Document:

EXHIBIT 10.1

                                CE SOFTWARE, INC.

                             2000 STOCK OPTION PLAN

      THIS 2000 STOCK OPTION PLAN (the "Plan"), effective as of the date of its
approval by the Company's shareholders, the 27th day of April, 2000, is hereby
adopted and established by CE Software, Inc., an Iowa corporation, (the
"Company") and will be maintained by the Company for the purpose of providing
stock options for selected management, key employees, Consultants and
Non-Employee Directors as provided herein.

                              Article I -- Purpose

      The purpose of the Plan is to promote the long-term success of the Company
and the creation of shareholder value by providing additional incentive to those
officers, employees, Consultants and Non-Employee Directors of the Company and
any Subsidiary whose substantial contributions are essential to the continued
growth and success of the business of the Company or Subsidiary in order to
strengthen their commitment to the Company or Subsidiary, to motivate them to
faithfully and diligently perform their assigned responsibilities and to attract
and retain competent and dedicated individuals whose efforts will result in the
long-term growth and profitability of the Company and its Subsidiaries. To
accomplish such purposes, the Plan provides that the Company may grant Incentive
Stock Options and Non-Qualified Stock Options.

                            Article II -- Definitions

      2.01 Scope. For purposes of this Plan, unless the language or context
clearly indicates that a different meaning is intended, capitalized terms have
the meaning specified in this Article.

      2.02 Definitions. The following terms used in this Plan shall have the
following meanings:

      "Agreement" shall mean the written agreement evidencing the grant of an
Award and setting forth the terms and conditions thereof.

      "Award" shall mean, individually or collectively, a grant under this Plan
to any Eligible Person or Non-Employee Director of Incentive Stock Options,
Non-Qualified Stock Options or both as the context requires.

      "Board" shall mean the Board of Directors of the Company, as constituted
from time to time.

      "Cause" shall mean the commission of an action against or in derogation of
the interests of the Company or Subsidiary which, if proven in a court of law,
would constitute a violation of the criminal code or similar law; divulging
confidential information about the Company to the public; or the performance of
any similar action that the Committee, in its

                                       36
<PAGE>

sole discretion, may deem to be sufficiently injurious to the interest of the
Company to constitute cause for termination.

      "Change in Control" shall mean any one of the following events:

            (1) any "person" or group of persons acting in concert (as defined
      in Sections 13(d) and 14(d) of the Exchange Act), other than the Company,
      its officers or directors, or a trustee or other fiduciary holding
      securities under an employee benefit plan of the Company or any
      Subsidiary, acquires, directly or indirectly, after the Effective Date of
      this Plan "beneficial ownership" (as defined in Rule 13d-3 under the
      Exchange Act) of any class of securities (not including securities
      acquired in a transaction described in subsection 2 below) representing at
      least thirty percent (30%) of the combined voting power of the Company;

            (2) the stockholders of the Company approve a merger, consolidation,
      recapitalization or similar transaction, unless the persons who were
      shareholders immediately prior to such transaction will collectively own
      at least fifty percent (50%) of the combined voting power of all classes
      of stock of the Company (or of the surviving corporation in the event of a
      merger) outstanding immediately after such transaction; or

            (3) the stockholders of the Company approve a plan of complete
      liquidation of the Company or a sale of all or substantially all of the
      assets of the Company.

      "Code" shall mean the Internal Revenue Code of 1986, as amended, and the
regulations of the Department of Treasury promulgated pursuant thereto.

      "Committee" shall mean a committee designated by the Board to administer
the Plan and to perform the functions set forth herein.

      "Company" shall mean CE Software, Inc., an Iowa corporation, or any
successor thereto.

      "Consultant" shall mean an advisor or consultant who is an independent
contractor with respect to the Company or a Subsidiary, and who provides bona
fide services (other than in connection with the offer or sale of securities in
a capital raising transaction) to the Company or a Subsidiary; who is not an
employee, officer, or director of the Company or any of its Subsidiaries; and
whose services the Committee determines are of vital importance to the overall
success of the Company or any of its Subsidiaries.

      "Continuous Employment" shall mean continuous employment with the Company
or a Subsidiary as an employee, Consultant or Non-Employee Director or any
combination thereof without any interruption or termination of employment or
service. Continuous Employment shall not be considered interrupted in the case
of sick leave, military leave, disability leave or any other leave of absence or
temporary cessation of service approved by the Company or a Subsidiary.
"Continuously Employed" shall mean the status of a Participant who has
maintained Continuous Employment.

                                       37
<PAGE>

      "Covered Employee" shall mean a covered employee within the meaning of
Section 162(m)(3) of the Code. By way of explanation, as of the date of adoption
of this Plan, a Covered Employee is generally defined in the Code to include any
person who is a company's CEO or who is one of a company's four highest paid
officers during a particular fiscal year if all wages paid to such person,
including the taxable value of all exercised options, exceeds $1 million for
that fiscal year.

      "Disability" shall mean, if the Participant is covered by an individual or
group long-term disability policy paid for by the Company or a Subsidiary,
disability as defined in such policy without regard to any waiting period. If
the Participant is not covered by such a policy, Disability means the
Participant suffering a sickness, accident or injury which in the judgment of a
physician satisfactory to the Company, prevents the Participant from performing
substantially all of his or her normal duties for the Company and/or its
Subsidiaries. As a condition to any benefits, the Company may require the
Participant to submit to such physical or mental evaluations and tests as the
Company deems appropriate. "Disabled" shall mean to suffer from a Disability.
Disability and Disabled shall not be applied to a Participant who has been and
is Continuously Employed.

      "Effective Date" shall mean the date first written above on which this
Plan was adopted by the Board.

      "Eligible Person" shall have the meaning given to it by Article V.

      "Exchange Act" shall mean the Securities Exchange Act of 1934, as amended.

      "Fair Market Value" shall mean the market price of a Share, determined by
the Committee in good faith on such basis as it deems appropriate; provided,
however, if the Shares are traded on the Nasdaq Stock Market, either National
Market or SmallCap, or a major exchange such as the New York or American stock
exchanges, the determination of Fair Market Value by the Committee shall be the
average of the high and low prices reported by Nasdaq or by such major exchange
on the date of the grant, or if such date is not a trading date, on the last
trading date immediately prior to the date of grant. Such determination shall be
conclusive and binding on the Participant and all other persons.

      "Incentive Stock Option" shall mean an Option within the meaning of
Section 422 of the Code, or any successor provisions thereto.

      "Non-Employee Director" shall mean a director of the Company or a
Subsidiary that is not treated as a common-law employee of the Company or
Subsidiary.

      "Non-Qualified Stock Option" shall mean an Option that is not an Incentive
Stock Option.

      "Option" shall mean an Incentive Stock Option, a Non-Qualified Stock
Option, or either or both of them, as the context requires.

      "Participant" shall mean a person to whom an Award has been granted under
the Plan.

                                       38
<PAGE>

      "Plan" shall mean the CE Software, Inc. 2000 Stock Option Plan, as amended
or restated from time to time.

      "Retirement" shall mean termination of employment or services with the
Company or a Subsidiary by a Participant (other than as a result of death,
Disability or Cause), if the Participant is at least sixty-two (62) years of
age, or such greater age as may be set by the Company or Subsidiary as a
standard retirement age, which minimum age shall not exceed sixty-five (65)
years.

      "Securities Act" shall mean the Securities Act of 1933, as amended.

      "Share" shall mean shares of common stock, $0.10 par value, of the
Company.

      "Statement" shall have the meaning given to it by Section 7.03.

      "Subsidiary" shall mean any corporation in a descending, unbroken chain of
corporations, beginning with the Company, if each of the corporations other than
the last corporation in the unbroken chain owns stock possessing fifty percent
(50%) or more of the total combined voting power of all classes of stock in one
of the other corporations in such chain. For purposes of this definition,
corporation shall include any business entity, including but not limited to
partnerships and limited liability companies.

      "Ten-Percent Stockholder" shall mean an Eligible Person, who, at the time
an Incentive Stock Option is to be granted to such Eligible Person, owns (within
the meaning of Section 422(b)(6) of the Code) stock possessing more than ten
percent (10%) of the total combined voting power of all classes of stock of the
Company, a parent or a Subsidiary within the meaning of Sections 424(e) and
424(f), respectively, of the Code.

      "Transaction" shall have the meaning given to it by Section 9.03.

      "Vesting Date" shall mean as to each Award the first annual anniversary of
the date of the Award and the monthly anniversary dates thereafter.

                                       39
<PAGE>

                          Article III -- Administration

      3.01 Committee Administration. The Plan shall be administered by the
Committee. The Committee shall consist exclusively of two or more Company
directors who are Non-Employee directors, as defined in paragraph (b)(3)(i) of
Rule 16b-3, or any other successor rule thereto, under the Exchange Act.
Additionally, the Committee shall satisfy such requirements as the Internal
Revenue Service may establish for outside directors acting under plans intended
to qualify for exemption under Code Section 162(m)(4)(C), or any successor
provision thereto. The Committee shall hold meetings at such times as may be
necessary for the proper administration of the Plan. The Committee shall keep
minutes of its meetings, which may be separate or a part of the minutes of
regular or special meetings of the Board. A majority of the Committee shall
constitute a quorum and a majority of a quorum may authorize any action. Any
decision reduced to writing and signed by all of the members of the Committee
shall be fully effective as if it had been made at a meeting duly held. All
actions, determinations or interpretations made in good faith with respect to
the Plan or any Option shall be conclusive and binding on the Participants and
all other persons. The Company shall pay all expenses incurred in the
administration of the Plan.

      3.02 Powers. Subject to the express terms and conditions set forth herein,
the Committee shall have the power to perform any and all actions,
determinations and interpretations related to the administration of the Plan,
including, without limitation, the power from time to time:

            (a) to determine those Eligible Persons to whom Awards shall be
      granted under the Plan and the number of Shares subject to such Awards to
      be granted to each Eligible Person and to prescribe the terms and
      conditions (which need not be identical) of each Award, including the
      purchase price per share of each Award, and the forfeiture provisions, if
      any, if the Employee leaves the employment of the Company or a Subsidiary
      within a prescribed time or acts against the interests of the Company
      within a prescribed time;

            (b) to construe and interpret the Plan, the Awards granted hereunder
      and to establish, amend and revoke rules and regulations for the
      administration of the Plan, including, but not limited to, correcting any
      defect or supplying any omission, or reconciling any inconsistency in the
      Plan or in any Agreement, and (subject to the provisions of Article X
      below) to amend the terms and conditions of any outstanding Award to the
      extent such terms and conditions are within the discretion of the
      Committee as provided in the Plan, in the manner and to the extent it
      shall deem necessary or advisable to make the Plan fully effective;

            (c) to determine the duration and purposes for leaves of absence
      which may be granted to a Participant without constituting a termination
      of employment or service for purposes of the Plan;

            (d) to determine the terms and conditions of each Award granted to a
      Covered Employee so that the Company or Subsidiary may claim a tax
      deduction in connection with non-qualified options, or incentive options
      that have a non-qualified component; and

                                       40
<PAGE>

            (e) generally, to exercise such powers and to perform such acts as
      are deemed necessary or advisable to promote the best interests of the
      Company with respect to the Plan.

                       Article IV -- Stock Subject to Plan

      4.01 Number of Shares. The maximum number of Shares that may be issued or
transferred pursuant to Awards granted under this Plan is three hundred thousand
(300,000) Shares of common stock (or the number and kind of shares of stock or
other securities that are substituted for those Shares or to which those Shares
are adjusted pursuant to Article IX), and the Company shall reserve for the
purposes of the Plan, out of its authorized but unissued Shares, such number of
Shares.

      4.02 Limitation. For a period of one year after the effective date of this
Plan, the number of Shares for which Options may be granted by the Committee
shall not exceed a number that after conversion of such Options into Shares of
the Company would equal more than twenty percent (20%) of the total outstanding
and issued Shares of the Company.

      4.03 Terminated Options. Whenever any outstanding Award or portion thereof
expires, is canceled or is otherwise terminated (other than by exercise of the
Award), the Shares allocable to the unexercised portion of such Award may again
be the subject of Awards hereunder.

                            Article V -- Eligibility

      Eligible Persons shall be the officers, employees and Consultants of the
Company and any Subsidiary who, in the view of the Committee, occupy managerial,
professional, or key positions, or who provide valuable services, and who, in
the view of the Committee, have the capability of making a substantial
contribution to the success of the Company. In making the selection and in
determining the form and amount of Awards, the Committee may give consideration
to the functions and responsibilities of the individual, past and potential
contributions to profitability and sound growth, the value of the individual's
services to the Company, and any other factors deemed relevant by the Committee.
The Committee shall have full and final authority on selecting those Eligible
Persons who will receive Awards, provided, however, only individuals who are
treated as common-law employees of the Company or any Subsidiary pursuant to the
relevant provisions of the Code may receive Incentive Stock Options.

                                       41
<PAGE>

                              Article VI -- Options

      The Committee may grant Options to any Eligible Person in accordance with
the Plan, the terms and conditions of which shall be set forth in an Agreement.
The provisions of the various Agreements entered into under the Plan need not be
identical. Each Option and Agreement shall be subject to the following
conditions:

      6.01 Purchase Price. The purchase price or the manner in which the
purchase price is to be determined for Shares under each Option shall be set
forth in the Agreement, provided, however, that the purchase price per Share
under (a) each Non-Qualified Stock Option shall not be less than eighty-five
percent (85%) of the Fair Market Value of a Share at the time the Option is
granted, (b) each Incentive Stock Option shall not be less than one hundred
percent (100%) of the Fair Market Value of a Share at the time the Option is
granted, (c) each Incentive Stock Option granted to a Ten-Percent Stockholder
shall not be less than one hundred ten percent (110%) of the Fair Market Value
of a Share at the time the Option is granted and (d) each Option granted to a
Covered Employee shall not be less than one hundred percent (100%) of the Fair
Market Value of a Share at the time the Option is granted. In the case of a
Non-Qualified Stock Option, an Agreement may specify a purchase price that
varies in accordance with a predetermined formula while the Non-Qualified Stock
Option is outstanding.

      6.02 Number of Shares. Each Agreement shall specify the number of Shares
subject to the Option. Options granted to any Participant in a single fiscal
year of the Company shall not cover more than 100,000 shares, as adjusted
pursuant to Article IX.

      6.03 Duration. Options granted hereunder shall be for such term as the
Committee shall determine, provided, however, that no Incentive Stock Option
shall be exercisable after the expiration of ten (10) years from the date it is
granted, or five (5) years in the case of an Incentive Stock Option granted to a
Ten-Percent Stockholder. The Committee may, subsequent to the granting of any
Option, extend the term thereof but in no event shall the term as so extended
exceed the maximum term provided for in the preceding sentence.

      6.04 Non-transferability.

            (a) No Option granted hereunder shall be transferable by the
      Participant to whom such Option is granted otherwise than by will or the
      laws of descent and distribution. An Option may be exercised during the
      lifetime of such Participant only by the Participant, or the Participant's
      guardian or legal representative. The terms of such Option shall be
      binding upon the beneficiaries, executors, administrators, heirs,
      assignees and successors of the Participant.

            (b) At the discretion of the Committee and in accordance with the
      provisions of Section 14.03, any Agreement may provide for the designation
      of a beneficiary of the Participant, who may exercise the Option after the
      Participant's death and obtain the economic benefits thereof, subject to
      the consent of the Participant's spouse where required by law.

      6.05 Vesting. Subject to Section 6.06, and unless otherwise set forth in
the Agreement, each Option shall become exercisable as to thirty-three and
one-third percent (33

                                       42
<PAGE>

1/3%) of the Shares covered by the Option on the first Vesting Date occurring
after the date that the Option was granted and two and seven-ninths percent (2
7/9%) on each subsequent Vesting Date, during a period of Continuous Employment
and until such time as the Option becomes fully vested. To the extent not
exercised, installments shall accumulate and be exercisable, in whole or in
part, at any time after becoming exercisable, but not later than the date the
Option expires. The Committee may accelerate the exercisability of any Option or
portion thereof at any time.

      6.06 Accelerated Vesting. Notwithstanding the provisions in Section 6.05,
each Option granted to a Participant shall become vested in full and immediately
exercisable upon the occurrence of a Change in Control and upon the death,
Retirement or Disability of the Participant.

      6.07 Termination of Employment. In the event that a Participant ceases to
be employed by, or ceases to provide services to, the Company and all
Subsidiaries, any outstanding Options held by such Participant shall, unless
this Plan or the Agreement evidencing such Option provides otherwise, terminate
as follows:

            (a) If the Participant's termination of employment is due to his or
      her death, Disability, or Retirement, the Option shall become vested in
      full and immediately exercisable for two (2) years after the Participant's
      last day of employment, and shall thereafter terminate;

            (b) If the Participant's termination of employment is a termination
      for Cause, the Option shall be canceled and rescinded effective as of the
      date of such termination; and

            (c) If the Participant's termination of employment is for any other
      reason (including a Participant's ceasing to be employed by a Subsidiary
      as a result of the sale of such Subsidiary or an interest in such
      Subsidiary), the Option shall be exercisable for a period of three (3)
      months after the Participant's last day of employment with the Company or
      its Subsidiary, and shall thereafter terminate. Payment of any accrued
      vacation pay or severance pay shall not extend the last day of employment.

      Notwithstanding the foregoing, the Committee may provide, either at the
time an Option is granted or thereafter, that the Option may be exercised after
the periods provided for in this Section, but in no event beyond the term of the
Option. Any portion of an Incentive Stock Option exercised more than one year
after the date of death or disability of the Participant, or three months after
termination of the employment of the Participant, shall become a Non-Qualified
Stock Option.

      6.08 Cancellation and Recision of Options. Unless the Agreement specifies
otherwise, the Committee may cancel and rescind any unexpired, unpaid or
deferred Options (whether vested or unvested pursuant to this Article VI) at any
time if the Participant is not in compliance with the following conditions:

            (a) A Participant shall not render services for any organization or
      engage directly or indirectly in any business which, in the judgment of
      the Committee, is or becomes competitive with the Company or any
      Subsidiary, or which organization or

                                       43
<PAGE>

      business, or the rendering of services to such organization or business,
      is or becomes prejudicial to or in conflict with the interests of the
      Company or any Subsidiary. For Participants whose employment has
      terminated, the judgment of the Committee shall be based on the
      Participant's position and responsibilities while employed by the Company
      or its Subsidiaries; the Participant's post-employment responsibilities
      and position with the other organization or business; the extent of past,
      current, and potential competition or conflict between the Company (or
      Subsidiary) and the other organization or business; the effect of the
      Participant's assuming the post-employment position on the Company's or
      its Subsidiary's customers, suppliers, and competitors; and such other
      considerations as are deemed relevant given the applicable facts and
      circumstances. A Participant may, however, purchase as an investment or
      otherwise, stock or other securities of any such organization or business
      so long as such stock or securities are publicly-traded and do not
      represent a greater than two percent (2%) equity interest in the
      organization or business.

            (b) A Participant shall not, without prior written authorization
      from the Company, disclose to anyone outside the Company or Subsidiaries,
      or use in other than the Company's or Subsidiary's business, any
      information or materials determined to be confidential by the Committee
      relating to the business of the Company or its Subsidiaries, acquired by
      the Participant either during or after employment with the Company or its
      Subsidiaries.

            (c) Upon exercise, payment or delivery pursuant to an Option, the
      Participant shall certify on a form acceptable to the Committee that he or
      she is in compliance with the terms and conditions of the Plan. Failure to
      comply with the provisions of paragraph (a) or (b) of this Section 6.08
      prior to, or during the six months after, any exercise, payment or
      delivery pursuant to an Option shall cause such exercise, payment or
      delivery to be rescinded. The Company shall notify the Participant in
      writing of any such rescission within two years after such exercise,
      payment or delivery. Within ten days after receiving such notice from the
      Company, the Participant shall pay to the Company the amount of any gain
      realized or payment received as a result of the rescinded exercise,
      payment or delivery pursuant to an Option. Such payment shall be made
      either in cash or by returning to the Company the number of shares of
      Common Stock that the Participant received in connection with the
      rescinded exercise, payment or delivery.

      6.09 Annual Limitation. To the extent that the aggregate Fair Market Value
(measured by the Fair Market Value of the Shares at the date of grant) of
Incentive Stock Options which become exercisable for the first time by any
Participant during any calendar year exceeds one hundred thousand dollars
($100,000), the excess of such Options shall be treated as Non-Qualified Stock
Options.

                    Article VII -- Payment for Option Shares

      7.01 Method of Exercise. The exercise of an Option shall be made only by a
written notice delivered to the Secretary of the Company at the Company's
principal executive office, specifying the number of Shares to be purchased and
accompanied by payment therefor and otherwise in accordance with the Agreement
pursuant to which the Option was granted. The purchase price for any Shares
purchased pursuant to the exercise of

                                       44
<PAGE>

an Option shall be paid in full upon such exercise in cash, by check, or, at the
discretion of the Committee and upon such terms and conditions as the Committee
shall approve, by any other method approved by this Article. If requested by the
Committee, the Participant shall deliver the Agreement evidencing the Option to
the Secretary of the Company who shall endorse thereon a notation of such
exercise and return such Agreement to the Participant.

      7.02 Provision for Loans. Subject to the terms and conditions of this
Section and any rules that the Committee may impose from time to time, the
Company or any Subsidiary may make loans to a Participant in connection with the
exercise of an Option as follows:

            (a) Amount. No loan made under the Plan shall exceed the sum of (a)
      the aggregate purchase price payable pursuant to the Option with respect
      to which the loan is made, plus (b) if applicable, the amount of the
      reasonably estimated withholding taxes payable by the Participant with
      respect to the exercise of the Option. In no event may any such loan
      exceed the Fair Market Value, at the date of exercise, of the Shares
      received pursuant to such exercise, and if the Shares are newly issued,
      the par value of the Shares being purchased shall be paid in cash.

            (b) Term. No loan shall have an initial term exceeding five (5)
      years, provided, however, that loans under the Plan shall be renewable at
      the discretion of the Committee, and provided, however, that the
      indebtedness under each loan shall become due and payable, as the case may
      be, on a date no later than (a) one (1) year after termination of the
      Participant's employment due to Retirement, death or Disability, or (b)
      the date of termination of the Participant's employment for any reason
      other than Retirement, death or Disability.

            (c) Security. A loan shall have full recourse against the
      Participant and shall be secured by a pledge of Shares with a Fair Market
      Value of not less than the principal amount of the loan. After any
      repayment of a loan, pledged Shares no longer required as security may be
      released to the Participant.

            (d) Other Provisions. Every loan shall meet all applicable laws,
      regulations and rules of the Federal Reserve Board and shall satisfy the
      applicable laws and regulations under the Code for imputed interest.

      7.03 Alternative Payment Method. With the approval of the Committee and
subject to rules that the Committee may impose from time to time, the
Participant may pay for the purchase price of Shares purchased pursuant to an
exercise of an Option by using Shares already owned and held for at least six
(6) months, the Participant shall deliver a notarized statement of ownership
(hereinafter, "Statement"), in a form to be determined by the Committee, to the
Company indicating that the Participant owns Shares of sufficient number and
value to cover the purchase price of the Shares purchased pursuant to the
exercise of the Option. However, no surrender of the actual stock certificates
relating to the Shares listed in the Statement is necessary. The number of
Shares in the Statement will be treated as a constructive payment of the
purchase price, and the Participant shall retain ownership of such Shares. The
Company shall issue a stock certificate for a number of Shares equal to the
Shares purchased pursuant to the Option minus the number of Shares used for the
constructive payment. All Shares listed in the Statement shall be valued at
their Fair Market Value on the date that the Option is exercised.

                                       45
<PAGE>

      7.04 Exercise/Sale. Subject to rules that the Committee may impose from
time to time, all or any part of the purchase price of Shares purchased pursuant
to an exercise of an Option and any related withholding taxes may be paid by
delivering (on a form prescribed by the Committee) an irrevocable direction to a
securities broker approved by the Committee to sell all or part of the Shares
being purchased and to deliver all or part of the sales proceeds to the Company.

      7.05 Exercise/Pledge. Subject to rules that the Committee may impose from
time to time, all or any part of the purchase price of Shares purchased pursuant
to an exercise of an Option and any related withholding taxes may be paid by
delivering (on a form prescribed by the Committee) an irrevocable direction to
pledge all or part of the Shares being purchased to a securities broker or
lender approved by the Committee, as security for a loan, and to deliver all or
part of the loan proceeds to the Company.

      7.06 Rights of Participants. No Participant shall be deemed for any
purpose to be the owner of any Shares subject to any Option unless and until (a)
the Option shall have been exercised pursuant to the terms thereof, (b) the
Company shall have issued and delivered the Shares to the Participant, (c) the
Participant's name shall have been entered as a stockholder of record on the
books of the Company and (d) the provisions of Section 13.07 have been
satisfied. Thereupon, the Participant shall have full voting, dividend and other
ownership rights with respect to such Shares.

                                       46
<PAGE>

   Article VIII -- Non-Qualified Stock Option Grants to Non-Employee Directors

      8.01 Initial Grants. Each Non-Employee Director who first becomes a member
of the Board or a board of a Subsidiary shall receive a one-time grant of a
Non-Qualified Stock Option of one thousand (1,000) Shares (subject to adjustment
under Article IX). Such Non-Qualified Stock Option shall be granted on the date
when such Non-Employee Director first becomes a member and shall become
exercisable as to thirty-three and one-third percent (33 1/3%) of the Shares
covered by such Option on the first Vesting Date occurring after the date that
the Option was granted and two and seven-ninths percent (2 7/9%) on each
subsequent Vesting Date, during a period of Continuous Employment and until such
time as the Option becomes fully vested. To the extent not exercised,
installments shall accumulate and be exercisable, in whole or in part, at any
time after becoming exercisable, but not later than the date the Option expires.
Each Non-Employee Director serving on the date when the first options are
granted under this Plan shall receive an initial grant as if first becoming a
member of the Board or a board of a Subsidiary except the amount shall be five
hundred (500) Shares (subject to adjustment under Article IX).

      8.02 Annual Grants. Upon the conclusion of each regular annual meeting of
the Company's stockholders held in the year 2001 or thereafter, each
Non-Employee Director who will continue serving as a member of the Board or a
board of a Subsidiary thereafter shall receive a Non-Qualified Stock Option
covering two thousand (2,000) Shares (subject to adjustment under Article IX),
provided, however, such Non-Qualified Stock Option shall be reduced to one
thousand (1,000) Shares if the same Non-Employee Director received the
Non-Qualified Stock Option described in Section 8.01 during the same calendar
year. The vesting of annual grants shall be the same as for initial grants as
described in Section 8.01.

      8.03 Accelerated Exercisability. All Non-Qualified Stock Options granted
to a Non-Employee Director under this Article shall also become exercisable in
full in the event of:

            (a) The termination of such Non-Employee Director's service because
      of death, Disability or Retirement; or

            (b) A Change in Control with respect to the Company.

      8.04 Exercise Price. The Exercise Price under all Non-Qualified Stock
Options granted to a Non-Employee Director under this Article shall be equal to
one hundred percent (100%) of the Fair Market Value of a Share on the date of
grant, payable in one of the forms described in Article VII.

      8.05 Term. All Non-Qualified Stock Options granted to a Non-Employee
Director under this Article shall terminate on the earliest of (a) the 10th
anniversary of the date of grant, (b) the date three (3) months after the
termination of such Non-Employee Director's service for any reason other than
death, Disability or Retirement or (c) the date twenty-four (24) months after
the termination of such Non-Employee Director's service because of death,
Disability or Retirement.

      8.06 Affiliates of Outside Directors. The Committee may provide that the
Non-Qualified Stock Options that otherwise would be granted to a Non-Employee
Director under this Article shall instead be granted to an affiliate of such
Non-Employee Director. Such

                                       47
<PAGE>

affiliate shall then be deemed to be a Non-Employee Director for purposes of the
Plan, provided, however, that the service-related vesting and termination
provisions pertaining to the Non-Qualified Stock Options shall be applied with
regard to the service of the Non-Employee Director.

      8.07 Additional and Alternative Option Grants. Notwithstanding the
foregoing provisions of this Article VIII, the Committee may, in its sole
discretion, grant Non-Qualified Stock Options to Non-Employee Directors for such
additional or alternative number of Shares as determined by the Committee. The
Agreement evidencing each additional or alternative Non-Qualified Stock Option
shall set forth the number of Shares, the exercise price, the manner in which
the Option becomes exercisable, the date the Option shall terminate, and such
other terms and conditions as the Committee deems advisable.

              Article IX -- Adjustment and Modification of Options

      9.01 Change in Capitalization. In the event of any change in the
outstanding Shares of the Company by reason of a stock dividend, stock split,
recapitalization, merger, consolidation or combination (by reclassification or
otherwise), subdivision, exchange of shares or other similar corporate change,
the Committee shall make such adjustments as it, in its sole discretion, deems
appropriate in one or more of:

            (a) the aggregate number and kind of Shares issuable under the Plan
      pursuant to Article IV;

            (b) the number and kind of Shares covered by Awards made under the
      Plan;

            (c) the limitations set forth in Section 6.02;

            (d) the number of Non-Qualified Options to be granted to
      Non-Employee Directors pursuant to Article VIII; or

            (e) the exercise price under each outstanding Option.

Any fractional Share resulting from any such adjustment shall be rounded up to
the nearest whole Share unless the Committee determines a different rounding
method. The adjustment provided for by this Section shall be conclusive and
binding on all Participants and all other persons.

      9.02 Incentive Stock Options. Any such adjustment in the Shares or other
securities subject to outstanding Incentive Stock Options (including any
adjustments in the purchase price) shall be made in such manner as not to
constitute a modification as defined by Section 424(h)(3) of the Code and only
to the extent otherwise permitted by Sections 422 and 424 of the Code.

      9.03 Exercise after a Transaction. In the event of any liquidation,
dissolution, merger, consolidation or other reorganization (collectively, a
"Transaction") of the Company, the Options and Agreements shall continue in
effect in accordance with their respective terms, except that following a
Transaction each Participant, upon the exercise of

                                       48
<PAGE>

any Option, shall be entitled to receive in respect of each Share subject to an
Option the same number and kind of stock, securities, cash, property or other
consideration, as the case may be, that each holder of a Share was entitled to
receive in the Transaction in respect of a Share.

      9.04 Modification and Assumption. Within the limitations of the Plan, the
Committee may modify, assume, cancel or accept the cancellation of Options in
return for the grant of new Options for the same or a different number of Shares
and at the same or a different exercise price, provided, however, no
modification, assumption or cancellation of an Option shall, without the written
consent of the Participant, impair the Participant's rights or increase or
decrease the Participant's obligations under such Option.

      9.05 Buyout Provisions. The Committee may at any time (a) offer to buy out
for a payment in cash or cash equivalents an Option previously granted or (b)
authorize a Participant to elect to cash out an Option previously granted, in
either case at such time and based upon such terms and conditions as the
Committee shall establish.

                Article X --Termination and Amendment of the Plan

      10.01 Termination or Amendment. No Incentive Stock Option shall be granted
on or after the tenth anniversary of the later of (a) the Effective Date of the
Plan or (b) the date when the Board adopted the most recent increase in the
number of Shares available under Article IV that was approved by the Company's
stockholders. Termination of the Plan and all amendments of the Plan shall be
subject to the approval of the Company's stockholders. No Awards shall be
granted after termination of the Plan.

      10.02 Effect of Amendment. Except as provided in Article IX hereof, rights
and obligations under any Award granted before any amendment of the Plan shall
not be adversely altered or impaired by such amendment, except with the consent
of the Participant.

                    Article XI -- Non-Exclusivity of the Plan

      The adoption of the Plan by the Board shall not be construed as amending,
modifying or rescinding any previously approved incentive or stock option
arrangement or as creating any limitations on the power of the Board to adopt
such other incentive or stock option arrangements as it may deem desirable,
including, without limitation, the granting of stock options otherwise than
under the Plan, and such arrangements may be either applicable generally or only
in specific cases.

                                       49
<PAGE>

                     Article XII -- Limitation of Liability

      12.01 Limitation. As illustrative of the limitations of liability of the
Company, but not intended to be exhaustive thereof, nothing in the Plan shall be
construed to:

            (a) give any officer, employee or Consultant any right to be granted
      an Award other than at the sole discretion of the Committee;

            (b) give any person any rights whatsoever with respect to Shares
      except as specifically provided in the Plan;

            (c) limit in any way the right of the Company or its Subsidiaries to
      terminate the employment or services of any person at any time; or

            (d) be evidence of any agreement or understanding, expressed or
      implied, that the Company, or its Subsidiaries, will retain the services
      of any person or employ any person in any particular position, at any
      particular rate of compensation or for any particular period of time.

      12.02 Liability and Indemnification.

            (a) Notwithstanding any provision herein to the contrary, neither
      the Company, any of its Subsidiaries nor any individual acting as an
      employee, agent, or director of the Company or any Subsidiary shall be
      liable to any Participant, former Participant, designated beneficiary, or
      any other person for any claim, loss, liability or expense incurred in
      connection with the Plan, unless attributable to fraud or willful
      misconduct on the part of the Company, Subsidiary or any such employee,
      agent, or director of the Company or Subsidiary.

            (b) The Company shall indemnify, to the fullest extent permitted by
      law, members of the Committee and directors and employees of the Company,
      both past and present, to whom are or were delegated duties,
      responsibilities or authority with respect to the Plan, against any and
      all claims, losses, liabilities, fines, penalties and expenses (including,
      but not limited to, all legal fees relating thereto), reasonably incurred
      by or imposed upon such persons, arising out of any act or omission in
      connection with the operation and administration of the Plan, other than
      fraud or willful misconduct.

         Article XIII -- Regulations and Other Approvals; Governing Law

      13.01 Governing Law. This Plan and the rights of all persons claiming
hereunder shall be construed and determined in accordance with the laws of the
State of Iowa.

      13.02 Obligation to Issue Shares. The obligation of the Company to sell or
deliver Shares with respect to Options granted under the Plan shall be subject
to all applicable laws, rules and regulations, including all applicable federal
and state securities laws, and the obtaining of all such approvals by
governmental agencies as may be deemed necessary or appropriate by the
Committee.

                                       50
<PAGE>

      13.03 Mandatory Changes. Except as otherwise provided in Article X, the
Board may make such changes in the Plan or any Agreement as may be necessary or
appropriate to comply with the rules and regulations of any governmental
authority or securities exchange or association, or to obtain for Participants
granted Incentive Stock Options, the tax benefits under the applicable
provisions of the Code and regulations promulgated thereunder.

      13.04 Securities Laws. Each Award is subject to the requirement that, if
at any time the Committee determines, in its absolute discretion, that the
listing, registration or qualification of Shares issuable pursuant to the Plan
is required by any securities exchange or under any state or federal law, or the
consent or approval of any governmental regulatory body is necessary or
desirable as a condition of, or in connection with, the grant of an Award or the
issuance of Shares, no Awards shall be granted or payment made or Shares issued,
in whole or in part, unless listing, registration, qualification, consent or
approval has been effected or obtained free of any conditions as acceptable to
the Committee.

      13.05 Transfer Restrictions. In the event that the disposition of Shares
acquired pursuant to the Plan is not covered by a then current registration
statement under the Securities Act and is not otherwise exempt from such
registration, such Shares shall be restricted against transfer to the extent
required by the Securities Act or regulations thereunder, and the Company may
place a restrictive legend on the share certificate indicating such
restrictions. Furthermore, the Committee may require a Participant receiving
Shares pursuant to the Plan, as a condition precedent to receipt of such Shares,
to represent to the Company in writing that the Shares acquired by such
Participant are acquired for investment only and not with a view to
distribution.

      13.06 Share Agreements. The Committee, in its sole discretion, may require
any Participant, beneficiary, guardian or legal representative of a Participant
or any other person to execute one (1) or more agreements, relating to the
Shares of the Company, with the Company and/or any of the Company's
shareholders; and no Share may be issued by the Company pursuant to an exercise
of an Option, unless and until such agreements, if any, are executed.

                           Article XIV --Miscellaneous

      14.01 Multiple Agreements. The terms of each Award may differ from, other
Awards granted under the Plan at the same time, or at any other time. The
Committee may also grant more than one Award to a given Participant during the
term of the Plan, either in addition to, or in substitution for, one or more
Awards previously granted to that Participant. The grant of multiple Awards may
be evidenced by a single Agreement or multiple Agreements, as determined by the
Committee.

                                       51
<PAGE>

      14.02 Withholding of Taxes.

            (a) Whenever the Company proposes to issue or transfer Shares under
      the Plan, the Company shall have the right to require the Participant to
      remit to the Company prior to the issuance of any stock certificates and
      to deduct from any payment of cash to the Participant (whether pursuant to
      the Plan or otherwise) an amount sufficient to satisfy any federal, state,
      and local withholding tax requirements.

            (b) With the consent of the Committee, any Participant may satisfy,
      in whole or in part, the obligation to pay the Participant's statutory
      withholding tax obligations by electing to surrender Shares that have a
      Fair Market Value on the date of exercise equal to the amount of cash
      required to be withheld. All elections shall be irrevocable, and be made
      in writing and signed by the Participant prior to the day of exercise.

            (c) The Agreement evidencing any Incentive Stock Options granted
      under this Plan shall provide that if the Participant makes a disposition,
      within the meaning of Section 424(c) of the Code and regulations
      promulgated thereunder, of any Share or Shares issued to such Participant
      pursuant to such Participant's exercise of an Incentive Stock Option, and
      such disposition occurs within the two (2) year period commencing on the
      day after the date of grant of such Option or within the one (1) year
      period commencing on the day after the date of transfer of the Share or
      Shares to the Participant pursuant to the exercise of such Option, such
      Participant shall, within ten (10) days of such disposition, notify the
      Company thereof and thereafter immediately deliver to the Company any
      amount of federal, state or local income taxes and other amounts that the
      Company informs the Participant the Company is required to withhold.

      14.03 Designation of Beneficiary.

            (a) A Participant may, with the consent of the Committee, designate
      a beneficiary or beneficiaries to receive, in the event of such
      Participant's death, any Award or Shares payable to such Participant under
      the Plan. The Participant may revoke or amend a designation at any time by
      a subsequent written designation. However, no such designation, revocation
      or amendment shall be honored by the Company unless signed and dated by
      the Participant (and the Participant's spouse where required by law) and
      delivered to the Company within the Participant's lifetime. The Company
      makes no guarantee or assurance that any beneficiary form supplied by it
      will be effective under the laws of the applicable jurisdiction to
      transfer rights to a beneficiary at the time of a Participant's death. The
      Participant is solely responsible for determining whether any beneficiary
      designation is in compliance with such laws.

            (b) In the event of the death of a Participant and in the absence of
      a beneficiary validly designated under the Plan who is living at the time
      of such Participant's death, the Company shall deliver such Options and/or
      amounts payable to the executor or administrator of the estate of the
      Participant, or if no such executor or administrator has been appointed
      (to the knowledge of the Company), the Company, in its discretion, may
      deliver such Options and/or amounts payable to the spouse or to any one or
      more dependents or relatives of the Participant, or if no spouse,
      dependent

                                       52
<PAGE>

      or relative is known to the Company, then to such other person as the
      Company may designate.

      14.04 Gender and Number. Except where otherwise indicated by the context,
any masculine term used herein also shall include the feminine; the plural shall
include the singular and the singular shall include the plural.

      14.05 Severability. In the event any portion of this Plan is found to be
unenforceable or contrary to any applicable law, then said unenforceable or
conflicting portion of the Plan shall be deemed null and void and the Board may
modify the Plan in order to most closely accomplish the goals of the Plan while
staying within the bounds of enforceability and within the purview of any
applicable law with which the offending portion may have been in conflict.

      14.06 Successors. All obligations of the Company under the Plan, with
respect to Awards granted hereunder, shall be binding on any successor to the
Company, whether the existence of such successor is the result of a direct or
indirect purchase, merger, consolidation, or otherwise, of all or substantially
all of the business and/or assets of the Company.

      14.07 Headings and Captions. The headings and captions in this Plan are
for convenience of reference only and shall not limit or otherwise affect the
meaning hereof.

      IN WITNESS WHEREOF, this Plan is made effective as of the day, month and
year first above written.

                                        CE SOFTWARE, INC.

                                        By:_____________________________________

                                        Printed Name: John S. Kirk

                                        Title: President

                                       53Exhibit 10.2

                            ADOPTION AGREEMENT #005
               NONSTANDARDIZED CODE ss.401(k) PROFIT SHARING PLAN

      The undersigned, CE SOFTWARE, INC. ("Employer"), by executing this
Adoption Agreement, elects to become a participating Employer in the FIRSTAR
BANK Defined Contribution Master Plan (basic plan docment #01) by adopting the
accompanying Plan and Trust in full as if the Employer were a signatory to that
Agreement. The Employer makes the following elections granted under the
provsions of the Master Plan.

                                   ARTICLE I
                                  DEFINITIONS

      1.02 TRUSTEE. The Trustee executing this Adoption Agreement is: (Choose
(a) or (b))

|X|   (a) A discretionary Trustee. See Section 10.03[A] of the Plan.

|_|   (b) A nondiscretionary Trustee. See Section 10.03[B] of the Plan. [Note:
      The Employer may not elect Option (b) if a Custodian executes the
      Adoption Agreement.]

      1.03 PLAN. The name of the Plan as adopted by the Employer is CE SOFTWARE,
INC. 401(k) PROFIT SHARING PLAN.

      1.07 EMPLOYEE. The following Employees are not eligible to participate in
the Plan: (Chose (a) or at least one of (b) through (g))

|_|   (a) No exclusions.

|_|   (b) Collective bargaining employees (as defined in Section 1.07 of the
      Plan). [Note: If the Employer excludes union employees from the Plan, the
      Employer must be able to provide evidence that retirement benefits were
      the subject of good faith bargaining.]

|_|   (c) Nonresident aliens who do note receive any earned income (as defined
      in Code ss.911(d)(2)) from the Employer which constitutes United States
      source income (as defined in Code ss.861(a)(3)).

|_|   (d) Commission Salesmen.

|_|   (e) Any Employee compensated on a salaried basis.

|_|   (f) Any Employee compensated on an hourly basis.

|X|   (g) (Specify) Seasonal employees.

Leased Employees. Any Leased Employee treated as an Employee under Section 1.31
of the Plan, is: (Choose (h) or (i))

|_|   (h) Not eligible to participate in the Plan.

|X|   (i) Eligible to participate in the Plan, unless excluded by reason of an
      exclusion classification elected under this Adoption Agreement Section
      1.07.

                                     54
<PAGE>

Related Employers. If any member of the Employer's related group (as defined in
Section 1.30 of the Plan) executes a Participation Agreement this Adoption
Agreement, such member's Employees are eligible to participate in this Plan,
unless excluded by reason of an exclusion classification elected under this
Adoption Agreement Section 1.07. In addition: (Choose (j) or (k))

|X|   (j) No other related group member's Employees are eligible to participate
      in the Plan.

|_|   (k) The following nonparticipating related group member's Employees are
      eligible to participate in the Plan unless excluded by reason of an
      exclusion classification elected under this Adoption Agreement Section
      1.07:_________________________.

      1.12 COMPENSATION.

Treatment of elective contributions. (Choose (a) or (b))

|_|   (a) "Compensation" includes elective contributions made by the Employer on
      the Employee's behalf.

|X|   (b) "Compensation" does not include elective contributions.

Modifications to Compensation definition. (Choose (c) or at least one of (d)
through (j))

|_|   (c) No modifications other than as elected under Options (a) or (b).

|_|   (d) The Plan excludes Compensation in excess of $_________.

|_|   (e) In lieu of the definition in Section 1.12 of the Plan, Compensation
      means any earnings reportable as W-2 wages for Federal income tax
      withholding pruposes, subject to any other election under this Adoption
      Agreement Section 1.12.

|_|   (f) The Plan excludes bonuses.

|_|   (g) The Plan excludes overtime.

|_|   (h) The Plan excludes Commissions.

|_|   (i) Compensation will not include Compensation from a related employer (as
      defined in Section 1.30 of the Plan) that has not executed a Participation
      Agreement in this Plan unless, pursuant to Adoption Agreement Section
      1.07, the Employees of that related employer are eligible to participate
      in this Plan.

|X|   (j) (Specify) Compensation includes wages, bonuses, overtime, commissions,
      severance, vacation and holiday pay only. Excludes the value of any
      employee benefits, non cash awards, relocation expense reimb. and car
      allowances.

If, for any Plan Year, the Plan uses permitted disparity in the contribution of
allocation formula elected under Article III, any election of Options (f), (g),
(h) or (j) is ineffective for such Plan Year with respect to any Nonhighly
Compensated Employee.

Special definition for matching contributions. "Compensation" for purposes of
any matching contribution formula under Article III means: (Choose (k) or (l)
only if applicable)

|X|   (k) Compensation as defined in this Adoption Agreement Section 1.12.

                                     55
<PAGE>

|_|   (l) (Specify) __________________________________.

Special definition for salary reduction contributions. An Employee's salary
reduction agreement applies to his Compensation determined prior to the
reduction authorized by that salary reduction agreement, with the following
exceptions: (Choose (m) or at least one of (n) or (o), if applicable)

|X|   (m) No exceptions.

|_|   (n) If the Employee makes elective contributions to another plan
      maintained by the Employer, the Advisory Committee will determine the
      amount of the Employer's salary reduction contribution for the withholding
      period: (Choose (1) or (2))

      |_|   (1) After the reduction for such period of elective contributions to
            the other plan(s).

      |_|   (2) Prior to the reduction for such period of elective contributions
            to the other plan(s).

|_|   (o) (Specify) __________________________________.

      1.17 PLAN YEAR/LIMITATION YEAR.

Plan Year. Plan Year means: (Choose (a) or (b))

|X|   (a) The 12 consecutive month period ending every September 30.

|_|   (b) (Specify) __________________________________.

Limitation Year. The Limitation Year is: (Choose (c) or (d))

|X|   (c) The Plan Year.

|_|   (d) The 12 consecutive month period ending every ____.

      1.18 EFFECTIVE DATE.

New Plan. The "Effective Date" of the Plan is _____________.

Restated Plan. The restated Effective Date is October 1, 1993.

This Plan is a substitution and amendment of an existing retirement plan(s)
originally established October 1, 1988. [Note: See the Effective Date Addendum.]

      1.27 HOUR OF SERVICE. The crediting method for Hours of Service is:
(Choose (a) or (b))

|X|   (a) The actual method.

|_|   (b) The equivalency method, except:

      |_|   (1) No exceptions.

      |_|   (2) The actual method applies for purposes of: (Choose at least one)

            |_|   (i) Participation under Article II.

                                     56
<PAGE>

[Note: On the blank line insert "daily," "weekly," "semi-monthly payroll
periods" or "monthly,"]

      1.29 SERVICE FOR PREDECESSOR EMPLOYER. In addition to the predecessor
service the Plan must credit by reason of Section 1.29 of the Plan, the Plan
credits Service with the following predecessor employer(s): Powercore. Service
with the designated predecessor employer(s) applies: (Choose at least one of (a)
or (b); (c) is available only in addition to (a) or (b))

|X|   (a) For purposes of participation under Article II.

|X|   (b) For purpose of vesting under Article V.

|_|   (c) Except the following Service: _____________________________________.

[Note: If the Plan does not credit any predecessor service under this provision,
insert "N/A" in the first blank line. The Employer may attach a schedule to this
Adoption Agreement, in the same format as this Section 1.29, designating
additional predecessor employers and the applicable service crediting
elections.]

      1.31 LEASED EMPLOYEES. If a Leased Employee is a Participant in the Plan
and also participates in a plan maintained by the leasing organization: (Choose
(a) or (b))

|_|   (a) The Advisory Committee will determine the Leased Employee's allocation
      of Employer contributions under Article III without taking into account
      the Leased Employee's allocation, if any, under the leasing organization's
      plan.

|X|   (b) The Advisory Committee will reduce a Leased Employee's allocation of
      Employer nonelective contributions (other than designated qualified
      nonelective contributions) under this Plan by the Leased Employee's
      allocation under the leasing organization's plan, but only to the extent
      that allocation is attributable to the Leased Employee's service provided
      to the Employer. The leasing organization's plan:

      |X|   (1) Must be a money purchase plan which would satisfy the definition
            under Section 1.31 of a safe harbor plan, irrespective of whether
            the safe harbor exception applies.

      |_|   (2) Must satisfy the features and, if a defined benefit plan, the
            method of redution described in an addendum to this Adoption
            Agreement, numbered 1.31.

                                   ARTICLE II
                             EMPLOYEE PARTICIPANTS

      2.01 ELIGIBILITY.

Eligibility conditions. To become a Participant in the Plan, an Employee must
satisfy the following eligibility conditions: (Choose (a) or (b) or both; (c) is
optional as an additional election)

|_|   (a) Attainment of age ____ (specify age, not exceeding 21).

|X|   (b) Service requirement. (Choose one of (1) through (3))

      |_|   (1) One Year of Service.

      |_|   (2) __ months (not exceeding 12) following the Employee's Employment
            Commencement Date.

                                     57
<PAGE>

      |X|   (3) One Hour of Service.

|X|   (c) Special requirements for non-401(k) portion of the plan. (Make
      elections under (1) and under (2))

      (1)   The requirements of this Option (c) apply to participation in:
            (Choose at least one of (i) through (iii))

            |X|   (i) The allocation of Employer nonelective contributions and
                  Participant foreitures.

            |X|   (ii) The allocation of Employer matching contributions
                  (including forfeitures allocated as matching contributions).

            |X|   (iii) The allocation of Employer qualified nonelective
                  contributions.

      (2)   For participation in the allocations described in (1), the
            eligibility conditions are: (Choose at least one of (i) through
            (iv))

            |X|   (i) 1 (one or two) Year(s) of Service, without an intervening
                  Break in Service (as described in Section 2.03(A) of the Plan)
                  if the requirement is two Years of Service.

            |_|   (ii) __ months (not exceeding 24) following the Employee's
                  Employment Commencement Date.

            |_|   (iii) One Hour of Service.

            |_|   (iv) Attainment of age __ (Specify age, not exceeding 21).

Plan Entry Date. "Plan Entry Date" means the Effective Date and: (Choose (d),
(e) or (f))

|_|   (d) Semi-annual Entry Dates. The first day of the Plan Year and the first
      day of the seventh month of the Plan Year.

|_|   (e) The first day of the Plan Year.

|X|   (f) (Specify entry dates) Elective deferrals: each day of the Plan Year;
      Profit Sharing Contribution: Oct. 1 preceding completion of elj.

Time of Participation. An Employee will become a Participant (and, if
applicable, will participate in the allocations described in Option (c)(1)),
unless excluded under Adoption Agreement Section 1.07, on the Plan Entry Date
(if employed on that date): (Choose (g), (h) or (i))

|_|   (g) immediately following

|_|   (h) immediately preceding

|X|   (i) nearest

the date the Employee completes the eligibility conditions described in Options
(a) and (b) (or in Option (c)(2) if applicable) of this Adoption Agreement
Section 2.01. [Note: The Employer must coordinate the selection of (g), (h) or
(i) with the "Plan Entry Date" selection in (d), (e) or (f). Unless otherwise
excluded under Section 1.07, the Employee must become a Participant by the
earlier of: (1) the first day of the Plan Year beginning after the date the
Employee completes the age and service requirements of Code ss.410(a); or (2) 6
months after the date the Employee completes those requirements.]

                                     58
<PAGE>

Dual eligibility. The eligibility conditions of this Section 2.01 apply to
(Choose (j) or (k))

|_|   (j) All Employees of the Employer, except: (Choose (1) or (2))

      |_|   (1) No exceptions.

      |_|   (2) Employees who are Participants in the Plan as of the Effective
            Date.

|X|   (k) Solely to an Employee employed by the Employer after January 31, 1994.
      If the Employee was employed by the Employer on or before the specified
      date, the Employee will become a Participant: (Choose (1), (2) or (3))

      |_|   (1) On the latest of the Effective Date, his Employment Commencement
            Date or the date he attains age __ (not to exceed 21).

      |X|   (2) Under the eligibility conditions in effect under the Plan prior
            to the restated Effective Date. If the restated Plan required more
            than one Year of Service to participate, the eligibility condition
            under this Option (2) for participation in the Code ss.401(k)
            arrangement under this Plan is one Year of Service for Plan Years
            beginning after December 31, 1988. [For restated plans only]

      |_|   (3) (Specify) ________________________________________.

      2.02 YEAR OF SERVICE - PARTICIPATION.

Hours of Service. An Employee must complete: (Choose (a) or (b))

|X|   (a) 1,000 Hours of Service

|_|   (b) __ Hours of Service

during an eligibility computation period to receive credit for a Year of
Service. [Note: The Hours of Service requirement may not exceed 1,000.]

Eligibility computation period. After the initial eligibility computation period
described in Section 2.02 of the Plan, the Plan measures the eligibility
computation as: (Choose (c) or (d))

|_|   (c) The 12 consecutive month period beginning with each anniversary of an
      Employee's Employment Commencement Date.

|X|   (d) The Plan Year, beginning with the Plan Year which includes the first
      anniversary of the Employee's Employment Commencement Date.

      2.03 BREAK IN SERVICE - PARTICIPATION. The Break in Service rule described
in Section 2.03(B) of the Plan: (Choose (a) or (b))

|X|   (a) Does not apply to the Employer's Plan.

|_|   (b) Applies to the Employer's Plan.

      2.06 ELECTION NOT TO PARTICIPATE. The Plan: (Choose (a) or (b))

|X|   (a) Does not permit an eligible Employee or a Participant to elect not to
      participate.

                                     59
<PAGE>

|_|   (b) Does permit an eligible Employee or a Participant to elect not to
      participate in accordance with Section 2.06 and with the following rules:
      (Complete (1), (2), (3) and (4))

      (1)   An election is effective for a Plan Year if filed no later than
            ___________________________

      (2)   An election not to participate must be effective for at least __
            Plan Year(s).

      (3)   Following a re-election to participate, the Employee or Participant:

      |_|   (i) May not again elect not to participate for any subsequent Plan
            Year.

      |_|   (ii) May again elect to participate, but not earlier than the
            _______ Plan Year following the Plan Year in which the re-election
            first was effective.

      (4)   (Specify) _____________________________ [Insert "N/A" if no other
            rules apply].

                                   ARTICLE III
                     EMPLOYER CONTRIBUTIONS AND FORFEITURES

      3.01 AMOUNT

Part I. [Options (a) through (g)] Amount of Employer's contribution. The
Employer's annual contribution to the Trust will equal the total amount of
deferral contributions, matching contributions, qualified nonelective
contributions and nonelective contributions, as determined under this Section
3.01. (Choose any combination of (a), (b), (c) and (d), or choose (e))

|X|   (a) Deferral contributions (Code ss.401(k) arrangement). (Choose (1) or
      (2) or both)

      |X|   (1) Salary reduction arrangement. The Employer must contribute the
            amount by which the Participants have reduced their Compensation for
            the Plan Year, pursuant to their salary reduction agreements on file
            with the Advisory Committee. A reference in the Plan to salary
            reduction contributions is a reference to these amounts.

      |_|   (2) Cash or deferred arrangement. The Employer will contribute on
            behalf of each Participant the portion of the Participant's
            proportionate share of the cash or deferred contribution which he
            has not elected to receive in cash. See Section 14.02 of the Plan.
            The Employer's cash or deferred contribution is the amount the
            Employer may from time to time deem advisable which the Employer
            designates as a cash or deferred contribution prior to making that
            contribution to the Trust.

|X|   (b) Matching contributions. The Employer will make matching contributions
      in accordance with the formula(s) elected in Part II of this Adoption
      Agreement Section 3.01.

|X|   (c) Designated qualified nonelective contributions. The Employer, in its
      sole discretion, may contribute an amount which it designates as a
      qualified nonelective contribution.

|X|   (d) Nonelective contributions. (Choose any combination of (1) through (4))

      |X|   (1) Discretionary contribution. The amount (or additional amount)
            the Employer may from time to time deem advisable.

                                     60
<PAGE>

      |_|   (2) The amount (or additional amount) the Employ[ILLEGIBLE] may from
            time to time deem advisable, separately determined for each of the
            following classifications of Participants: (Choose (i) or (ii))

            |_|   (i) Nonhighly Compensated Employees and Highly Compensated
                  Employees.

            |_|   (ii) (Specify classifications) ______________________________.

      Under this Option (2), the Advisory Committee will allocate the amount
      contributed for each Participant classification in accordance with Part II
      of Adoption Agreement Section 3.04, as if the Participants in that
      classificiation were the only Participants in the Plan.

      |_|   (3) ____% of the Compensation of all Participants under the Plan,
            determined for the Employer's taxable year for which it makes the
            contribution. [Note: The percentage selected may not exceed 15%.]

      |_|   (4) ____% of Net Profits but not more than $______.

|_|   (e) Frozen Plan. This Plan is a frozen Plan effective ____. The Employer
      will not contribute to the Plan with respect to any period following the
      stated date.

Net Profits. The Employer: (Choose (f) or (g))

|X|   (f) Need not have Net Profits to make its annual contribution under this
      Plan.

|_|   (g) Must have current or accumulated Net Profits exceeding $_____ to make
      the following contributions: (Choose at least one)

      |_|   (1) Cash or deferred contributions describedin Option (a)(2).

      |_|   (2) Matching contributions described in Option (b), except:
            _____________.

      |_|   (3) Qualified nonelective contributions described in Option (c).

      |_|   (4) Nonelective contributions described in Option (d).

The term "Net Profits" means the Employer's net income or profits for any
taxable year determined by the Employer upon the basis of its books of account
in accordance with generally accepted accounting practices consistently applied
without any deductions for Federal and state taxes upon income or for
contributions made by the Employer under this Plan or under any other employee
benefit plan the Employer maintains. The term "Net Profits" specifically
excludes __________________________________. [Note: Enter "N/A" if no exclusions
apply.]

If the Employer requires Net Profits for matching contributions and the Employer
does not have sufficient Net Profits under Option (g), it will reduce the
matching contribution under a fixed formula on a prorata basis for all
Participants. A Participant's share of the reduced contribution will bear the
same ratio as the matching contribution the Participant would have received if
Net Profits were sufficient bears to the total matching contribution all
Participants would have received if Net Profits were sufficient. If more than
one member of a related group (as defined in Section 1.30) execute this Adoption
Agreement, each participating member will determine Net Profits separately but
will not apply this reduction unless, after combining the separately determined
Net Profits, the aggregate Net Profits are insufficient to satisfy the matching
contribution liability. "Net Profits" includes both current and accumulated Net
Profits.

                                     61
<PAGE>

Part II. [Options (h) through [ILLEGIBLE] Matching contribution formula. [No
[ILLEGIBLE] if the Employer elected Option (b), complete Options (h), (i) and
(j).]

|X|   (h) Amount of matching contributions. For each Plan Year, the Employer's
      matching contribution is: (Choose any combination of (1), (2), (3), (4)
      and (5))

      |_|   (1) An amount equal to ___% of each Participant's eligible
            contriubtions for the Plan Year.

      |_|   (2) An amount equal to ___% of each Participant's first tier of
            eligible contributions for the Plan Year, plus the following
            matching percentage(s) for the following subsequent tiers of
            eligible contributions for the Plan _____________________________.

      |X|   (3) Discretionary formula.

            |X|   (i) An amount (or additional amount) equal to a matching
                  percentage the Employer from time to time may deem advisable
                  of the Participant's eligible contributions for the Plan Year.

            |_|   (ii) An amount (or additional amount) equal to a matching
                  percentage the Employer from time to time may deem advisable
                  of each tier of the Participant's eligible contributions for
                  the Plan Year.

|_|   (4) An amount equal to the following percentage of each Participant's
      eligible contributions for the Plan Year, based on the Participant's Years
      of Service:

     Number of Years of Service                   Matching Percentage
     --------------------------                   -------------------

               --                                         --
               --                                         --
               --                                         --
               --                                         --

      The Advisory Committee will apply this formula by determining Years of
      Service as follows: ____________________________________.

|_|   (5) A Participant's matching contributions may not: (Choose (i) or (ii))

            |_|   (i) Exceed _________________________________.

            |_|   (ii) Be less than ______________________________.

      Related Employers. If two or more related employers (as defined in Section
      1.30) contribute to this Plan, the related employers may elect different
      matching contribution formulas by attaching to the Adoption Agreement a
      separately completed copy of this Part II. Note: Separate matching
      contribution formulas create separate current benefit structures that must
      satisfy the minimum participation test of Code ss.401(a)(26).]

|X|   (i) Definition of eligible contributions. Subject to the requirements of
      Option (j), the term "eligible contributions" means: (Choose any
      combination of (1) through (3))

      |X|   (1) Salary reduction contributions.

                                     62
<PAGE>

      |_|   (2) Cash or deferred contributions (including any part of the
            Participant's proportionate share of the cash or deferred
            contribution which the Employer defers without the Participant's
            election).

      |_|   (3) Participant mandatory contributions, as designated in Adoption
            Agreement Section 4.01. See Section 14.04 of the Plan.

|X|   (j) Amount of eligible contributions taken into account. When determining
      a Participant's eligible contributions taken into account under the
      matching contributions formula(s), the following rules apply: (Choose any
      combination of (1) through (4))

      |_|   (1) The Advisory Committee will take into account all eligible
            contributions credited for the Plan Year.

      |X|   (2) The Advisory Committee will disregard eligible contributions
            exceeding 6% of compensation for the Plan Year.

      |_|   (3) The Advisory Committee will treat as the first tier of eligible
            contributions, an amount not exceeding: __________________________.

            The subsequent tiers of eligible contributions are: _______________.

      |_|   (4) (Specify) __________________________.

Part III. [Options (k) and (l)]. Special rules for Code ss401(k) Arrangement.
(Choose (k) or (l), or both, as applicable)

|X|   (k) Salary Reduction Agreements. The following rules and restrictions
      apply to an Employee's salary reduction agreement: (Make a selection under
      (1), (2), (3) and (4))

      (1) Limitation on amount. The Employee's salary reduction contributions:
      (Choose (i) or at least one of (ii) or (iii))

            |_|   (i) No maximum limitation other than as provided in the Plan.

            |X|   (ii) May not exceed 10% of Compensation for the Plan Year,
                  subject to the annual additions limitation described in Part 2
                  of Article III and the 402(g) limitation described in Section
                  14.07 of the Plan.

            |_|   (iii) Based on percentages of Compensation must equal at least
                  _______________________.

      (2) An Employee may revoke, on a prospective basis, a salary reduction
      agreement: (Choose (i), (ii), (iii) or (iv))

            |_|   (i) Once during any Plan Year but not later than
                  __________________________ of the Plan Year.

            |_|   (ii) As of any Plan Entry Date.

            |_|   (iii) As of the first day of any month.

            |X|   (iv) (Specify, but must be at least once per Plan Year) as of
                  the first day of any pay period.

                                     63
<PAGE>

      (3) An Employee who revokes his salary reduction agreement may file a new
      salary reduction agreement with an effective date: (Choose (i), (ii),
      (iii) or (iv))

            |_|   (i) No earlier than the first day of the next Plan Year.

            |X|   (ii) As of any subsequent Plan Entry Date.

            |_|   (iii) As of the first day of any month subsequent to the month
                  in which he revoked an Agreement.

            |_|   (iv) (Specify, but must be at least once per Plan Year
                  following the Plan Year of revocation) ______________________.

      (4) A Participant may increase or may decrease, on a prospective basis,
      his salary reduction percentage or dollar amount: (Choose (i), (ii), (iii)
      or (iv))

            |X|   (i) As of the beginning of each payroll period.

            |_|   (ii) As of the first day of each month.

            |_|   (iii) As of any Plan Entry Date.

            |_|   (iv) (Specify, but must permit an increase or a decrease at
                  least once per Plan Year) ______________________________.

|_|   (l) Cash or deferred contributions. For each Plan Year for which the
      Employer makes a designated cash or deferred contribution, a Participant
      may elect to receive directly in cash not more than the following portion
      (or, if less, the 402(g) limitation described in Section 14.07 of the
      Plan) of his proportionate share of that cash or deferred contriubtion:
      (Choose (1) or (2))

      |_|   (1) All or any portion.

      |_|   (2) __________________%.

      3.04 CONTRIBUTION ALLOCATION. The Advisory Committee will allocate
deferral contributions, matching contributions, qualified nonelective
contributions and nonelective contributions in accordance with Section 14.06 and
the elections under this Adoption Agreement Section 3.04.

Part I. [Options (a) through (d)]. Special Accounting Elections. (Choose
whichever elections are applicable to the Employer's Plan)

|X|   (a) Matching Contributions Account. The Advisory Committee will allocate
      matching contributions to a Participant's: (Choose (1) or (2); (3) is
      available only in addition to (1))

      |X|   (1) Regular Matching Contributions Account.

      |_|   (2) Qualified Matching Contributions Account.

      |_|   (3) Except, matching contributions under Option(s) of Adoption
            Agreement Section 3.01 are allocable to the Qualified Matching
            Contributions Account.

                                     64
<PAGE>

|X|   (b) Special Allocation Dates for Salary Reduction Contributions. The
      Advisory Committee will allocate salary reduction contributions as of the
      Accounting Date and as of the following additional allocation dates:
      December 31, March 31, June 30.

|X|   (c) Special Allocation Dates for Matching Contributions. The Advisory
      Committee will allocate matching contributions as of the Accounting Date
      and as of the following additional allocation dates: December 31, March
      31, June 30.

|X|   (d) Designated Qualified Nonelective Contributions - Definition of
      Participant. For purposes of allocating the designated qualified
      nonelective contribution, "Participant" means: (Choose (1), (2) or (3))

      |_|   (1) All Participants.

      |X|   (2) Participants who are Nonhighly Compensated Employees for the
            Plan Year.

      |_|   (3) (Specify) ______________________________________________________
            _________________.

Part II. Method of Allocation - Nonelective Contribution. Subject to any
restoration allocation required under Section 5.04, the Advisory Committee will
allocate and credit each annual nonelective contribution (and Participant
forfeitures treated as nonelective contributions) to the Employer Contributions
Account of each Participant who satisfies the conditions of Section 3.06, in
accordance with the allocation method selected under this Section 3.04. If the
Employer elects Option (e)(2), Option (g)(2) or Option (h), for the first 3% of
Compensation allocated to all Participants, "Compensation" does not include any
exclusions elected under Adoption Agreement Section 1.12 (other than the
exclusion of elective contributions), and the Advisory Committee must take into
account the Participant's Compensation for the entire Plan Year. (Choose an
allocation method under (e), (f), (g) or (h); (i) is mandatory if the Employer
elects (f), (g) or (h); (i) is optional in addition to any other election.)

|X|   (e) Nonintegrated Allocation Formula. (Choose (1) or (2))

      |_|   (1) The Advisory Committee will allocate the annual nonelective
            contributions in the same ratio that each Participant's Compensation
            for the Plan Year bears to the total Compensation of all
            Participants for the Plan Year.

      |X|   (2) The Advisory Committee will allocate the annual nonelective
            contributions in the same ratio that each Participant's Compensation
            for the Plan Year bears to the total Compensation of all
            Participants for the Plan Year. For purposes of this Option (2),
            "Participant" means, in addition to a Participant who satisfies the
            requirements of Section 3.06 for the Plan Year, any other
            Participant entitled to a top heavy minimum allocation under Section
            3.04(B), but such Participant's allocation will not exceed 3% of his
            Compensation for the Plan Year.

|_|   (f) Two-Tiered Integrated Allocation Formula - Maximum Disparity. First,
      the Advisory Committee will allocate the annual Employer nonelective
      contributions in the same ratio that each Participant's Compensation plus
      Excess Compensation for the Plan Year bears to the total Compensation plus
      Excess Compensation of all Participants for the Plan Year. The allocation
      under this paragraph, as a percentage of each Participant's Compensation
      plus Excess Compensation, must not exceed the applicable percentage (5.7%,
      5.4% or 4.3%) listed under the Maximum Disparity Table following Option
      (i).

      The Advisory Committee then will allocate any remaining nonelective
      contributions in the same ratio that each Participant's Compensation for
      the Plan Year bears to the total Compensation of all Participants for the
      Plan Year.

                                     65
<PAGE>

|_|   (g) Three-Tiered Integrated Allocation Formula. First, the Advisory
      Committee will allocate the annual Employer nonelective contributions in
      the same ratio that each Participant's Compensation for the Plan Year
      bears to the total Compensation of all Participants for the Plan Year. The
      allocation under this paragraph, as a percentage of each Participant's
      Compensation may not exceed the applicable percentage (5.7%, 5.4% or 4.3%)
      listed under the Maximum Disparity Table following Option (i). Solely for
      purposes of the allocation in this first paragraph, "Participant" means,
      in addition to a Participant who satisfies the requirements of Section
      3.06 for the Plan Year: (Choose (1) or (2))

      |_|   (1) No other Participant.

      |_|   (2) Any other Participant entitled to a top heavy minimum allocation
            under Section 3.04(B), but such Participant's allocation under this
            Option (g) will not exceed 3% of his Compensation for the Plan
            Year.

      As a second tier allocation, the Advisory Committee will allocate the
      nonelective contributions in the same ratio that each Participant's
      Excess Compensation for the Plan Year bears to the total Excess
      Compensation of all Participants for the Plan Year. The allocation under
      this paragraph, as a percentage of each Participant's Excess Compensation,
      may not exceed the allocation percentage in the first paragraph.

      Finally, the Advisory Committee will allocate any remaining nonelective
      contributions in the same ratio that each Participant's Compensation for
      the Plan Year bears to the total Compensation of all Participants for the
      Plan Year.

|_|   (h) Four-Tiered Integrated Allocation Formula. First, the Advisory
      Committee will allocate the annual Employer nonelective contributions in
      the same ratio that each Participant's Compensation for the Plan Year
      bears to the total Compensation of all Participants for the Plan Year, but
      not exceeding 3% of each Participant's Compensation. Solely for purposes
      of this first tier allocation, a "Participant" means, in addition to any
      Participant who satisfies the requirements of Section 3.06 for the Plan
      Year, any other Participant entitled to a top heavy minimum allocation
      under Section 3.04(B) of the Plan.

      As a second tier allocation, the Advisory Committee will allocate the
      nonelective contributions in the same ratio that each Participant's Excess
      Compensation for the Plan Year bears to the total Excess Compensation of
      all Participants for the Plan Year, but no exceeding 3% of each
      Participant's Excess Compensation.

      As a third tier allocation, the Advisory Committee will allocate the
      annual Employer contributions in the same ratio that each Participant's
      Compensation plus Excess Compensation for the Plan Year bears to the total
      Compensation plus Excess Compensation of all Participants for the Plan
      Year. The allocation under this paragraph, as a percentage of each
      Participant's Compensation plus Excess Compensation, must not exceed the
      applicable percentage (2.7%, 2.4% or 1.3%) listed under the Maximum
      Disparity Table following Option (i).

      The Advisory Committee then will allocate any remaining nonelective
      contributions in the same ratio that each Participant's Compensation for
      the Plan Year bears to the total Compensation of all Participants for the
      Plan Year.

                                     66
<PAGE>

|_|   (i) Excess Compensation. For purposes of Option (f), (g) or (h) "Excess
      Compensation" means Compensation in excess of the following Integration
      Level: (Choose (1) or (2))

      |_|   (1) ____% (not exceeding 100%) of the taxable wage base, as
            determined under Section 230 of the Social Security Act, in effect
            on the first day of the Plan Year: (Choose any combination of (i)
            and (ii) or choose (iii))

            |_|   (i) Rounded to ___________________ (but not exceeding the
                  taxable wage base).

            |_|   (ii) But not greater than $_____.

            |_|   (iii) Without any further adjustment or limitation.

      |_|   (2) $_______ [Note: Not exceeding the taxable wage base for the Plan
            Year in which this Adoption Agreement first is effective.]

Maximum Disparity Table. For purposes of Options (f), (g) and (h), the
applicable percentage is:

<TABLE>
<CAPTION>
     Integration Level (as           Applicable Percentages for     Applicable Percentages
percentage of taxable wage base)      Option (f) or Option (g)          for Option (h)
--------------------------------     --------------------------     ----------------------
<S>                                                 <C>                     <C>
100%                                                5.7%                    2.7%

More than 80% but less than 100%                    5.4%                    2.4%

More than 20% (but not less than $10,001)
and not more than 80%                               4.3%                    1.3%

20% (or $10,000, if greater) or less                5.7%                    2.7%
</TABLE>

|_|   (j) Allocation offset. The Advisory Committee will reduce a Participant's
      allocation otherwise made under Part II of this Section 3.04 by the
      Participant's allocation under the following qualified plan(s) maintained
      by the Employer: ________________________________________________________.

      The Advisory Committee will determine this allocation reduction: (Choose
      (1) or (2))

      |_|   (1) By treating the term "nonelective contribution" as including all
            amounts paid or accrued by the Employer during the Plan Year to the
            qualified plan(s) referenced under this Option (j). If Participant
            under this Plan also participates in that other plan, the Advisory
            Committee will treat the amount the Employer contributes for or
            during a Plan Year on behalf of a particular Participant under such
            other plan as an amount allocated under this Plan to that
            Participant's Account for that Plan Year. The Advisory Committee
            will make the computation of allocation required under the
            immediately preceding sentence before making any allocation of
            nonelective contributions under this Section 3.04.

      |_|   (2) In accordance with formula provided in an addendum to this
            Adoption Agreement, numbered 3.04(j).

                                     67
<PAGE>

Top Heavy Minimum Allocation - Method of Compliance. If a Participant's
allocation under this Section 3.04 is less than the top heavy minimum allocation
to which he is entitled under Section 3.04(B): (Choose (k) or (l))

|X|   (k) The Employer will make any necessary additional contribution to the
      Participant's Account, as described in Section 3.04(B)(7)(a) of the Plan.

|_|   (l) The Employer will satisfy the top heavy minimum allocation under the
      following plan(s) it maintains: __________. However, the Employer will
      make any necessary additional contribution to satisfy the top heavy
      minimum allocation for an Employee covered only under this Plan and not
      under the other plan(s) designated in this Option (l). See Section
      3.04(B)(7)(b) of the Plan.

If the Employer maintains another plan, the Employer may provide in an addendum
to this Adoption Agreement, numbered Section 3.04, any modifications to the Plan
necessary to satisfy the top heavy requirements under Code ss.416.

Related employers. If two or more related employers (as defined in Section 1.30)
contribute to this Plan, the Advisory Committee must allocate all Employer
nonelective contributions (and forfeitures treated as nonelective contributions)
to each Participant in the Plan, in accordance with the elections in this
Adoption Agreement Section 3.04: (Choose (m) or (n))

|X|   (m) Without regard to which contributing related group member employs the
      Participant.

|_|   (n) Only to the Participants directly employed by the contributing
      Employer. If a Participant receives Compensation from more than one
      contributing Employer, the Advisory Committee will determine the
      allocations under this Adoption Agreement Section 3.04 by prorating among
      the participating Employers the Participant's Compensation and, if
      applicable, the Participant's Integration Level under Option (i).

      3.05 FORFEITURE ALLOCATION. Subject to any restoration allocation required
under Sections 5.04 or 9.14, the Advisory Committee will allocate a Participant
forfeiture in accordance with Section 3.04: (Choose (a) or (b); (c) and (d) are
optional in addition to (a) or (b))

|_|   (a) As an Employer nonelective contribution for the Plan Year in which the
      forfeiture occurs, as if the Participant forfeiture were an additional
      nonelective contribution for that Plan Year.

|X|   (b) To reduce the Employer matching contributions and nonelective
      contributions for the Plan Year: (Choose (1) or (2))

      |_|   (1) in which the forfeiture occurs.

      |X|   (2) immediately following the Plan Year in which the forfeiture
            occurs.

|X|   (c) To the extent attributable to matching contributions: (Choose (1), (2)
      or (3))

      |X|   (1) In the manner elected under Options (a) or (b).

      |_|   (2) First to reduce Employer matching contributions for the Plan
            Year: (Choose (i) or (ii))

            |_|   (i) in which the forfeiture occurs,

                                     68
<PAGE>

            |_|   (ii) immediately following the Plan Year in which the
                  forfeiture occurs, then as elected in Options (a) or (b).

      |_|   (3) As a discretionary matching contribution for the Plan Year in
            which the forfeiture occurs, in lieu of the manner elected under
            Options (a) or (b).

|_|   (d) First to reduce the Plan's ordinary and necessary administrative
      expenses for the Plan Year and then will allocate any remaining
      forfeitures in the manner described in Options (a), (b) or (c), whichever
      applies. If the Employer elects Option (c), the forfeitures used to reduce
      Plan expenses: (Choose (1) or (2))

      |_|   (1) relate proportionately to forfeitures described in Option (c)
            and to forfeitures described in Options (a) or (b).

      |_|   (2) relate first to forfeitures described in Option __.

Allocation of forfeited excess aggregate contributions. The Advisory Committee
will allocate any forfeited excess aggregate contributions (as described in
Section 14.09): (Choose (e), (f) or (g))

|X|   (e) To reduce Employer matching contributions for the Plan Year: (Choose
      (1) or (2))

      |_|   (1) in which the forfeiture occurs.

      |X|   (2) immediately following the Plan Year in which the forfeiture
            occurs.

|_|   (f) As Employer discretionary matching contributions for the Plan Year in
      which forfeited, except the Advisory Committee will not allocate these
      forfeitures to the Highly Compensated Employees who incurred the
      forfeitures.

|_|   (g) In accordance with Options (a) through (d), whichever applies, except
      the Advisory Committee will not allocate these forfeitures under Option
      (a) or under Option (c)(3) to the Highly Compensated Employees who
      incurred the forfeitures.

      3.06 ACCRUAL OF BENEFIT.

Compensation taken into account. For the Plan Year in which the Employee first
becomes a Participant, the Advisory Committee will determine the allocation of
any cash or deferred contribution, designated qualified nonelective contribution
or nonelective contribution by taking into account: (Choose (a) or (b))

|_|   (a) The Employee's Compensation for the entire Plan Year.

|X|   (b) The Employee's Compensation for the portion of the Plan Year in which
      the Employee actually is a Participant in the Plan.

                                     69
<PAGE>

Accrual Requirements. Subject to the suspension of accrual requirements of
Section 3.06(E) of the Plan, to receive an allocation of cash or deferred
contributions, matching contributions, designated qualified nonelective
contributions, nonelective contributions and Participant forfeitures, if any,
for the Plan Year, a Participant must satisfy the conditions described in the
following elections: (Choose (c) or at least one of (d) through (f))

|_|   (c) Safe harbor rule. If the Participant is employed by the Employer on
      the last day of the Plan Year, the Participant must compete at least one
      Hour of Service for that Plan Year. If the Participant is not employed by
      the Employer on the last day of the Plan Year, the Participant must
      complete at least 501 Hours of Service during the Plan Year.

|X|   (d) Hours of Service condition. The Participant must complete the
      following minimum number of Hours of Service during the Plan Year: (Choose
      at least one of (1) through (5))

      |X|   (1) 1,000 Hours of Service.

      |_|   (2) (Specify, but the number of Hours of Service may not exceed
            1,000) ______________.

      |X|   (3) No Hour of Service requirement if the Participant terminates
            employment during the Plan Year on account of: (Choose (i), (ii) or
            (iii))

            |X|   (i) Death.

            |X|   (ii) Disability.

            |X|   (iii) Attainment of Normal Retirement Age in the current Plan
                  Year or in a prior Plan Year.

      |_|   (4) ____ Hours of Service (not exceeding 1,000) if the Participant
            terminates employment with the Employer during the Plan Year,
            subject to any election in Option (3).

      |X|   (5) No Hour of Service requirement for an allocation of the
            following contributions: matching contributions.

|X|   (e) Employment condition. The Participant must be employed by the Employer
      on the last day of the Plan Year, irrespective of whether he satisfies any
      Hours of Service condition under Option (d), with the following
      exceptions: (Choose (1) or at least one of (2) through (5))

      |_|   (1) No exceptions.

      |X|   (2) Termination of employment because of death.

      |X|   (3) Termination of employment because of disability.

      |X|   (4) Termination of employment following attainment of Normal
            Retirement Age.

      |X|   (5) No employment condition for the following contributions:
            Matching contributions.

|_|   (f) (Specify other conditions, if applicable): __________________________
      ____________________________.

                                     70
<PAGE>

Suspension of Accrual Requirements. The suspension of accrual requirements of
Section 3.06(E) of the Plan: (Choose (g), (h) or (i))

|X|   (g) Applies to the Employer's Plan.

|_|   (h) Does not apply to the Employer's Plan.

|_|   (i) Applies in modified form to the Employer's Plan, as described in an
      addendum to this Adoption Agreement, numbered Section 3.06(E).

Special accrual requirements for matching contributions. If the Plan allocates
matching contributions on two or more allocation dates for a Plan Year, the
Advisory Committee, unless otherwise specified in Option (i), will apply any
Hours of Service condition by dividing the required Hours of Service on a
prorata basis to the allocation periods included in that Plan Year. Furthermore,
a Participant who satisfies the conditions described in this Adoption Agreement
Section 3.06 will receive an allocation of matching contributions (and
forfeitures treated as matching contributions) only if the Participant satisfies
the following additional condition(s): (Choose (i) or at least one of (k) or
(l))

|X|   (j) No additional conditions.

|_|   (k) The Participant is not a Highly Compensated Employee for the Plan
      Year. This Option (k) applies to: (Choose (1) or (2))

      |_|   (1) All matching contributions.

      |_|   (2) Matching contributions described in Option(s) ________ of
            Adoption Agreement Section 3.01.

|_|   (l) (Specify)____________________________________________________________
      ___________.

      3.15 MORE THAN ONE PLAN LIMITATION. If the provisions of Section 3.15
apply, the Excess Amount attributed to this Plan equals: (Choose (a), (b) or
(c))

|_|   (a) The product of:

            (i) the total Excess Amount allocated as of such date (including any
            amount which the Advisory Committee would have allocated but for the
            limitations of Code ss.415), times

            (ii) the ratio of (1) the amount allocated to the Participant as of
            such date under this Plan divided by (2) the total amount allocated
            as of such date under all qualified defined contribution plans
            (determined without regard to the limitations of Code ss.415).

|X|   (b) The total Excess Amount.

|_|   (c) None of the Excess Amount.

      3.18 DEFINED BENEFIT PLAN LIMITATION.

Application of limitation. The limitation under Section 3.18 of the Plan:
(Choose (a) or (b))

|X|   (a) Does not apply to the Employer's Plan because the Employer does not
      maintain and never has maintained a defined benefit plan covering any
      Participant in this Plan.

                                     71
<PAGE>

|_|   (b) Applies to the Employer's Plan. To the extent necessary to satisfy the
      limitation under Section 3.18, the Employer will reduce: (Choose (1) or
      (2))

      |_|   (1) The Participant's projected annual benefit under the defined
            benefit plan under which the Participant participates.

      |_|   (2) Its contribution or allocation on behalf of the Participant to
            the defined contribution plan under which the Participant
            participates and then, if necessary, the Participant's projected
            annual benefit under the defined benefit plan under which the
            Participant participates.

[Note: If the Employer selects (a), the remaining options in this Section 3.18
do not apply to the Employer's Plan.]

Coordination with top heavy minimum allocation. The Advisory Committee will
apply the top heavy minimum allocation provisions of Section 3.04(B) of the Plan
with the following modifications: (Choose (c) or at least one of (d) or (e))

|_|   (c) No modifications.

|_|   (d) For Non-Key Employees participating only in this Plan, the top heavy
      minimum allocation is the minimum allocation described in Section 3.04(B)
      determined by substituting __% (not less than 4%) for "3%," except:
      (Choose (i) or (ii))

      |_|   (i) No exceptions.

      |_|   (ii) Plan Years in which the top heavy ratio exceeds 90%.

|_|   (e) For Non-Key Employees also participating in the defined benefit plan,
      the top heavy minimum is: (Choose (1) or (2))

      |_|   (1) 5% of Compensation (as determined under Section 3.04(B) of the
            Plan) irrespective of the contribution rate of any Key Employee,
            except: (Choose (i) or (ii))

            |_|   (i) No exceptions.

            |_|   (ii) Substituting "7 1/2%" for "5%" if the top heavy ratio
                  does not exceed 90%.

      |_|   (2) 0%. [Note: The Employer may not select this Option (2) unless
            the defined benefit plan satisfies the top heavy minimum benefit
            requirements of Code ss.416 for these Non-Key Employees.]

Actuarial Assumptions for Top Heavy Calculation. To determine the top heavy
ratio, the Advisory Committee will use the following interest rate and mortality
assumptions to value accrued benefits under a defined benefit plan: ____________
_____________________________________.

If the elections under this Section 3.18 are not appropriate to satisfy the
limitations of Section 3.18, or the top heavy requirements under Code ss.416,
the Employer must provide the appropriate provisions in an addendum to this
Adoption Agreement.

                                     72
<PAGE>

                                   ARTICLE IV
                            PARTICIPANT CONTRIBUTIONS

4.01 PARTICIPANT NONDEDUCTIBLE CONTRIBUTIONS. The Plan: (Choose (a) or (b); (c)
is available only with (b))

|X|   (a) Does not permit Participant nondeductible contributions.

|_|   (b) Permits Participant nondeductible contributions, pursuant to Section
      14.04 of the Plan.

|_|   (c) The following portion of the Participant's nondeductible contributions
      for the Plan Year are mandatory contributions under Option (i)(3) of
      Adoption Agreement Section 3.01: (Choose (1) or (2))

      |_|   (1) The amount which is not less than: _____________________________
            _________.

      |_|   (2) The amount which is not greater than: __________________________
            ____________.

Allocation dates. The Advisory Committee will allocate nondeductible
contributions for each Plan Year as of the Accounting Date and the following
additional allocation dates: (Choose (d) or (e))

|_|   (d) No other allocation dates.

|_|   (e) (Specify) _______________________________.

As of an allocation date, the Advisory Committee will credit all nondeductible
contributions made for the relevant allocation period. Unless otherwise
specified in (e), a nondeductible contribution relates to an allocation period
only if actually made to the Trust no later than 30 days after that allocation
period ends.

4.05 PARTICIPANT CONTRIBUTION - WITHDRAWAL/DISTRIBUTION. Subject to the
restrictions of Article VI, the following distribution options apply to a
Participant's Mandatory Contributions Account, if any, prior to his Separation
from Service: (Choose (a) or at least one of (b) through (d))

|_|   (a) No distribution options prior to Separation from Service.

|_|   (b) The same distribution options applicable to the Deferral Contributions
      Account prior to the Participant's Separation from Service, as elected in
      Adoption Agreement Section 6.03.

|_|   (c) Until he retires, the Participant has a continuing election to receive
      all or any portion of his Mandatory Contributions Account if: (Choose (1)
      or at least one of (2) through (4))

      |_|   (1) No conditions.

      |_|   (2) The mandatory contributions have accumulated for at least __
            Plan Years since the Plan Year for which contributed.

      |_|   (3) The Participant suspends making nondeductible contributions for
            a period of _ months.

      |_|   (4) (Specify) __________________________________.

                                     73
<PAGE>

      |_|   (d) (Specify) __________________________________.

                                    ARTICLE V
                  TERMINATION OF SERVICE - PARTICIPANT VESTING

      5.01 NORMAL RETIREMENT. Normal Retirement Age under the Plan is: (Choose
(a) or (b))

|X|   (a) 65 [State age, but may not exceed age 65].

|_|   (b) The later of the date the Participant attains ____ years of age or the
      ____ anniversary of the first day of the Plan Year in which the
      Participant commenced participation in the Plan. [The age selected may not
      exceed age 65 and the anniversary selected may not exceed the 5th.]

      5.02 PARTICIPANT DEATH OR DISABILITY. The 100% vesting rule under Section
5.02 of the Plan: (Choose (a) or choose one or both of (b) and (c))

|_|   (a) Does not apply.

|X|   (b) Applies to death.

|X|   (c) Applies to disability.

      5.03 VESTING SCHEDULE.

Deferral Contribution Account/Qualified Matching Contributions Account/Qualified
Nonelective Contributions Account/Mandatory Contributions Account. A Participant
has a 100% Nonforfeitable interest at all times in his Deferral Contributions
Account, his Qualified Matching Contributions Account, his Qualified Nonelective
Contributions Account and in his Mandatory Contributions Account.

Regular Matching Contributions Account/Employer Contributions Account. With
respect to a Participant's Regular Matching Contributions Account and Employer
Contributions Account, the Employer elects the following vesting schedule:
(Choose (a) or (b); (c) and (d) are available only as additional options)

|_|   (a) Immediate vesting. 100% Nonforfeitable at all times. [Note: The
      Employer must elect Option (a) if the eligibility conditions under
      Adoption Agreement Section 2.01(c) require 2 years of service or more than
      12 months of employment.]

                                     74
<PAGE>

|X|   (b) Graduated Vesting Schedules.

           Top Heavy Schedule                       Non Top Heavy Schedule
              (Mandatory)                                (Optional)

  Years of             Nonforfeitable        Years of             Nonforfeitable
  Service                Percentage          Service                Percentage
  --------             --------------        --------             --------------

 Less than 1                      0%        Less than 1                       %
      1                          33%             1                            %
      2                          67%             2                            %
      3                         100%             3                            %
      4                         100%             4                            %
      5                         100%             5                            %
      6 or more                 100%             6                            %
                                                 7 or more                 100%

|_|   (c) Special vesting election for Regular Matching Contributions Account.
      In lieu of the election under Options (a) or (b), the Employer elects the
      following vesting schedule for a Participant's Regular Matching
      Contributions Account: (Choose (1) or (2))

      |_|   (1) 100% Nonforfeitable at all times.

      |_|   (2) In accordance with the vesting schedule described in the
            addendum to this Adoption Agreement, numbered 5.03(c). [Note: If the
            Employer elects this Option (c)(2), the addendum must designate the
            applicable vesting schedule(s) using the same format as used in
            Option (b).]

[Note: Under Options (b) and (c)(2), the Employer must compete a Top Heavy
Schedule which satisfies Code ss.416. The Employer, at its option, may complete
a Non Top Heavy Schedule. The Non Top Heavy Schedule must satisfy Code
ss.411(a)(2). Also see Section 7.05 of the Plan.]

|_|   (d) The Top Heavy Schedule under Option (b) (and, if applicable, under
      Option (c)(2)) applies: (Choose (1) or (2))

      |_|   (1) Only in a Plan Year for which the Plan is top heavy.

      |_|   (2) In the Plan Year for which the Plan is first top heavy and then
            in all subsequent Plan Years. [Note: The Employer may not elect
            Option (d) unless it has completed a Non Top Heavy Schedule.]

Minimum vesting. (Choose (e) or (f))

|X|   (e) The Plan does not apply a minimum vesting rule.

|_|   (f) A Participant's Nonforfeitable Accrued Benefit will never be less than
      the lesser of $____ or his entire Accrued Benefit, even if the application
      of a graduated vesting schedule under Options (b) or (c) would result in a
      smaller Nonforfeitable Accrued Benefit.

Life Insurance Investments. The Participant's Accrued Benefit attributable to
insurance contracts purchased on his behalf under Article XI is: (Choose (g) or
(h))

|X|   (g) Subject to the vesting election under Options (a), (b) or (c).

                                     75
<PAGE>

|_|   (h) 100% Nonforfeitable at all times, irrespective of the vesting election
      under Options (b) or (c)(2).

      5.04 CASH-OUT DISTRIBUTIONS TO PARTIALLY-VESTED PARTICIPANTS/RESTORATION
OF FORFEITED ACCRUED BENEFIT. The deemed cash-out rule described in Section
5.04(C) of the Plan: (Choose (a) or (b))

|_|   (a) Does not apply.

|X|   (b) Will apply to determine the timing of forfeitures for 0% vested
      Participants. A Participant is not a 0% vested Participant if he has a
      Deferral Contributions Account.

      5.06 YEAR OF SERVICE - VESTING.

Vesting computation period. The Plan measures a Year of Service on the basis of
the following 12 consecutive month periods: (Choose (a) or (b))

|X|   (a) Plan Years.

|_|   (b) Employment Years. An Employment Year is the 12 consecutive month
      period measured from the Employee's Employment Commencement Date and each
      successive 12 consecutive month period measured from each anniversary of
      that Employment Commencement Date.

Hours of Service. The minimum number of Hours of Service an Employee must
complete during a vesting computation period to receive credit for a Year of
Service is: (Choose (c) or (d))

|X|   (c) 1,000 Hours of Service.

|_|   (d) ___ Hours of Service. [Note: The Hours of Service requirement may not
      exceed 1,000.]

      5.08 INCLUDED YEARS OF SERVICE - VESTING. The Employer specifically
excludes the following Years of Service: (Choose (a) or at least one of (b)
through (e))

|X|   (a) None other than as specified in Section 5.08(a) of the Plan.

|_|   (b) Any Year of Service before the Participant attained the age of ___.
      [Note: The age selected may not exceed age 18.]

|_|   (c) Any Year of Service during the period the Employer did not maintain
      this Plan or a predecessor plan.

|_|   (d) Any Year of Service before a Break in Service if the number of
      consecutive Breaks in Service equals or exceeds the greater of 5 or the
      aggregate number of the Years of Service prior to the Break. This
      exception applies only if the Participant is 0% vested in his Accrued
      Benefit derived from Employer contributions at the time he has a Break in
      Service. Furthermore, the aggregate number of Years of Service before a
      Break in Service do not include any Years of Service not required to be
      taken into account under this exception by reason of any prior Break in
      Service.

|_|   (e) Any Year of Service earned prior to the effective date of ERISA if the
      Plan would have disregarded that Year of Service on account of an
      Employee's Separation from Service under a Plan provision in effect and
      adopted before January 1, 1974.

                                     76
<PAGE>

                                   ARTICLE VI
                    TIME AND METHOD OF PAYMENTS OF BENEFITS

Code ss.411(d)(6) Protected Benefits. The elections under this Article VI may
not eliminate Code ss.411(d)(6) protected benefits. To the extent the elections
would eliminate a Code ss.411(d)(6) protected benefit, see Section 13.02 of the
Plan. Furthermore, if the elections liberalize the optional forms of benefit
under the Plan, the more liberal options apply on the later of the adoption date
or the Effective Date of this Adoption Agreement.

      6.01 TIME OF PAYMENT OF ACCRUED BENEFIT.

Distribution date. A distribution date under the Plan means any day of the plan
year. [Note: The Employer must specify the appropriate date(s). The specified
distribution dates primarily establish annuity starting dates and the notice and
consent periods prescribed by the Plan. The Plan allows the Trustee an
administratively practicable period of time to make the actual distribution
relating to a particular distribution date.]

Nonforfeitable Accrued Benefit Not Exceeding $3,500. Subject to the limitations
of Section 6.01(A)(1), the distribution date for distribution of a
Nonforfeitable Accrued Benefit not exceeding $3,500 is: (Choose (a), (b), (c),
(d) or (e))

|_|   (a) ______________________________________________________________________
      of the ___________ Plan Year beginning after the Participant's Separation
      from Service.

|X|   (b) The first distribution date following the Participant's Separation
      from Service.

|_|   (c) ______________________________________________________________________
      of the Plan Year after the Participant incurs ___ Break(s) in Service (as
      defined in Article V).

|_|   (d) ____________________________ following the Participant's attainment of
      Normal Retirement Age, but not earlier than ____________ days following
      his Separation from Service.

|_|   (e) (Specify) ____________________________________________________________
      ____________.

Nonforfeitable Accrued Benefit Exceeds $3,500. See the elections under Section
6.03.

Disability. The distribution date, subject to Section 6.01(A)(3), is: (Choose
(f), (g) or (h))

|_|   (f) ______________________________________________________________________
      after the Participant terminates employment because of disability.

|X|   (g) The same as if the Participant had terminated employment without
      disability.

|_|   (h) (Specify) ____________________________________________________________
      _____________.

Hardship. (Choose (i) or (j))

|X|   (i) The Plan does not permit a hardship distribution to a Participant who
      has separated from Service.

                                     77
<PAGE>

|_|   (j) The Plan permits hardship distribution to a Participant who has
      separated from Service in accordance with the hardship distribution policy
      stated in: (Choose (1), (2) or (3))

      |_|   (1) Section 6.01(A)(4) of the Plan.

      |_|   (2) Section 14.11 of the Plan.

      |_|   (3) The addendum to this Adoption Agreement, numbered Section 6.01.

Default on a Loan. If a Participant or Beneficiary defaults on a loan made
pursuant to a loan policy adopted by the Advisory Committee pursuant to Section
9.04, the Plan: (Choose (k), (l) or (m))

|X|   (k) Treats the default as a distributable event. the Trustee, at the time
      of the default, will reduce the Participant's Nonforfeitable Accrued
      Benefit by the lesser of the amount in default (plus accrued interest) or
      the Plan's security interest in that Nonforfeitable Accrued Benefit. To
      the extent the loan is attributable to the Participant's Deferral
      Contributions Account, Qualified Matching Contributions Account or
      Qualified Nonelective Contributions Account, the Trustee will not reduce
      the Participant's Nonforfeitable Accrued Benefit unless the Participant
      has separated from Service or unless the Participant has attained age
      59 1/2.

|_|   (l) Does not treat the default as a distributable event. When an otherwise
      distributable event first occurs pursuant to Section 6.01 or Section 6.03
      of the Plan, the Trustee will reduce the Participant's Nonforfeitable
      Accrued Benefit by the lesser of the amount in default (plus accrued
      interest) or the Plan's security interest in the Nonforfeitable Accrued
      Benefit.

|_|   (m) (Specify) ____________________________________________________________
      ______________.

      6.02 METHOD OF PAYMENT OF ACCRUED BENEFIT. The Advisory Committee will
apply Section 6.02 of the Plan with the following modifications: (Choose (a) or
at least one of (b), (c), (d) and (e))

|X|   (a) No modifications.

|_|   (b) Except as required under Section 6.01 of the Plan, a lump sum
      distribution is not available: ___________________________________________
      __________________________________________________________________________

|_|   (c) An installment distribution: (Choose (1) or at least one of (2) or
      (3))

      |_|   (1) Is not available under the Plan.

      |_|   (2) May not exceed the lesser of _____ years or the maximum period
            permitted under Section 6.02.

      |_|   (3) (Specify) ______________________________________________________
            _____________.

|_|   (d) The Plan permits the following annuity options: ______________________
      _________________________________________________________.

      Any Participant who elects a life annuity option is subject to the
      requirements of Sections 6.04(A), (B), (C) and (D) of the Plan. See
      Section 6.04(E). [Note: The Employer may specify additional annuity
      options in an addendum to this Adoption Agreement, numbered 6.02(d).]

                                     78
<PAGE>

|_|   (e) If the Plan invests in qualifying Employer securities, as described in
      Section 10.03(F), a Participant eligible to elect distribution under
      Section 6.03 may elect to receive that distribution in Employer securities
      only in accordance with the provisions of the addendum to this Adoption
      Agreement, numbered 6.02(e).

      6.03 BENEFIT PAYMENT ELECTIONS.

Participant Elections After Separation from Service. A Participant who is
eligible to make distribution elections under Section 6.03 of the Plan may elect
to commence distribution of his Nonforfeitable Accrued Benefit: (Choose at least
one of (a) through (c))

|_|   (a) As of any distribution date, but not earlier than ____________________
      of the _______ Plan Year beginning after the Participant's Separation from
      Service.

|X|   (b) As of the following date(s): (Choose at least one of the Options (1)
      through (6))

      |_|   (1) Any distribution date after the close of the Plan Year in which
            the Participant attains Normal Retirement Age.

      |X|   (2) Any distribution date following his Separation from Service with
            the Employer.

      |_|   (3) Any distribution date in the __________ Plan Year(s) beginning
            after his Separation from Service.

      |_|   (4) Any distribution date in the Plan Year after the Participant
            incurs ________ Break(s) in Service (as defined in Article V).

      |_|   (5) Any distribution date following attainment of age _______ and
            completion of at least __ Years of Service (as defined in Article
            V).

      |_|   (6) (Specify) ______________________________________________________
            _______________.

|_|   (c) (Specify) ____________________________________________________________
      __________________________________________________________________________
      ______________.

      The distribution events described in the election(s) made under Options
(a), (b) or (c) apply equally to all Accounts maintained for the Participant
unless otherwise specified in Option (c).

Participant Elections Prior to Separation from Service - Regular Matching
Contributions Account and Employer Contributions Account. Subject to the
restrictions of Article VI, the following distribution options apply to a
Participant's Regular Matching Contributions Account and Employer Contributions
Account prior to his Separation from Service: (Choose (d) or at least one of (e)
through (h))

|X|   (d) No distribution options prior to Separation from Service.

|_|   (e) Attainment of Specified Age. Until he retires, the Participant has a
      continuing election to receive all or any portion of his Nonforfeitable
      interest in these Accounts after he attains: (Choose (1) or (2))

      |_|   (1) Normal Retirement Age.

                                     79
<PAGE>

      |_|   (2) _____ years of age and is at least ______% vested in these
            Accounts. [Note: If the percentage is less than 100%, see the
            special vesting formula in Section 5.03.]

|_|   (f) After a Participant has participated in the Plan for a period of not
      less than ____ years and he is 100% vested in these Accounts, until he
      retires, the Participant has a continuing election to receive all or any
      portion of the Accounts. [Note: The number in the blank space may not be
      less than 5.]

|_|   (g) Hardship. A Participant may elect a hardship distribution prior to his
      Separation from Service in accordance with the hardship distribution
      policy: (Choose (1), (2) or (3); (4) is available only as an additional
      option)

      |_|   (1) Under Section 6.01(A)(4) of the Plan.

      |_|   (2) Under Section 14.11 of the Plan.

      |_|   (3) Provided in the addendum to this Adoption Agreement, numbered
            Section 6.03.

      |_|   (4) In no event may a Participant receive a hardship distribution
            before he is at least ____% vested in these Accounts. [Note: If the
            percentage in the blank is less than 100%, see the special vesting
            formula in Section 5.03.]

|_|   (h) (Specify) ____________________________________________________________
      _______________.

[Note: The Employer may use an addendum, numbered 6.03, to provide additional
language authorized by Options (b)(6), (c), (g)(3) or (h) of this Adoption
Agreement Section 6.03.]

Participant Elections Prior to Separation from Service - Deferral Contributions
Account, Qualified Matching Contributions Account and Qualified Nonelective
Contributions Account. Subject to the restrictions of Article VI, the following
distribution options apply to a Participant's Deferral Contributions Account,
Qualified Matching Contributions Account and Qualified Nonelective Contributions
Account prior to his Separation from Service: (Choose (i) or at least one of (j)
through (l))

|X|   (i) No distribution options prior to Separation from Service.

|_|   (j) Until he retires, the Participant has a continuing election to receive
      all or any portion of these Accounts after he attains: (Choose (1) or (2))

      |_|   (1) The later of Normal Retirement Age or age 59 1/2.

      |_|   (2) Age ___ (at least 59 1/2).

|_|   (k) Hardship. A Participant, prior to this Separation from Service, may
      elect a hardship distribution from his Deferral Contributions Account in
      accordance with the hardship distribution policy under Section 14.11 of
      the Plan.

|_|   (l) (Specify) ____________________________________________________________
      ______________. [Note: Option (l) may not permit in service distributions
      prior to age 59 1/2 (other than hardship) and may not modify the hardship
      policy described in Section 14.11.]

                                     80
<PAGE>

Sale of trade or business/subsidiary. If the Employer sells substantially all of
the assets (within the meaning of Code ss.409(d)(2)) used in a trade or business
or sells a subsidairy (within the meaning of Code 409(d)(3)), a Participant who
continues employment with the acquiring corporation is eligible for distribution
from his Deferral Contributions Account, Qualified Matching Contributions
Account and Qualified Nonelective Contributions Account: (Choose (m) or (n))

|X|   (m) Only as described in this Adoption Agreement Section 6.03 for
      distributions prior to Separation from Service.

|_|   (n) As if he has a Separation from Service. After March 31, 1988, a
      distribution authorized solely by reason of this Option (n) must
      constitute a lump sum distribution, determined in a manner consistent with
      Code ss401(k)(10) and the applicable Treasury regulations.

      6.04 ANNUITY DISTRIBUTIONS TO PARTICIPANTS AND SURVIVING SPOUSES. The
annuity distribution requirements of Section 6.04: (Choose (a) or (b))

|X|   (a) Apply only to a Participant described in Section 6.04(E) of the Plan
      (relating to the profit sharing exception to the joint and survivor
      requirements).

|_|   (b) Apply to all Participants.

                                   ARTICLE IX
       ADVISORY COMMITTEE - DUTIES WITH RESPECT TO PARTICIPANTS' ACCOUNTS

      9.10 VALUE OF PARTICIPANT'S ACCRUED BENEFIT. If a distribution (other than
a distribution from a segregated Account and other than a corrective
distribution described in Sections 14.07, 14.08, 14.09 or 14.10 of the Plan)
occurs more than 90 days after the most recent valuation date, the distribution
will include interest at: (Choose (a), (b) or (c))

|X|   (a) 0% per annum. [Note: The percentage may equal 0%.]

|_|   (b) The 90 day Treasury bill rate in effect at the beginning of the
      current valuation period.

|_|   (c) (Specify) ________________________________________.

      9.11 ALLOCATION AND DISTRIBUTION OF NET INCOME GAIN OR LOSS. Pursuant to
Section 14.12, to determine the allocation of net income, gain or loss:
(Complete only those items, if any, which are applicable to the Employer's Plan)

|X|   (a) For salary reduction contributions, the Advisory Committee will:
      (Choose (1), (2), (3), (4) or (5))

      |X|   (1) Apply Section 9.11 without modification.

      |_|   (2) Use the segregated account approach described in Section 14.12.

      |_|   (3) Use the weighted average method described in Section 14.12,
            based on a ___________ weighing period.

      |_|   (4) Treat as part of the relevant Account at the beginning of the
            valuation period ____% of the salary reduction contributions:
            (Choose (i) or (ii))

            |_|   (i) made during that period.

                                     81
<PAGE>

            |_|   (ii) made by the following specified time: ___________________
                  __________.

      |_|   (5) Apply the allocation method described in the addendum to this
            Adoption Agreement numbered 9.11(a).

|X|   (b) For matching contributions, the Advisory Committee will: (Choose (1),
      (2) (3) or (4))

      |X|   (1) Apply Section 9.11 without modification.

      |_|   (2) Use the weighted average method described in Section 14.12,
            based on a ____________ weighting period.

      |_|   (3) Treat as part of the relevant Account at the beginning of the
            valuation period ___% of the matching contributions allocated during
            the valuation period.

      |_|   (4) Apply the allocation method described in the addendum to this
            Adoption Agreement numbered 9.11(b).

|_|   (c) For Participant nondeductible contributions, the Advisory committee
      will: (Choose (1), (2), (3), (4) or (5))

      |_|   (1) Apply Section 9.11 without modification.

      |_|   (2) Use the segregated account approach described in Section 14.12.

      |_|   (3) Use the weighted average method described in Section 14.12,
            based on a __________ weighting period.

      |_|   (4) Treat as part of the relevant Account at the beginning of the
            valuation period ____% of the Participant nondeductible
            contributions: (Choose (i) or (ii))

            |_|   (i) made during that valuation period.

            |_|   (ii) made by the following specified time: __________________.

      |_|   (5) Apply the allocation method described in the addendum to this
            Adoption Agreement numbered 9.11(c).

                                   ARTICLE X
                    TRUSTEE AND CUSTODIAN, POWERS AND DUTIES

      10.03 INVESTMENT POWERS. Pursuant to Section 10.03[F] of the Plan, the
aggregate investments in qualifying Employer securities and in qualifying
Employer real property: (Choose (a) or (b))

|X|   (a) May not exceed 10% of Plan assets.

|_|   (b) May not exceed ___% of Plan assets. [Note: The percentage may not
      exceed 100%.]

                                     82
<PAGE>

      10.14 VALUATION OF TRUST. In addition to each Accounting Date, the Trustee
must value the Trust Fund on the following valuation date(s): (Choose (a) or
(b))

|_|   (a) No other mandatory valuation dates.

|X|   (b) (Specify) Every day of the plan year                                 .

                                     83
<PAGE>

                                 Execution Page

      The Trustee (and Custodian, if applicable), by executing this Adoption
Agreement, accepts its position and agrees to all of the obligations,
responsibilities and duties imposed upon the Trustee (or Custodian) under the
Master Plan and Trust. The Employer hereby agrees to the provisions of this Plan
and Trust, and in witness of its agreement, the Employer by its duly authorized
officers, has executed this Adoption Agreement, and the Trustee (and Custodian,
if applicable) signified its acceptance, on this _____________________ day of
________________, 19__.

Name and EIN of Employer: CE SOFTWARE, INC. 42-1298712

Signed: ____________________________________________________

Name(s) of Trustee: _______________________________________

Signed: ____________________________________________________

        ____________________________________________________

Name of Custodian: ________________________________________

Signed: ____________________________________________________

[Note: A Trustee is mandatory, but a Custodian is optional. See Section 10.03 of
the Plan.]

Plan Number. The 3-digit plan number the Employer assigns to this Plan for
ERISA reporting purposes (Form 5500 Series) is: 001.

Use of Adoption Agreement. Failure to complete properly the elections in this
Adoptions Agreement may result in disqualification of the Employer's Plan. The
3-digit number assigned to this Adoption Agreement (see page 1) is solely for
the Master Plan Sponsor's recordkeeping purposes and does not necessarily
correspond to the plan number the Employer designated in the prior paragraph.

Master Plan Sponsor. The Master Plan Sponsor identified on the first page of the
basic plan document will notify all adopting employers of any amendment of this
Master Plan or of any abandonment or discontinuance by the Master Plan Sponsor
of its maintenance of this Master Plan. For inquiries regarding the adoption of
the Master Plan, The Master Plan Sponsor's intended meaning of any plan
provisions or the effect of the opinion letter issued to the Master Plan
Sponsor, please contact the Master Plan Sponsor at the following address and
telephone number: P.O. BOX 906, WALNUT AT SIXTH DES MOINES, IA 50309
515-245-6136.

Reliance on Opinion Letter. The Employer may not rely on the Master Plan
Sponsor's opinion letter covering this Adoption Agreement. For reliance on the
Plan's qualification, the Employer must obtain a determination letter from the
applicable IRS Key District office.

                                     84
<PAGE>

                            PARTICIPATION AGREEMENT
         For Participation by Related Group Members (Plan Section 1.30)

      The undersigned Employer, by executing this Participation Agreement,
elects to become a Participating Employer in the Plan identified in Section 1.03
of the accompanying Adoption Agreement, as if the Participating Employer were a
signatory to that Agreement. The Participating Employer accepts, and agrees to
be bound by, all of the elections granted under the provisions of the Master
Plan as made by CE SOFTWARE, INC., the Signatory Employer to the Execution Page
of the Adoption Agreement.

      1. The Effective Date of the undersigned Employer's participation in the
      designated Plan is: January 1, 1996.

      2. The undersigned Employer's adoption of this Plan constitutes:

|X|   (a) The adoption of a new plan by the Participating Employer.

|_|   (b) The adoption of an amendment and restatment of a plan currently
      maintained by the Employer, identified as ____________________________,
      and having an original effective date of ___________________.

      Dated this _____________ day of _______, 19__.

                                        Name of Participating Employer:
                                                      CE Software Holdings, Inc.

                                        Signed: /s/ Daniel E. McCann
                                                --------------------------------

                                        Participating Employer's EIN: 41-1614808

Acceptance by the Signatory Employer to the Execution Page of the Adoption
Agreement and by the Trustee.

                                        Name of Signatory Employer:
                                                               CE SOFTWARE, INC.

Accepted: 1-1-96
         --------
          [Date]                        Signed: /s/ Daniel E. McCann
                                                --------------------------------

                                        Name(s) of Trustee:
                                                         Firstar Bank Iowa, N.A.

Accepted: 1-1-96
         --------
          [Date]                        Signed: /s/ [Illegible]
                                                --------------------------------

[Note: Each Participating Employer must execute a separate Participation
Agreement. See the Execution Page of the Adoption Agreement for important Master
Plan information.]

                                     86

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00019-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00019-of-00352.parquet"}]]