V.R. DeAngelis M.D.P.C. & R.T. Domingo M.D.P.C., V. R. DeAngelis M.D.P.C., Tax Matters Partner, et al. - Page 17

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               Section 3.3 states that an employer shall elect in the                 
          adoption agreement either a “fixed benefit” or a “flexible                  
          benefit”.  As to a fixed benefit, section 3.3 states that the               
          benefit payable to a covered employee shall equal the sum of the            
          future service component for each year of participation plus the            
          past service component.  The future service component equals for            
          each year of participation the amount of that year’s                        
          “Compensation [defined as the “amount specified by the Employer             
          in the Adoption Agreement”] multiplied by the Severance Benefit             
          percentage elected by the Employer in the Adoption Agreement”.              
          The past service component equals the product of (1) the benefit            
          percentage elected by the employer in the adoption agreement,               
          (2) a fraction not to exceed 1, the numerator of which is the               
          covered employee’s past service and the denominator of which is             
          10, and (3) the covered employee’s total compensation for the               
          10 years preceding the year of termination of employment.                   
               As to a flexible benefit, section 3.3 allows a different               
          percent of compensation to be elected for each year of service              
          and states that the formula for computing a severance benefit is            
          made applicable to the employer’s contribution each year.  In               
          addition, there is a provision for adjustments each year based on           
          benefits provided to other employees, forfeitures, investment               
          earnings, and cost of insurance for the covered employee.                   

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