Summary Plan Description




                                  Prepared for


                            Nocopi Technologies, Inc.

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Introduction

Effective 01-01-1998, Nocopi Technologies, Inc. has amended the Nocopi
Technologies, Inc. 401(k) Plan designed to help you meet your financial needs
during your retirement years. The Plan was originally effective on 04-01-1993
and its plan sequence number is 001. The plan sequence number identifies the
number of qualified plans that Nocopi Technologies, Inc. currently maintains or
has previously maintained.

To become a Participant in the Plan, you must meet the Plan's eligibility
requirements. Once you become a Participant, Nocopi Technologies, Inc. will
maintain an Individual Account for you. Each Plan Year your account will be
adjusted to reflect contributions, gains, losses, etc. The percentage of your
account to which you will be entitled when you terminate employment depends on
the Plan's vesting schedule. These features are explained further in the
following pages.

The actual Plan is a complex legal document that has been written in the manner
required by the Internal Revenue Service (IRS) and is referred to as the Basic
Plan Document. This document is called a Summary Plan Description (SPD) and
explains and summarizes the important features of the Basic Plan Document.
Nocopi Technologies, Inc. may make contributions to this Plan. In addition, you
may be able to elect to reduce your annual taxable income by deferring a portion
of your Compensation into the Plan as Employee 401(k) Contributions. You should
consult the Basic Plan Document for technical and detailed Plan provisions. The
legal operation of the Plan is controlled by the Basic Plan Document and not
this SPD.

If at any time you have specific questions about the Plan as it applies to you,
please bring them to the attention of the Plan Administrator whose address and
telephone number appear in Section One of this SPD. You may also examine the
Basic Plan Document itself at a reasonable time by making arrangements with the
Plan Administrator.


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Contents of the Summary Plan Description


     SECTION ONE               DEFINITIONS

     SECTION TWO               ELIGIBILITY AND PARTICIPATION
                               Information in this section includes:
                               Eligible Classes of Employees
                               Age and Service Requirements
                               How Hours of Service Are Counted
                               When You Can Participate in the Plan

     SECTION THREE             FUNDING AND ADMINISTRATION OF THE PLAN
                               Information in this section includes:
                               Plan Contribution Sources, Allocationsand
                               Limitations Compensation
                               Plan Administration and Management
                               Self Direction of  Investments

     SECTION FOUR              DISTRIBUTION OF BENEFITS AND VESTING
                               Information in this section includes:
                               Benefit Eligibility
                               Distribution of Benefits
                               How Your Vested Amount is Determined
                               Restrictions or Penalties on Distributions
                               Payouts to Your Beneficiaries

     SECTION FIVE              CLAIMS PROCEDURE
                               Information in this section includes:
                               What to do to Receive Benefits
                               How to File a Claim

     SECTION SIX               MISCELLANEOUS
                               Information in this section includes:
                               Borrowing From the Plan
                               Break in Service Situations
                               Plan Termination

     SECTION SEVEN             RIGHTS UNDER ERISA
                               Information in this section includes:
                               The Rights and Protections a Plan Participant
                               is Entitled to Under the Employee Retirement
                               Income Security Act




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SECTION ONE:  DEFINITIONS

The following definitions are used in the text of this SPD. These words and
phrases are capitalized throughout the SPD for ease of reference.

Compensation - means the earnings paid to you by Nocopi Technologies, Inc.

Employee - means any person employed by Nocopi Technologies, Inc.

Employee 401(k) Contributions - means the dollars you put into the Plan through
before-tax payroll deductions.

Employer - means Nocopi Technologies, Inc., the corporation maintaining this
Plan.

Employer Contribution - means the amount contributed to the Plan on your behalf
by Nocopi Technologies, Inc.

Individual Account - means the contribution account established and maintained
for you which is made up of all contributions made by you or on your behalf.

Participant - means an Employee who has met the eligibility requirements, has
entered the Plan, and has become eligible to make or receive a contribution to
his or her Individual Account.

Payroll Deduction Form - means the agreement you sign to authorize Nocopi
Technologies, Inc. to deduct your Employee 401(k) Contributions from your
Compensation and put them into the 401(k) Plan.

Plan - means the specific retirement Plan Nocopi Technologies, Inc. has set up.
The Plan is governed by a legal document containing various technical and
detailed provisions. The Plan Administrator has a copy of the Plan document.

Plan Administrator - The Plan Administrator is responsible for directly
administering the Plan. Nocopi Technologies, Inc. is the Plan Administrator of
this Plan and is therefore responsible for the day-to-day administration and
management of the Plan. To ensure efficient and sound operation and management
of the Plan, Nocopi Technologies, Inc. has the discretionary authority to
appoint other persons as may be necessary to act on its behalf or assist in
performing these responsibilities. The address and phone number of Nocopi
Technologies, Inc. are listed below.

Nocopi Technologies, Inc.
537 Apple Street
West Conshohocken, PA  19428
610-834-9600

Plan Year - means the calendar year.

SECTION TWO: ELIGIBILITY AND PARTICIPATION

ELIGIBLE CLASSES OF EMPLOYEES

You will generally be eligible to become a Participant in the Plan after having
satisfied the age and service requirements. Even if you satisfy the eligibility
criteria, however, you are not eligible to participate if you are covered by a
collective bargaining agreement (e.g., union agreement) unless the agreement
requires you to be eligible. In addition, you are ineligible if you are a
nonresident alien and receive no earned income from Nocopi Technologies, Inc.
within the United States.


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AGE AND SERVICE REQUIREMENTS

Employee 401(k) Contributions

You will become eligible to enter the Plan and make Employee 401(k)
Contributions when you attain age 21. You need not perform a minimum amount of
service to become eligible to participate.

Profit Sharing Contributions

You will become eligible to enter the Plan and receive profit sharing
contributions when you attain the age of 21. You need not perform a minimum
amount of service to become eligible to participate.

HOW HOURS OF SERVICE ARE COUNTED

Your hours of service are generally counted on the basis of the actual number of
hours you work or for which you are entitled to Compensation. Instead of
counting hours of service for purposes of determining your number of Years of
Eligibility Service, however, you will receive credit for the period of time
during which you are paid or entitled to pay from Nocopi Technologies, Inc. for
each type of contribution for which you are required to perform a fractional
Year of Eligibility Service.

However, since this is an amendment and restatement of an existing Plan, you
will not be required to satisfy the eligibility requirements stated above if you
were a Participant in the prior Plan.

WHEN YOU CAN PARTICIPATE IN THE PLAN

After you have met the eligibility requirements, you will become a Participant
in the Plan on the applicable entry date(s). During each Plan Year there are
generally at least two entry dates. Nocopi Technologies, Inc. has designated the
first day of each month as the entry date(s) for this Plan. You will continue to
participate in the Plan as long as you do not incur a break in service. A break
in service is a period of at least 12 consecutive months during which you do not
perform services for Nocopi Technologies, Inc. However, no break in service will
occur if the reason you did not work was because of certain absences due to
birth, pregnancy or adoption of children, military service or other service
during a national emergency during which your re-employment under a federal or
state law is protected and you do, in fact, return to work within the time
required by law.

SECTION THREE: PLAN FUNDING AND ADMINISTRATION

PLAN CONTRIBUTION SOURCES, ALLOCATIONS AND LIMITATIONS

Employee 401(k) Contributions

Effective 08-06-1998 (or the date you begin participating in the Plan, if
later), you may make before-tax contributions to the Plan through payroll
deduction. Such contributions are called Employee 401(k) Contributions.

To begin making Employee 401(k) Contributions, you must complete and sign a
Payroll Deduction Form. Once you become eligible to participate in the Plan,
Nocopi Technologies, Inc. will provide you with such form.

For example, assume your compensation is $15,000. For Plan Year 1998, you wish
to make an Employee 401(k) Contribution to the Plan and sign a Payroll Deduction
Form authorizing an Employee 401(k) Contribution of 5% of your Compensation. As
a result, Nocopi Technologies, Inc. will pay you $14,250 as gross taxable income
and will deposit your 5% Employee 401(k) Contribution (i.e., $750) into the Plan
for you.


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Limits on Employee 401(k) Contributions

Federal tax laws and plan documents govern the amount of Employee 401(k)
Contributions which you may make. Specifically, federal law places two annual
limits on the amount you may defer into a 401(k) plan - an individual limit and
an average limit.

Individual Limit

Federal tax law limits the amount you can put into the Plan during each of your
tax years (generally, a calendar year). For 1997, the limit was $9,500. For
1998, the limit is $10,000. This amount is indexed periodically for changes in
the cost-of-living index. This limit applies to all Employee 401(k)
Contributions you make during your tax year to any 401(k) plans maintained by
your present or former employers.

If you defer more than you are allowed, you must submit in writing for the
return of the excess to Nocopi Technologies, Inc. no later than March 1.

The excess amount and any earnings you may have received on the excess must be
taken out of the Plan by April 15 of the year following the year the money went
into the Plan. The excess amounts will appear on your Form W-2 and will be
taxable income for the year in which you put the excess into the Plan. If the
excess is not removed from the Plan by April 15, you will have to pay additional
income tax.

EXAMPLE: You deferred $100 more than the law allows in 1998 and you had earnings
of $10 on the excess. You removed your $100 excess and the $10 earnings by April
15, 1999. The excess will be reported on your 1998 Form W-2 and you will pay
income tax on that amount.

Average Limits

Tax law defines a group of an employer's employees known as highly compensated
employees. Highly compensated employees making Employee 401(k) Contributions are
limited in the percent of their compensation which they defer based on the
average percent of compensation deferred by the non-highly compensated group of
employees during the Plan Year. If these limits apply to you, Nocopi
Technologies, Inc. can give you additional information about them.

Plan Specific Limitations

Upon completion of a Payroll Deduction Form, your compensation will be reduced
each pay period by the percent you specify. Nocopi Technologies, Inc. permits
you to defer a percentage of your Compensation from 1% to 15% in increments of
1% each Plan Year.

To change the amount of your Employee 401(k) Contributions, you must complete
and sign a revised Payroll Deduction Form and return it to Nocopi Technologies,
Inc. at least 30 days before the change will take effect or a lesser number of
days if Nocopi Technologies, Inc. permits. Nocopi Technologies, Inc. will
establish uniform and nondiscriminatory rules regarding when you may change your
Payroll Deduction form.

To discontinue making Employee 401(k) Contributions, you must complete and
sign a revised Payroll Deduction Form. Nocopi Technologies, Inc. will establish
uniform and nondiscriminatory rules regarding when you may resume making
deferrals if you stop.

Profit Sharing Contributions

Each year, the managing body of Nocopi Technologies, Inc. will determine the
amount, if any, which it will contribute to the Plan. Employer Contributions to
a profit sharing plan in general can range from 0% to 15% of participants'
compensation each year.



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There is no minimum hours of service required for contribution purposes if you
are employed on the last day of the Plan Year. However, you must work at least
500 hours of service during the Plan Year in order to receive a profit sharing
contribution if you separate from service before the end of the Plan Year. The
hour of service requirement will be waived, however, if you die, or if you
separate from service after attaining normal retirement age or after becoming
disabled.

If you satisfy the requirements and are entitled to a profit sharing
contribution, you will receive a pro rata allocation based on your Compensation
in relation to the Compensation of all Participants entitled to profit sharing
contributions.

For example, assume you are one of 10 Participants in the Plan and your
Compensation is $10,000. Assume further the Compensation of all Participants
when added together equals $100,000. The ratio of your Compensation ($10,000) to
that of all Participants ($100,000) is 1/10. Therefore, 1/10 of the contribution
made by your Employer to the Plan will be allocated to your account.

Rollover Contributions

Nocopi Technologies, Inc. allows you to make rollover contributions,
regardless of whether you have become a Participant in the Plan. You are 100%
vested in your rollover contributions at all times and may withdraw them from
the Plan at any time.

Annual Additions Limitation

In spite of the contribution/allocation formulas described earlier, federal law
limits the annual amount which may be allocated to your account to the lesser of
$30,000 or 25% of your Compensation.

COMPENSATION

The definition of compensation for plan purposes can vary for many reasons. For
example, federal tax law may require use of one definition of compensation for
nondiscrimination testing and another definition for contribution allocation
purposes. In addition, federal tax law permits employers such as Nocopi
Technologies, Inc. to choose the definition of compensation which will be used
for other purposes. Regardless of the various definitions of compensation which
may be required or allowed, however, in the event your Compensation exceeds
$150,000 per year, only the first $150,000 will be counted as Compensation under
the Plan. This $150,000 cap will be adjusted periodically by the Internal
Revenue Service for increases in the cost-of-living. (For Plan Years beginning
on or after January 1, 1997, the $150,000 cap is increased to $160,000.)

Also, if you satisfy the eligibility requirements and enter the Plan on a date
other than the first day of the year over which your Compensation is to be
determined, the Compensation earned during the year, but prior to your entry
into the Plan will be included.

Nocopi Technologies, Inc. has elected to use your Plan Year W-2 compensation for
purposes of this Plan. Your Compensation, however, will be adjusted as
described below.

For purposes of determining your Compensation, elective deferrals you make to a
Nocopi Technologies, Inc. cafeteria, 401(k), salary deferral SEP or tax
sheltered annuity plan will be included.

PLAN ADMINISTRATION AND MANAGEMENT

All contributions made to the Plan on your behalf will be placed in a trust fund
established to hold dollars for the benefit of all Participants. Nocopi
Technologies, Inc. will establish and maintain an Individual Account for you and
all Participants. Your Individual Account will be used to track your share in
the total trust fund.

This Plan allows you to direct the investment of the assets in your Individual
Account. Nocopi Technologies, Inc. will establish uniform and nondiscriminatory
policies describing how and when you may provide investment directions. You will
be responsible for any expenses and losses resulting from your choice of
investments.

SECTION FOUR: DISTRIBUTION OF BENEFITS AND VESTING

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BENEFIT ELIGIBILITY

Certain events must occur before you can withdraw money from the Plan. In
general, benefits may be withdrawn upon termination of employment after
attaining normal retirement age or upon Plan termination. Normal retirement age
under this Plan is age 65.

You may withdraw all or a portion of the vested Employer Contributions if you:

     o  terminate employment before attaining normal retirement age
     o  become disabled
     o  attain normal retirement age but continue to work

In addition, you may withdraw your Employee 401(k) Contributions if you:

     o  attain age 59 1/2 but continue to work
     o  incur a financial hardship

Under your Plan, the only financial needs which are considered to meet the
financial hardship requirements are the following items: deductible medical
expenses for you or your immediate family, purchase of your principal residence,
payment of tuition for the next quarter or semester for you or your immediate
family, or to prevent eviction from your home or foreclosure upon your principal
residence. A hardship distribution cannot exceed the amount of your immediate
and heavy financial need and you must have obtained all distributions and all
nontaxable loans from all Plans maintained by Nocopi Technologies, Inc. prior to
qualifying for a hardship distribution. Hardship distributions are subject to a
10% penalty tax if received before you reach age 59 1/2.

Form of Payment

Payments from the Plan that are eligible rollover distributions can be taken in
two ways. You may have all or any portion of your eligible rollover distribution
either (1) paid in a direct rollover to an IRA or another employer plan or (2)
paid to you. If you choose to have your Plan benefits paid to you, you will
receive only 80% of the payment, because Nocopi Technologies, Inc. is required
to withhold 20% of the payment and send it to the IRS as income tax withholding
to be credited against your taxes.

Nocopi Technologies, Inc. will give you more information about your options
around the time you request your payout from the Plan. That information will,
among other things, define an eligible rollover distribution.

If your vested Individual Account (i.e., the amount of money in the Plan you are
entitled to) is no more than $5,000, your benefits will be paid, either directly
to you or as a direct rollover to an IRA or another plan, in a single lump sum
payment.

If your vested Individual Account balance is more than $5,000, your payouts will
be in the form of an annuity, unless the annuity option is waived. An annuity
will provide you with a series of periodic payments, usually monthly. The
annuity must be purchased from an insurance company. The size of the payments
you receive from the annuity will depend upon many factors including the value
or your vested Individual Account balance.

If you are married, the annuity will provide monthly payments for as long as you
or your spouse live. This type of annuity is called a joint and survivor
annuity. If you die before your spouse, the monthly payments to your spouse will
be a percentage of the payments you had been receiving before your death. The
survivor annuity is equal to 50%.

If you are not married, the type of annuity you will receive will provide you
with monthly payments for as long as you live.

If you do not want an annuity payout, you may choose other types of payments. To
waive the annuity option, you must fill out and sign a waiver form. If you are
married, your spouse must consent to and sign the waiver form in the presence of
a notary public. You and your spouse may sign the waiver form any time within 90
days of the start of your payments.



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EXAMPLE: Bill wants to start receiving money on March 31,1998. He and his spouse
can sign the waiver form any time from January 1 through March 31, 1998. Bill
can now take his money in another form, such as a single lump sum payment.

Contributions made to the Plan by you or on your behalf may be used to purchase
units in various investment funds. The value of these funds can change daily.
Because the value of your units can change daily, the value shown on your
statement(s) may be different than the actual amount you receive for a payout.

Timing of Benefit Payments

If the value of your Individual Account is no more than $5,000, Nocopi
Technologies, Inc. may direct that your benefits be paid within 90 days after
the end of the Plan Year in which you become eligible to receive them.

If your account is more than $5,000, your funds may be left in the Plan until
you submit a written request to Nocopi Technologies, Inc. for payment. However,
you must begin taking required minimum distributions at age 70 1/2 if you are a
five percent or more owner of your Employer. If you are not a five percent or
more owner, you must begin taking required minimum distributions from the Plan
by April 1 of the year after the year in which you turn age 70 1/2 or , if
later, April 1 of the year after the year in which you separate from service.
Nocopi Technologies, Inc. can provide you with the proper request forms. Once
you have returned the completed request to Nocopi Technologies, Inc., payment
will be made no later than 90 days after the close of the Plan Year in which
Nocopi Technologies, Inc. received your request.

Required Minimum Distributions

The tax laws and regulations require you to start taking minimum distributions
from the Plan by April 1 of the year after the year in which you turn 70 1/2
years of age if you are a five percent or more owner of your Employer. If you
are not a five percent or more owner, you must begin taking minimum
distributions from the Plan by April 1 of the year after the year in which you
turn age 70 1/2 or, if later, April 1 of the year after the year in which you
separate from service. Minimum distributions must continue every year thereafter
and must be taken by December 31. In general, the amount of the annual minimum
distribution is determined by dividing the balance in your Individual Account by
your life expectancy or the joint life expectancy of you and your Plan
beneficiary.

DETERMINING YOUR VESTED AMOUNT

Amount of Benefit

Whether you receive the full value of your account(s) depends on the reason you
are receiving the distribution and your vested percentage in your contributions.
Your distribution will be the full value of your Individual Account (that is,
you will be 100% vested) if you reach normal retirement age, Nocopi
Technologies, Inc. terminates this Plan, there is a complete discontinuance of
contributions to the Plan, you die, become disabled or you satisfy the early
retirement age provisions.

However, if you terminate employment and thus become eligible for a distribution
from the Plan, your distribution will be only the vested amount in your
Individual Account. Loss, denial or reduction of anticipated benefits may occur
if you terminate employment before becoming fully vested, or if all or a portion
of your benefit is set aside for an alternate payee under a qualified domestic
relations order (QDRO). You may also lose your benefit if you cannot be located
when a benefit becomes payable to you.

However, the vested amount of your Individual Account will depend upon the types
of contributions made to your account. You will be fully vested at all times in
all Employee 401(k) Contributions.

Your vested amount is determined by multiplying the value of your Individual
Account subject to the plan's vesting schedule by the applicable percentage from
the vesting schedule. The vesting schedule determines how rapidly your
Individual Account balance becomes nonforfeitable based on years of service.

EXAMPLE: Assume you have $10,000 attributable to employer profit sharing
contributions in your Account and you terminate employment when you are 40%
vested. Your vested amount of the profit sharing would be $4,000 (.40 x
$10,000).



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To this sum, you would add those contributions which you made to your 401(K).
Thus, if you have deferred $3,000 and the vested portion of your profit
sharing is $4,000, the total value of your account when you terminate would be
$7,000.

However, you will always be 100% vested in your Individual Account derived from
profit sharing contributions and forfeitures.

Vesting Schedule for Top-Heavy Plans

A top-heavy plan is one in which more than 60% of the value of the plan assets
is credited to the accounts of certain officers, shareholders and highly paid
Participants. These individuals are called key employees.

The top-heavy vesting schedule will not apply if the vesting schedule selected
by your Employer provides for faster vesting. For example, if Nocopi
Technologies, Inc. has selected the 100% vesting schedule (under which all
Participants are 100% vested at all times) and the Plan becomes top-heavy, that
vesting schedule selected by Nocopi Technologies, Inc. will remain in effect
because it provides for more rapid vesting.

RESTRICTIONS OR PENALTIES ON DISTRIBUTIONS

If you receive a distribution before reaching age 59 1/2, you must pay an
additional 10% penalty tax on dollars included in income. There are, however,
exceptions to the 10% early distribution penalty. Your tax advisor can assist
you in determining if one of the exceptions applies to your distribution.

PAYOUTS TO YOUR BENEFICIARIES

Your beneficiary will receive the total value of your Individual Account when
you die. If you are married, your spouse will automatically be your beneficiary.
To choose another beneficiary, you must sign a written form listing a nonspouse
beneficiary. Your spouse must give written consent to this in the presence of a
notary public. Contact Nocopi Technologies, Inc. if you wish to choose a
nonspouse beneficiary. If the vested value of your Individual Account is no more
than $5,000, your beneficiary will receive a lump sum payment of the entire
amount.

If the value of your Individual Account is greater than $5,000, your beneficiary
will get the money in periodic payments from an insurance company unless a
special form is signed. These periodic payments will usually be made on a
monthly basis for as long as your beneficiary lives.

If you want to give your beneficiary a choice as to how he or she wants to
receive the money, you must sign a special form. This form must also be signed
by your spouse in the presence of a notary public. If you are under age 35 when
you sign this form, you must sign a new form once you reach age 35.

EXAMPLE: Clarence, age 38, signs the waiver form. Mildred, his wife, signs
the waiver form in the presence of a notary public. Clarence dies two years
later. Mildred now has a choice of payments. She can, for example, take all the
money in a single lump sum payment and put it into her IRA.

NOTE: Contact Nocopi Technologies, Inc. if you wish to preserve the option
of taking payouts in a form other than an annuity.


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SECTION FIVE:  CLAIMS PROCEDURE

WHAT TO DO TO RECEIVE BENEFITS

You or your beneficiary must file a written request with the Plan Administrator
in order to start receiving benefits when you become eligible for them or when
you die.

HOW TO FILE A CLAIM

A claim should be filed with Nocopi Technologies, Inc. You may claim a benefit
to which you think you are entitled by filing a written request with Nocopi
Technologies, Inc. The claim must set forth the reasons you believe you are
eligible to receive benefits and authorize Nocopi Technologies, Inc. to conduct
such examinations and take such steps as may be necessary to evaluate the claim.

If your claim is turned down, Nocopi Technologies, Inc. will provide you or your
beneficiary with a written notice of the denial within 60 days of the date your
claim was filed. This notice will give you the specific reasons for the denial,
the specific provisions of the Plan upon which the denial is based, and an
explanation of the procedures for appeal. You or your beneficiary will have 60
days from receipt of the notice of denial in which to make written application
for review by Nocopi Technologies, Inc. You may request that the review be in
the nature of a hearing. You may be represented by an attorney if you so desire.
Nocopi Technologies, Inc. will issue a written decision on this review within 60
days after receipt of the application for review.

SECTION SIX: MISCELLANEOUS

BORROWING FROM THE PLAN

Effective Date

As a Participant in this Plan, you may be able to borrow a portion of your
vested account balance. The loan program adopted by Nocopi Technologies, Inc. is
effective 01-01-1998 and is available on a uniform basis to all parties in
interest to the Plan who meet loan qualification requirements.

Loan Program Administrator

If you have questions regarding the loan program you should contact Rudy
Lutterschmidt, the person responsible for administering your loan program. You
may reach Rudy Lutterschmidt, the loan program administrator, at (610) 834-9600.

Loan Application Procedure

To apply for a loan under this Plan, you must complete and return to Rudy
Lutterschmidt a Loan Application Form, furnishing all information requested and
pay any required loan application processing fees.

Collateral Pledge

A percentage of your vested account balance equal to the amount borrowed divided
by your vested account balance is pledged as security for repayment of loans
under this program.

Limitations on Loan Types

Loans from this Plan may be used for any purpose.



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Loan Approval Standards

Decisions approving or denying loans from this Plan will be based on the value
of your vested individual account balance.

Loan Principal Limitations 

The minimum amount you may borrow from this Plan is $500.00. The maximum amount
you may borrow from this Plan is one-half of your vested account balance or
$50,000.

Interest Calculations

Interest on Loans from this Plan will be equal to the prime rate as of the first
day of each month plus 2%.

Default Provisions

You will be deemed to have defaulted on your loan if you fail to remit payment
in a timely manner as required under the Loan Agreement, breach any of your
obligations or duties under the Loan Agreement, or terminate employment.

Upon default, Rudy Lutterschmidt is entitled to foreclose its security interest
in your vested account balance pledged for repayment upon the occurrence of an
event which triggers a distribution of your benefits. In addition, Rudy
Lutterschmidt will report as taxable any amounts which are deemed distributed as
a result of failing to make loan payments.

PLAN TERMINATION

Nocopi Technologies, Inc. expects to continue the Plan indefinitely. However, in
the unlikely event Nocopi Technologies, Inc. must terminate the Plan, you will
become 100% vested in the aggregate value of your Individual Account regardless
of whether your vesting years of service are sufficient to make you 100% vested
under the vesting schedule(s).

If the Plan terminates, benefits are not insured by the Pension Benefit Guaranty
Corporation (PBGC). Under the law, PBGC insurance does not cover the type of
plans called defined contribution plans. This Plan is a defined contribution
plan and, therefore, is not covered.

BREAK IN SERVICE SITUATIONS

If you quit your job, incur a break in service and then return to work, your
date of participation depends on whether you had a vested interest in
contributions (other than your Employee 401(k) Contributions) at the time you
quit and incurred a break in service.

If you had a vested interest, you will participate again upon your return to
employment. In addition, your vesting years of service accumulated prior to the
time you quit and incurred a break in service will be counted in figuring your
vested interest.

If you did not have a vested interest, any eligibility years of service
occurring before the break in service will be taken into account and you will
begin to participate again upon your return to service unless the number of
consecutive one year breaks in service equals or exceeds the greater of five
years, or the aggregate number of eligibility years of service preceding the
breaks in service. If your period of consecutive breaks in service exceeds your
period of prior service, you will be treated as a new employee and will
participate again when you satisfy the Plan's eligibility requirements. In
addition, any vesting years of service occurring before the break in service
will be taken into account in computing your vested interest under the Plan
unless the number of consecutive one year breaks in service equals or exceeds
the greater of five years or the aggregate number of vesting years of service
preceding the breaks in service. For example, if you work for two years, quit
without being vested, and then return to employment after a break of two years
or more, the Plan will give you vesting credit for the initial two year period.

SECTION SEVEN:  RIGHTS UNDER ERISA



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THE RIGHTS AND PROTECTIONS A PLAN PARTICIPANT IS ENTITLED TO UNDER THE
EMPLOYEE RETIREMENT INCOME SECURITY ACT

As a Participant in this Plan, you are entitled to certain rights and
protections under the Employee Retirement Income Security Act of 1974 (ERISA).
ERISA provides that all Plan Participants shall be entitled to do the following:

1.   Examine, without charge, at the Plan Administrator's office and at other
     specified locations, such as worksites and union halls, all Plan documents,
     including insurance contracts, collective bargaining agreements and copies
     of all documents filed by Nocopi Technologies, Inc. with the U.S.
     Department of Labor, such as detailed annual reports and Plan descriptions.

2.   Obtain copies of all Plan documents and other Plan information upon written
     request to Nocopi Technologies, Inc. Nocopi Technologies, Inc. may make a
     reasonable charge for the copies.

3.   Receive a summary of the Plan's annual financial report. Nocopi
     Technologies, Inc. is required by law to furnish each participant with a
     copy of this Summary Annual Report.

4.   Obtain, once a year, a statement of the total pension benefits accrued and
     the nonforfeitable (vested) pension benefits (if any) or the earliest date
     on which benefits will become nonforfeitable (vested). The Plan may require
     a written request for this statement, but it must provide the statement
     free of charge.

In addition to creating rights for Plan Participants, ERISA imposes duties upon
the people who are responsible for the operation of the employee benefit plan.
The people who operate your Plan, called fiduciaries of the Plan, have a duty to
do so prudently and in the interest of you and other Plan Participants and
beneficiaries. No one, including Nocopi Technologies, Inc., your union, or any
other person, may fire you or otherwise discriminate against you in any way to
prevent you from obtaining a pension benefit or exercising your rights under
ERISA.

If your claim for a benefit is denied in whole or in part, you must receive a
written explanation of the reason for the denial. You have the right to have
Nocopi Technologies, Inc. review and reconsider your claim. Under ERISA, there
are steps you can take to enforce the above rights. For instance, if you request
materials from Nocopi Technologies, Inc. and do not receive them within 30 days,
you may file suit in a federal court. In such a case, the court may require
Nocopi Technologies, Inc. to provide the materials and pay you up to $100 a day
until you receive the materials, unless the materials were not sent because of
reasons beyond the control of Nocopi Technologies, Inc. If you have a claim for
benefits which is denied, or ignored, in whole or in part, you may file suit in
a state or federal court. If it should happen that Plan fiduciaries misuse the
Plan's money, or if you are discriminated against for asserting your rights, you
may seek assistance from the U.S. Department of Labor, or you may file suit in a
federal court. The court will decide who should pay court costs and legal fees.
If you are successful, the court may order the person you have sued to pay the
costs and fees. If you lose, the court may order you to pay these costs and
fees. For example, if the court finds your claim is frivolous, expenses may be
assessed against you.

If you have any questions about your Plan, you should contact Nocopi
Technologies, Inc. If you have any questions about this statement or about your
rights under ERISA, you should contact the nearest area office of the U.S.
Labor-Management Services Administration, Department of Labor.

Further, if this Plan is maintained by more than one employer, you can obtain,
in writing, information as to whether a particular employer is participating in
this Plan and, if so, the participating Employer's address. In addition, you may
request, in writing, a complete list of Employers participating in this Plan.
You may obtain such information by making a written request to Nocopi
Technologies, Inc. Nocopi Technologies, Inc. is the most significant (parent)
employer of the group of employers maintaining this Plan.


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Employer Information

Name:                      Nocopi Technologies, Inc.
Address:                   537 Apple Street
                           West Conshohocken, PA   19428

Business Telephone:                         610-834-9600
Employer Identification Number:             87-0406496
Employer's Income Tax Year End:             12-31

Agent for Service of Legal Process

The Agent for Service of Legal Process is the person upon whom any legal papers
can be served. Service of legal process may be made upon a Plan Trustee, the
Employer or the Plan Administrator.

Name:                      Rudy Lutterschmidt
Address:                   537 Apple Street, West Conshohocken, PA 19428



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