributions.   To  be
eligible  for  an  allocation of discretionary Employer  contributions
under Section 4.2(c) for a Plan Year, an Employee must be qualified as
a Participant under Section 3.1.

  (e)    Allocation  of  Discretionary  Employer  Contributions.   Any
contribution  made  under  Section 4.2(c)  shall  be  allocated  among
Accounts  of eligible Participants in accordance with the  ratio  that
each  such  eligible  Participant's Compensation bears  to  the  total
Compensation of all such eligible Participants for the Plan Year.

4.3   ROLLOVERS AND TRANSFERS FROM OTHER PLANS.  With the approval  of
the Administrator, there may be paid to the Trustee amounts which have
been  held under other plans qualified under Section 401 of  the  Code
either (a) maintained by the Employer which have been discontinued  or
terminated with respect to any Employee, or (b) maintained by  another
employer with respect to which any Employee has ceased to participate.
Any  such  transfer  or  rollover may also be  made  by  means  of  an
Individual Retirement Account qualified under Section 408 of the Code,
where the Individual Retirement Account was used as a conduit from the
former  plan.   Any amounts so transferred on behalf of  any  Employee
shall be nonforfeitable and shall be maintained under a separate  Plan
account,  to  be paid in addition to amounts otherwise  payable  under
this  Plan.  The amount of any such account shall be equal to the fair
market  value of such account as adjusted for income, expenses, gains,
losses, and withdrawals attributable thereto.
If  an  Employee  has  not satisfied the eligibility  requirements  of
Section  3.1 but has either transferred or rolled over an amount  from
another qualified retirement plan, the Employee shall be considered  a
Participant  under  the  Plan but only to the  extent  of  the  amount
transferred or rolled over to the Plan.

4.4   EMPLOYER CONTRIBUTIONS ARE DISCRETIONARY.  This Plan is intended
to  be  a  discretionary profit sharing plan within the provisions  of
Section 401(a)(27) of the Code.  Employer contributions shall be  made
without  regard to current or accumulated profits and may be  modified
or suspended by the Employer's Board of Directors for any Plan Year.

4.5  TIMING OF CONTRIBUTIONS.  Employer contributions shall be made to
the  Plan  no  later than the time prescribed by law  for  filing  the
Employer's  Federal income tax return (including extensions)  for  its
taxable  year ending with or within the Plan Year.  Elective deferrals
under   Section   4.1  shall  be  paid  to  the  Plan   as   soon   as
administratively possible but no later than the fifteenth business day
of  the  calendar  month following the calendar month  to  which  such
elective deferrals are applicable.
                    ARTICLE FIVE--ACCOUNTING RULES

5.1  INVESTMENT OF ACCOUNTS AND ACCOUNTING RULES.

    (a)   Investment Funds.  The investment of Participants'  Accounts
shall be made in a manner consistent with the provisions of the Trust.
The  Administrator, in its discretion, may allow the Trust to  provide
for  separate  funds for the directed investment of each Participant's
Account.   Investment  in Employer stock is not  permitted  under  the
Plan.

    (b)   Participant Direction of Investments.  If the  Administrator
chooses   to  provide  more  than  one  investment  fund,  then   each
Participant  may  direct  how his Account  is  to  be  invested  among
available investment funds in the percentage multiples established  by
the  Administrator.  A Participant may change his investment direction
after  advance notice to the Administrator, in accordance with uniform
rules  established by the Administrator.  An investment direction  may
apply  to  the  investment  of  future  contributions  and/or  amounts
previously  accumulated in the Account.  In the  event  a  Participant
makes  no  investment election, his Account shall be invested  in  the
investment  fund selected by the Administrator for all such  similarly
situated  Accounts.  If the Plan's recordkeeper or investment  manager
is changed, the Administrator may suspend the Participant's investment
direction of his Account.  If Participant direction of investments  is
suspended,  the Administrator shall invest the Participants'  Accounts
in   an  interest-bearing  account(s)  until  such  change  has   been
completed.

The  Plan  is  intended  to  constitute a  qualified  retirement  plan
described in Section 404(c) of the Employee Retirement Income Security
Act of 1974, as amended, and regulations thereunder.  As a result, the
fiduciaries  of the Plan may be relieved of liability for  any  losses
which  are  the direct and necessary result of investment instructions
given by a Participant.

    (c)   Safe Investment Option.  The Administrator may provide  that
one  of  the investment funds offers both a reasonable safety  of  the
principal  amount  invested and a reasonable rate of interest  return.
An  investment fund composed of guaranteed interest contracts  through
an  insurance company, a pooled fund of short-term bonds and notes, or
a money market fund shall be deemed to meet these standards.

    (d)   Allocation  of Investment Experience.  As of each  Valuation
Date,  the  investment fund(s) of the Trust shall be  valued  at  fair
market  value,  and  the income, loss, appreciation  and  depreciation
(realized  and  unrealized),  and  any  paid  expenses  of  the  Trust
attributable  to  such fund shall be apportioned  among  Participants'
Accounts  within the fund based upon the value of each Account  within
the  fund  as of the preceding Valuation Date.  Adjustment of Accounts
for  investment  experience shall be deemed  to  be  made  as  of  the
Valuation Date to which the adjustment relates, even if actually  made
on a later date.

    (e)     Allocation    of   Elective   Deferrals    and    Employer
Contributions.  Elective deferrals and Employer contributions shall be
allocated to the Account of each eligible Participant as of  the  last
day of the period for which the contributions are made.
    (f)    Manner  and  Time  of  Debiting  Distributions.   For   any
Participant who receives a distribution from his Account, distribution
shall  be  made  in  accordance with the provisions dealing  with  the
timing  of  commencement  of benefit payments  in  Section  7.2.   The
distribution  shall  be  equal  to  the  fair  market  value  of   the
Participant's  vested Account as of the Valuation Date  preceding  the
distribution.

5.2  PARTICIPANTS OMITTED IN ERROR.  In the event a Participant is not
allocated  a  share of the Employer contribution as  a  result  of  an
administrative  error  in any Plan Year, the  Employer  may  elect  to
either  (a) make an additional contribution on behalf of such  omitted
Participant  in  an appropriate amount, or (b) deduct the  appropriate
amount  from  the next succeeding Employer contribution  and  allocate
such  amount  to  the  Participant's  Account  prior  to  making   the
allocations set forth under Section 5.1(e).
       ARTICLE SIX--VESTING, RETIREMENT AND DISABILITY BENEFITS

6.1   VESTING.  A Participant shall at all times have a nonforfeitable
(vested)  right  to  his  Account  derived  from  elective  deferrals,
Employer  "fail-safe" contributions under Section 9.2 and/or 9.3,  and
rollovers  or  transfers  from other plans,  adjusted  for  investment
experience.   Except  as  otherwise provided with  respect  to  Normal
Retirement,  disability,  or  death,  a  Participant  shall   have   a
nonforfeitable  (vested) right to a percentage of his Account  derived
from   Employer  matching  contributions  and  discretionary  Employer
contributions as follows:

             Years of Service         Vested Percentage

             Less than 1 year                  0%
             1 year but less than 2           20%
             2 years but less than 3          40%
             3 years but less than 4          60%
             4 years but less than 5          80%
             5 years and thereafter          100%

6.2   FORFEITURE  OF NONVESTED BALANCE.  The nonvested  portion  of  a
Participant's Account shall be forfeited as of the earlier of the last
day  of  the  Plan Year in which the Participant receives  a  complete
distribution of his vested Account or the last day of the Plan Year in
which  the Participant incurs five (5) consecutive Breaks in  Service.
The  amount  forfeited  shall  be:  (1)  used  to  pay  administrative
expenses;   (2)  used  to reduce Employer contributions;  and/or   (3)
allocated as an Employer contribution, as set forth in Section 4.2.

If  the Participant returns to the employment of the Employer prior to
incurring  five  (5)  consecutive  Breaks  in  Service  and  prior  to
receiving  a distribution of his vested Account the nonvested  portion
shall  be  restored.   However,  if  the  nonvested  portion  of   the
Participant's Account was allocated as a forfeiture as the  result  of
the  Participant  receiving  a  distribution  of  his  vested  Account
balance, the nonvested portion shall be restored if:

  (a)   the Participant resumes employment prior to incurring five (5)
consecutive Breaks in Service; and

  (b)   the Participant repays to the Plan, as of the earlier  of  (i)
the  date which is five (5) years after his reemployment date or  (ii)
the  date which is the last day of the period in which the Participant
incurs  five (5) consecutive Breaks in Service following the  date  of
distribution, an amount equal to the total distribution  derived  from
Employer contributions under Sections 4.2 and 12.3.

The  nonvested amount shall be restored to the Participant's  Account,
without interest or adjustment for interim Trust valuation experience,
by  a  special  Employer  contribution or  from  the  next  succeeding
Employer contribution and forfeitures, as appropriate.
A zero percent vested Participant shall be considered to have received
a  complete distribution of his vested Account as of the date  of  his
first  Break  in Service, and if he returns to the employment  of  the
Employer prior to incurring five (5) consecutive Breaks in Service, he
shall  be  considered  to  have repaid such  distribution  as  of  his
completion of one Year of Service after his resumption of employment.

6.3  RETURN TO EMPLOYMENT BEFORE DISTRIBUTION OF VESTED ACCOUNT
BALANCE.   If  distribution is made to an Employee of  less  than  the
Employee's  entire  vested Account, and if  the  Employee  returns  to
Service,  a  separate  record  shall be  maintained  of  said  Account
balance.   The Employee's vested interest at any time in this separate
account shall be an amount equal to the formula P(AB+D)-D, where P  is
the  vested percentage at the relevant time, AB is the Account balance
at  the relevant time, and D is the amount of the distribution made to
the Employee.

6.4  NORMAL RETIREMENT.  A Participant who is in the employment of the
Employer  at  his  Normal Retirement Date shall have a  nonforfeitable
interest in 100% of his Account if not otherwise 100% vested under the
appropriate   vesting  schedule.   A  Participant  who  continues   in
employment  after  his  Normal  Retirement  Date  shall  continue   to
participate  under  the Plan, but may elect in  writing  to  have  his
Account  payable  at the time and in the manner specified  in  Article
Seven.

6.5   PERMANENT  AND  TOTAL DISABILITY.  If  a  Participant  incurs  a
permanent  and  total disability while in the employ of the  Employer,
the  Participant shall have a nonforfeitable interest in 100%  of  his
Account.  Payment of his Account balance will be made at the time  and
in  a manner specified in Article Seven, following receipt by the Plan
Administrator  of the Participant's distribution request.   "Permanent
and  total  disability" shall mean a physical or mental  condition  of
such  severity and duration as to entitle the Participant  to  receive
disability retirement benefits under the Federal Social Security  Act.
In  order to be considered permanently and totally disabled under this
Section   the  Participant  must  be  eligible  for  such   disability
retirement benefits under the Federal Social Security Act.
       ARTICLE SEVEN--MANNER AND TIME OF DISTRIBUTING BENEFITS

7.1   MANNER  OF PAYMENT.  Effective January 1, 2005, with respect  to
distributions  commencing  on  and after  April  1,  2005,  except  as
required under Sections 7.5 and 7.9, the Participant's vested  Account
shall  be  distributed  to the Participant (or  to  the  Participant's
Beneficiary in the event of the Participant's death) in a single lump-
sum payment.

With  respect  to  distributions commencing prior to  April  1,  2005,
subject to the requirements of Sections 7.5 and 7.9, the Participant's
vested  Account  shall be distributed to the Participant  (or  to  the
Participant's Beneficiary in the event of the Participant's death)  by
any  of the following methods, as elected by the Participant or,  when
applicable, the Participant's Beneficiary:

  (a)  in a single lump-sum payment;

  (b)   in  periodic installments (at least annually), subject to  the
minimum distribution rules of Section 7.4; or

  (c)   by  purchase  of a nontransferable annuity from  an  insurance
company, but only if required under the provisions of Section 7.5.

7.2  TIME OF COMMENCEMENT OF BENEFIT PAYMENTS.

  (a)   Normal or Late Retirement.  Participants whose employment  has
terminated   shall   have  distribution  of  their  Account   commence
approximately 60 days following their Normal Retirement  Date,  unless
the Participant elects to defer receipt of his Account.  A Participant
who  has  reached  Normal  Retirement  Date  but  has  not  terminated
employment  may  request  distribution  of  his  Account  to  commence
approximately  60 days following receipt by the Plan Administrator  of
his valid election.

  (b)   Disability  Retirement.  A Participant  whose  employment  has
terminated  due  to  total and permanent disability  may  request  the
distribution  of  his  Account  to  commence  approximately  60   days
following receipt by the Plan Administrator of his valid election.

  (c)   Pre-retirement Termination of Employment.   If  a  Participant
terminates  employment  for any reason other than  Normal  Retirement,
disability or death, distribution of his vested Account balance  shall
commence upon the later of:

       (1)   The  60th  day following the day on which  he  terminated
employment; or

       (2)   The  60th day after a Participant's election to  commence
payment is delivered to the Administrator.

Payment  of benefits attributable to elective deferrals made  pursuant
to Section 4.1 may begin (notwithstanding this Section 7.2) prior to a
Participant's  termination of employment and within a reasonable  time
after the occurrence of any of the  following events:  (1) termination
of the Plan without
the establishment of another defined contribution plan, other than  an
employee stock ownership plan (as defined in Section 4975(e)(7) of the
Code),  a simplified employee pension plan (as defined in Code Section
408(k))  or a Simple IRA plan as defined in Code Section 408(p);   (2)
the  disposition  by  a  corporation to an  unrelated  corporation  of
substantially  all  of  the  assets (within  the  meaning  of  Section
409(d)(2) of the Code) used in a trade or business of such corporation
if   such  corporation  continues  to  maintain  the  Plan  after  the
disposition,   but  only  with  respect  to  employees  who   continue
employment  with the corporation acquiring such assets; or   (3)   the
disposition  by  a  corporation  to  an  unrelated  entity   of   such
corporation's interest in a subsidiary (within the meaning of  Section
409(d)(3)  of the Code) if such corporation continues to maintain  the
Plan, but only with respect to employees who continue employment  with
such  subsidiary.  All distributions that may be made pursuant to  one
or  more  of  the  foregoing distributable events are subject  to  the
spousal  and  participant  consent  requirements  (if  applicable)  of
Sections   401(a)(11)  and  417  of  the  Code.   In  addition,   such
distributions must be made in a lump sum.

Unless  the  Participant elects otherwise, distribution of his  vested
Account shall begin no later than the 60th day after the latest of the
close of the Plan Year in which:

       (1)  the Participant attains age sixty-five (65);

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

       (3)  the Participant terminates Service with the Employer.

  (d)   Latest Commencement Date.  Effective January 1, 1997  or  when
first used by the Employer, if later, a Participant may elect to defer
receipt  of  his retirement benefits; provided, however, in  no  event
shall  the distribution of benefits commence later than the April  1st
of  the calendar year following the later of: (1) the calendar year in
which  the  Participant attains age 70?; or (2) the calendar  year  in
which  the Participant retires.  In the case of a 5-percent owner  (as
defined  in  Section  416  of  the  Code),  in  no  event  shall   the
distribution  of  benefits commence later than the April  1st  of  the
calendar  year  following the calendar year in which  the  Participant
attains age 70?.

       (1)   Any  Participant (other than a 5-percent owner) attaining
age  70? in years after 1995 may elect by April 1 of the calendar year
following  the year in which the Participant attained age 70?  (or  by
December  31, 1997 in the case of a Participant attaining age  70?  in
1996)  to  defer distributions until the April 1 of the calendar  year
following the calendar year in which the Participant retires.   If  no
such   election   is  made,  the  Participant  will  begin   receiving
distributions  by  the  April  1 of the calendar  year  following  the
calendar  year  in  which  the Participant attained  age  70?  (or  by
December  31, 1997 in the case of a Participant attaining age  70?  in
1996).

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

The   provisions  of  this  Section  7.2(d)  (relating   to   required
distributions)  are intended to comply with Section 401(a)(9)  of  the
Code,  the  regulations thereunder and any other applicable  guidance,
and shall be so interpreted.

  (e)  If  a distribution is one to which Sections 401(a)(11) and  417
of  the Code do not apply, such distribution may commence less than 30
days  after  the notice required under Section 1.411(a)-11(c)  of  the
Income Tax Regulations is given, provided that:

       (1)  the Administrator clearly informs the Participant that the
Participant  has  a  right  to a period of  at  least  30  days  after
receiving  the notice to consider the decision of whether  or  not  to
elect  a  distribution (and, if applicable, a particular  distribution
option), and

       (2)  the Participant, after receiving the notice, affirmatively
elects a distribution.

  (f)   Notwithstanding the foregoing provisions of this Section  7.2,
a distribution may be made to an "alternate payee" pursuant to, and if
required  by,  a  "Qualified Domestic Relations  Order"  even  if  the
affected  Participant  has  not separated from  service  and  has  not
attained  the "earliest retirement age" under the Plan.  For  purposes
of   this   subsection  (f),  "Qualified  Domestic  Relations  Order",
"alternate  payee"  and  "earliest  retirement  age"  shall  have  the
meanings set forth in Section 414(p) of the Code.

7.3   FURNISHING  INFORMATION.  Prior to the payment  of  any  benefit
under  the  Plan, each Participant or Beneficiary may be  required  to
complete such administrative forms and furnish such proof as is deemed
necessary  or  appropriate  by  the  Employer,  Administrator,  and/or
Trustee.

7.4   MINIMUM  DISTRIBUTION  RULES FOR  INSTALLMENT  PAYMENTS.   If  a
distribution is made in installments the following rules shall apply:

  (a)   Payments  to  Participant  and  Beneficiary.   Payments  shall
commence no later than a date provided for in Section 7.2.  The amount
to  be  distributed each year shall be at least equal  to  the  vested
balance  in the Participant's Account as of the last day of  the  Plan
Year  in the prior calendar year multiplied by the following fraction:
the  numerator  shall be one and the denominator  shall  be  the  life
expectancy  of  the  Participant or the joint life expectancy  of  the
Participant and the Participant's
Beneficiary  computed as of the aforementioned last day  of  the  Plan
Year  and reduced by one for each succeeding year.  Payments shall  be
restricted  under  this option to insure compliance with  the  minimum
distribution  incidental death benefit and other minimum  distribution
requirements  of  Section 401(a)(9) of the Code  and  the  regulations
promulgated thereunder.

Accordingly,  in the case of a non-spouse Beneficiary, the  lesser  of
the  "applicable  divisor"  from the appropriate  Table  appearing  in
Proposed  Regulation  1.401(a)(9) -  2  Q.  &  A.  4  as  modified  by
superseding  regulation,  and  the  joint  life  expectancy   of   the
Participant and his Beneficiary shall be used in the denominator.  All
life  expectancies  will be determined by use of the  expected  return
multiples  in  Tables  V  and  VI  of Section  1.72-9  of  Income  Tax
Regulations.

  (b)   Beneficiaries for purposes of this Section shall be determined
in  accordance  with  regulations  issued  pursuant  to  Code  Section
401(a)(9).

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  Section  401(a)(9)  of  the  Code   in
accordance  with  the  Regulations under Section 401(a)(9)  that  were
proposed  on  January 17, 2001, notwithstanding any provision  of  the
Plan  to the contrary.  This amendment shall continue in effect  until
the  end of the last calendar year beginning before the effective date
of final Regulations under Section 401(a)(9) or such other date as may
be specified in guidance published by the Internal Revenue Service.

7.5   JOINT  AND  SURVIVOR ANNUITY.  Effective January 1,  2005,  with
respect  to distributions commencing on and after April 1, 2005,  this
Section shall apply only to a Participant whose Account includes funds
transferred  from  a  plan  subject  to  the  provisions  of  Sections
401(a)(11)  and  417 of the Code and who does not  die  prior  to  the
"annuity  starting  date."   However, with  respect  to  distributions
commencing  prior to April 1, 2005, this Section shall  apply  to  any
Participant who does not die prior to the "annuity starting date."

  (a)   If  distribution of a Participant's Account balance  commences
during his lifetime, his vested Account (subject to the provisions  of
this  Section 7.5) shall be applied to the purchase of an annuity  for
the  life of the Participant or, if the Participant is married  as  of
his benefit commencement date, applied to the purchase of a "qualified
joint  and survivor annuity" for the life of the Participant  and  his
"eligible spouse".  For this purpose, a "qualified joint and  survivor
annuity" is an immediate annuity for the life of the Participant  with
a  survivor  annuity for the life of the spouse which is  50%  of  the
amount  of the annuity which is payable during the joint lives of  the
Participant and his spouse.

  (b)   The  Participant  may  elect to  waive  the  life  annuity  or
qualified  joint  and  survivor annuity form of benefit  at  any  time
during  the election period.  Such an election must be made in writing
in  a  form acceptable to the Administrator.  However, an election  to
waive  a  qualified joint and survivor annuity shall not  take  effect
unless  the Participant's spouse consents in writing to such  election
and  the spouse's consent acknowledges the effect of such election and
is  witnessed  by a Plan representative or a Notary  Public.   In  the
event  of  such  an  election, distribution  of  the  portion  of  the
Participant's  Account  otherwise subject to the  provisions  of  this
Section shall be paid to the Participant in the manner selected by the
Participant under Section 7.1 above.

  (c)   "Eligible  Spouse" is the spouse who (i)  is  married  to  the
Participant  for the one-year period ending prior to  the  earlier  of
benefit  commencement  or  the  date of the  Participant's  death,  or
(ii)  becomes  married  within the one-year period  prior  to  benefit
commencement  and remains married for at least one  year.   A  divorce
occurring  after  benefit payments have commenced to  the  Participant
will  not  cause an "eligible spouse" to lose such status, unless  the
spouse agrees to give up rights hereunder pursuant to the terms  of  a
qualified  domestic relations order described in Code Section  414(p).
The  divorce  or  death of an "eligible spouse" shall  not  entitle  a
subsequent spouse to status as an "eligible spouse."

  (d)   The  spousal waiver made in accordance with this Section  must
specify  the non-spouse beneficiary, if any, and the alternative  form
of  distribution neither of which may be changed unless a new  spousal
consent  is  obtained pursuant to Section 7.5(b).   In  addition,  any
waiver made in accordance with this Section may be revoked at any time
prior  to  the commencement of benefits under the Plan.  A Participant
is  not limited to the number of revocations or elections that may  be
made hereunder.
  (e)   The  "election period" under this Section shall be the  90-day
period  prior to the "annuity starting date", which date shall be  the
first  day  of  the first period in which an amount is payable  as  an
annuity  or, if such benefit is not payable as an annuity,  the  first
day  on which the Participant may begin to receive a distribution from
the Plan.

The  written explanation described in Section 417(a)(3)(A) of the Code
may   be  provided  after  the  annuity  starting  date.   The  90-day
"applicable election period" to waive the qualified joint and survivor
annuity  described in Section 417(a)(6)(A) of the Code shall  not  end
before  the  30th  day  after the date on which  such  explanation  is
provided.   The  Secretary of the Treasury may, by regulations,  limit
the  period  of time by which the annuity starting date  precedes  the
provision of the written explanation other than by providing that  the
annuity  starting  date  may  not  be  earlier  than  termination   of
employment.   A  Participant may elect (with  any  applicable  spousal
consent)  to  waive  any requirement that the written  explanation  be
provided  at  least 30 days before the annuity starting  date  (or  to
waive  the  30-day  requirement set forth above) if  the  distribution
commences more than seven (7) days after such explanation is provided.
The  provisions  of this Section 7.5(e) are effective for  Plan  Years
beginning after December 31, 1996.

  (f)   The Administrator shall provide to each Participant, not  more
than ninety (90) days prior to the commencement of benefits, a written
explanation of:

       (1)   the  terms  and  conditions of the  qualified  joint  and
survivor annuity or life annuity;

       (2)   the  Participant's right to make, and the  effect  of  an
election to waive, such applicable annuity;

       (3)   the  rights  of  the Participant's spouse  regarding  the
required  consent  to  an election to waive the  qualified  joint  and
survivor annuity; and

       (4)   the right to make, and the effect of, a revocation of  an
election to waive the applicable annuity.

  (g)   Notwithstanding anything contained herein to the contrary,  if
the  vested  balance of the Participant's Account is less than  $5,000
($3,500  prior  to  August 6, 1997 or when $5,000 first  used  by  the
Employer,  if  later  than  August  6,  1997),  distribution  of   the
Participant's Account shall be made in the form of a lump sum payment.
However,  no  distribution shall be made pursuant to  this  subsection
after  the  first  day  of the first period for  which  an  amount  is
received  as  an annuity unless the Participant and the  Participant's
spouse,  if  applicable,  consent in  writing  to  such  distribution.
Notwithstanding the foregoing provisions of this Section  7.5(g),  the
first sentence of this Section 7.5(g) shall not apply with respect to:
(1)  distributions  that are not subject to the  qualified  joint  and
survivor  annuity requirements of this Section 7.5 and are made  prior
to  March  22, 1999; and  (2) distributions  that are subject  to  the
qualified joint and survivor annuity requirements of this Section  7.5
and  are made prior to October 17, 2000, unless the vested balance  of
the  Participant's  Account  is  less  than  $5,000  (or  $3,500,   as
applicable) at the time of the distribution and at any time  prior  to
the distribution.

7.6  DEATH BENEFIT.

  (a)   Death  While  an Employee.  In the event of  the  death  of  a
Participant  while  in  the  employ of the Employer,  vesting  in  the
Participant's Account shall be 100% if not otherwise 100% vested under
Section  6.1.   The  Account shall constitute the Participant's  death
benefit  to  be  distributed under this Article to  the  Participant's
Beneficiary.

  (b)   Death  After Termination of Employment.  In the event  of  the
death  of  a  former Participant after termination of  employment  but
prior to the complete distribution of his vested Account balance under
the  Trust,  the  undistributed vested balance  of  the  Participant's
Account shall be paid to the Participant's Beneficiary.

7.7  DESIGNATION OF BENEFICIARY.  Each Participant shall file with the
Administrator a designation of Beneficiary to receive payment of death
benefits  payable  hereunder if such Beneficiary  should  survive  the
Participant.   However,  no  married Participant's  designation  of  a
Beneficiary  other than his "eligible spouse" (as defined  in  Section
7.5(c))  shall  be effective unless the Participant's eligible  spouse
has  signed a written consent witnessed by a Plan representative or  a
Notary  Public,  which  consent  provides  for  a  designation  of  an
alternative Beneficiary and the alternate form of distribution.   Such
designation of an alternative Beneficiary or alternative form may  not
be changed unless a new consent is signed by the eligible spouse.

Subject to the above, Beneficiary designations may include primary and
contingent Beneficiaries, and may be revoked or amended at any time in
similar  manner or form, and the most recent designation shall govern.
In  the absence of an effective designation of Beneficiary, or if  the
Beneficiary dies before
complete distribution of the Participant's benefits, all amounts shall
be  paid  to  the surviving spouse of the Participant, if  living,  or
otherwise   equally  to  the  Participant's  then-surviving  children,
whether  by  marriage  or  adopted, and the  surviving  issue  of  any
deceased  children,  per stirpes, or, if none,  to  the  Participant's
estate.  Notification to Participants of the death benefits under  the
Plan and the method of designating a Beneficiary shall be given at the
time  and in the manner provided by regulations and rulings under  the
Code.

7.8   TIME  AND MODE OF DISTRIBUTING DEATH BENEFITS.  The  Beneficiary
shall  be allowed to designate both the time and the mode of receiving
benefits  in  accordance with Section 7.1 unless the  Participant  had
designated  a method or time in writing and indicated that either  was
not  to  be revocable by the Beneficiary.  The Beneficiary's  election
shall be delivered to the Administrator no later than the last day  of
the calendar year following the calendar year in which the Participant
died.   If such election is not made, payments shall commence  at  the
"required time" specified in the next paragraph and shall be paid in a
lump sum, subject to the special rules for surviving spouses.

The  "required  time" for commencement of distribution  of  any  death
benefit hereunder shall be within the period ending on the last day of
the calendar year following the calendar year in which the Participant
died,  or in the case of a surviving spouse, within a reasonable  time
after  the Participant's death or, if the surviving spouse so  elects,
no  later  than  the  last  day  of the calendar  year  in  which  the
Participant  would have attained age 70?.  If a surviving spouse  dies
before distributions begin, this paragraph shall be applied as if  the
surviving spouse were the Participant.
If  payment  commences at the "required time" and if all payments  are
designated  to or for the benefit of one or more natural persons,  the
following distribution modes shall be available:

  (a)  a lump sum; or

  (b)   payments of installments (in a like manner to that in  Section
7.4)  over  a  period  not  to  exceed  the  life  expectancy  of  the
Beneficiary  calculated as of the "required time" in  accordance  with
Table V of Section 1.72-9 of Income Tax Regulations.

To  the extent payments are not designated to or for the benefit of  a
natural person, or if payments commence after the "required time," the
following distribution modes shall be available:

       (1)   a  lump sum payable at any time within five (5) years  of
the Participant's death; or

       (2)   payments of installments at such time and in such  amount
as  determined by the Beneficiary, provided that all amounts  be  paid
from the Trust within five (5) years of the Participant's death.

If  a  Participant dies after payments have commenced, any  survivor's
benefit  must  be paid no less rapidly than the method of  payment  in
effect at the time of the Participant's death.

7.9  QUALIFIED PRE-RETIREMENT SURVIVOR ANNUITY.

Effective January 1, 2005, with respect to distributions commencing on
and  after  April 1, 2005, the provisions of this Section shall  apply
only to a Participant whose Account includes funds transferred from  a
plan  subject to the provisions of Section 401(a)(11) and 417  of  the
Code   and   on  whose  behalf  death  benefits  (including  voluntary
contributions) would amount to at least $5,000.  However, with respect
to  distributions commencing prior to April 1, 2005, the provisions of
this  Section  shall  apply to any Participant on whose  behalf  death
benefits (including voluntary contributions) would amount to at  least
$5,000.

  (a)   If  a  Participant dies before distribution  of  benefits  has
commenced  and  is survived by his "eligible spouse"  (as  defined  in
Section  7.5(c)), one-half of the entire death benefit  payable  under
the  Plan shall be applied to the purchase of an annuity for the  life
of the Participant's surviving spouse.

  (b)   The Participant may elect to waive such survivor annuity death
benefit during the period commencing on the first day of the Plan Year
in  which  the  Participant attains age 35 (or the date he  terminates
employment, if earlier) and ending on the date of his death.  Such  an
election  must  be made in writing and must include the  Participant's
designation  of  a Beneficiary which designation may  not  be  changed
unless  a  new  consent is signed by the "eligible  spouse".   Spousal
consent,  hereunder,  shall not take effect unless  the  Participant's
eligible  spouse  consents in writing to such election  which  consent
acknowledges the effect of such election and is witnessed  by  a  Plan
representative or a Notary Public.

Any  waiver made in accordance with this Section 7.9(b) may be revoked
at  any time prior to the commencement of benefits under the Plan.   A
Participant  is not limited to the number of revocations or  elections
that may be made under this Section 7.9.

In  the event of such an election, any death benefit otherwise subject
to  the  provisions  of  this  Section  7.9,  shall  be  paid  to  the
Participant's  Beneficiary in a manner selected by the Beneficiary  or
Participant, subject to the provisions of Section 7.8.

  (c)   The  Administrator  shall  furnish  each  Participant  with  a
written  explanation of:  (i) the terms and conditions of the survivor
annuity; (ii) the Participant's right to make, and the effect  of,  an
election  to  waive the survivor annuity, and to revoke its  election;
and  (iii)  the right of the Participant's eligible spouse to  prevent
such   an  election  by  withholding  the  necessary  consent.    Such
explanation  shall  be provided to the Participant within  the  period
beginning on the later of the first day of the Plan Year in which  the
Participant attains age 32 and ending on the last day of the Plan Year
preceding  the Plan Year in which the Participant attains age  35,  or
within   a   reasonable   period  after  the   Participant   commences
participation  in  the Plan, or after the Participant  separates  from
Service  if  the Participant has not attained age 35 at  the  time  of
separation from Service.

7.10    IN-SERVICE   WITHDRAWALS.    Notwithstanding   the   foregoing
provisions  of this Article Seven, a Participant who is in the  employ
of the Employer and has attained age 59? may withdraw all or a portion
of  his  vested Account by filing a request with the Administrator  at
least  30  days  before the proposed withdrawal date.   In  no  event,
however,  shall  amounts  attributable to  Employer  contributions  be
withdrawn  unless such amounts have been in the Trust for a period  of
more than two (2) years or, alternatively, the Participant has been  a
Participant in the Plan for five (5) or more years.

A  Participant  may withdraw the portion of his Account  derived  from
rollover  contributions  at  any time by filing  a  request  with  the
Administrator at least 30 days before the proposed withdrawal date.

Withdrawals  made  under  this Section 7.l0 prior  to  April  1,  2005
require  the  consent of the Participant's spouse, if applicable.  The
spouse's  consent must be obtained during the 90-day period ending  on
the  date of the withdrawal, and shall be executed in accordance  with
the requirements of Code Section 417(a)(4).

7.11   INVOLUNTARY CASH-OUTS.  If a Participant terminates  employment
for  any reason and his vested Account balance does not exceed $5,000,
the Administrator may distribute such amount in a lump sum payment  to
the  Participant without the consent of the Participant or his spouse.
This  Section  is applicable only to Plan Years beginning after August
5,  1997 and subject to the date that the Plan first complied or  will
comply with this provision in operation.

7.12  DIRECT ROLLOVER OF ELIGIBLE ROLLOVER DISTRIBUTIONS.

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

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

       (2)  Eligible Retirement Plan:  An eligible retirement plan  is
an  Individual Retirement Account described in Section 408(a)  of  the
Code, an Individual Retirement Annuity described in Section 408(b)  of
the Code, an Annuity Plan described in Section 403(a) of the Code,  or
a  qualified  trust  described in Section 401(a)  of  the  Code,  that
accepts the Distributee's Eligible Rollover Distribution.  However, in
the case of an Eligible Rollover Distribution to the surviving spouse,
an  eligible  retirement plan is an Individual Retirement  Account  or
Individual Retirement Annuity.

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

       (4)  Direct  Rollover:  A direct rollover is a payment  by  the
Plan to the Eligible Retirement Plan specified by the Distributee.
              ARTICLE EIGHT--ADMINISTRATION OF THE PLAN

8.1   PLAN  ADMINISTRATION.   Micronetics,  Inc.  shall  be  the  Plan
Administrator,  hereinbefore and hereinafter called the Administrator,
and named fiduciary of the Plan, unless the Employer, by action of its
Board  of Directors, shall designate a person or committee of  persons
to  be  the Administrator and named fiduciary.  The administration  of
the Plan, as provided herein, including a determination of the payment
of  benefits  to Participants and their Beneficiaries,  shall  be  the
responsibility of the Administrator.  The Administrator shall have the
right  to  construe and interpret the Plan, decide  all  questions  of
eligibility  and determine the amount, manner and time of  payment  of
any distributions under the Plan to the fullest extent provided by law
and  in its sole discretion; and interpretations or decisions made  by
the Administrator will be conclusive and binding on all persons having
an  interest in the Plan.  In the event more than one party shall  act
as Administrator, all actions shall be made by majority decisions.  In
the  administration  of  the Plan, the Administrator  may  (a)  employ
agents  to carry out nonfiduciary responsibilities (other than Trustee
responsibilities), (b) consult with counsel, who may be counsel to the
Employer,   and   (c)   provide  for  the  allocation   of   fiduciary
responsibilities  (other  than  Trustee  responsibilities)  among  its
members.   Actions  dealing with fiduciary responsibilities  shall  be
taken   in  writing  and  the  performance  of  agents,  counsel   and
fiduciaries  to  whom fiduciary responsibilities have  been  delegated
shall be reviewed periodically.

The  expenses  of administering the Plan and the compensation  of  all
employees,  agents,  or  counsel of the Administrator,  including  the
accounting fees, the recordkeeper's fees, and the fees of any  benefit
consulting  firm, shall be paid by the Plan, or shall be paid  by  the
Employer  if the Employer so elects.  No compensation may be  paid  by
the Plan to full-time Employees of the Employer.

The  Administrator shall obtain from the Trustee, not less often  than
annually, a report with respect to the value of the assets held in the
Trust Fund, in such form as is required by the Administrator.

The  Administrator shall administer the Plan and adopt such rules  and
regulations as, in the opinion of the Administrator, are necessary  or
advisable  to  implement and administer the Plan and to  transact  its
business.

8.2   CLAIMS  PROCEDURE.  Pursuant to procedures  established  by  the
Administrator,  adequate notice in writing shall be  provided  to  any
Participant or Beneficiary whose claim for benefits under the Plan has
been  denied  within  90 days of receipt of such claim.   Such  notice
shall  set forth the specific reason for such denial, shall be written
in  a  manner calculated to be understood by the claimant,  and  shall
advise  of  the  right to administrative review.  If  such  review  is
requested  by the claimant or his authorized representative within  90
days  after receipt by the claimant of written notification of  denial
of  his claim, the Administrator shall afford a reasonable opportunity
for  a  full  and  fair review by the Administrator  of  the  decision
denying  the  claim.  The review shall focus on the additional  facts,
legal  interpretations or material, if any, presented by the claimant.
A   hearing  at  its  place  of  business  may  be  scheduled  by  the
Administrator,  but  a  hearing  is  not  required  under  the  review
procedure.
8.3   TRUST  AGREEMENT AND DESIGNATION OF TRUSTEE.  The  Employer  has
created  and  entered  into  a Trust Agreement  with  the  Trustee  as
designated therein.  The Employer may designate any number of persons,
parties, corporate fiduciaries, or any combination thereof to  act  as
Trustees, as the Employer deems appropriate.  The Employer may appoint
an  investment manager or managers to manage (including the  power  to
acquire  and  dispose  of) all or any part of  the  Trust  assets,  as
provided more fully in the Trust Agreement.
             ARTICLE NINE--SPECIAL COMPLIANCE PROVISIONS

9.1  DISTRIBUTION OF EXCESS ELECTIVE DEFERRALS.  If, as the result  of
administrative error, the amount of any elective deferral  made  by  a
Participant exceeds the dollar limitation of Section 4.1(c), then  the
excess  amount, and any income allocable thereto, shall be distributed
to  such  Participant by the April 15 following the calendar  year  in
which  the excess elective deferral is made to the Plan.  All Employer
matching  contributions  which  relate  to  distributions  of   excess
elective deferrals shall be forfeited.

9.2  LIMITATIONS ON 401(k) CONTRIBUTIONS.

  (a)   Average  Actual Deferral Percentage Test.  Amounts contributed
as  elective  deferrals  under  Section  4.1(a)  and  any  "fail-safe"
contributions made under this Section are all considered to be amounts
deferred pursuant to Section 401(k) of the Code.  For purposes of this
Article, these amounts are referred to as the "deferred amounts."

As  of  the last day of each Plan Year, the deferred amounts  for  the
Plan  Year  for the Participants who are Highly Compensated  Employees
shall satisfy either of the following tests:

       (1)   The average actual deferral percentage for the Plan  Year
for  the  eligible  Participants who are Highly Compensated  Employees
shall  not exceed the average actual deferral percentage for the prior
Plan  Year  for  eligible Participants who were Nonhighly  Compensated
Employees multiplied by 1.25; or

       (2)   The average actual deferral percentage for the Plan  Year
for  eligible Participants who are Highly Compensated Employees  shall
not  exceed the average actual deferral percentage for the prior  Plan
Year   for   eligible  Participants  who  were  Nonhighly  Compensated
Employees  multiplied by 2, provided that the average actual  deferral
percentage for the Plan Year for eligible Participants who are  Highly
Compensated  Employees  does not exceed the  average  actual  deferral
percentage for the prior Plan Year for eligible Participants who  were
Nonhighly  Compensated  Employees by  more  than  two  (2)  percentage
points,  or such lesser amount as the Secretary of the Treasury  shall
prescribe  to prevent the multiple use of this alternative  limitation
with respect to any Highly Compensated Employee.

Effective  for the Plan Year ending December 31, 2004 and  all  future
Plan  Years,  as elected by the Employer, the average actual  deferral
percentage  tests in (1) and (2) above shall be applied  by  comparing
the  current  Plan  Year's  average  actual  deferral  percentage  for
Participants  who  are Highly Compensated Employees with  the  current
Plan  Year's  average actual deferral percentage for Participants  who
are  Nonhighly  Compensated Employees.  Once made, this  election  can
only  be  undone  if the Plan meets the requirements for  changing  to
prior year testing as set forth in Internal Revenue Service Notice 98-
1 (or superseding guidance).
A  Participant is a Highly Compensated Employee for a particular  Plan
Year  if  he  meets the definition of 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.

For  purposes  of  the  above tests, the "actual deferral  percentage"
shall  mean  the  ratio (expressed as a percentage)  of  the  deferred
amounts  on  behalf of the "eligible Participants" for the  Plan  Year
bears to the eligible Participants' Compensation.  The "average actual
deferral   percentage"  shall  mean  the  average  (expressed   as   a
percentage)  of  the  actual  deferral  percentages  of  the  eligible
Participants in each group.  "Eligible Participants" shall  mean  each
Employee who is eligible to have elective deferrals contributed to his
Account.

A deferred amount will be taken into account under the actual deferral
percentage  test  for a Plan Year only if it relates  to  Compensation
that  either would have been received by the Participant in  the  Plan
Year  (but  for the deferral election) or is attributable to  services
performed  by  the Participant in the Plan Year and  would  have  been
received by the Participant within 2 ? months after the close  of  the
Plan  Year  (but for the deferral election).  In addition, a  deferred
amount will be taken into account under the actual deferral percentage
test for a Plan Year only if it is allocated to the Participant as  of
a  date within that Plan Year.  For this purpose, a deferred amount is
considered allocated as of a date within a Plan Year if the allocation
is  not  contingent on participation or performance of services  after
such  date  and the deferred amount is actually paid to the  Trust  no
later  than  twelve  (12)  months after the Plan  Year  to  which  the
deferred amount relates.

For  purposes of this Section 9.2, the actual deferral percentage  for
any  eligible Participant who is a Highly Compensated Employee for the
Plan Year and who is eligible to have elective deferrals allocated  to
his  account  under  two  or more plans or arrangements  described  in
Section 401(k) of the Code that are maintained by the Employer  or  an
affiliated employer shall be determined as if all such deferrals  were
made  under  a  single  arrangement.  In  the  event  that  this  Plan
satisfies  the requirements of Section 410(b) or Section 401(a)(4)  of
the Code only if aggregated with one or more other plans, or if one or
more other plans satisfy the requirements of Section 410(b) or Section
401(a)(4)of  the  Code only if aggregated with  this  Plan,  then  the
provisions  of  this Section 9.2 shall be applied by  determining  the
actual  deferral percentage of eligible Participants as  if  all  such
plans were a single plan.

The  determination and treatment of elective deferrals and the  actual
deferral  percentage  of  any Participant  shall  be  subject  to  the
prescribed requirements of the Secretary of the Treasury.

In  the event the rate of deferrals made by eligible Participants  who
are  Highly  Compensated Employees is in excess of the  deferral  rate
allowed  under  this Section 9.2(a) or the contribution  rate  allowed
under  Section 9.3(a), and the Employer has elected to use the current
year  testing method pursuant to this Section 9.2(a), the Employer  in
its  discretion  may make a "qualified nonelective  contribution"  for
Participants who are Nonhighly Compensated Employees who are  eligible
to  have elective deferrals contributed to their Accounts and who have
been credited with 1,000 Hours of Service in the Plan Year
and who are employed on the last day of the Plan Year, to be allocated
among their Accounts in proportion to their Compensation for the  Plan
Year,  as  a uniform percentage of Compensation as determined  by  the
Board  of  Directors, as a fixed dollar amount as  determined  by  the
Board  of  Directors,  or  in  any other nondiscriminatory  manner  as
determined  by  the  Board  of Directors.   A  "qualified  nonelective
contribution" is a contribution (other than a matching contribution or
a  qualified matching contribution) made by the Employer and allocated
to  Participants'  accounts that the Participants  may  not  elect  to
receive   in   cash  until  distributed  from  the  Plan;   that   are
nonforfeitable  when  made;  and  that  are  distributable   only   in
accordance  with  the distribution provisions that are  applicable  to
elective   deferrals   and  qualified  matching  contributions.    The
provisions  of Regulation Section 1.401(k) - 1(b)(5) are  incorporated
herein by reference.

The  provisions of Section 401(k)(3)(A) of the Code, as amended by the
Small Business Job Protection Act of 1996, are incorporated herein  by
reference.

The  provisions  of  Section  9.2(a)  are  effective  for  Plan  Years
beginning after December 31, 1996.

  (b)  Distributions of Excess Contributions.

       (1)   In  General.   If the average actual deferral  percentage
test  of  Section 9.2(a) is not satisfied for a Plan  Year,  then  the
"excess   contributions"  and  income  allocable  thereto   shall   be
distributed  to  the  extent allowable under Treasury  regulations  no
later  than the last day of the Plan Year following the Plan Year  for
which  the  excess contributions were made.  However, if  such  excess
contributions are distributed later than 2? months following the  last
day  of the Plan Year in which such excess contributions were made,  a
10% excise tax will be imposed upon the Employer with respect to these
excess  contributions.   Excess contributions are  reduced  by  excess
deferrals  previously distributed pursuant to Section  402(g)  of  the
Code.

       (2)   Excess  Contributions.   For  purposes  of  this  Section
9.2(b),  "excess contributions" shall mean, with respect to  any  Plan
Year,  the  excess  of  the aggregate amount of  Participant  deferred
amounts under Section 4.1 actually taken into account in computing the
actual  deferral percentage of Highly Compensated Employees  for  such
Plan  Year over the maximum amount of all such contributions permitted
under   the   test  under  Section  9.2(a)  (determined  by   reducing
contributions made on behalf of Highly Compensated Employees in  order
of the actual deferral percentages, beginning with the highest of such
percentages).   Excess  contributions  are  allocated  to  the  Highly
Compensated   Employees   with  the  largest   amounts   of   employer
contributions  taken into account in calculating  the  average  actual
deferral  percentage  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 the excess contributions have been allocated.  For purposes
of  the  preceding sentence, the "largest amount" is determined  after
distribution  of  any  excess contributions.   The  amount  of  excess
contributions  to be distributed shall be reduced by  excess  elective
deferrals  previously distributed for the taxable year ending  in  the
same  Plan Year and excess elective deferrals to be distributed for  a
taxable  year  shall  be  reduced by excess  contributions  previously
distributed for the Plan Year beginning in such taxable year.
The  provisions  of  Section 9.2(b)(2) are effective  for  Plan  Years
beginning after December 31, 1996.

       (3)   Determination of Income.  The income allocable to  excess
contributions shall be determined by multiplying the income  allocable
to  the  Participant's  "deferred" amounts for  the  Plan  Year  by  a
fraction, the numerator of which is the excess contributions  made  on
behalf  of  the  Participant  for the preceding  Plan  Year,  and  the
denominator of which is the sum of the Participant's Account  balances
attributable to Participant's deferred amounts on the last day of  the
preceding Plan Year.  Income allocable to the period between the  last
day  of the preceding Plan Year and the date of distribution shall  be
disregarded in determining income.

       (4)   Maximum  Distributable Amount.  The excess  contributions
to  be distributed to a Participant shall be adjusted for income  and,
if  there is a loss allocable to the excess contribution, shall in  no
event  be less than the lesser of the Participant's Account under  the
Plan  or  the  Participant's elective deferrals  for  the  Plan  Year.
Excess  contributions shall be distributed from that  portion  of  the
Participant's  Account attributable to Participant elective  deferrals
to the extent allowable under Treasury regulations.

       (5)   Distribution  of  Employer Matching  Contributions.   All
Employer  matching  contributions which  relate  to  distributions  of
excess contributions shall be forfeited.

9.3  NONDISCRIMINATION TEST FOR EMPLOYER MATCHING CONTRIBUTIONS.

  (a)   Average Contribution Percentage Test.  The provisions of  this
Section 9.3 shall apply if Employer matching contributions are made in
any Plan Year under Section 4.2(b) and such matching contributions are
not  used  to satisfy the average actual deferral percentage  test  of
Section 9.2.

As  of  the  last  day  of  each Plan Year, the  average  contribution
percentage  for Highly Compensated Employees for the Plan  Year  shall
satisfy either of the following tests:

       (1)   The average contribution percentage for the Plan Year for
eligible  Participants who are Highly Compensated Employees shall  not
exceed the average contribution percentage for the prior Plan Year for
eligible Participants who were Nonhighly Compensated Employees for the
prior Plan Year multiplied by 1.25; or

       (2)   The average contribution percentage for the Plan Year for
eligible  Participants who are Highly Compensated Employees shall  not
exceed the average contribution percentage for the prior Plan Year for
eligible Participants who were Nonhighly Compensated Employees for the
prior   Plan   Year  multiplied  by  2,  provided  that  the   average
contribution  percentage for the Plan Year for  eligible  Participants
who  are  Highly  Compensated Employees does not  exceed  the  average
contribution   percentage  for  the  prior  Plan  Year  for   eligible
Participants who were Nonhighly Compensated Employees by more than two
(2)  percentage points or such lesser amount as the Secretary  of  the
Treasury  shall  prescribe  to  prevent  the  multiple  use  of   this
alternative   limitation  with  respect  to  any  Highly   Compensated
Employee.
For purposes of the above tests, the "average contribution percentage"
shall mean the average (expressed as a percentage) of the contribution
percentages   of  the  "eligible  participants"  in  a   group.    The
"contribution  percentage"  shall  mean  the  ratio  (expressed  as  a
percentage) that any Employer matching contributions under the Plan on
behalf  of  the eligible Participant for the Plan Year  bears  to  the
eligible  Participant's  Compensation for the  Plan  Year.   "Eligible
Participants" shall mean each Employee who is eligible to  receive  an
allocation of Employer matching contributions.

Effective  for the Plan Year ending December 31, 2004 and  all  future
Plan  Years,  as  elected  by the Employer, the  average  contribution
percentage  tests in (1) and (2) above shall be applied  by  comparing
the   current   Plan  Year's  average  contribution   percentage   for
Participants  who  are Highly Compensated Employees with  the  current
Plan  Year's average contribution percentage for Participants who  are
Nonhighly Compensated Employees.  Once made, this election can only be
undone  if the Plan meets the requirements for changing to prior  year
testing  as  set  forth in Internal Revenue Service  Notice  98-1  (or
superseding guidance).

A  Participant is a Highly Compensated Employee for a particular  Plan
Year  if  he  meets the definition of 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.

For  purposes of this Section 9.3, the contribution percentage for any
eligible Participant who is a Highly Compensated Employee for the Plan
Year  and  who is eligible to receive Employer matching contributions,
or elective deferrals allocated to his account under two or more plans
described  in  Section  401(a)  of  the  Code  or  under  arrangements
described  in  Section 401(k) of the Code that are maintained  by  the
Employer or an affiliated employer, shall be determined as if all such
contributions and elective deferrals were made under a single plan.

In  the  event  that this Plan satisfies the requirements  of  Section
410(b) or Section 401(a)(4) of the Code only if aggregated with one or
more  other  plans,  or  if  one  or  more  other  plans  satisfy  the
requirements of Section 410(b) or Section 401(a)(4) of the  Code  only
if  aggregated with this Plan, then the provisions of this Section 9.3
shall  be  applied  by  determining the  contribution  percentages  of
eligible Participants as if all such plans were a single plan.

The  determination and treatment of the contribution percentage of any
Participant shall satisfy such other requirements as may be prescribed
by the Secretary of the Treasury.

In  the  event the rate of contributions made by eligible Participants
who  are Highly Compensated Employees is in excess of the contribution
rate  allowed  under this Section 9.3(a) or the deferral rate  allowed
under  Section 9.2(a), and the Employer has elected to use the current
year  testing method pursuant to this Section 9.3(a), the Employer  in
its  discretion  may make a special "qualified matching  contribution"
contribution for Participants who are Nonhighly Compensated  Employees
who  are  eligible to receive Employer matching contributions and  who
have been credited with 1,000 Hours of Service
in  the  Plan  Year and who are employed on the last day of  the  Plan
Year,  to  be  allocated among their Accounts in proportion  to  their
Compensation   for  the  Plan  Year,  as  a  uniform   percentage   of
Compensation  as  determined by the Board of  Directors,  as  a  fixed
dollar amount as determined by the Board of Directors, or in any other
nondiscriminatory manner as determined by the Board of  Directors.   A
"qualified matching contribution" is a matching contribution which  is
subject  to the distribution and nonforfeitability requirements  under
Section  401(k) of the Code when made.  The provisions  of  Regulation
Sections 1.401(k)-1(b)(5), 1.401(k)-1(g)(13) and 1.401(m)-1(b)(5)  are
incorporated herein by reference.

The  provisions of Section 401(m)(2)(A) of the Code, as amended by the
Small Business Job Protection Act of 1996, are incorporated herein  by
reference.

The  provisions  of  Section  9.3(a)  are  effective  for  Plan  Years
beginning after December 31, 1996.

  (b)  Distribution of Excess Employer Matching Contributions.

       (1)   In  General.  If the nondiscrimination tests  of  Section
9.3(a)   are  not  satisfied  for  a  Plan  Year,  then  the   "excess
contributions" and any income allocable thereto shall be forfeited, if
otherwise  forfeitable, no later than the last day of  the  Plan  Year
following the Plan Year for which said nondiscrimination tests are not
satisfied,  and  shall be used to reduce Employer contributions  under
Section  4.2(a).   To the extent that such "excess contributions"  are
nonforfeitable, such excess contributions shall be distributed to  the
Participant  on  whose behalf the excess contributions  were  made  no
later  than the last day of the Plan Year following the Plan Year  for
which  such "excess contributions" are made.  However, if such  excess
contributions are distributed later than 2? months following the  last
day  of the Plan Year in which such excess contributions were made,  a
10% excise tax will be imposed upon the Employer with respect to those
excess contributions.

       (2)   Excess  Contributions.   For  purposes  of  this  Section
9.3(b),  "excess contributions" shall mean, with respect to  any  Plan
Year,  the  excess  of  the  aggregate  amount  of  Employer  matching
contributions  and,  if  applicable, elective deferrals  and  Employer
contributions  attributable  to elective deferrals  actually  made  on
behalf  of  Highly Compensated Employees for such Plan Year  over  the
maximum   amount  of  all  such  contributions  permitted  under   the
nondiscrimination tests under Section 9.3(a) (determined  by  reducing
contributions made on behalf of Highly Compensated Employees in  order
of  their contribution percentages, beginning with the highest of such
percentages).   Excess  contributions  are  allocated  to  the  Highly
Compensated   Employees   with  the  largest   amounts   of   employer
contributions   taken   into  account  in  calculating   the   average
contribution  percentage 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 the excess contributions have been allocated.  For purposes
of  the  preceding sentence, the "largest amount" is determined  after
distribution of any excess contributions.

The  provisions  of  Section 9.3(b)(2) are effective  for  Plan  Years
beginning after December 31, 1996.
       (3)   Determination of Income.  The income allocable to  excess
contributions shall be determined by multiplying the income  allocable
to  the  Employer  matching  contributions for  the  Plan  Year  by  a
fraction, the numerator of which is the excess contributions on behalf
of  the Participant for the Plan Year, and the denominator of which is
the sum of the Participant's Account balances attributable to Employer
matching  contributions on the last day of the  preceding  Plan  Year.
Income  allocable to the period between the last day of the  preceding
Plan  Year  and  the  date  of distribution shall  be  disregarded  in
determining income.

9.4   LIMITATION  ON THE MULTIPLE USE ALTERNATIVE.   The  sum  of  the
average  actual  deferral percentage of Highly  Compensated  Employees
under Section 9.2(a) and the average contribution percentage of Highly
Compensated  Employees  under  Section 9.3(a)  shall  not  exceed  the
following:

  (a)    125%  of  the  average  actual  deferral  percentage  of  the
Nonhighly  Compensated Employees under Section 9.2(a) or  the  average
contribution  percentage of the Nonhighly Compensated Employees  under
Section 9.3(a), whichever is greater; and

  (b)   two  (2)  percentage  points  more  than  the  average  actual
deferral  percentage  of  the  Nonhighly Compensated  Employees  under
Section 9.2(a) or the average contribution percentage of the Nonhighly
Compensated Employees under Section 9.3(a), whichever is smaller,  and
in no event more than two (2) times such lesser amount.

  (c)   If  the  limits  set  forth herein are exceeded,  the  average
contribution percentage of the Highly Compensated Employees  shall  be
reduced  in  accordance  with  the provisions  of  Section  9.3(b)  by
forfeiting  "excess  contributions", if forfeitable,  or  distributing
"excess  contributions", if nonforfeitable, as set  forth  in  Section
9.3(b).   In lieu of reducing the average contribution percentage,  in
accordance  with  Section  9.3(b), the Administrator  may  reduce  the
average actual deferral percentage of the Highly Compensated Employees
in  accordance  with the provisions of Section 9.2(b) by  distributing
"excess contributions" as set forth in Section 9.2(b).  The reductions
under  this  Section  shall be made only to the  extent  necessary  to
comply  with  the restrictions on the multiple use set forth  in  Code
Section 401(m)(9).
             ARTICLE TEN--LIMITATIONS ON ANNUAL ADDITIONS
                      TO A PARTICIPANT'S ACCOUNT

10.1  RULES AND DEFINITIONS.

  (a)   Rules.   The following rules limit additions to  Participants'
Accounts:

       (1)   If  the Participant does not participate, and  has  never
participated,  in another qualified plan maintained by  the  Employer,
the   amount  of  annual  additions  which  may  be  credited  to  the
Participant's  Account for any limitation year  will  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 allocated to the Participant's Account would  cause  the
annual  additions  for  the  limitation year  to  exceed  the  maximum
permissible amount, the amount allocated will be reduced so  that  the
annual  additions  for  the limitation year  will  equal  the  maximum
permissible amount.

       (2)     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.

       (3)   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.

       (4)   If,  as  a  result of the allocation  of  forfeitures,  a
reasonable  error  in  estimating  a  Participant's  Compensation,   a
reasonable  error  in  determining the amount  of  elective  deferrals
(within  the meaning of Code Section 402(g)(3)) that may be made  with
respect to any Participant, or other facts and circumstances to  which
Regulation  Section  1.415-6(b)(6) shall be applicable,  there  is  an
excess amount, the excess will be disposed of as follows:

                 (A)   Any  elective  deferral contributions,  to  the
extent  they would reduce the excess amount, will be returned  to  the
Participant.

                 (B)   If  an  excess  amount still exists  after  the
application of subparagraph (A) and the Participant is covered by  the
Plan  at  the  end of the limitation year, the excess  amount  in  the
Participant's  Account  will be used to reduce Employer  contributions
(including any allocation of forfeitures) for such Participant in  the
next   limitation  year,  and  each  succeeding  limitation  year   if
necessary.
                 (C)   If  an  excess  amount still exists  after  the
application of subparagraphs (A) and (B), 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
(including   allocation  of  any  forfeitures)   for   all   remaining
Participants  in  the  next  limitation  year,  and  each   succeeding
limitation year if necessary.

                 (D)   If  a suspense account is in existence  at  any
time during the limitation year pursuant to this Section, it will  not
participate  in  the  allocation of the Trust's investment  gains  and
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 Participants' Accounts  before  any
Employer  or  any Employee contributions may be made to the  Plan  for
that  limitation  year.   Excess amounts may  not  be  distributed  to
Participants or former Participants.

                 (E)   If,  in  addition to this Plan, the Participant
is  covered under another defined contribution plan maintained by  the
Employer during any limitation year, the annual additions which may be
credited  to  a  Participant's Account under all Plans  for  any  such
limitation  year  will  not  exceed the  maximum  permissible  amount.
Benefits  will be reduced under any defined contribution discretionary
contribution   plan  before  they  are  reduced  under   any   defined
contribution   pension   plan.   If  both  plans   are   discretionary
contribution plans they shall first be reduced under this  Plan.   Any
excess  amount attributable to this Plan will be disposed  of  in  the
manner described in Section 10.1(a)(4).

                 (F)   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 annual additions which may be  credited  to
the Participant's Account under this Plan for any limitation year will
be  limited  so that if the limitations of Code Section 415(e)  become
applicable that benefits under a defined benefit plan shall have first
been  provided before benefits under a defined contribution  plan  are
provided.   The  provisions of this Section  10.1(a)(4)(F)  shall  not
apply to limitation years commencing on or after January 1, 2000.

                 (G)   In  any Plan Year in which the Plan  becomes  a
Super Top-Heavy Plan  as defined in Section 12.2, the denominators  of
the  defined benefit fraction and defined contribution fraction  shall
be  computed  using 100% of the maximum dollar limitation  instead  of
125%.

In any year in which the Plan is a Top-Heavy Plan (but not a Super Top-
Heavy  Plan), the limitations shall be similarly reduced,  subject  to
the  special provisions of Section 12.3, which provide for the use  of
the 125% limitation subject to the added minimum allocations.

            (5)   Notwithstanding anything contained in  this  Article
Ten   to  the  contrary,  a  Participant's  defined  benefit  fraction
(including  preservation  of  his  accrued  benefit)  and/or   defined
contribution  fraction may be adjusted in accordance with transitional
rules   contained  in  Section  235  of  the  Tax  Equity  and  Fiscal
Responsibility Act of 1982 and Section 1106 of the Tax Reform  Act  of
1986.
     (b)  Definitions.

       (1)   Annual  additions:  The following amounts credited  to  a
Participant's  Account for the limitation year are treated  as  annual
additions to a defined contribution plan.

            (A)  Employer contributions; and

            (B)  Employee contributions; and

            (C)  Forfeitures; and

            (D)   Amounts allocated to an individual medical  account,
as  defined  in  Section 415(l)(2) of the Code, which  is  part  of  a
pension  or  annuity plan maintained by the Employer.   Also,  amounts
derived  from  contributions paid or accrued in taxable  years  ending
after  such  date  which  are attributable to post-retirement  medical
benefits  allocated  to the separate account of  a  Key  Employee,  as
defined  in  Section 419A(d)(3), and amounts under a  welfare  benefit
fund,  as  defined in Section 419(e), maintained by the Employer,  are
treated as annual additions to a defined contribution plan.

For  this  purpose, any excess amount applied under Section 10.1(a)(4)
in  the  limitation  year  to reduce Employer  contributions  will  be
considered annual additions for such limitation year.

     (2)  Compensation:  For purposes of determining maximum permitted
benefits  under  this Section, Compensation shall  include  all  of  a
Participant's   earned   income,  wages,  salaries,   and   fees   for
professional  services,  and  other  amounts  received  for   personal
services  actually  rendered  in the course  of  employment  with  the
Employer  maintaining  the  Plan,  including,  but  not  limited   to,
commissions paid to salesmen, compensation for services on  the  basis
of  a  percentage of profits, commissions on insurance premiums,  tips
and bonuses, and excluding the following:

            (A)    Employer  contributions  to  a  plan  of   deferred
compensation which are not included in the Employee's gross income for
the taxable year in which contributed, or Employer contributions under
a  simplified employee pension plan (funded with individual retirement
accounts or annuities) to the extent such contributions are deductible
by  the  Employee,  or  any  distributions from  a  plan  of  deferred
compensation;

            (B)   Amounts realized from the exercise of a nonqualified
stock  option,  or  when restricted stock (or property)  held  by  the
Employee either becomes freely transferable or is no longer subject to
a substantial risk of forfeiture;

            (C)   Amounts realized from the sale, exchange,  or  other
disposition of stock acquired under a qualified stock option; and
            (D)   Other  amounts which received special tax  benefits,
or  contributions made by the Employer (whether or not under a  salary
reduction  agreement) toward the purchase of an annuity  described  in
Section  403(b) of the Code (whether or not the amounts  are  actually
excludable from the gross income of the Employee).

Compensation  shall be measured on the basis of compensation  paid  in
the limitation year.

For  purposes  of  applying  the  limitations  of  this  Article  Ten,
compensation paid or made available during such limitation year  shall
include  any elective deferral (as defined in Code Section 402(g)(3)),
and any amount which is contributed or deferred by the Employer at the
election  of  the Employee and which is not includible  in  the  gross
income  of the Employee by reason of Code Section 125, 457,  and,  for
Limitation  Years  beginning on or after January 1,  2001,  132(f)(4).
The  provisions  of  this  paragraph  are  effective  for  Plan  Years
beginning after December 31, 1997.

     (3)   Defined benefit fraction:  This shall mean a fraction,  the
numerator  of  which is the sum of the Participant's projected  annual
benefits  under all the defined benefit plans maintained or previously
maintained by the Employer, and the denominator of which is the lesser
of  125%  of  the dollar limitation in effect for the limitation  year
under Section 415(b)(1)(A) of the Code or 140% of the amount which may
be taken into account under Code Section 415(b)(1)(B).  In determining
the  Participant's defined benefit fraction hereunder,  a  Participant
with  a  benefit  accrued  under  a defined  benefit  plan  previously
maintained  by  the Employer shall have his years of participation  in
this  Plan aggregated with years of participation in a defined benefit
plan.

     (4)   Defined contribution fraction:  This shall mean 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  additions
attributable to the Participant's nondeductible Employee contributions
to  this  and  all  other qualified plans, whether or not  terminated,
maintained by the Employer), and the denominator of which is  the  sum
of  the  maximum  aggregate  amounts for the  current  and  all  prior
limitation  years 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
125%   of   the  dollar  limitation  then  in  effect  under   Section
415(c)(1)(A) of the Code or 35% of the Participant's Compensation  for
such year.

     (5)  Defined contribution dollar limitation:  Notwithstanding any
other  provisions of the Plan, contributions and other additions  with
respect to a participant exceed the limitation of Code Section  415(c)
if,  when expressed as an Annual Addition (within the meaning of  Code
Section  415(c)(2)) to the Participant's Account, such Annual Addition
is greater than the lesser of:

            (A)  $30,000, as adjusted under Code Section 415(d); or

            (B)   25  percent  of the Participant's  compensation  (as
defined in Code Section 415(c)(3)).
The provisions of this Section 10.1(b)(5) are effective for Plan Years
beginning after December 31, 1994.

     (6)  Employer:  This term refers to the Employer that adopts this
Plan,  and  all  members  of a controlled group  of  corporations  (as
defined in Section 414(b) of the Code, as modified by Section 415(h)),
commonly-controlled trades or businesses (as defined in Section 414(c)
as  modified  by  Section 415(h)), or affiliated  service  groups  (as
defined in Section 414(m)) of which the adopting employer is a part.

     (7)   Highest  average  compensation:   This  means  the  average
Compensation  for  the  three consecutive limitation  years  with  the
Employer that produces the highest average.

     (8)  Limitation year:  The Plan Year shall be the 12-consecutive-
month  period  used to measure Compensation in this Plan  for  benefit
purposes.

     (9)   Maximum permissible amount:  This amount is the  lesser  of
the defined contribution dollar limitation or 25% of the Participant's
Compensation for the limitation year.  If a short limitation  year  is
created  because  of an amendment changing the limitation  year  to  a
different 12-consecutive-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

     (10)   Projected  annual benefit:  This is 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:

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

            (B)    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.
              ARTICLE ELEVEN--AMENDMENT AND TERMINATION

11.1   AMENDMENT.  The Employer shall have the right to amend,  alter,
or  modify the Plan at any time, or from time to time, in whole or  in
part.  Any such amendment shall become effective under its terms  upon
adoption  by the Employer.  The amendment shall be adopted  by  formal
action  of  the Employer's Board of Directors.  However, no  amendment
affecting the duties, powers or responsibilities of the Trustee may be
made  without the written consent of the Trustee.  No amendment  shall
be made to the Plan which shall:

   (a)   make it possible (other than as provided in Section 14.3) for
any  part  of the corpus or income of the Trust Fund (other than  such
part  as may be required to pay taxes and administrative expenses)  to
be  used  for or diverted to purposes other than the exclusive benefit
of the Participants or their beneficiaries; or

   (b)   alter  the  schedule for vesting in a  Participant's  Account
with  respect  to  any Participant with three (3)  or  more  Years  of
Service  without  his  consent  or  deprive  any  Participant  of  any
nonforfeitable portion of his Account.

Notwithstanding  the  other provisions of this Section  or  any  other
provisions of the Plan, any amendment or modification of the Plan  may
be  made retroactively if necessary or appropriate to conform to or to
satisfy the conditions of any law, governmental regulation, or ruling,
and  to  meet  the  requirements  of the  Employee  Retirement  Income
Security Act of 1974, as it may be amended.

11.2  TERMINATION OF THE PLAN.  The Employer reserves the right at any
time and in its sole discretion to discontinue payments under the Plan
and  to  terminate the Plan.  In the event the Plan is terminated,  or
upon  complete discontinuance of contributions under the Plan  by  the
Employer,  or in the event of a partial termination of the  Plan,  the
rights  of  each  Participant  to his Account  on  the  date  of  such
termination or discontinuance of contributions, to the extent  of  the
fair market value under the Trust Fund, shall become fully vested  and
nonforfeitable.  The Employer shall direct the Trustee  to  distribute
the  Trust  Fund in accordance with the Plan's distribution provisions
to  the  Participants  and their Beneficiaries,  each  Participant  or
Beneficiary receiving a portion of the Trust Fund equal to  the  value
of  his  Account as of the date of distribution.  These  distributions
may   be  implemented  by  the  continuance  of  the  Trust  and   the
distribution of the Participants' Account shall be made in  such  time
and such manner as though the Plan had not terminated, or by any other
appropriate  method,  including rollover  into  Individual  Retirement
Accounts.  Upon distribution of the Trust Fund, the Trustee  shall  be
discharged from all obligations under the Trust and no Participant  or
Beneficiary  shall  have  any further right or  claim  therein.  If  a
partial  termination  of  the Plan is deemed to  have  occurred,  this
Section  shall  apply  only  to those Participants  affected  by  such
partial termination.
                 ARTICLE TWELVE--TOP-HEAVY PROVISIONS

12.1   APPLICABILITY.   The provisions of this  Article  shall  become
applicable  only for any Plan Year in which the Plan  is  a  Top-Heavy
Plan.  The determination of whether the Plan is a Top-Heavy Plan shall
be made each Plan Year by the Administrator.

12.2   DEFINITIONS.   For  purposes of  this  Article,  the  following
definitions shall apply:

   (a)   "Key  Employee"  shall mean any Employee or  former  Employee
(and  the Beneficiaries of such Employee) who, at any time during  the
determination  period,  was (i) an officer  of  the  Employer  earning
Compensation  greater than 50% of the dollar limitation under  Section
415(b)(1)(A) of the Code, (ii) an owner (or considered an owner  under
Section  318  of the Code) of both more than a one-half  percent  (?%)
interest in the Employer and one of the ten largest interests  in  the
Employer   if  such  individual's  Compensation  exceeds  the   dollar
limitation under Section 415(c)(1)(A) of the Code, (iii) a 5% owner of
the  Employer,  or (iv) a 1% owner of the Employer who has  an  annual
Compensation of more than $150,000.  The determination period  of  the
Plan is the Plan Year containing the determination date as defined  in
Section   12.2(c)(4)  and  the  four  preceding   Plan   Years.    The
determination of who is a Key Employee (including the terms "5% owner"
and  "1% owner") will be made in accordance with Section 416(i)(1)  of
the  Code  and  the regulations thereunder.  "Non-Key Employee"  shall
mean  any  Employee or Beneficiary of such Employee or former Employee
or  Beneficiary of such former Employee who is not or was  not  a  Key
Employee  during the Plan Year ending on the determination  date,  nor
during the four preceding Plan Years.

   (b)   "Super Top-Heavy Plan" shall mean a plan which meets the test
for  status as a Top-Heavy Plan, where "90%" is substituted for  "60%"
at each place in Section 12.2(c).

   (c)   "Top-Heavy Plan" shall mean a plan where any of the following
conditions exist:

     (1)  Top-Heavy status defined:

       (A)   The  Plan is a Top-Heavy Plan if the top-heavy ratio  for
the  Plan  exceeds  60%  and  the Plan is not  part  of  any  required
aggregation group or permissive aggregation group of plans; or

       (B)   The Plan is a Top-Heavy Plan if the Plan is a part  of  a
required  aggregation group of plans (but is not part of a  permissive
aggregation  group)  and the top-heavy ratio for the  group  of  plans
exceeds 60%; or

       (C)   The Plan is a Top-Heavy Plan if the Plan is a part  of  a
required   aggregation  group  of  plans  and  part  of  a  permissive
aggregation   group  and  the  top-heavy  ratio  for  the   permissive
aggregation group exceeds 60%.
     (2)   If  the Employer maintains one or more defined contribution
plans  (including  any simplified employee pension  plan  funded  with
individual   retirement  accounts  or  annuities)  and  the   Employer
maintains  or has maintained one or more defined benefit  plans  which
have  covered or could cover a Participant in this Plan, the top-heavy
ratio  is  a  fraction, the numerator of which is the sum  of  account
balances  under the defined contribution plans for all  Key  Employees
and  the  actuarial equivalents of accrued benefits under the  defined
benefit  plans for all Key Employees, and the denominator of which  is
the  sum of the account balances under the defined contribution  plans
for all Participants and the actuarial equivalents of accrued benefits
under  the  defined  benefit  plans for all  Participants.   Both  the
numerator  and  denominator of the top-heavy ratio shall  include  any
distribution of an account balance or an accrued benefit made  in  the
five-year period ending on the determination date and any contribution
due  to  a  defined  contribution pension plan but unpaid  as  of  the
determination date.  In determining the accrued benefit of  a  Non-Key
Employee  who  is participating in a plan that is part of  a  required
aggregation  group, the method of determining such  benefit  shall  be
either  (a)  in  accordance with the method, if  any,  that  uniformly
applies  for  accrual  purposes under  all  plans  maintained  by  the
Employer  or any related employer under Code Section 414,  or  (b)  if
there  is no such method, as if such benefit accrued not more  rapidly
than  the slowest accrual rate permitted under the fractional  accrual
rate of Code Section 411(b)(1)(C).

     (3)   For  purposes  of (1) and (2) above, the value  of  Account
balances  and  the actuarial equivalents of accrued benefits  will  be
determined as of the most recent Valuation Date that falls  within  or
ends  with the 12-month period ending on the determination date.   The
Account  balances and accrued benefits of a Participant who is  not  a
Key  Employee  but  who was a Key Employee in a  prior  year  will  be
disregarded.    The   accrued  benefits  and   Account   balances   of
Participants who have performed no Hours of Service with any  Employer
maintaining  the  Plan  for  the  five-year  period  ending   on   the
determination date will be disregarded.  The calculations of the  top-
heavy  ratio,  and the extent to which distributions,  rollovers,  and
transfers are taken into account will be made under Section 416 of the
Code   and   regulations  issued  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 to the
determination dates that fall within the same calendar year.

     (4)  Definition of terms for Top-Heavy status:

       (A)  "Top-heavy ratio" shall mean the following:

            (1)   If  the  Employer  maintains  one  or  more  defined
contribution  plans  (including any simplified employee  pension  plan
funded  with  individual retirement accounts  or  annuities)  and  the
Employer  has  never maintained any defined benefit plans  which  have
covered or could cover a Participant in this Plan, the top-heavy ratio
is  a  fraction,  the  numerator of which is the sum  of  the  Account
balances  of all Key Employees as of the determination date (including
any  part  of any Account balance distributed in the five-year  period
ending on the determination date), and the denominator of
which  is the sum of the Account balances (including any part  of  any
Account  balance  distributed in the five-year period  ending  on  the
determination date) of all Participants as of the determination  date.
Both  the  numerator  and the denominator shall be  increased  by  any
contributions due but unpaid to a defined contribution pension plan as
of the determination date.

            (2)   If  the  Employer  maintains  one  or  more  defined
contribution  plans  (including any simplified employee  pension  plan
funded  with  individual retirement accounts  or  annuities)  and  the
Employer maintains or has maintained one or more defined benefit plans
which have covered or could cover a Participant in this Plan, the top-
heavy  ratio  is  a fraction, the numerator of which  is  the  sum  of
account  balances  under the defined contribution plans  for  all  Key
Employees  and the actuarial equivalent of accrued benefits under  the
defined  benefit plans for all Key Employees, and the  denominator  of
which   is  the  sum  of  the  account  balances  under  the   defined
contribution  plans for all Participants and the actuarial  equivalent
of   accrued  benefits  under  the  defined  benefit  plans  for   all
Participants.   Both the numerator and denominator  of  the  top-heavy
ratio  shall  include  any distribution of an account  balance  or  an
accrued   benefit  made  in  the  five-year  period  ending   on   the
determination date and any contribution due but unpaid  to  a  defined
contribution pension plan as of the determination date.

            (3)   For  purposes  of (1) and (2) above,  the  value  of
Account balances and the actuarial equivalent of accrued benefits will
be  determined as of the most recent valuation date that falls  within
or  ends  with  the 12-month period ending on the determination  date.
The  accrued  benefits and Account balances of participants  who  have
performed  no services for any employer maintaining the Plan  for  the
five-year period ending on the determination date will be disregarded.
The  calculations  of  the top-heavy ratio, and the  extent  to  which
distributions, rollovers, and transfers are taken into account will be
made  under Section 416 of the Code and regulations issued 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 to the determination dates that fall within  the  same
calendar year.

       (B)   "Permissive  aggregation group" shall mean  the  required
aggregation  group  of  plans plus any other  plan  or  plans  of  the
Employer   which,  when  considered  as  a  group  with  the  required
aggregation  group,  would  continue to satisfy  the  requirements  of
Sections 401(a)(4) and 410 of the Code.

       (C)    "Required  aggregation  group"  shall  mean   (1)   each
qualified  plan  of  the Employer (including any terminated  plan)  in
which  at  least  one Key Employee participates,  and  (2)  any  other
qualified plan of the Employer which enables a plan described  in  (1)
to meet the requirements of Sections 401(a)(4) or 410 of the Code.

       (D)   "Determination  date"  shall  mean,  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, "determination date" shall
mean the last day of that Plan Year.
       (E)   "Valuation  Date" shall mean the last  day  of  the  Plan
Year.

       (F)   Actuarial equivalence shall be based on the interest  and
mortality  rates  utilized  to determine  actuarial  equivalence  when
benefits  are  paid from any defined benefit plan.  If  no  rates  are
specified  in  said plan, the following shall be utilized:   pre-  and
post-retirement interest -- 5%; post-retirement mortality based on the
Unisex  Pension  (1984) Table as used by the Pension Benefit  Guaranty
Corporation on the date of execution hereof.

12.3  ALLOCATION OF EMPLOYER CONTRIBUTIONS FOR A TOP-HEAVY PLAN YEAR.

   (a)   Except as otherwise provided below, in any Plan Year when the
Plan  is  a  Top-Heavy  Plan the Employer contributions  allocated  on
behalf of any Participant who is a Non-Key Employee shall not be  less
than the lesser of 3% of such Participant's Compensation as defined in
Section 10.1(b)(2) or the largest percentage of Employer contributions
(including  elective deferrals under Section 4.1) as a  percentage  of
the  first $150,000 (or such amount as prescribed by the Secretary  of
the  Treasury  or  his  delegate) of the Key Employee's  Compensation,
allocated  on  behalf of any Key Employee for that  Plan  Year.   This
minimum  allocation  shall  be  made even  though,  under  other  Plan
provisions, the Participant would not otherwise be entitled to receive
an allocation, or would have received a lesser allocation for the Plan
Year because of insufficient Employer contributions under Section  4.2
or the Participant's failure to complete 1,000 Hours of Service or the
Participant's failure to make elective deferrals under Section 4.1.

   (b)   The minimum allocation under this Section shall not apply  to
any  Participant who was not employed by the Employer on the last  day
of the Plan Year.

   (c)  The minimum allocation under this Section shall be reduced  by
any allocation of Employer contributions under Section 4.2 and will be
used as an offset against any such required allocation under any other
defined  contribution plan of the Employer with a Plan Year ending  in
the same calendar year as the Valuation Date.

   (d)   Neither  elective  deferrals nor matching  contributions  (as
defined  in  Code  Sections 402(g)(3) and 401(m)(4)(A),  respectively)
shall  be taken into account for the purpose of satisfying the minimum
allocation requirements of this Section, but are included for purposes
of  determining the percentage of Employer contributions allocated  to
Key Employees.

   (e)   There  shall  be  no  duplication  of  the  minimum  benefits
required  under  Code Section 416.  Benefits shall be  provided  under
defined benefit plans before under any defined contribution plans.  If
a defined benefit plan (active or frozen) is part of the permissive or
required  aggregation  group of plans of  the  Employer,  the  minimum
allocation in subparagraph (a) shall be deemed to be 5% and  shall  be
offset by a Participant's accrued benefit under a defined benefit plan
according  to  the following equivalencies:  a 1% "qualifying  benefit
accrual" under a defined benefit plan equals a 2.5% allocation under a
defined contribution plan.  To be a "qualifying benefit accrual,"  the
pension under the defined
benefit plan must be converted to a pension payable for life based  on
the average of the five consecutive years of the Participant's highest
compensation,   payable  at  that  plan's  normal   retirement   date.
Accordingly,  for  a  Participant whose "qualifying  benefit  accrual"
equals  2%  multiplied by each year of his participation in  the  Plan
while   a  Top-Heavy  Plan,  there  shall  be  no  minimum  allocation
hereunder.   If  the "qualifying benefit accrual" is a  lesser  amount
than  2%  for each such year, the minimum allocation under  this  Plan
shall  be provided on a pro rata basis, adjusted on the basis  of  the
above  equivalencies.  Except as provided in subparagraph (f),  in  no
event  will  additional  minimum  allocations  be  provided  for   any
Participant who has earned a "qualifying benefit accrual" equal to 20%
of his Compensation (as defined in Article Ten) averaged over the five
consecutive years in which such Compensation was the highest.

   (f)   There  shall  be  no  duplication  of  the  minimum  benefits
required  under  Code Section 416.  Benefits shall be  provided  under
defined benefit plans before under defined contribution plans.   If  a
defined  benefit plan (active or frozen) is part of the permissive  or
required  aggregation group of plans, and if any  Participant  in  the
Plan  would  have his benefits limited due to the application  of  the
special  Code limitation rule in Section 10.1 in a year when the  Plan
is  a  Top-Heavy  Plan but not a Super Top-Heavy Plan, the  allocation
method  of subparagraph (e) above shall apply, except that "3%"  shall
be substituted for "2%" and "30%" shall be substituted for "20%."

12.4   VESTING.  The provisions contained in Section 6.1  relating  to
vesting shall continue to apply in any Plan Year in which the Plan  is
a  Top-Heavy  Plan, and apply to all benefits within  the  meaning  of
Section  411(a)(7) of the Code except those attributable  to  Employee
contributions  and  elective deferrals under  Section  4.1,  including
benefits accrued before the effective date of Section 416 and benefits
accrued  before  the  Plan  became  a  Top-Heavy  Plan.   Further,  no
reduction in vested benefits may occur in the event the Plan's  status
as a Top-Heavy Plan changes for any Plan Year and the vesting schedule
is  amended.  In addition, if a Plan's status changes from a Top-Heavy
Plan to that of a non-Top-Heavy Plan, a Participant with three (3)  or
more Years of Service for vesting purposes shall continue to have  his
vested  rights determined under the schedule which he selects, in  the
event the vesting schedule is subsequently amended.

Payment  of a Participant's vested Account balance under this  Section
shall be made in accordance with the provisions of Article Seven.
          ARTICLE THIRTEEN--LOANS AND HARDSHIP DISTRIBUTIONS

13.1  LOANS.

   (a)  Permissible Amount and Procedures.  Upon the application of  a
Participant, the Administrator may, in accordance with a  uniform  and
nondiscriminatory policy, direct the Trustee to grant a loan or  loans
to  a Participant at a reasonable rate of interest.  The Participant's
signature shall be required on a promissory note.  In addition, if the
Participant is married, such Participant's spouse shall be required to
consent to any loan made prior to April 1, 2005.  Such consent must be
obtained  within the 90-day period preceding the granting of the  loan
and  must comply with the requirements of Code Section 417(a)(4).   In
no  event shall the amount of a loan or loans to a Participant  exceed
the vested value of the Participant's Account, which shall be security
for  such  loan.   The Administrator shall impose a rate  of  interest
which  provides the Plan with a return commensurate with the  interest
rates  charged by persons in the business of lending money  for  loans
which  would  be made under similar circumstances.  The terms  of  any
loan shall be arrived at by mutual agreement between the Administrator
and   the  Participant,  subject  to  the  approval  of  the  Trustee.
Participant  loans  shall  be treated as segregated  investments,  and
interest  repayments  will  be  credited  only  to  the  Participant's
Account.   In the event a Participant terminates employment while  any
loan  is  outstanding, the unpaid balance and any interest due thereon
shall  become  due  and  payable, within  thirty  (30)  days  of  such
termination of employment.  If such amount is not paid to the Plan, it
shall be charged against the amounts that are otherwise payable to the
Participant  or the Participant's Beneficiary under the provisions  of
the Plan.

   (b)   Limitation  on  Amount of Loans.   A  Participant's  loan  or
loans, when aggregated with all other outstanding loan balances  under
this  Plan and any other qualified retirement plan maintained  by  the
Employer, shall not exceed the lesser of:

     (1)   $50,000,  which  amount shall be  reduced  by  the  highest
outstanding  balance of loans, if any, during the  preceding  12-month
period over the current outstanding balance of loans; or

     (2)   one-half  (?)  of  the vested value  of  the  Participant's
Account.

Any  loan must be repaid within five (5) years.  If the loan was  made
for the purpose of acquiring the primary residence of the Participant,
then  such  loan  must  be  repaid within  fifteen  (15)  years.   The
repayment  of any loan must be made in at least quarterly installments
of principal and interest with level periodic payments.

In  the case of a Participant who has loans outstanding from this Plan
or  other plans of the Employer (or a member of any affiliated service
group  or controlled group of businesses), the Administrator shall  be
responsible for reporting to the Trustee the existence of  said  loans
in  order  to  aggregate all such loans within  the  above  limits  as
required by the Code.
13.2   HARDSHIP  DISTRIBUTIONS.   The  Administrator  may  direct  the
Trustee to distribute to any Participant or his Beneficiary in any one
Plan  Year   all  or  a  portion  of the Participant's  nonforfeitable
interest  in his Account exclusive of amounts attributable to earnings
on  elective deferral contribution amounts, valued as of the preceding
Valuation  Date, on account of an immediate and heavy  financial  need
provided  that the distribution is necessary to satisfy such financial
need.  The amount of the withdrawal shall not be less than $500.   The
portions  of  the  Participant's  Account  attributable  to  qualified
nonelective contributions (as defined in Section 9.2(a)) and  matching
contributions  which are used to satisfy the average  actual  deferral
percentage test of Section 9.2 may not be distributed to him under the
terms  of  this Section.  Distributions paid pursuant to this  Section
shall  be  deemed to be made as of the first day of the Plan Year  and
the Participant's Account shall be reduced accordingly.

   (a)   Deemed  Immediate and Heavy Financial Need.   A  distribution
made  on  account  of medical expenses (as described in  Code  Section
213(d)) incurred by the Participant, his spouse or his dependents  (as
defined  in  Code  Section 152), or for purchase of the  Participant's
principal  residence (excluding mortgage payments), or for payment  of
educational  expenses  for  the next twelve months  of  post-secondary
education  for  the  Participant,  his  spouse  or  his  children   or
dependents,  or  to prevent the eviction of the Participant  from  his
principal residence or foreclosure on same shall be deemed to be  made
on account of an immediate and heavy financial need.

   (b)   Deemed  Necessity to Satisfy Financial Need.  A  distribution
shall  be  deemed necessary to satisfy a Participant's  immediate  and
heavy financial need if the amount of the distribution does not exceed
the amount of the financial need, and the Participant has obtained all
currently available distributions and nontaxable loans under all plans
maintained  by  the  Employer,  and the Participant  makes  a  written
irrevocable election to suspend his rights to make elective  deferrals
and  employee contributions under all plans maintained by the Employer
for  a  6-month period following receipt of the distribution and  such
irrevocable  election limits the amount of his elective  deferrals  in
his  taxable  year  immediately following  the  taxable  year  of  the
hardship distribution equal to the applicable limit under Code Section
402(g)  less the amount of his deferrals made in the taxable  year  of
the distribution.

   (c)   Application Procedure.  The Administrator shall require  that
requests  for  hardship distributions be made under  procedures  which
include the Participant's statement of the facts causing the hardship,
the amount of the financial need and any other information required to
ascertain  the  facts.   No distribution will be  granted  unless  the
amount  attributable to Employer contributions has been in  the  Trust
for  a period of two (2) years or, alternatively, the Participant  has
been  a  Participant for five (5) or more years.  Any withdrawal  made
prior  to  April  1,  2005 requires the consent of  the  Participant's
spouse within the 90-day period prior to the date of the distribution.
The  spouse's  consent  shall  be  executed  in  accordance  with  the
requirements of Code Section 417(a)(4).

The  provisions  of this Section (relating to hardship  distributions)
are  intended to comply with Treasury regulations issued under Section
401(k) of the Code, and shall be so interpreted.
              ARTICLE FOURTEEN--MISCELLANEOUS PROVISIONS

14.1   PLAN DOES NOT AFFECT EMPLOYMENT.  Neither the creation of  this
Plan  nor any amendment thereto nor the creation of any fund  nor  the
payment  of benefits hereunder shall be construed as giving any  legal
or  equitable  right  to  any  Employee  or  Participant  against  the
Employer, its officers or Employees, or against the Trustee,  and  all
liabilities under this Plan shall be satisfied, if at all, only out of
the  Trust Fund held by the Trustee.  Participation in the Plan  shall
not give any Participant any right to be retained in the employ of the
Employer, and the Employer hereby expressly retains the right to  hire
and  discharge any Employee at any time with or without cause,  as  if
the  Plan  had  not been adopted, and any such discharged  Participant
shall  have only such rights or interests in the Trust Fund as may  be
specified herein.

14.2   SUCCESSOR  TO  THE  EMPLOYER.  In  the  event  of  the  merger,
consolidation, reorganization or sale of assets of the Employer, under
circumstances in which a successor person, firm, or corporation  shall
carry  on  all or a substantial part of the business of the  Employer,
and  such successor shall employ a substantial number of Employees  of
the  Employer and shall elect to carry on the provisions of the  Plan,
such  successor shall be substituted for the Employer under the  terms
and provisions of the Plan upon the filing in writing with the Trustee
of its election to do so.

14.3   REPAYMENTS TO THE EMPLOYER.  Notwithstanding any provisions  of
this Plan to the contrary, and in the sole discretion of the Employer:

   (a)    Any  monies  or  other  Plan  assets  attributable  to   any
contribution made to this Plan by the Employer because of a mistake of
fact may be returned to the Employer within one year after the date of
contribution.   Earnings attributable to the excess  contribution  may
not  be returned to the Employer, but losses attributable thereto must
reduce  the  amount to be so returned.  Furthermore, if the withdrawal
of  the amount attributable to the excess contribution would cause the
balance of the individual account of any Participant to be reduced  to
less  than  the balance which would have been in the account  had  the
amount  not  been contributed, then the amount to be returned  to  the
Employer must be limited so as to avoid such reduction.

   (b)    Any  monies  or  other  Plan  assets  attributable  to   any
contribution made to this Plan by the Employer for any fiscal year for
which  initial  Plan qualification under the Code  is  denied  may  be
refunded  to  the  Employer  within  one  year  after  the  date  such
qualification  of  the  Plan  is denied or  within  one  year  of  the
resolution  of any judicial or administrative process with respect  to
the disallowance.

   (c)    Any  monies  or  other  Plan  assets  attributable  to   any
contribution made to this Plan by the Employer may be refunded to  the
Employer, to the extent the income tax deduction for such contribution
is  disallowed,  within  one  taxable year  after  the  date  of  such
disallowance or within one year of the resolution of any  judicial  or
administrative process with respect to the disallowance.
Earnings  attributable to the excess contribution may not be  returned
to  the  Employer,  but losses attributable thereto  must  reduce  the
amount  to  be  so  returned.  Furthermore, if the withdrawal  of  the
amount attributable to the excess contribution would cause the balance
of  the  individual account of any Participant to be reduced  to  less
than  the balance which would have been in the account had the  amount
not  been  contributed, then the amount to be returned to the Employer
must be limited so as to avoid such reduction.

Provided, however, the provisions of this Section shall not  apply  to
elective deferrals made by a Participant under Section 4.1.

14.4   BENEFITS NOT ASSIGNABLE.  Except as provided in Section  414(p)
of the Code with respect to "qualified domestic relations orders", the
rights of any Participant or his Beneficiary to any benefit or payment
hereunder  shall not be subject to voluntary or involuntary alienation
or  assignment. Notwithstanding the prior provisions of  this  Section
14.4, an offset to a Participant's benefit against an amount that  the
Participant is ordered or required to pay the Plan with respect  to  a
judgment, order, or decree issued, or a settlement entered into, on or
after  August 5, 1997, shall be permitted in accordance with  Sections
401(a)(13)(C) and (D) of the Code.

14.5  MERGER OF PLANS.  In the case of any merger or consolidation  of
this  Plan with, or transfer of the assets or liabilities of the  Plan
to,  any  other  plan,  the  terms of such  merger,  consolidation  or
transfer  shall  be such that each Participant would receive  (in  the
event  of  termination  of  this  Plan or  its  successor  immediately
thereafter) a benefit which is no less than what the Participant would
have  received  in  the event of termination of this Plan  immediately
before such merger, consolidation or transfer.

14.6   INVESTMENT EXPERIENCE NOT A FORFEITURE.  The decrease in  value
of  any  Account  due  to adverse investment experience  will  not  be
considered an impermissible "forfeiture" of any vested balance.

14.7  DISTRIBUTION TO LEGALLY INCAPACITATED PERSON.  In the event  any
benefit  is payable to a minor or to a person deemed to be incompetent
or  to  a  person otherwise under legal disability, or who is by  sole
reason   of  advanced  age,  illness,  or  other  physical  or  mental
incapacity incapable of handling the disposition of his property,  the
Administrator, may direct the Trustee to apply all or any  portion  of
such  benefit  directly  to the care, comfort,  maintenance,  support,
education or use of such person or to pay or distribute the  whole  or
any  part  of such benefit to (a) the spouse of such person,  (b)  the
parent  of  such person, (c) the guardian, committee, or  other  legal
representative,  wherever appointed, of such person,  (d)  the  person
with  whom  such person shall reside, (e) any other person having  the
care  and control of such person, or (f) such person.  The receipt  of
any  such payment or distribution is a complete discharge of liability
for Plan obligations.

14.8   CONSTRUCTION.  Wherever appropriate, the use of  the  masculine
gender shall be extended to include the feminine and/or neuter or vice
versa; and the singular form of words shall be extended to include the
plural; and the plural shall be restricted to mean the singular.
14.9  GOVERNING DOCUMENTS.  A Participant's rights shall be determined
under the terms of the Plan as in effect at the Participant's date  of
separation from eligible Service.

14.10   GOVERNING LAW.  The provisions of this Plan shall be construed
under  the laws of the state of the situs of the Trust, except to  the
extent such laws are preempted by Federal law.

14.11   HEADINGS.   The  Article  headings  and  Section  numbers  are
included  solely  for  ease of reference.  If there  is  any  conflict
between  such headings or numbers and the text of the Plan,  the  text
shall control.

14.12   COUNTERPARTS.   This Plan may be executed  in  any  number  of
counterparts,  each  of  which  shall  be  deemed  an  original;  said
counterparts  shall constitute but one and the same instrument,  which
may be sufficiently evidenced by any one counterpart.

14.13   LOCATION OF PARTICIPANT OR BENEFICIARY UNKNOWN.  In the  event
that  all  or any portion of the distribution payable to a Participant
or  to  a Participant's Beneficiary hereunder shall, at the expiration
of  five (5) years after it shall become payable, remain unpaid solely
by  reason  of  the  inability of the Administrator to  ascertain  the
whereabouts  of  such  Participant or  Beneficiary,  after  sending  a
registered  letter,  return  receipt  requested,  to  the  last  known
address,   and   after  further  diligent  effort,   the   amount   so
distributable shall be reallocated in the same manner as a  forfeiture
under  Section 6.2 pursuant to this Plan.  In the event a  Participant
or  Beneficiary  is  located subsequent to  the  reallocation  of  his
Account  balance,  such  Account balance  shall  be  restored  without
interest  or adjustment for interim Trust valuation experience,  by  a
special  Employer  contribution or from the next  succeeding  Employer
contribution, as appropriate.

            ARTICLE FIFTEEN--MULTIPLE EMPLOYER PROVISIONS

15.1   ADOPTION OF THE PLAN.  With the Employer's consent,  this  Plan
may  be  adopted by any other corporation or entity for its employees,
which  adopting Employer shall be known as a "Participating Employer."
All  assets  may  either  be  held within  one  Trust  Fund,  or  each
Participating Employer may maintain a separate trust fund attributable
to   its  portion  of  Plan  assets.   Separate  accounting  shall  be
maintained   for   the  Accounts  of  employees   of   each   adopting
Participating Employer.

15.2  SERVICE.  For purposes of vesting, eligibility to participate in
the  Plan, and determining eligibility for allocation of Participating
Employer contributions, an Employee shall be credited with all of  his
Hours of Service with any Participating Employer which has adopted the
Plan  after the effective date of that adoption.  Pre-adoption Service
will  be credited in accordance with the rules in Article Two for such
periods of time when the Employees were part of a controlled group  of
corporations, trades or businesses under common control or  affiliated
service  group.  Service during such time when there was no controlled
or  affiliated service group will be credited only for eligibility  to
participate in the Plan.  These rules may be modified by an instrument
of adoption.

15.3   PLAN  CONTRIBUTIONS.  All contributions made by a Participating
Employer,  as  provided  for in this Plan and unless  modified  by  an
instrument  of  adoption,  shall  be  determined  separately  by  each
Participating Employer, and shall be paid to and held by  the  Trustee
for  the  exclusive  benefit of the Employees  of  such  Participating
Employer and the Beneficiaries of such Employees, subject to  all  the
terms and conditions of this Plan.  Any forfeiture by an Employee of a
Participating  Employer subject to allocation during  each  Plan  Year
shall  be allocated only for the exclusive benefit of the Participants
of  such  Participating Employer in accordance with the provisions  of
this Plan, unless modified by an instrument of adoption.

15.4   DETERMINING COMPENSATION.  In the case of any Employee  who  is
paid  by more than one Participating Employer, all of his Compensation
from  the Participating Employers shall be aggregated for purposes  of
determining benefits if the Plan is integrated with Social Security.

15.5  TRANSFERRING EMPLOYEES.  The Administrator shall adopt equitable
procedures   whereby  contributions  and  forfeitures  are   equitably
allocated in the case of Employees transferring from the employment of
one   Participating   Employer  to  another  Participating   Employer.
Similarly,  rules  shall  be adopted whereby Account  records  may  be
transferred from the records of one Participating Employer to  another
Participating Employer.

15.6   DELEGATION OF AUTHORITY.  Each Participating Employer  who  has
adopted  the Plan may delegate to the Employer the right to  name  the
Administrator and Trustees of the Plan.

15.7   TERMINATION.  Any termination of the Plan or discontinuance  of
contributions  by  any one Participating Employer shall  operate  with
regard  only  to  the  Participants  employed  by  that  Participating
Employer.    All  Employees  affected  thereby  shall  have   a   100%
nonforfeitable interest in their Accounts.

In  the  event any Participating Employer terminates its participation
in  this  Plan,  or in the event that any such Participating  Employer
shall  cease to exist through sale, reorganization or bankruptcy,  the
Trust  Fund shall be allocated by the Trustee, in accordance with  the
direction of the Administrator, into separate trust funds.  The amount
to be allocated to the Trust of the terminating Participating Employer
shall be equal to the value of Account balances of its Participants as
of  the  most  recent date as of which Plan assets were  valued  under
Article  Five,  unless  a  special  valuation  is  agreed  to  by  the
Administrator and the terminating Participating Employer.

1IN  WITNESS WHEREOF, the Employer, by their duly authorized officers,
has  caused  this Plan to be executed on  the 31st day  of December,
2004.

                              MICRONETICS, INC.

                              By: /s/David Robbins
                                  Authorized Officer

                              MICROWAVE & VIDEO SYSTEMS, INC.

                              By: /s/David Robbins
                                  Authorized Officer

                              ENON MICROWAVE, INC.

                              By: /s/David Robbins
                                  Authorized Officer

                              MICROWAVE CONCEPTS, INC.

                              By: /s/David Robbins
                                  Authorized OfficerEXHIBIT 10.49 - EMPLOYMENT AGREEMENT

Exhibit 10.49

EMPLOYMENT AGREEMENT

This Employment Agreement (the “Agreement”) is entered into as of July 7, 2005, effective as of July 1, 2005, by and between Fred E. Tannous (the “Executive”) and Health Sciences Group, Inc., a Colorado corporation (the “Company”).

WHEREAS, the Company believes that Executive’s service, experience, and knowledge are valuable to the Company in connection with its business; and

WHEREAS, the Company desires to employ Executive, and Executive desires to be employed by the Company, as Chief Executive Officer of the Company.

NOW, THEREFORE, in consideration of the mutual promises and covenants herein contained, the parties hereto agree as follows:

1.

Employment.  The Company hereby employs Executive and Executive accepts such employment upon the terms and conditions hereinafter set forth.

2.

Term of Employment.  Subject to the provisions of Section 6, the term of Executive’s employment pursuant to this Agreement shall commence on and as of the date hereof and shall terminate as of June 30, 2008.

3.

Duties; Extent of Service.  

(a)

Service.  During Executive’s employment under this Agreement, Executive (i) shall serve as an employee of the Company with the title and position of Chief Executive Officer, reporting to the Board of Directors of the Company and shall have such executive responsibilities as the Board of Directors of the Company shall from time to time designate, provided that, in all cases Executive shall be subject to the oversight and supervision of the Board of Directors of the Company in the performance of his duties, and (ii) shall render all services reasonably incident to the foregoing.  Executive hereby accepts such employment, agrees to serve the Company in the capacity indicated, and agrees to use Executive’s best efforts in, and shall devote Executive’s full working time, attention, skill and energies to, the advancement of the interests of the Company and its subsidiaries and the performance of Executive’s duties and responsibilities hereunder.  

(b)

Other Activities.  Nothing in this Agreement shall preclude Executive from owning, purchasing, selling, or otherwise dealing in any manner with any property or engaging in any business whatsoever, including without limitation, providing consulting services, acting as a director of another company, or starting a new business, without notice to the Company, without participation of the Company, and without liability to the Company so long as the same does not materially interfere with the performance of Executive’s services and such business does not compete with the Company’s business.

4.

Salary and Bonus.

1

(a)

Salary.  During Executive’s employment under this Agreement, the Company shall pay Executive a salary at the rate of $250,000 per annum (the “Salary”).  Such Salary shall be subject to withholding under applicable law, shall be prorated for partial years and shall be payable in periodic installments not less frequently than monthly in accordance with the Company’s usual practice for its executive officers as in effect from time to time.

(b)

Bonus.  Executive shall receive a performance bonus based on “Adjusted EBITDA” (the “Performance Bonus”).  For purposes of this Section, “Adjusted EBITDA” shall mean earnings before interest, taxes, depreciation and amortization, but adjusted to account for non-cash expenses, and calculated from financial statements that are prepared in accordance with GAAP.  Executive shall receive a Performance Bonus in an amount equal to 5 % of Adjusted EBITDA for each fiscal year.

(c)

Cost of Living Adjustment.  Commencing as of January 1, 2006, and on each January 1st thereafter, the then effective Salary shall be increased (but not decreased) by an amount which shall reflect the increase, if any, in the cost of living during the previous 12 months by adding to the Salary an amount computed by multiplying the Salary by the percentage by which the level of the Consumer Price Index for the Los Angeles, California Metropolitan Area, as reported on January 1st of the new year by the Bureau of Labor Statistics of the United States Department of Labor has increased over its level as of January 1st of the prior year.

(d)

Payment upon Change of Control.  At any time prior to the one month anniversary of the Executive’s termination, if the Company shall merge, sell a controlling interest, or sell a majority of its assets; or if there is a transaction (or series of transactions) in which the Company’s shareholders sell a majority of outstanding shares of Company capital stock, then the Company shall pay Executive the greater of the remainder of his salary or Two Hundred Fifty Thousand Dollars ($250,000).  Further, at the date of any such merger or sale is consummated, all unvested options shall be immediately accelerated and as to any unexercised options to purchases shares in the Company which are held by Executive, the Company shall pay Executive cash in the amount equal to the difference between the consideration paid to the Company on a per share basis less the exercise price of the option, the value of which is multiplied to the number of options which Executive holds.

(e)

Options.  Upon execution of this Agreement, Executive shall receive options to purchase 500,000 shares of Company common stock exerciseable at a price equal to the closing bid price of such common stock on the date immediately prior to this date.  The options shall be issued under the Company’s 2005 Stock Option, Deferred Stock and Restricted Stock Plan (the “Plan”).  The options shall be governed to the provisions of the Plan.  The options shall become exercisable pro-ratably per month over the term of the Agreement and shall expire in ten (10) years, subject to early termination for death, disability or other termination of employment as set forth in the Plan.

5.

Benefits.

(a)

Regular Benefits.  During Executive’s employment under this Agreement, Executive shall be entitled to participate in any and all medical, pension, dental and life insurance plans and disability income plans, retirement arrangements and other employment benefits as in 

2

effect from time to time for executive officers of the Company generally.  Such participation shall be subject to (i) the terms of the applicable plan documents (including, as applicable, provisions granting discretion to the Board of Directors of the Company or any administrative or other committee provided for therein or contemplated thereby) and (ii) generally applicable policies of the Company.

(b)

Vacation.  During Executive’s employment under this Agreement, Executive shall receive paid vacation annually in accordance with the Company’s practices for executive officers, as in effect from time to time, but in any event not less than four weeks per calendar year.

(c)

Expenses.  The Company shall reimburse Executive for all reasonable business expenses incurred by Executive during Executive’s employment hereunder to the extent in compliance with the Company’s business expense reimbursement policies in effect from time to time and upon presentation by Executive of such documentation and records as the Company shall from time to time require.

(d)

Taxation of Payments and Benefits.  The Company shall undertake to make deductions, withholdings and tax reports with respect to payments and benefits under this Agreement to the extent that it reasonably and in good faith believes that it is required to make such deductions, withholdings and tax reports.  Payments under this Agreement shall be in amounts net of any such deductions or withholdings.  Nothing in this Agreement shall be construed to require the Company to make any payments to compensate the Executive for any adverse tax effect associated with any payments or benefits or for any deduction or withholding from any payment or benefit.

(e)

Exclusivity of Salary and Benefits.  The Executive shall not be entitled to any payments or benefits other than those provided under this Agreement.  Compliance with the provisions of this Section 5 shall in no way create or be deemed to create any obligation, express or implied, on the part of the Company or any of its affiliates with respect to the continuation of any particular benefit or other plan or arrangement maintained by them or their subsidiaries as of or prior to the date hereof or the creation and maintenance of any particular benefit or other plan or arrangement at any time after the date hereof.

6.

Termination and Termination Benefits.  Notwithstanding the provisions of Section 2, Executive’s employment under this Agreement shall terminate under the following circumstances set forth in this Section 6.

(a)

Termination by the Company for Cause.  Executive’s employment under this Agreement may be terminated for Cause without further liability on the part of the Company other than for accrued but unpaid Salary through the date of termination effective immediately upon written notice to Executive.  “Cause” shall mean the following:

(i)

the commission by Executive of any act of embezzlement, fraud, larceny or theft on or from the Company or an affiliate of the Company;

(ii)

the commission by Executive of, or indictment of Executive for a felony or any misdemeanor, which misdemeanor involves moral turpitude, deceit, dishonesty or fraud;

3

(iii)

failure to perform, or materially poor performance of, Executive’s duties and responsibilities assigned or delegated under this Agreement, or any material misconduct or violation of the Company’s policies, in either case, which continues for a period of thirty (30) days after written notice given to Executive; or

(iv)

a material breach by Executive of any of the covenants, terms or provisions of this Agreement or any agreement between the Company and Executive regarding confidentiality, non-competition or assignment of inventions.

(b)

Termination by Executive.  Executive’s employment under this Agreement may be terminated by Executive by written notice to the Board of Directors at least sixty (60) days prior to such termination.

(c)

Termination by the Company Without Cause.  Subject to the payment of Termination Benefits pursuant to Section 6(d), Executive’s employment under this Agreement may be terminated without Cause by the Company upon written notice to Executive.

(d)

Certain Termination Benefits.  Unless otherwise specifically provided in this Agreement or otherwise required by law, all compensation and benefits payable to Executive under this Agreement shall terminate on the date of termination of Executive’s employment under this Agreement.  Notwithstanding the foregoing, in the event of termination of Executive’s employment with the Company pursuant to Section 6(c) above, the Company shall pay to Executive the lesser of (i) Executive’s Salary for the remainder of the Term, payable in the manner set forth in Section 4(a) or (ii) one year’s Salary payable in the manner set forth in Section 4(a) (the “Severance Benefits”).

The parties hereto agree that the Severance Benefits are to be in full satisfaction, compromise and release of any claims arising out of any termination of the Executive’s employment pursuant to Section 6(c), and such amounts shall be contingent upon the Executive’s delivery of a general release of such claims upon termination of employment in a form reasonably satisfactory to the Company, it being understood that no Severance Benefits shall be provided unless and until the Executive determines to execute and deliver such release.

(e)

Death; Disability.  Upon the death of the Executive, or upon the permanent disability (as defined below) of the Executive continuing for a period in excess of one hundred eighty (180) consecutive days, all obligations of the Company under this Agreement shall immediately terminate other than any obligation of the Company with respect to earned but unpaid Salary and earned benefits contemplated hereby to the extent accrued or vested through the date of termination.  As used herein, the terms “permanent disability” or “permanently disabled” shall mean the inability of the Executive, by reason of injury, illness or other similar cause, to perform a major part of his duties and responsibilities in connection with the conduct of the business and affairs of the Company, as determined reasonably and in good faith by the Company.

(f)

Notwithstanding termination of this Agreement as provided in this Section 6 or any other termination of Executive’s employment with the Company, Executive’s obligations under Section 7 hereof shall survive any termination of Executive’s employment with the Company at any time and for any reason.

7.

Non-Solicitation; Confidentiality; Proprietary Rights.

4

(a)

Noncompetition.  Executive agrees that he shall not, during the term of this Agreement, and for a period of one (1) year thereafter, solicit any employee of the Company to terminate such employee’s employment with the Company, or agree to hire any such employee or former employee of the Company (unless at least 12 months have passed since the termination of such employee’s employment with the Company); or

(b)

Confidential Information.  As used in this Agreement, the term “Confidential Information” shall mean information belonging to the Company (for purposes of this Section 7 including all predecessors of the Company) of value to the Company or with respect to which Company has right in the course of conducting its business and the disclosure of which could result in a competitive or other disadvantage to the Company.  Confidential Information includes information, whether or not patentable or copyrightable, in written, oral, electronic or other tangible or intangible forms, stored in any medium, including, by way of example and without limitation, trade secrets, ideas, concepts, designs, configurations, specifications, drawings, blueprints, diagrams, models, prototypes, samples, flow charts processes, techniques, formulas, software, improvements, inventions, domain names, data, know-how, discoveries, copyrightable materials, marketing plans and strategies, sales and financial reports and forecasts, customer lists, studies, reports, records, books, contracts, instruments, surveys, computer disks, diskettes, tapes, computer programs and business plans, prospects and opportunities (such as possible acquisitions or dispositions of businesses or facilities) which have been discussed or considered by the management of the Company.  Confidential Information includes information developed by Executive in the course of Executive’s employment by the Company, as well as other information to which Executive may have access in connection with Executive’s employment.  Confidential Information also includes the confidential information of others with which the Company has a business relationship.  Notwithstanding the foregoing, Confidential Information does not include information in the public domain, unless due to breach of Executive’s duties under Section 7(c).

(c)

Confidentiality.  In the course of performing services hereunder on behalf of the Company and its affiliates, Executive has had and from time to time will have access to Confidential Information.  Executive agrees (i) to hold the Confidential Information in strict confidence, (ii) not to disclose the Confidential Information to any person (other than in the regular business of the Company or its affiliates), and (iii) not to use, directly or indirectly, any of the Confidential Information for any purpose other than on behalf of the Company and its affiliates.  All documents, records, data, apparatus, equipment and other physical property, whether or not pertaining to Confidential Information, that are furnished to Executive by the Company or are produced by Executive in connection with Executive’s employment will be and remain the sole property of the Company.  Upon the termination of Executive’s employment with the Company for any reason and as and when otherwise requested by the Company, all Confidential Information (including, without limitation, all data, memoranda, customer lists, notes, programs and other papers and items, and reproductions thereof relating to the foregoing matters) in Executive’s possession or control, shall be immediately returned to the Company.

(d)

Third Party Agreements and Rights.  Executive hereby confirms that Executive is not bound by the terms of any agreement with any previous employer or other party that restricts in any way Executive’s use or disclosure of information or Executive’s engagement in any business.  Executive represents to the Company that Executive’s execution of this Agreement, Executive’s employment with the Company and the performance of Executive’s proposed duties for the Company will not violate any obligations Executive may have to any such previous employer or other party.  In Executive’s work for the Company, Executive will not disclose or make use of any information in violation of any agreements with or rights of any such previous 

5

employer or other party, and Executive will not bring to the premises of the Company any copies or other tangible embodiments of non-public information belonging to or obtained from any such previous employment or other party.

(e)

Litigation and Regulatory Cooperation.  During and after Executive’s employment, Executive shall cooperate fully with the Company in the defense or prosecution of any claims or actions now in existence or which may be brought in the future against or on behalf of the Company that relate to events or occurrences that transpired while Executive was employed by the Company.  Executive’s full cooperation in connection with such claims or actions shall include, but not be limited to, being available to meet with counsel to prepare for discovery or trial and to act as a witness on behalf of the Company at mutually convenient times.  During and after Executive’s employment, Executive also shall cooperate fully with the Company in connection with any investigation or review of any federal, state or local regulatory authority as any such investigation or review relates to events or occurrences that transpired while Executive was employed by the Company.  The Company shall reimburse Executive for any reasonable out-of-pocket expenses incurred in connection with Executive’s performance of obligations pursuant to this Section 7(e).

(f)

Inventions.  Executive recognizes that the Company and its affiliates possess a proprietary interest in all of the Confidential Information and have the exclusive right and privilege to use, protect by copyright, patent or trademark, or otherwise exploit the processes, ideas and concepts described therein to the exclusion of Executive, except as otherwise agreed between the Company and Executive in writing.  Executive expressly agrees that any products, inventions, discoveries or improvements made by Executive in the course of Executive’s employment, including any of the foregoing which is based on or arises out of the Confidential Information, shall be the property of and inure to the exclusive benefit of the Company.  Executive further agrees that any and all products, inventions, discoveries or improvements developed by Executive (whether or not able to be protected by copyright, patent or trademark) during the course of his employment, or involving the use of the time, materials or other resources of the Company or any of its affiliates, shall be promptly disclosed to the Company and shall become the exclusive property of the Company, and Executive shall execute and deliver any and all documents necessary or appropriate to implement the foregoing.

(g)

Business Opportunities.  Executive agrees, while he is employed by the Company, to offer or otherwise make known or available to it, as directed by the Board of Directors of the Company and without additional compensation or consideration, any business prospects, contracts or other business opportunities that Executive may discover, find, develop or otherwise have available to Executive in the Company’s general industry and further agrees that any such prospects, contacts or other business opportunities shall be the property of the Company.

(h)

Acknowledgment.  Executive acknowledges that the provisions of this Section 7 are an integral part of Executive’s employment arrangements with the Company.

8.

Parties in Interest; Certain Remedies.  It is specifically understood and agreed that this Agreement is intended to confer a benefit, directly or indirectly, on the Company and its direct and indirect subsidiaries and affiliates, and that any breach of the provisions of this Agreement by the Executive or any of the Executive’s affiliates will result in irreparable injury to the Company and its subsidiaries and affiliates, that the remedy at law alone will be an inadequate remedy for such breach.  Accordingly, subject to Section 9 hereof, the Executive agrees that if the Executive breaches, or proposes to breach, any portion of this Agreement, the Company or its subsidiaries 

6

and affiliates shall be entitled, in addition to any other remedy it may have, to enforce the specific performance of this Agreement by the Executive through both temporary and permanent injunctive relief without the necessity of posting a bond or proving actual damages, but without limitation of their right to damages and any and all other remedies available to them, it being understood that injunctive relief is in addition to, and not in lieu of, such other remedies.

9.

Integration.  This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements between the parties with respect to any related subject matter.

10.

Assignment; Successors and Assigns, etc.  Neither the Company nor the Executive may make any assignment of this Agreement or any interest herein without the prior written consent of the other party; provided that the Company may assign its rights under this Agreement without the consent of the Executive in the event that the Company shall effect a reorganization, consolidate with or merge into any other corporation, partnership, organization or other entity, or transfer all or substantially all of its properties or assets to any other corporation, partnership, organization or other entity.  This Agreement shall inure to the benefit of and be binding upon the Company and the Executive, their respective successors, executors, administrators, heirs and permitted assigns.

11.

Enforceability.  If any portion or provision of this Agreement (including, without limitation, any portion or provision of any section of this Agreement) shall to any extent be declared illegal or unenforceable by a court of competent jurisdiction, then the remainder of this Agreement, or the application of such portion or provision in circumstances other than those as to which it is so declared illegal or unenforceable, shall not be affected thereby, and each portion and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law.

12.

Waiver.  No waiver of any provision hereof shall be effective unless made in writing and signed by the waiving parry.  The failure of any party to require the performance of any term or obligation of this Agreement, or the waiver by any party of any breach of this Agreement, shall not prevent any subsequent enforcement of such term or obligation or be deemed a waiver of any subsequent breach.

13.

Notices.  Any notices, requests, demands and other communications provided for by this Agreement shall be sufficient if in writing and delivered in person or sent by a nationally recognized overnight courier service or by registered or certified mail, postage prepaid, return receipt requested, to the Executive at the last address the Executive has filed in writing with the Company or, in the case of the Company, at 6080 Center Drive, 6th Floor, Los Angeles, California 90045.

14.

Amendment.  This Agreement may be amended or modified only by a written instrument signed by the Executive and by a duly authorized representative of the Company.

15.

Governing Law.  This contract shall be construed under and be governed in all respects by the laws of the State of California, without giving effect to the conflict of laws principles thereof.

16.

Counterparts.  This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be taken to be an original and all of which taken together shall constitute one and the same document.

7

17.

Certain Definitions.  For purposes of this Agreement, the term “person” means an individual, corporation, limited liability company, partnership, entity, association, trust or any unincorporated organization; a “subsidiary” means any corporation more than 50 percent of whose outstanding voting securities, or any limited liability company, partnership, joint venture or other entity more than 50 percent of whose total equity interest, is directly or indirectly owned by such person; and an “affiliate” of a person shall mean, with respect to a person or entity, any person or entity which directly or indirectly controls, is controlled by, or is under common control with such person or entity.

18.

Attorneys’ Fees and Costs.  If any action at law or in equity is necessary to enforce or interpret any of the rights or obligations under this Agreement, the prevailing party shall be entitled to reasonable attorneys’ fees, costs, and disbursements in addition to any other relief to which the prevailing party may be entitled.

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

Health Sciences Group, Inc.

By:____________________________

Name: Bill Glaser

Title: Co-Chairman & President

______________________________

Fred E. Tannous

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