Document:

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                                                                    EXHIBIT 10.1

DATE: FEBRUARY 1, 2001

SILVER STATE BANK
400 N. GREEN VALLEY PARKWAY
HENDERSON, NEVADA 89014

ATTN: PETER S. CRAPO

                    VESTIN FUND II, LLC-BANK ESCROW AGREEMENT

Vestin Mortgage, Inc., a Nevada corporation, is the manager of Vestin Fund II,
LLC, a Nevada limited liability company (the "company"), the issuer and
registrant for an offering of shares of limited liability company interest of
the Company ("Shares"), under a Registration Statement on Form S-11, filed with
the Securities and Exchange Commission on December 21, 2000. The Shares will be
offered and sold by Vestin Capital, Inc., a Nevada corporation (the "Dealer
Manager") and other securities broker-dealers who participate with the Dealer
Manager in the offering of the Shares.

The terms of the offering require that the payments of the purchase price of the
first 150,000 shares sold in the offering ($1,500,000) be placed in a bank
escrow account, and this Escrow Agreement ("Agreement") sets forth the terms and
conditions under which, Silver State Bank will hold such funds (the " Required
Proceeds") as the Escrow Agent hereby appointed by the Company and the Dealer
Manager for the offering to hold and distribute the Required Proceeds.

1.      Persons subscribing to purchase the Shares will be instructed by the
        Dealer Manager or any participating broker-dealers to remit the purchase
        price in the form of checks, drafts or money orders (herein called "
        Instruments of payment") payable to the order of, or funds wired in
        favor of "Silver State Bank as Escrow Agent" until such time as the
        150,000 shares have been sold and the $1,500,000 received. Within one
        business day after receipt of instruments of payment from the offering,
        the manager will send to Silver State Bank: (a) each accepted
        subscriber's name, address, number of shares purchased and purchase
        price remitted (" Evidence of Subscriptions"), and (b) the instruments
        of payment from such subscribers for deposit into the deposit account
        entitled "Silver State Bank as escrow Agent for Vestin Fund II, LLC",
        which deposit will occur within one business day after you receive such
        materials. The credit to the account will be handled according to Silver
        State Bank's normal deposit procedures and policies.

2.      The aforesaid instruments of payment are to be promptly processed for
        collection by Silver State Bank following deposit by the Manager for the
        Company into the Escrow Account. The proceeds thereof are to be held in
        the Escrow Account until such funds are either returned to the
        subscribers in accordance with paragraph 3 hereof or otherwise disbursed
        in accordance with paragraph 6 hereof. In the event any of the
        instruments of payment are returned to Silver State Bank for non-payment
        prior to receipt of the Required Proceeds, Silver State Bank shall
        promptly notify the Manager in writing of such non-payment, and is
        authorized to debit the Escrow Account in the amount of such return
        payment as well as interest earned on the investment represented by such
        payment, less applicable fees assessed by Silver State Bank for a
        returned deposited item.

3.      In the event that at the close of Silver State Bank's business on
        _____________, 2001 (the "Expiration Date") you are not in receipt of
        Evidence of Subscriptions, and instruments of payment dated not later
        than that date (or actual wired funds), for the purchase of Shares
        providing for total purchase proceeds that equal or exceed the required
        Proceeds (exclusive of any funds received from subscriptions for shares
        from entities which we have notified you are affiliated with the Company
        or Manager and their affiliates) or in the event that instruments of
        payment are returned to the Escrow Agent for non-payment and the
        subtraction, to the account pursuant to paragraph 2 above reduces the
        amount in the account to less than the capital required , you shall
        promptly notify the Manager that such instruments of payment have not
        been received by you.

                                       -1-
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        Promptly following the Expiration Date, and in any event no later than
        ten business days after the Expiration Date, Silver State Bank shall
        promptly return by check the funds deposited in the Escrow Account, or
        shall return the instruments of payment delivered to you if such
        instruments have not been processed for collection prior to such time,
        directly to each subscriber at the address given by the Company.

        Included in the remittance shall be a proportionate share of the income
        earned in the account allocable to each subscriber's investment in
        accordance with the terms and conditions specified in paragraph 7
        hereof, except that in the case of subscribers who have not provided to
        Silver State Bank an executed form W-9, you shall withhold thirty-one
        percent (31%) of the earnings attributable to those subscribers in
        accordance with IRS Regulations. In the event Silver State bank receives
        an executed Form W-9 from a subscriber after you have returned such
        subscriber's proceeds, net of the thirty-one percent (31%) withholding,
        you shall promptly refund by your check the amount withheld to such
        subscriber. Notwithstanding the foregoing, you shall not be required to
        remit any payments until funds represented by such payments have been
        collected by you.

        In the event that the Company rejects any subscription for which Silver
        State Bank has already collected funds, you will be so informed in
        writing by the Manager to promptly issue a refund check to the rejected
        subscriber. If the Manager rejects any subscription for which you have
        not yet collected funds but have submitted the subscriber's check for
        collection, you shall promptly issue a check in the amount of the
        subscriber's check to the rejected subscriber after such funds clear. If
        you have not yet submitted a rejected subscriber's check for collection,
        you shall promptly remit the subscriber's check directly to the
        subscriber.

4.      Following receipt by Silver State Bank of cash and instruments of
        payment (or wired funds) of the Required Proceeds prior to the
        Expiration Date, you shall notify the Company in writing within five
        business day when such funds have been collected through normal banking
        channels and deposited in the Escrow Account.

5.      Prior to the disbursement of funds deposited in the Escrow Account in
        accordance with the provisions of paragraph 3 or 6 hereof, Silver State
        Bank shall invest all of the funds deposited in the Escrow Account in
        "Short-term Investments" (as defined below), and you are further
        authorized and you agree to reinvest all earnings and interest derived
        therefrom in any of the Short-term Investments specified below. In the
        event that instruments of payment are returned to you for nonpayment,
        you are authorized to debit the Escrow Account in accordance with
        paragraph 2 hereof. Escrow Agent will have no liability for any loss of
        interest or penalties assessed if a Short-term Investment is liquidated
        before maturity.

        "Short-term Investment" include, obligations guaranteed by, the United
        States government or bank money-market accounts or certificates of
        deposit of national or state banks that have deposits insured by the
        Federal Deposit Insurance Corporation ( including money market accounts
        and certificates of deposits of any bank acting as a depository or
        custodian for any such funds, including, without limitation, such money
        market accounts or certificates or instruments of Silver State Bank,
        which mature on or before the Expiration Date, unless such instruments
        cannot be readily sold or otherwise disposed of for cash by the
        Expiration Date without any dissipation of the offering proceeds
        invested.

        The following securities are not permissible investments: money-market
        mutual funds; corporate equity or debt securities; repurchase
        agreements; banker's acceptances; commercial paper; and municipal
        securities.

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6.      All disbursements from the Escrow Account; except for disbursements
        under the provisions of paragraph 3 hereof, shall be made by Silver
        State Bank only pursuant to the provisions of this paragraph 6. Except
        for disbursements authorized upon court order, you shall hold all funds
        in the Escrow Account until (i) the date checks for Required Proceeds
        have cleared normal banking channels after receipt by you of the
        Required Proceeds, and (ii) receipt of letter instructions from the
        Company directing disbursements of such funds to the Company.

        In disbursing such funds, you are authorized to rely solely upon such
        letter instructions which you receive from the Company whether or not
        such instructions are correct, true or authentic; provided that, if in
        your opinion such letter instructions from the Company are unclear, you
        are authorized to rely upon the legal counsel to the Company in
        distributing such funds to the effect that distribution of the funds is
        authorized by the letter instructions of the Company and that
        distribution of the funds in that manner is authorized by and in
        compliance with such letter.

        However, you shall not be required to disburse any funds attributable to
        instruments of payment which have not been collected by you, provided
        that you shall use your best efforts to promptly collect such funds
        after your receipt of disbursement instructions from the Company in
        accordance with this paragraph, and shall disburse such funds in
        compliance with the disbursement instructions from the Company.

7.      In the event the offering of Shares terminates prior to receipt of the
        Required Proceeds, income earned on subscription proceeds deposited in
        the Escrow Account ("Gross Escrow Income") minus the total escrow
        expenses ("Net Escrow Income") shall be remitted to subscribers in
        compliance with paragraph 3. Each subscriber's pro rata portion of Net
        Escrow Income shall be determined as follows: The total amount of Net
        Escrow Income shall be multiplied by a fraction, the numerator of which
        is determined by multiplying the number of Shares purchased by said
        subscriber times the number of days said subscriber's proceeds are
        invested prior to termination of the offering, and the denominator of
        which is the total of the numerators for all such subscribers.
        Notwithstanding the foregoing, escrow expenses may be deducted from the
        Escrow Account only to the extent of Gross Escrow Income, and the
        Manager shall reimburse the Escrow Agent for any escrow expenses in
        excess of such amount. Silver State Bank shall promptly remit all such
        Net Escrow Income in accordance with paragraph 3.

8.      As compensation for serving as Escrow Agent hereunder, Silver State Bank
        shall receive a fee, as set forth on Schedule A attached hereto.

9.      Silver State Bank, in performing any of its duties hereunder, shall not
        incur any liability to anyone for any damages, losses or expenses,
        except for willful default, breach of trust, or gross negligence, and
        accordingly you shall not incur any such liability with respect to any
        action taken or omitted (1) in good faith upon advice of your counsel
        given with respect to any question relating to your duties and
        responsibilities under this Agreement, or (2) in reliance upon any
        instrument, including any written instrument or instruction provided for
        in this Agreement, not only as to its due execution and validity and
        effectiveness of its provisions but also as to the truth and accuracy of
        information contained therein, which you shall in good faith believe to
        be genuine, and (3) to have been signed or presented by a proper person
        or persons and to conform to the provisions of this Agreement. You have
        no duty under this Agreement to ascertain or assure that the Company
        shall be in compliance with the terms and conditions of the offering of
        the Shares.

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10.     Company covenants to defend and indemnify Silver State Bank as Escrow
        Agent, its directors, officers, employees and agents harmless from any
        and all losses, liabilities, claims, damages, costs or expenses
        (including without limitation reasonable attorney's fees and
        disbursements) suffered or incurred by it arising out of or in
        connection with Escrow Agent's status as a party to and in the
        administration of this Agreement (including but not limited to the costs
        and expenses of defending against any claim of liability in connection
        therewith), or in connection with Escrow Agent's performance (excluding
        breach of trust, gross negligence or willful misconduct) of any of the
        obligations hereunder, or Escrow Agent's action pursuant to any
        instruction received by Escrow Agent from any party hereto reasonably
        believed by Escrow Agent to have been properly given hereunder, without
        the necessity of making any investigation with respect thereto. Escrow
        Agent shall not be required to defend legal proceedings which may be
        instituted against it with respect to the subject matter of this
        Agreement or any written instructions, unless requested to do so by
        Company and indemnified to Escrow Agent's satisfaction against the cost
        and expense of such defense. Escrow Agent shall not be requested to
        institute legal proceedings of any kind.

11.     In the event of a dispute between the parties hereto or between any
        person or persons who have subscribed for Shares and delivered an
        instrument of payment therefor and the Company, the Manager, the Dealer
        Manager, or any participating broker-dealer sufficient in Silver State
        Bank's discretion to justify doing so, you shall be entitled to tender
        into the registry or custody of any court of competent jurisdiction of
        the State of Nevada all money or property in your hands under this
        Agreement, together with such legal pleadings as you deem appropriate,
        and thereupon be discharged from all further duties and liabilities
        under this agreement.

        In the event of any uncertainty as to Silver State Banks duties
        hereunder, you may refuse to act under the provisions of this Agreement
        pending order of such court of competent jurisdiction and you shall have
        no liability to the Company or to any other person as a result of such
        action. Any such legal action may be brought in such court as you shall
        determine to have jurisdiction thereof. The filing of any such legal
        proceedings shall not deprive you of your compensation earned prior to
        such filing.

12.     All written notices and letters required hereunder to you shall only be
        effective if delivered personally or by certified mail, return receipt
        requested to Silver State Bank, 400 N. Green Valley Parkway, Henderson,
        Nevada 89014, Attn: Peter Crapo. All written notices and letters
        required hereunder to the Company or the Dealer Manager shall only be
        effective if delivered personally or by certified mail, return receipt
        requested to Vestin Mortgage, Inc., Stephen J. Byrne, President, 2901 El
        Camino Ave., Suite 206, Las Vegas, Nevada 89120.

13.     This Agreement shall be governed by the laws of the State of Nevada as
        to both interpretation and performance.

14.     The provisions of this Agreement shall be binding upon the legal
        representatives, heirs, successors and assigns of the parties hereto.

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15.     The Company hereby acknowledges that Silver State Bank is serving as
        Escrow Agent only for the limited purposes herein set forth, and hereby
        agrees that it will not represent or imply that you, by serving as
        Escrow Agent hereunder or otherwise, have investigated the desirability
        or advisability of investment in the Company, or have approved, endorsed
        or passed upon the merits of the Shares or the Company. The Company
        further agrees to instruct the Dealer Manager, and each of its
        representatives, and any other representatives who may offer Shares to
        persons from time to time, that they shall not represent or imply that
        you have investigated the desirability or advisability of investment in
        the Company, or have approved, endorsed or passed upon the merits of the
        Shares or the Company, nor shall they use your name in any manner
        whatsoever in connection with the offer or sale of the Shares other than
        by acknowledgment that you have agreed to serve as Escrow Agent for the
        limited purposes herein set forth.

16.     This Agreement and any amendment hereto may be executed by the parties
        hereto in one or more counterparts, each of which shall be deemed to be
        an original.

17.     In the event that Silver State Bank receives instruments of payment (or
        wired funds) after the Required Proceeds have been received and the
        proceeds of the Escrow Account have been distributed to the Company, you
        are hereby authorized to deposit such instruments of payment to any
        deposit account as directed by the Company. The application of said
        funds into a deposit account directed by the Company shall be a full
        acquittance to you and you shall not be responsible for the application
        of said funds.

18.     Silver State Bank as the Escrow Agent shall be bound only by the terms
        of this Escrow Agreement and shall not be bound or incur any liability
        with respect to any other agreements or understanding between any other
        parties, whether or not the Escrow Agent has knowledge of any such
        agreements or understandings.

19.     Indemnification provisions set forth herein shall survive the
        termination of this Agreement.

20.     Upon acceptance and distribution of the Required Proceeds, this Escrow
        Agreement shall terminate and the Escrow Agent shall have no further
        responsibility or liability with regard to the terms of this Agreement.

21.     The Escrow Agent has no responsibility for accepting, rejecting or
        approving subscriptions.

22.     This Agreement shall not be modified, revoked, released or terminated
        unless reduced to writing and signed by all parties hereto, subject to
        the following paragraph.

        Should at any time, any attempt be made to modify this Agreement in a
        manner that would increase the duties and responsibilities of the Escrow
        Agent or to modify this Agreement in any manner which the Escrow Agent
        shall deem undesirable, or at any other time, the Escrow Agent may
        resign by notifying the Company in writing, by certified mail, and until
        (i) the acceptance by a successor escrow agent as shall be appointed by
        the Company; or (ii) thirty (30) days following the date upon which
        notice was mailed, whichever occurs sooner, the Escrow Agent's only
        remaining obligation shall be to perform its duties hereunder in
        accordance with the terms of the Agreement.

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23.     The Escrow Agent may resign at any time from its obligations under this
        Escrow Agreement by providing written notice to the Company. Such
        resignation shall be effective on the date specified in such notice,
        which shall be not less than thirty (30) days after such written notice
        has been given. The Escrow Agent shall have no responsibility for the
        appointment of a successor escrow agent. The Company shall within 20
        days designate a successor agent, the Escrow Agent shall promptly
        deliver all funds to the successor agent. Unless otherwise provided in
        this Agreement, final termination of this Escrow Agreement shall occur
        on the date all funds held in the Escrow Account are distributed either
        (a) to the Company pursuant to paragraph 6 hereof, (b) to subscribers
        pursuant to paragraphs 3 and 7 hereof, or (c) upon delivery of all funds
        to a successor agent as described herein. The Company shall give notice
        of the name and address of the successor agent to each subscriber.

24.     The Escrow Agent may be removed for cause by the Company by written
        notice to the Escrow Agent effective on the date specified in such
        notice. The removal of the Escrow Agent shall not derive the Escrow
        Agent of its compensation earned prior to such removal.

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Agreed to as of the 1st day of February, 2001

                                            VESTIN FUND II, LLC,
                                            A Nevada limited liability company

                                            By: Vestin Mortgage, Inc. (Manager)
Attest:                                         A Nevada corporation

By:                                         By:
  --------------------------------             ---------------------------------
Name: Michael Whiteaker                     Name: Steve Byrne

                                            Title: Chief Executive Officer

Agreed to as of the 1st day of February, 2001

                                            VESTIN , INC.,
Attest:                                     A Nevada corportation
                                            (Dealer Manager)

By:                                         By:
  --------------------------------             ---------------------------------
Name: Michael Whiteaker                     Name: Michael V. Shustek

                                            Title: President

The terms and conditions contained above are hereby accepted and agreed to as of
the ____ day of ______________, 2001 by:

                                            Silver State Bank,
Attest:                                     A Nevada State Bank

By:                                         By:
  --------------------------------             ---------------------------------
Name:                                       Name:

                                            Title:

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                                   Schedule A
                            to Bank Escrow Agreement

Fees subject to Silver State Bank's Master Disclosure Statement dated February
1, 2001. Fees may be waived if earnings credits exceed monthly expenses on the
account. This is determined by Account Analysis.

In addition, in the event that Silver State Bank is directed to refund a
subscribers funds, a fee of $25 per subscriber will be charged.ex10-36

Exhibit 10.36

RURAL/METRO CORPORATION

EMPLOYEE STOCK PURCHASE PLAN

(as amended through June 30, 2000)

ARTICLE I

Purpose

            1.1 Name. This Stock Purchase Plan shall be known as the
Rural/Metro Employee Stock Purchase Plan (the “Plan”).

            1.2 Purpose. The Plan is intended to provide a method whereby
employees of Rural/Metro Corporation, a Delaware corporation (the
“Company”), and one or more of its Subsidiary Corporations will have
an opportunity to acquire a proprietary interest in the Company
through the purchase of shares of the Common Stock of the Company.

            1.3 Qualification. It is the intention of the Company to have
the Plan qualify as an “employee stock purchase plan” under section
423 of the Internal Revenue Code of 1986, as amended (the “Code”).
The provisions of the Plan shall be construed so as to extend and
limit participation in a manner consistent with the requirements of
that section of the Code.

ARTICLE II

Definitions

            2.1 Base Pay. “Base Pay” shall mean the estimated annual
compensation of an Employee and (a) with respect to a salaried
Employee, shall be based on such Employee’s current annual salary
and (b) with respect to a hourly Employee, shall be based on such
Employee’s RHE times such Employee’s regular straight-time hourly
rate. Shift premium, bonuses, “skill-based” pay, and other special
payments, commissions (unless such commissions represent the primary
source of compensation, as determined by the Committee) and other
marketing incentive payments shall not be included in Base Pay. For
purpose of the foregoing, “RHE” for a full time Employee shall mean
the sum of (i) 2080 and (ii) 1.5 times the estimated number of
overtime hours to be worked annually and “RHE” for a part-time
Employee shall mean 1040. If any Offering is a six month Offering,
the Base Pay shall be divided by one-half.

            2.2 Committee. “Committee” shall mean the individuals described
in Article XI.

            2.3 Employee. “Employee” shall mean any person who is
customarily employed on a full-time or part-time basis by the
Company and is regularly scheduled to work more than 20 hours per
week.

            2.4 Participating Company. “Participating Company” shall mean
the Company and such Subsidiary Corporations as may be designated
from time to time by the Board of Directors of the Company.

            2.5 Stock. “Stock” shall mean the Common Stock of the Company,
par value one cent ($.01).

            2.6 Subsidiary Corporation. “Subsidiary Corporation” shall mean
any present or future corporation which would be a “subsidiary
corporation” of the Company, as that term is defined in Code section
424.

ARTICLE III

Eligibility and Participation

            3.1 Initial Eligibility. Any Employee who shall have completed
30 days of continuous employment with a Participating Company and is
employed by a Participating Company on the date such Employee’s
participation in the Plan is to become effective shall be eligible
to participate in Offerings under the Plan which commence on or
after such 30 day employment period has
concluded. Any Corporation which becomes a Subsidiary Corporation

after the initial Offering Commencement Date shall become a
Participating Company only upon the decision of the Board of
Directors of the Company to designate such Subsidiary Corporation
as a Participating Company and to extend the benefits of the Plan
to its eligible Employees. For any Subsidiary Corporation which
becomes a Participating Company in the Plan after July 1, 1994, a
subsequent effective date shall be designated with respect to its
participation by the eligible Employees of such Participating
Company.

            3.2 Leave of Absence. For purposes of participation in the Plan,
a person on leave of absence shall be deemed to be an Employee for
the first 90 days of such leave of absence and such Employee’s
employment shall be deemed to have terminated at the close of
business on the 90th day of such leave of absence unless such
Employee shall have returned to regular full-time or part-time
employment (as the case may be) prior to the close of business on
such 90th day. Termination by a Participating Company of any
Employee’s leave of absence, other than termination of such leave of
absence on return to full time or part time employment, shall
terminate an Employee’s employment for all purposes of the Plan and
shall terminate such Employee’s participation in the Plan and right
to exercise any option.

            3.3 Restrictions on Participation. Notwithstanding any
provisions of the Plan to the contrary, no Employee shall be granted
an option to participate in the Plan:

                        (a) if, immediately after the grant, such
Employee would own stock, and/or hold outstanding
options to purchase stock, possessing five percent or
more of the total combined voting power or value of all
classes of stock of the Company (for purposes of this
paragraph, the rules of section 424(d) of the Code shall
apply in determining stock ownership of any Employee);
or

                        (b) which permits such Employee’s rights
to purchase stock under all Employee stock purchase
plans of the Company and all Participating Companies to
accrue at a rate which exceeds $25,000 in fair market
value of the stock (determined at the time such option
is granted) for each calendar year in which such option
is outstanding.

            3.4 Commencement of Participation. An eligible Employee may
become a participant by completing the enrollment forms prescribed
by the Committee (including a purchase agreement and a payroll
deduction authorization) and filing such forms with the designated
office of the Company prior to the Offering Commencement Date for
the next scheduled Offering (as such terms are defined below).
Payroll deductions for a participant shall commence on the next
scheduled Offering Commencement Date when such Employee’s
authorization for a payroll deduction becomes effective and shall
continue in effect for the term of this Plan, except to the extent
such payroll deduction is changed in accordance with this Section
3.4 or terminated in accordance with Article VIII. The participant
may, at any time, increase or decrease the rate of the participant’s
payroll deduction by filing the appropriate form with the designated
office of the Company. The new rate shall become effective as of the
next applicable Offering Commencement Date.

ARTICLE IV

Offerings

            4.1 Annual Offerings. The Plan will be implemented by up to 10
annual offerings of the Company’s Common Stock (the “Offerings”)
beginning on the 1st day of July in each of the years 1994 through
2003, with each Offering terminating on June 30 of the following
year, provided, however, that each annual Offering may, in the
discretion of the Committee exercised prior to the commencement
thereof, be divided into two six-month Offerings commencing
respectively, on July 1 and January 1 and terminating six months
thereafter. The total number of shares issuable under the Plan shall
be 1,150,000. As used in the Plan, “Offering Commencement Date”
means the January 1 or July 1, as the case may be, on which the
particular Offering begins and “Offering Termination Date” means the
June 30 or December 31 as the case may be, on which the particular
Offering terminates. Any decision of the Committee to adjust the
number of shares in an Offering must be made prior to the Offering
Commencement Date of that Offering.

2

ARTICLE V

Payroll Deductions

            5.1 Percentage of Participation. At the time an Employee files
authorization for payroll deduction and becomes a participant in the
Plan, the Employee shall elect to have deductions made from the
Employee’s pay on each payday during the time the Employee is a
participant in an Offering. Such deductions shall be an amount equal
to the Employee’s Participation Amount divided by the number of
payroll periods occurring during the Offering. An Employee’s
“Participation Amount” shall equal the rate of 1, 2, 3, 4, 5, 6, 7,
8, 9 or 10 percent (as elected by the Employee) times such
Employee’s Base Pay in effect at the Offering Commencement Date of
such Offering; provided, however, that prior to any Offering
Commencement Date, the Committee shall have the discretion to limit
deductions to less than 10 percent (but no less than 5 percent) for
any Offering.

            5.2 Calculation of Base Pay. An Employee’s Base Pay of the date
of an Offering and whether an Employee is “part-time” shall be
determined in the discretion of the Company based on the provisions
of this Plan. In calculating an Employee’s normal weekly rate of pay
under this Section 6.1, retroactive adjustments occurring during an
Offering which are retroactive to the last day prior to the
Commencement Date of that particular Offering shall be taken into
account. In addition, if a participant’s Base Pay includes
commissions, then the Committee may set such Employee’s Base Pay
based upon averages and standards as determined in the discretion of
the Committee.

            5.3 Participant’s Account. All payroll deductions made for a
participant shall be credited to such Employee’s account under the
Plan. A participant may not make any separate cash payment into such
account except when on leave of absence and then only as provided in
Section 5.5.

            5.4 Changes in Payroll Deductions. A participant may discontinue
participation in the Plan as provided in Article VIII, but no other
change can be made during an Offering and, specifically, a
participant may not alter the amount of such participant’s payroll
deductions for that Offering.

            5.5 Leave of Absence. If a participant goes on a leave of
absence, such participant shall have the right to elect: (a) to
withdraw the balance in such participant’s account pursuant to
Section 8.1 hereof, or (b) to discontinue contributions to the Plan
but remain a participant in the Plan, or remain a participant in the
Plan during such leave of absence, authorizing deductions to be made
from payments by the Company to the participant during such leave of
absence and undertaking to make cash payments to the Plan at the end
of each payroll period to the extent that amounts payable by the
Participating Company to such participant are insufficient to meet
such participant’s authorized Plan deductions.

ARTICLE VI

Granting of Option

            6.1 Number of Option Shares. On each Offering Commencement Date,
a participating Employee shall be deemed to have been granted an
option to purchase a maximum number of shares of the Stock of the
Company equal to the Participation Amount (as defined in Section 5.1
hereof) divided by the Option Price of the stock of the Company on
the applicable Offering Commencement Date, determined as provided in
Section 6.2 hereof.

            6.2 Option Price. The Option Price of Stock purchased with
payroll deductions made during each Offering for a participant
therein shall be 85 percent of the closing price of the Stock on the
Offering Commencement Date or the nearest prior business day on
which trading occurred on the NASDAQ National Market; provided,
however, that for Offerings that commence on or after January 1,
1998, the Option Price shall be the lower of (a) 85 percent of the
closing price of the Stock on the Offering Commencement Date or the
nearest prior business day on which trading occurred on the NASDAQ
National Market; or (b) 85 percent of the closing price of the Stock
on
the Offering Termination Date or the nearest prior business day on
which trading occurred on the NASDAQ National Market.

3

ARTICLE VII

Exercise of Option

            7.1 Automatic Exercise. Unless a participant gives written
notice to the Company as hereinafter provided, such participant’s
option for the purchase of stock granted under Section 6.1 hereof
will be deemed to have been exercised automatically on the Offering
Termination Date applicable to such Offering for the purchase of the
number of full shares of Stock which the accumulated payroll
deductions in such Employee’s account at that time will purchase at
the applicable Option Price (but not in excess of the number of
shares for which options have been granted to the Employee pursuant
to Section 6.1 hereof), and any excess in such Employee’s account at
that time will be returned to the participant.

            7.2 Fractional Shares. Fractional shares will not be issued
under the Plan and any accumulated payroll deductions which would
have been used to purchase fractional shares will be, at the option
of the Committee, either (a) returned (without interest) to any
Employee promptly following the termination of an Offering, or (b)
added to the Participation Amount and held for the purchase of Stock
in connection with the next Offering; provided, however, that such
amount (without interest) shall be refunded to any Employee who
provides the Company with a written request for a refund prior to
the use of such amount to purchase Stock at the end of the next
Offering.

            7.3 Transferability of Option. During a participant’s lifetime,
options held by such participant shall be exercisable only by that
participant.

            7.4 Delivery of Stock. As promptly as practicable after the
Offering Termination Date of each Offering, the Company will deliver
to each participant, as appropriate, the Stock purchased upon
exercise of such Employee’s option. All Stock delivered to each
participant will contain a restriction stating that such Stock is
restricted from being transferred for a period of one year from the
date of issuance unless the Committee otherwise consents. It is not
the intention of the Committee to consent to transfers except in
extraordinary situations such as upon the death of a participant.
The Committee may withhold its consent to any such transfer in its
absolute and sole arbitrary discretion. Any transfer in violation of
the legend placed on each such stock certificate shall be void ab
initio. In no event, however, shall stock be forfeited for violation
of the transfer restriction.

ARTICLE VIII

Withdrawal

            8.1 In General. At any time prior to the last five days of an
Offering period, a participant may withdraw payroll deductions
credited to such participant’s account under the Plan by giving
written notice to the designated office of the Company, which
withdrawal notice shall be in form and substance as decided by the
Committee. All of the participant’s payroll deductions credited to
the participant’s account will be paid to the participant promptly
after receipt of such participant’s notice of withdrawal, and no
further payroll deductions will be made from the participant’s pay
during such Offering or during any subsequent Offering unless an
Employee re-enrolls as provided in Section 8.2 hereof. The Company
may, at its option, treat any attempt by a participant to borrow on
the security of such participant’s accumulated payroll deductions as
an election to withdraw such deductions.

            8.2 Effect on Subsequent Participation. A participant’s
withdrawal from any Offering will not have any effect upon such
Employee’s eligibility to participate in any succeeding Offering or
in any similar plan which may hereafter be adopted by the Company.
In order to be eligible for a subsequent Offering, however, a
participant who has withdrawn from an Offering must satisfy the
requirements of Section 3.4 hereof prior to the Offering
Commencement Date of the next succeeding Offering.

            8.3 Termination of Employment. Upon termination of the
participant’s employment for any reason, including retirement (but
excluding death or permanent disablement while in the employ of the
Company or continuation of a leave of absence for a period beyond 90
days), the payroll deductions credited to such Employee’s account
will be returned to the Employee, or, in the case of the Employee’s
death subsequent to the termination of such Employee’s employment,
to the person or persons entitled thereto under Section 12.1 hereof.

4

            8.4 Termination of Employment Due to Death. Upon termination of
the participant’s employment because of death or permanent
disablement, the participant or participant’s beneficiary (as
defined in Section 12.1 hereof) shall have the right to elect, by
written notice given to the designated office of the Company prior
to the earlier of the Offering Termination Date or the expiration of
a period of 60 days commencing with the termination of the
participant’s employment, either:

                        (a) to withdraw all of the payroll
deductions credited to the participant’s account under
the Plan, or

                        (b) to exercise the participant’s option
on the next Offering Termination Date and purchase the
number of full shares of stock which the accumulated
payroll deductions in the participant’s account at the
date of the participant’s cessation of employment will
purchase at the applicable option price, and any excess
in such account will be returned to said beneficiary,
without interest.

In the event that no such written notice of election shall be duly received by
the designated office of the Company, the beneficiary shall automatically be
deemed to have elected, pursuant to paragraph (b), to exercise the
participant’s option.

            8.5 Leave of Absence. A participant on leave of absence shall,
subject to the election made by such participant pursuant to Section
5.5 hereof, continue to be a participant in the Plan so long as such
participant is on continuous leave of absence. A participant who has
been on leave of absence for more than 90 days and who therefore is
not an Employee for the purpose of the Plan shall not be entitled to
participate in any Offering commencing after the 90th day of such
leave of absence. Notwithstanding any other provisions of the Plan,
unless a participant on leave of absence returns to regular full
time or part time employment with the Company at the earlier of: (a)
the termination of such leave of absence or (b) three months from
the 90th day of such leave of absence, such participant’s
participation in the Plan shall terminate on whichever of such dates
first occurs.

ARTICLE IX

Interest

            9.1 Payment of Interest. No interest will be paid or allowed on
any money paid into the Plan or credited to the account of any
participant Employee including any interest paid on any and all
money which is distributed to an Employee or such Employee’s
beneficiary pursuant to the provisions of Sections 8.1, 8.3, 8.4 and
10.1 hereof.

ARTICLE X

Stock

            10.1 Maximum Shares. The maximum number of shares which shall be
issued under the Plan, subject to adjustment upon changes in
capitalization of the Company as provided in Section 12.4 hereof,
shall be 1,150,000 shares. If the total number of shares for which
options are exercised on any Offering Termination Date in accordance
with Article VI exceeds the maximum number of shares for the
applicable Offering, the Company shall make a pro rata allocation of
the shares available for delivery and distribution in as nearly a
uniform manner as shall be practicable and as the Committee shall
determine to be equitable, and the balance of payroll deductions
credited to the account of each participant under the Plan shall be
returned to such participant as promptly as possible.

            10.2 Participant’s Interest in Option Stock. The participant will
have no interest in stock covered by such Employee’s option until
such option has been exercised.

            10.3 Registration of Stock. Stock to be delivered to a
participant under the Plan will be registered in the name of the
participant, or, if the participant so directs by written notice to
the designated office of the Company prior to the Offering
Termination Date applicable thereto, in the names of the participant
and one such other person as may be designated by the participant,
in the form and manner permitted by applicable law.

            10.4 Restrictions On Exercise. The Board of Directors may, in its
discretion, require as conditions to the exercise of any option that
the shares of Common Stock reserved for issuance upon the exercise
of the option

5

shall have been duly listed, upon official notice of
issuance, upon a stock exchange or the NASDAQ National Market, and
that either:

                        (a) a Registration Statement under the
Securities Act of 1933, as amended, with respect to said
shares shall be effective, or

                        (b) the participant shall have
represented at the time of purchase, in form and
substance satisfactory to the Company, that it is such
Employee’s intention to purchase the shares for
investment and not for resale or distribution.

ARTICLE XI

Administration

            11.1 Appointment of Committee. The Board of Directors shall
appoint a committee (the “Committee”) to administer the Plan, which
shall consist of no fewer than two (2) members of the Board of
Directors. Members of the Committee who are Employees shall be
eligible to purchase stock under the Plan.

            11.2 Authority of Committee. Subject to the express provisions of
the Plan, the Committee shall have plenary authority in its
discretion to interpret and construe any and all provisions of the
Plan, to adopt rules and regulations for administering the Plan, and
to make all other determinations deemed necessary or advisable for
administering the Plan. The Committee’s determination on the
foregoing matters shall be conclusive. The Committee may delegate
its authority as it deems necessary.

            11.3 Rules Governing the Administration of the Committee. The
Board of Directors may from time to time appoint members of the
Committee in substitution for or in addition to members previously
appointed and may fill vacancies, however caused, in the Committee.
The Committee may select one of its members as its Chairman and
shall hold its meetings at such times and places as it shall deem
advisable and may hold telephonic meetings. A majority of its
members shall constitute a quorum. All determinations of the
Committee shall be made by a majority of its members. The Committee
may correct any defect or omission or reconcile any inconsistency in
the Plan, in the manner and to the extent it shall deem desirable.
Any decision or determination reduced to writing and signed by a
majority of the members of the Committee shall be as fully effective
as if it had been made by a majority vote at a meeting duly called
and held. The Committee may appoint a secretary and shall make such
rules and regulations for the conduct of its business as it shall
deem advisable.

ARTICLE XII

Miscellaneous

            12.1 Designation of Beneficiary. A participant may file a written
designation of a beneficiary who is to receive any Stock and/or
cash. Such designation of beneficiary may be changed by the
participant at any time by written notice to the designated office
of the Company. Upon the death of a participant and upon receipt by
the Company of proof of identity and existence at the participant’s
death of a beneficiary validly designated by the participant under
the Plan, the Company shall
deliver such Stock and/or cash to such beneficiary. In the event of
the death of a participant and in the absence of a beneficiary
validly designated under the Plan who is living at the time of such
participant’s death, the Company shall deliver such Stock and/or
cash to the executor or administrator of the estate of the
participant, or if no such executor or administrator has been
appointed (to the knowledge of the Company), the Company, in its
discretion, may deliver such Stock and/or cash to the spouse or to
any one or more dependents of the participant as the Company may
designate. No beneficiary shall, prior to the death of the
participant by whom he has been designated, acquire any interest in
the Stock or cash credited to the participant under the Plan.

            12.2 Transferability. Neither payroll deductions credited to a
participant’s account nor any rights with regard to the exercise of
an option or to receive Stock under the Plan may be assigned,
transferred, pledged, or otherwise disposed of in any way by the
participant other than by will or the laws of descent and
distribution. Any such attempted assignment, transfer, pledge or
other disposition shall be without effect, except that the Company
may treat such act as an election to withdraw funds in accordance
with Article VIII.

6

            12.3 Use of Funds. All payroll deductions received or held by the
Company under this Plan may be used by the Company for any corporate
purpose and the Company shall not be obligated to segregate such
payroll deductions.

            12.4 Adjustment Upon Changes in Capitalization.

                        (a) If, while any options are
outstanding, the outstanding shares of Common Stock of
the Company have increased, decreased, changed into, or
been exchanged for a different number or kind of shares
or securities of the Company through reorganization,
merger, recapitalization, reclassification, stock split
(whether or not effected in the form of a stock
dividend), reverse stock split or similar transaction,
appropriate and proportionate adjustments may be made by
the Committee in the number and/or kind of shares which
are subject to purchase under outstanding options and on
the option exercise price or prices applicable to such
outstanding options. In addition, in any such event, the
number and/or kind of shares which may be offered in the
Offerings described in Article IV hereof shall also be
proportionately adjusted.

                        (b) Upon the dissolution or liquidation
of the Company, or upon a reorganization, merger or
consolidation of the Company with one or more
corporations as a result of which the Company is not the
surviving corporation, or upon a sale of substantially
all of the property or stock of the Company to another
corporation, the holder of each option then outstanding
under the Plan will thereafter be entitled to receive at
the next Offering Termination Date upon the exercise of
such option for each share as to which such option shall
be exercised, as nearly as reasonably may be determined,
the cash, securities and/or property which a holder of
one share of the Company’s Common Stock was entitled to
receive upon and at the time of such transaction. The
Board of Directors shall take such steps in connection
with such transactions as the Board shall deem necessary
to assure that the provisions of this Section 12.4 shall
thereafter be applicable, as nearly as reasonably may be
determined, in relation to the said cash, securities
and/or property as to which such holder of such option
might thereafter be entitled to receive.

            12.5 Amendment and Termination. The Board of Directors shall have
complete power and authority to terminate or amend the Plan;
provided, however, that the Board of Directors shall not, without
the approval of the stockholders of the Corporation (i) increase the
maximum number of shares which may be issued under the Plan (except
pursuant to Section 12.4 hereof); or (ii) amend the requirements as
to the class of Employees eligible to purchase stock under the Plan.
No termination, modification, or amendment of the Plan may, without
the consent of an Employee
then having an option under the Plan to purchase stock, adversely
affect the rights of such Employee under such option.

            12.6 Effective Date. The original Plan was effective as of July
1, 1994 and was thereafter approved by the holders of the majority
of the Common Stock present and represented at the annual meeting of
the shareholders held on December 8, 1994.

            12.7 No Employment Rights. The Plan does not, directly or
indirectly, create any right for the benefit of any Employee or
class of Employees to purchase any shares under the Plan, or create
in any Employee or class of Employees any right with respect to
continuation of employment by the Company, and it shall not be
deemed to interfere in any way with the Company’s right to
terminate, or otherwise modify, an Employee’s employment at any
time.

            12.8 Effect of Plan. The provisions of the Plan shall, in
accordance with its terms, be binding upon, and inure to the benefit
of, all successors of each Employee participating in the Plan,
including, without limitation, such Employee’s estate and the
executors, administrators or trustees thereof, heirs and legatees,
and any receiver, trustee in bankruptcy or representative of
creditors of such Employee.

            12.9 Governing Law. The law of the State of Arizona will govern
all matters relating to this Plan except to the extent it is
superseded by the laws of the United States.

7

	 	 	 	 
			RURAL/METRO CORPORATION, a Delaware corporation
	

			By:	/s/ Jack E. Brucker
				

			Its:	Chief Executive Officer
	 
	Attest:
	

	/s/ Louis G. Jekel
	

	Secretary

8

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