This agreement allowed former Arkansas governor Jim Guy Tucker to protect himself against further prosecution by independent counsel Kenneth Starr in return for a guilty plea to charges of defrauding the federal government by filing misleading bankruptcy papers. In return for the two dropped counts, the February 20, 1998 plea required that Tucker cooperate with Starr's Whitewater investigation and potentially to testify at trial for Starr. Since the plea, Tucker has appeared before Starr's Little Rock grand jury to give testimony, presumably about his knowledge of Arkansas land deals in which Tucker was involved and which may have included involvement by President Clinton or Hillary Rodham Clinton.

Tucker said he agreed to the plea in order to save himself a prison term, which he said would have been a "death sentence" due to his ailing health. He will likely receive probation instead and will have to pay some back taxes.

                         IN THE UNITED STATES DISTRICT COURT

                            EASTERN DISTRICT OF ARKANSAS

                                  WESTERN DIVISION









          UNITED STATES OF AMERICA



               V.



                                             No. LR-CR-95-117

          JIM GUY TUCKER



                                   PLEA AGREEMENT

               This Plea Agreement between the United States, by and

          through the Independent Counsel, KENNETH W. STARR, and his

          undersigned associates, and the Defendant, JIM GUY TUCKER and his

          attorneys, William H. Sutton and George D. Collins, is made

          pursuant to Rule 11(e)(1)(C) of the Federal Rules of Criminal

          Procedure.

               This Plea Agreement is entirely voluntary and represents the

          entire agreement between the United States and the Defendant

          regarding the Defendant's criminal liability in case No. LR-CR-

          95-117.

               This Plea Agreement resolves all of the Defendant's criminal

          liability involving those events set forth in the Indictment,

          including all criminal charges of conspiring to defraud the

          United States as set forth in Count Three.  Nothing herein shall

          limit or in any way waive or release any civil claim, demand or

          cause of action, whatsoever, of the United States or its agencies

          relating to the conduct of the Defendant set forth in the

          Indictment in this case.  This Agreement is limited to matters

          within the jurisdiction of the Independent Counsel, and cannot

          bind other federal, state, or local prosecuting, administrative,

          or regulatory authorities except as expressly set forth in this

          Agreement.

               Upon the entry of the guilty plea to Count Three of this

          Indictment, the United States agrees that there will be no

          further federal criminal charges brought against the Defendant,

          JIM GUY TUCKER, provided he complies with all the conditions set

          forth in this agreement.

               Further, the United States agrees in the event Mr. Tucker's

          conviction in the first case, U.S. v. McDougal, Tucker &

          McDougal, Case No. LR-CR-95-173, is reversed on appeal, there

          will be no retrial as to Mr. Tucker.

               The United States and the Defendant, JIM GUY TUCKER, and his

          attorneys, William H. Sutton and George B. Collins, agree upon

          the following:

                    1.   The Defendant will enter a plea of guilty to Count

          Three of the Indictment in this case.  Upon sentencing of the

          Defendant an Count Three of the Indictment, the United States

          will move to dismiss Counts One and Two of the Indictment.

                    2.   The Defendant will plead guilty because he is in

          fact guilty of the charge contained in Count Three of the

          Indictment.

                    3.   The Defendant understands that Count Three of the

          Indictment to which he will plead guilty carries a maximum

          statutory penalty of five years imprisonment; a fine of

          $250,000.00, or an alternative fine based on gain or loss; three

          years of supervised release; and any restitution ordered by the

          Court.

                    4.   The Defendant agrees to fully and completely

          cooperate with the United States and provide complete, accurate

          and truthful information and testimony as to any matter within

          the jurisdiction of the Office of the Independent Counsel before

          any trial jury or grand jury if called as a witness before su@h

          tribunal.  The Defendant will provide this cooperation on a

          continuing basis for as long a time as it may be needed, and his

          continuing cooperation is required for his compliance with the

          Agreement.  The Defendant will neither attempt to protect any

          person or entity through false information or omission, nor

          falsely implicate any person or entity.  The Defendant will, at

          all times, tell the truth in any interviews, or as a witness,

          regardless of who asks the questions.  The Defendant understands

          that a failure to provide complete and truthful information and

          testimony would be a breach of this Plea Agreement and that a

          false statement under oath would subject him to prosecution for

          perjury.

                    5.   The Defendant agrees to continue to provide

          truthful information and will provide full and complete

          cooperation, as set forth in paragraph 4 above.  It is

          anticipated that such cooperation by the Defendant may include

          testifying truthfully in any trial of his co-defendant in this

          case.  It is further anticipated that the value of said

          cooperation, not only as to this case but also as to other

          matters within the Independent Counsel's jurisdiction, will

          constitute substantial assistance to the United States.  In that

          event, the United States will move pursuant to Section 5K.1.1 for

          a downward departure from the Sentencing Guidelines to the extent

          set forth in paragraph 8 of this Agreement.

                   6.   In the event the Defendant JIM GUY TUCKER does not

          complete his cooperation as described herein, the United States

          shall have the right to terminate this Agreement and to re-

          instate all Counts of the Indictment in LR-CR-95-117, and

          Defendant JIM GUY TUCKER shall and does hereby waive any claim

          under any statute of limitations to the continued prosecution of

          LR-CR-95-117.

                   7.   The Defendant understands and agrees that should

          he violate this Agreement or any provision thereof, or withdraw

          his guilty plea that any statements by him made during interviews

          with Government agents and plea negotiations shall be admissible

          for impeachment purposes should he later testify, at his criminal

          trial on this Indictment, but not otherwise.

                   8.   The Defendant agrees to cooperate with the

          Internal Revenue Service to ascertain and collect any and all

          income tax liabilities for 1988, and will undertake to pay all

          appropriate taxes, interest and penalties determined to be due

          and owing the Internal Revenue Service.  The Defendant further

          agrees to provide to the United States and the United States

          Probation Office a complete financial disclosure, and further

          agrees not to assert the bar of the statute of limitations

          against the assessment and collection of any income tax

          liabilities for the years 1988.  Nothing in this Agreement shall

          limit the Internal Revenue Service in its assessment and

          collection of said taxes, interest, or penalties from the

          Defendant.

                     9.   Pursuant to Federal Rule of Criminal Procedure

          ii(e)(1)(C), it is agreed by the United States, and by the

          Defendant, and his attorneys, that upon the entry of a plea of

          guilty to Count Three of the Indictment, the following sentence

          is the appropriate disposition in this case as to the Defendant:

                          a.  The Defendant shall be placed on probation

          for a term to be determined by the Court.  In view of the fact

          that the defendant has just completed a period of 18 months home

          detention in Case No. LR-CR-95-173, there shall be no additional

          home confinement.

                          b.  The Defendant shall be subject to such fine

          as may be imposed by the Court, in accordance with the Sentencing

          Guidelines with a payment schedule to be determined by the United

          States Probation Office; and

                          C.  The Defendant shall be ordered to pay

          restitution in an amount consistent with paragraph d. below.

                          d.  The Defendant understands and agrees that the

          Court shall impose an Order of Restitution based on the loss

          sustained by the United States as a result of the offense to

          which the Defendant has agreed to plead guilty.  The United

          States and the Defendant agree that Defendant should not be

          liable for payment of the full amount of loss sustained by the

          United States, but that he should be liable for an appropriate

          portion of such loss.  In accordance with 18 U.S.C §§ 3663,

          3664(h) and U.S.S.G. Section 5El.l, the parties agree that such

          appropriate portion, to be determined by the Court, will reflect

          Defendant's level of contribution to the Government's loss of tax

          revenue pursuant to Count Three of the Indictment and the

          economic circumstances of the Defendant.  Such appropriate

          portion, however, will not exceed the tax benefit gained by the

          Defendant as a result of the offense contained in Count Three of

          the Indictment.

                    10. The Defendant understands that in accordance with

          Title 18, U.S.C. § 3013, upon entry of judgment of conviction for

          Count Three, the Defendant will be assessed $50.00, in addition

          to any other penalty imposed.

                    11.  The Defendant may travel during the period of his

          probation in connection with his business out of the Eastern

          District of Arkansas, including travel to foreign countries.

                    12. Sentencing in this matter will be scheduled in

          accordance with the normal timing of dispositions in criminal

          cases in this District.

                    13. The United States agrees that the Defendant's

          present bond arrangements should be continued pending sentencing.

                    14. If the Court refuses to accept this Plea Agreement

          and the Defendant's plea of guilty to Count Three of the

          Indictment, this Agreement shall become null and void and neither

          party will be bound hereto.  The parties agree that in such event

          all statements made by the Defendant, in conjunction with the

          negotiations of this Agreement, or during his cooperation with

          the United States as set forth in paragraph 4 above will be

          inadmissible against the Defendant in any subsequent criminal,

          civil or administrative proceeding, including for impeachment

          purposes.



                    15. The Defendant acknowledges that he has read this

          Agreement and carefully reviewed each provision with his

          attorneys.  The Defendant further acknowledges that he fully

          understands and voluntarily accepts each and every term and

          condition of this Agreement.





                         AGREED THIS DATE: February 20, 1998



          KENNETH W. STARR

          Independent Counsel

          By:







          W. Hickman Ewing, Jr.               JIM GUY TUCKER

          Deputy Independent Counsel           Defendant









          Thomas W. Dawson                    William H. Suttorf

          Associate Independent Counsel       Attorney for Defendant











          Mark Barrett                         George B. Collins

          Associate Independent Counsel      Attorney for Defendant