<PAGE>
 
                                                                   EXHIBIT 10.16



                                  Mohegan Sun
                      401(k) Savings and Investment Plan
                           Summary Plan Description
<PAGE>
 
                               TABLE OF CONTENTS

<TABLE> 
<S>                                                                     <C> 
INTRODUCTION TO YOUR PLAN                                               3

GENERAL INFORMATION ABOUT YOUR PLAN                                     4

ELIGIBILITY AND PARTICIPATION                                           5

  ELIGIBILITY                                                           5
  PARTICIPATION REQUIREMENTS                                            5
  ENTRY DATE                                                            5

YOUR CONTRIBUTIONS TO THE PLAN                                          5

  COMPENSATION                                                          5
  ELECTIVE DEFERRALS                                                    5

YOUR EMPLOYER'S CONTRIBUTIONS TO THE PLAN                               6

  EMPLOYER MATCHING CONTRIBUTIONS                                       6
  EMPLOYER PROFIT SHARING CONTRIBUTIONS                                 6

BENEFITS UNDER YOUR PLAN                                                8

  NORMAL RETIREMENT AGE                                                 8
  DISABILITY                                                            8
  IN-SERVICE DISTRIBUTIONS                                              8
  HARDSHIP WITHDRAWALS                                                  8

STATEMENT OF ERISA RIGHTS                                              13

CLAIMS PROCEDURES                                                      14

PENSION BENEFIT GUARANTY CORPORATION:                                  14
</TABLE> 

                                       2
<PAGE>
 
                           INTRODUCTION TO YOUR PLAN

Your Employer has instituted this Plan to reward efforts made by Employees who
contribute to the overall success of the Company. The Plan is exclusively for
the benefit of Participants and their Beneficiaries. The purpose of the Plan is
to help you build financial security for your retirement and to help protect you
and your Beneficiaries in the event of your death or Disability.

This Plan is a 401(k) plan. It offers you a built in savings system through
pre-tax payroll deductions. It also offers attractive tax advantages, the
freedom to choose investments according to your needs, the flexibility to change
your investments as your needs change, and a way to build capital for a secure
retirement.

Under the terms of this Plan, you may choose to defer a portion of your current
salary, which your Employer then contributes to the plan on a pre-tax basis.
Contributions are not subject to Federal income tax, and in most cases are also
exempt from state or local income taxes. Since your contributions are not
subject to Federal income tax, your taxable income is reduced.

The laws governing plans like this one contain many provisions that may affect
your retirement. You should contact your Plan Administrator with any questions
about the Plan before you make any decisions related to your retirement. For
specific tax advice, you should contact your tax advisor.

This Summary Plan Description (SPD) summarizes the key features of your Plan,
and your rights, obligations and benefits under the Plan. Some of the statements
made in this SPD are dependent upon this Plan being "qualified", or approved by
the Internal Revenue Service. Please contact your Plan Administrator with any
questions you may have after you have read this summary.

Every effort has been made to make this description as accurate as possible.
However, this booklet is not a Plan document. This SPD is not meant to
interpret, extend, or change the provisions of the Plan in any way. The terms of
the Plan are stated in and will be governed in every respect by the Plan
document. Your right to any benefit depends on the actual facts and the terms
and conditions of the Plan document, and no rights accrue by reason of any
statement in this summary. A copy of the Plan document is available at the
principal office of your Employer for inspection. You, your Beneficiaries, or
your legal representatives may request to inspect the Plan Document at any
reasonable time.

                                       3
<PAGE>
 
                      GENERAL INFORMATION ABOUT YOUR PLAN

EMPLOYER/PLAN SPONSOR            Mohegan Tribal Gaming Authority dba Mohegan Sun
AND PLAN ADMINISTRATOR           Mohegan Sun Boulevard
                                 Uncasville, CT  06382
                                 (860) 204-7800

EMPLOYER'S TAX ID NUMBER:        06-1436334

PLAN TRUSTEE(S):                 MERRILL LYNCH TRUST COMPANY
                                 300 Davidson Avenue
                                 2nd Floor West
                                 Somerset, New Jersey  08873

PLAN NAME:                       Mohegan Sun 401(k) Savings and Investment Plan
PLAN NUMBER:                     001

PLAN EFFECTIVE DATE:             February 10, 1997

PLAN TAX YEAR:                   January 1st through December 31st
PLAN YEAR END:                   December 31st

TYPE OF RECORDKEEPING:           Contract Administration

TYPE OF PLAN:                    401(k) with profit sharing.

The Plan Administrator keeps the records for the Plan, and is responsible for
the interpretation and administration of the Plan. All Plan Records will be kept
on the basis of the Plan Year. The Plan Administrator may hire a third party
record keeper to perform the administrative functions of the Plan. If you have
question about the Plan you should write to the Plan Administrator. The Plan
Administrator and the Trustees are designated as the Agents for Service of Legal
Process.

                                       4
<PAGE>
 
                         ELIGIBILITY AND PARTICIPATION

ELIGIBILITY:                   All Employees of the Employer are eligible to
                               participate in this Plan.

PARTICIPATING AFFILIATES:      The Mohegan Tribe of Indians of Connecticut and
                               such other affiliated entities as may adopt the
                               plan with the approval of the sponsor.

PARTICIPATION REQUIREMENTS:    If you are not excluded from participation due to
                               the above, you will become eligible to
                               participate upon attaining age 18 and completing
                               1/4 of a Year of Service.

                               Since the service requirement is less than one
                               year, you are not required to complete a specific
                               number of Hours of Service during the service
                               period. Instead, your service will be measured by
                               the length of time you are employed. You will
                               become eligible to participate in the Plan on
                               your 3 month anniversary of your date of hire.
                               For example: If your Date of Hire is 1/1/97, you
                               will become eligible to participate in the Plan
                               on 4/1/97.

                               If you do not meet the eligibility requirements,
                               you will not be eligible to participate in the
                               Plan.

ENTRY DATE:                    You will become a Participant in the Plan on the
                               Entry Date coincident with or next following the
                               date you meet the participation requirements. The
                               initial Entry Date will be the 10th day of
                               February and thereafter the Entry Dates will be
                               the first day of the first and seventh month of
                               the Plan Year.

                        YOUR CONTRIBUTIONS TO THE PLAN

COMPENSATION:                  Compensation means the total salary or wages paid
                               to you as shown on your W-2, excluding bonuses.
                               Compensation is limited to a maximum of $160,000*

                               For the first year you participate in the Plan,
                               only Compensation earned after your Entry Date
                               will be used to determine your share of your
                               Employer's Contribution.

ELECTIVE DEFERRALS:            15% of Annual Compensation, to a maximum of
                               $9,500* per calendar year.

                               * Adjusted periodically for cost of living by the
                               IRS.

                                       5
<PAGE>
 
                                   This limitation is an aggregate limit that
                                   applies to all deferrals you make to this
                                   Plan and to any other Elective Deferral plan,
                                   including tax sheltered annuity contracts,
                                   simplified pension plans, or other 401(k)
                                   Plans.

MAKING AND MODIFYING 401(K)        You may discontinue deferrals at any time,
ELECTIONS:                         upon written notice to the Plan
                                   Administrator. Your instructions to cease
                                   Elective Deferrals will be implemented as of
                                   the first payroll period following the date
                                   you notified your Plan Administrator.

                                   To resume your Elective Deferral
                                   Contribution, you must provide written notice
                                   to your Plan Administrator, and wait until
                                   the next quarterly interval.

                                   You may increase or decrease your Elective
                                   Deferral Contribution Percentage at quarterly
                                   intervals throughout the Plan Year.

INVESTMENT OF CONTRIBUTIONS:       As a Participant in this Plan, you direct the
                                   investment of your account(s) Your Plan
                                   provides a menu of investment options from
                                   which you may select your investments. You
                                   may modify your investment elections,
                                   transfer existing account balances, and
                                   obtain information regarding your investments
                                   on a daily basis.

You should be aware that your investment decisions will ultimately affect the
retirement benefits to which you will become entitled. Your Employer and the
Plan Trustee(s) cannot provide you with investment advice, nor are they
obligated to reimburse any participant for any investment loss that may occur as
a result of his or her investment decisions. There is no guarantee that any of
the investment options available in this Plan will retain their value or
appreciate.

                   YOUR EMPLOYER'S CONTRIBUTIONS TO THE PLAN

EMPLOYER MATCHING CONTRIBUTIONS:   Your Employer may make a contribution to the
                                   Plan known as a 401(k) Matching Contribution.
                                   Your Employer's 401(k) Matching Contribution,
                                   if any, will be an amount not to exceed 50%
                                   of the first 4% of your Compensation
                                   contributed as an Elective Deferral.
                 
ELIGIBILITY FOR EMPLOYER MATCHING  Any Participant who makes an Elective
CONTRIBUTIONS:                     Deferral Contribution will be eligible to
                                   receive an Employer Matching Contribution.

                              
EMPLOYER PROFIT SHARING            Your Employer may make a contribution to the
CONTRIBUTIONS:                     plan known as a Profit Sharing Contribution.
                                   Your share of the Employer's Profit Sharing
                                   Contribution, if any, will be allocated to
                                   your account based on the ratio that your
                                   Compensation bears to the total Compensation
                                   of all Participants eligible for a share of
                                   this Contribution.

                                       6
<PAGE>
 
ELIGIBILITY FOR EMPLOYER PROFIT SHARING    Any Participant who is employed on
CONTRIBUTIONS:                             the last day of the Plan Year will be
                                           eligible to receive an Employer
                                           Profit Sharing Contribution.

                                           Any Participant who is on a leave of
                                           absence on the last day of the Plan
                                           Year will be eligible to receive an
                                           Employer Profit Sharing Contribution.

                                           In addition, any Participant who
                                           died, retired, or became Disabled
                                           during the Plan Year will receive an
                                           Employer Profit Sharing Contribution,
                                           if any.

VESTING:                                   Vesting means that for each Year of
                                           Service you complete, you become
                                           entitled to all or a portion of your
                                           Employer Contributions Account(s).
                                           For purposes of determining your
                                           vested account balance, all of your
                                           Years of Service, beginning on your
                                           date of hire, will be counted.

YEAR OF SERVICE FOR VESTING DEFINED:       You will have completed a Year of
                                           Service for vesting purposes on each
                                           anniversary of your date of hire with
                                           your Employer.

VESTING OF ELECTIVE DEFERRALS:             You are always 100% vested in your
                                           Elective Deferrals.

VESTING SCHEDULE FOR EMPLOYER 401(K) MATCHING AND PROFIT SHARING CONTRIBUTIONS

                  YEARS OF SERVICE                VESTED PERCENTAGE
                         1                                20%      
                         2                                40%      
                         3                                60%      
                         4                                80%      
                         5                               100%      

If this is an amended or restated Plan, your vested percentage cannot be less
than your vested percentage prior to the amendment or restatement of this Plan.

FORFEITURES:                               If you terminate service prior to
                                           being fully vested in your Employer
                                           Contribution Account(s), you forfeit
                                           the amount in which you are not
                                           vested. Forfeitures of Employer
                                           Matching Contributions will be used
                                           to reduce future Employer
                                           Contributions to the Plan.
                                           Forfeitures of Employer Profit
                                           Sharing Contributions will be
                                           reallocated among remaining
                                           Participants.

                                       7
<PAGE>
 
                           BENEFITS UNDER YOUR PLAN

NORMAL RETIREMENT AGE:                  Your Normal Retirement Age is the later
                                        of age 65 or your age after completing 5
                                        years of Plan participation. Your Normal
                                        Retirement Date is the first day of the
                                        month following attainment of Normal
                                        Retirement Age with your Employer. You
                                        will be 100% vested in your Employer
                                        Contribution Account(s) upon your Normal
                                        Retirement Date.

                                        You are 100% vested in your Employer
                                        Contribution Account(s) upon your Normal
                                        Retirement Date.

DISABILITY:                             You will be considered to be disabled if
                                        your injury or medical condition causes
                                        you to be unable to perform your usual
                                        and customary duties for your Employer
                                        for a continuous period of at least
                                        twelve months. Benefit payments will
                                        begin as soon as feasible after your
                                        Disability Retirement Date.

                                        You are 100% vested in your Employer
                                        Contribution Account(s) if you are
                                        deemed disabled.

IN-SERVICE DISTRIBUTIONS:               As an active Participant in the Plan,
                                        you may, upon attaining age 59 1/2,
                                        submit a written application to the Plan
                                        Administrator to withdraw all or a
                                        portion of your vested account balance.

HARDSHIP WITHDRAWALS                    As an active Participant in the Plan,
                                        you may submit a written application to
                                        the Plan Administrator for a hardship
                                        withdrawal, if you are experiencing an
                                        immediate and heavy financial need.


              

EVENTS WHICH QUALIFY FOR A HARDSHIP     1. To cover medical expenses incurred by
DISTRIBUTION:                           you, your spouse or your dependents;

                                        2. For the purchase of a principal
                                        residence (excluding mortgage payments);

                                        3. For the payment of post-secondary 
                                        education tuition expenses;

                                        4. For the payment of amounts necessary 
                                        to prevent eviction from or foreclosure
                                        on your principal residence.

                                        All other forms of financial assistance
                                        must be explored and exhausted before a
                                        Hardship Distribution can me made.


If you take a hardship withdrawal, your Elective Deferral Contributions will be
suspended for a period of twelve months following the date of the withdrawal.
                              

TAX CONSEQUENCES FOR RECEIVING A        Distribution or withdrawal of your pre-
DISTRIBUTION OR WITHDRAWAL:             tax contributions or earnings on your
                                        pre-tax contributions may be subject to
                                        ordinary income taxes or early
                                        distribution penalties. Please consult
                                        your tax advisor prior to taking any
                                        distribution or withdrawal

                                       8
<PAGE>
 
LOAN AVAILABILITY:                 An active Participant in the Plan may request
                                   a loan from the Plan. A loan allows you to
                                   borrow money from your account without
                                   incurring a penalty. You must repay the loan
                                   with interest, on an after tax basis, usually
                                   through payroll deduction.

                                   Once you request a loan, your Employer is
                                   required to approve the loan. After approval,
                                   you will receive a check with an attached
                                   promissory note. By endorsing the check, you
                                   agree to the terms and repayment conditions
                                   in the promissory note.

                                   As an active Participant in the Plan, you may
                                   request a loan from


LOAN REQUIREMENTS:                 1. Loans are available to all participants
                                   in the Plan on a uniform and
                                   nondiscriminatory basis.

                                   2. Loans must bear a reasonable rate of
                                   interest.

                                   3. The loan must be adequately secured.

                                   If you are married at the time of your death,
                                   your surviving spouse is your Beneficiary
                                   unless:

                                   .  You elect otherwise in writing (with the
                                      consent of your spouse); 
                                   .  You establish to the satisfaction of the
                                      Plan Administrator that your spouse cannot
                                      be located.

                                   If you want to designate a Beneficiary other
                                   than your spouse, (an "alternate
                                   Beneficiary") you must do so on a form
                                   provided by the Plan Administrator. You may
                                   revoke or change this designation at any time
                                   by filing written notice with the Plan
                                   Administrator, however, your spouse must
                                   consent, in writing, to any alternate
                                   Beneficiary. Your spouse's consent must be
                                   witnessed by a Notary Public or Plan
                                   official.

                                   It is important that you notify the Plan
                                   Administrator of any change in your marital
                                   status.

LOAN LIMITATIONS:                  You may borrow any amount up to 50% of your
                                   vested account balance. However, your loan
                                   can be no more than $50,000 minus your
                                   highest outstanding loan amount during the
                                   prior 12 months.

LOAN REPAYMENTS:                   Repayment of a loan must be made at least
                                   quarterly, on an after-tax basis, in level
                                   payments of principal and interest, and
                                   repaid within five years, except for the
                                   purchase of a primary residence.

                                       9
<PAGE>
 
DISTRIBUTIONS UPON DEATH:          If death occurs before Retirement Benefits
                                   begin, your Beneficiary may choose to defer
                                   payment, or to receive payment based on the
                                   following general guidelines:

                                   .  If death occurs before Retirement Benefits
                                      begin, your Beneficiary may choose to
                                      defer payment, or to receive payment based
                                      on the following general guidelines:

                                   .  Payment may be made in the form of a life
                                      annuity for Participants who transferred
                                      money from a prior plan where this option
                                      was available,

                                   .  Payment may be made in installments
                                      payable in cash or in kind, or part in
                                      cash and part in kind over a period not to
                                      exceed your lifetime, or the joint
                                      lifetime of you and your spouse,

                                   .  The entire sum must be distributed no
                                      later than the last day of the year of the
                                      fifth anniversary of your death, if your
                                      Beneficiary is not your surviving spouse,

                                   .  If your Beneficiary is your spouse,
                                      payment may be postponed until December
                                      31st of the calendar year in which you
                                      would have attained age 65,

                                   .  Payment may be made in installments, as
                                      described above, beginning on or before
                                      the December 31st following the year in
                                      which you die.

If death occurs after Retirement Benefits begin, but before your entire
Retirement Benefit has been paid, the remaining portion of your Retirement
Benefit will continue in the same form and for the same period as you originally
elected. In any case, payments will continue to be made at least as rapidly as
such payment were being made prior to your death.

                                   If you fail to designate an alternate
                                   Beneficiary, or your alternate Beneficiary
                                   does not survive you, the benefit payable
                                   from this Plan as a result of your death will
                                   be payable to your Surviving Spouse, or if
                                   you have no Surviving Spouse, the death
                                   benefit will be paid to your estate.

                                   If the value of your account is $3,500 or
                                   less, death benefits will be distributed to
                                   your Beneficiary without your Beneficiary's
                                   consent as soon as practicable following your
                                   death.

FORMS OF BENEFIT:                  The normal form of payment with respect to
                                   your vested account balance under this Plan
                                   is a lump sum. If your account balance is
                                   $3,500 or less, you will receive a lump sum
                                   distribution as soon as feasible following
                                   the date you terminated employment. If your
                                   account balance is greater than $3,500, you
                                   (and your spouse, if applicable) must give
                                   written consent before the distribution can
                                   be made.

                                      10
<PAGE>
 
                                   An optional form of payment with respect to
                                   your vested account balance is installments
                                   payable in cash or in kind, or part in cash
                                   and part in kind over a period not to exceed
                                   your lifetime, or the joint lifetime of you
                                   and your spouse.

                                   If you transferred money from a prior plan,
                                   another form of benefit may be available. You
                                   should consult with your tax advisor
                                   regarding those options.

You may request that all or part of any taxable distribution you receive from
the Plan, other than an annuity, installments paid over 10 or more years, or
required distributions after age 70 1/2, be rolled over directly from the
Trustees to the trustee or custodian of an eligible retirement plan. For this
purpose, an "eligible retirement plan" includes an individual retirement account
of annuity, or your new employer's qualified plan, if the plan accepts
rollovers. The Plan Administrator will notify you if any amount to be
distributed to you is an eligible rollover distribution. Special tax withholding
rules apply to any portion of the eligible rollover distribution which is not
rolled over directly to an eligible retirement plan.

TOP HEAVY DEFINED:                 A plan becomes Top-Heavy when 60% or more of
                                   the Plan's assets are allocated to Key
                                   Employees. Key Employees are certain owners
                                   or officers of your Employer. If the Plan
                                   becomes Top Heavy certain rules apply

TOP HEAVY RULES:                   A minimum contribution will be required to
                                   non key employees. This contribution is the
                                   lesser of:

                                   .  three percent (3%) of Compensation; or 
                                   .  the largest percentage of Compensation
                                      contributed by the Employer on behalf of
                                      key employees.
                                   .  If you are a Participant in more than one
                                      Plan maintained by your Employer, you may
                                      not be entitled to minimum benefits in
                                      more than one plan.

VESTING SCHEDULE FOR TOP-HEAVY:    Vesting schedule outlined earlier will apply.

ROLLOVERS OR TRANSFERS:            .  You must submit a written request to your
                                      Plan Administrator, who will determine
                                      whether a rollover or transfer is
                                      acceptable;

                                   .  You may make such a contribution to this
                                      Plan prior to being eligible for the Plan;

                                   .  Any amount rolled over or transferred to
                                      this Plan cannot include personal IRA
                                      contributions;

                                   .  Prior to making a rollover or transfer,
                                      you should consult with your tax advisor.

PERIOD OF SEVERANCE:               Under the elapsed time method, your Years of
                                   Service for vesting purposes run from the
                                   date you first perform an Hour of Service for
                                   your Employer until your severance from
                                   service date. A Period of Severance begins on
                                   the earlier of:

                                   .  The date you quit, retire, are discharged,
                                      or die.

                                      11
<PAGE>
 
                                      OR

                              .  The first anniversary of the first date of a
                                 period in which you remain absent from service
                                 with your Employer (with or without pay) for
                                 any reason other than quitting, retirement,
                                 discharge, or death. These reasons include
                                 vacation, holiday, sickness, disability, leave
                                 of absence, or layoff.

                              .  If you are absent on military leave, you will
                                 not be considered to have a Period of Severance
                                 if you return to work within 90 days of your
                                 release from military duty, or any longer
                                 period during which your reemployment rights
                                 are protected by law.

                              If you are on an authorized leave of absence (in
                              accordance with standard personnel policies), you
                              will not be considered to have a Period of
                              Severance if you return to work immediately upon
                              the expiration of such leave of absence. If you
                              are on a leave of absence because of maternity or
                              paternity, the second anniversary of the first
                              date of your leave, if you remain absent from
                              service with your Employer. For example, if you
                              went on maternity leave on October 1, 1995, you
                              would not be considered to have severed service
                              with your Employer if you returned to work and
                              performed an Hour of Service before October 1,
                              1997. If you did not return to work on or before
                              October 1, 1997, you would incur a Period of
                              Severance.

                              If you are reemployed after you incur a Period of
                              Severance and you were vested when you terminated
                              employment, upon your reemployment, you will be
                              immediately eligible for the Plan, and you will be
                              vested at the same percentage as when you left.

                              If you are reemployed after you incur a Period of
                              Severance and you were not vested when you
                              terminated employment, you will lose credit for
                              service you completed prior to your termination if
                              your absence is five years or longer.

                              If you are reemployed within five years after you
                              incur a Period of Severance, and you received a
                              full or partial distribution (including a "deemed"
                              distribution if you had a $0 account balance), you
                              may return as a Participant at the same vested
                              percentage as when you left, provided you repay
                              the amount distributed to you within five years of
                              the date you are reemployed. After repayment, your
                              account balance will be restored to its original
                              amount as though there had been no distribution,
                              and any amount forfeited when you left will be
                              replaced by your Employer.

                              If you are reemployed after you incur a five-year
                              Period of Severance, you will not be given the
                              opportunity to repay the

                                      12
<PAGE>
 
                                      amount distributed to you and your vested
                                      percentage will be determined based on
                                      your Years of Service beginning on your
                                      date of reemployment.

                                      If you terminate service prior to becoming
                                      a Participant in the Plan, you will be
                                      treated as a new employee upon your
                                      reemployment. To participate, you must
                                      meet the Eligibility Requirements.

QUALIFIED DOMESTIC RELATIONS ORDERS:  As a general rule, your account balance,
                                      may not be assigned. This means that your
                                      accounts cannot be sold, used as
                                      collateral for a loan, given away, or
                                      otherwise transferred. In addition, your
                                      creditors may not attach, garnish or
                                      otherwise interfere with your account.

                                      An exception to this general rule is a
                                      "qualified domestic relations order" or
                                      QDRO. A QDRO is a court order that can
                                      require the plan administrator to pay a
                                      portion of your account balance to your
                                      former spouse, child or other dependent.

PLAN AMENDMENT OR TERMINATION:        Your Employer reserves the right to amend
                                      the Plan at any time. However, no
                                      amendment can deprive you of any vested
                                      benefits.

                                      Your Employer also reserves the right to
                                      terminate the Plan. If the Plan is
                                      terminated, you will be 100% vested in
                                      your total account balance under the Plan.


                           STATEMENT OF ERISA RIGHTS


As a Participant in the Plan, you are entitled to certain rights and protection
under the Employee Retirement Income Security Act of 1974 (ERISA). Your Employer
may not fire you or discriminate against you to prevent you from obtaining a
benefit from the Plan or exercising your rights under ERISA.

ERISA provides that all Plan Participants shall be entitled to:

 .  Examine, without charge, at your Plan Administrator's office, all Plan
   documents, insurance contracts, if any, and copies of all documents filed by
   your Plan with the U. S. Department of Labor, such as annual reports and Plan
   descriptions.

 .  Obtain copies of all Plan documents and other Plan information upon written
   request to your Plan Administrator. Your Plan Administrator may impose a
   reasonable charge for the copies.

 .  Receive a summary of the Plan's annual financial report. Your Plan
   Administrator is required by law to provide each Participant with a copy of
   the Plan's Summary Annual Report.

 .  Obtain an annual statement telling you whether you have a right to receive a
   benefit under the Plan, and if so, what your benefits would be if you stop
   working for your Employer now. If you do not have a right to a benefit under
   the Plan, the statement must tell you how many years you have to work to get
   a benefit under the Plan. The Plan may require a written request for this
   statement, but it must be provided free of charge.

                                      13
<PAGE>
 
 .   File suit in Federal court if any materials requested are not received
    within 30 days of your request unless the materials were not sent because of
    matters beyond the control of your Plan Administrator. The court may require
    your Plan Administrator to pay you up to $100 per day for each day's delay
    until the materials are received by you.

In addition to creating rights for Plan participants, ERISA imposes obligations
upon the persons who are responsible for the operation of the Plan. These
persons are referred to as "fiduciaries". Fiduciaries must act solely in the
interest of Plan participants and must exercise prudence in the performance of
their plan duties. Fiduciaries who do not comply with ERISA may be removed and
required to make good any losses they have caused the Plan.

If Plan fiduciaries are misusing the Plan's assets, as a Participant in the
Plan, you have the right to file suite in a Federal court or to request
assistance from the U.S. Department of Labor. If you are successful in your
lawsuit, the court may require the other party to pay your legal costs,
including attorney's fees. If you are unsuccessful in your lawsuit, or the court
finds your action frivolous, the court may order you to pay these costs and
fees.


                               CLAIMS PROCEDURES


When you terminate employment, you must complete a form that notifies the Plan
Administrator that you are making a claim for benefits. Your Employer has a
supply of these forms. Ideally this form should be completed on or before your
final day of work. This way, your Employer can send your claim for benefits
right away for processing.

If, after your claim for benefits is processed, you have questions or disagree
with the calculation of your benefit, you must notify the Plan Administrator in
writing. The Plan Administrator will, within 90 days(or within 180 days if
special circumstances exist) notify you in writing of its decision. That
notification will include:

1.  How your benefit was calculated,
2.  The specific reason that your claim is denied (in whole or in part) if it is
    denied 
3.  Specific references to Plan provisions on which the denial is based 
4.  A description of any additional material or information necessary for you to
    perfect your claim and an explanation of why such information is necessary
5.  An explanation of the Plan's claim review procedure.

Within 60 days after you receive notice of the denial of part or all of your
claim for benefits, you may file a written appeal with the Plan Administrator.
You may seek representation by an attorney or other representation of your
choosing. You may submit written and oral evidence and arguments in support of
your claim. You may review all relevant documents. The Plan Administrator
generally makes a final decision within 60 days of your appeal. The Plan
Administrator decision will include the specific reasons for its decision and
specific references to Plan provisions on which the decision is based


                     PENSION BENEFIT GUARANTY CORPORATION:


The type of Plan your Employer has adopted is a defined contribution plan.
Therefore, the Plan is not subject to or insured by the Pension Benefit Guaranty
Corporation (PBGC).

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