Document:

<PAGE>

                      SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, DC 20549

                             ____________________

                                   EXHIBITS

                                  filed with

                            REGISTRATION STATEMENT

                                      on

                                   FORM S-8

                                     UNDER

                          THE SECURITIES ACT OF 1933

                             ____________________

                            LOWE'S COMPANIES, INC.
                        EMPLOYEE STOCK PURCHASE PLAN -
                          STOCK OPTIONS FOR EVERYONE
                           (full title of the plan)
<PAGE>

                                 EXHIBIT INDEX
<TABLE>
<CAPTION>
                                                                                               Sequentially
Exhibit No.                            Description                                             Numbered Page
--------------------                   --------------------                                    --------------
<C>                                   <S>
   4.1                                Amended and Restated Rights Agreement dated
                                      December 2, 1999, between the Company and
                                      Equiserve Trust Company, N.A., as Rights Agent
                                      (Incorporated herein by reference to Exhibit 2
                                      of Amendment No. 2 to the Company's
                                      Registration Statement on Form 8-A dated
                                      February 14, 2000, as amended by Exhibit 1 of
                                      Amendment No. 3 to the Company's Registration
                                      Statement on Form 8-A dated March 2, 2000).

   4.2                                Lowe's Companies, Inc. Employee Stock Purchase
                                      Plan - Stock Options for Everyone.

     5                                Opinion of Hunton & Williams as to the
                                      legality of the securities being registered.

  23.1                                Consent of Hunton & Williams (included in the
                                      opinion filed as Exhibit 5 to the Registration
                                      Statement).

  23.2                                Consent of Deloitte & Touche LLP.

    24                                Power of Attorney for Officers and Directors
                                      (included on page II-5 of the Registration
                                      Statement).
</TABLE>
<PAGE>

                                                                     Exhibit 4.2
                                                                     -----------

                               LOWE'S COMPANIES

                         EMPLOYEE STOCK PURCHASE PLAN-

                          STOCK OPTIONS FOR EVERYONE
<PAGE>

                               TABLE OF CONTENTS

ARTICLE I DEFINITIONS...................................................... 1
     1.01. Administrator................................................... 1
     1.02. Affiliate....................................................... 1
     1.03. Board........................................................... 1
     1.04. Change in Control............................................... 1
     1.05. Code............................................................ 1
     1.06. Committee....................................................... 1
     1.07. Common Stock.................................................... 2
     1.08. Company......................................................... 2
     1.09. Compensation.................................................... 2
     1.10. Control Change Date............................................. 2
     1.11. Date of Exercise................................................ 2
     1.12. Date of Grant................................................... 2
     1.13. Election Date................................................... 2
     1.14. Eligible Employee............................................... 3
     1.15. Enrollment Form................................................. 3
     1.16. Enrollment Period............................................... 3
     1.17. Exchange Act.................................................... 3
     1.18. Fair Market Value............................................... 3
     1.19. Five Percent Shareholder........................................ 3
     1.20. Offering Period................................................. 4
     1.21. Option.......................................................... 4
     1.22. Participant..................................................... 4
     1.23. Plan............................................................ 4
     1.24. Rights Agreement................................................ 4
ARTICLE II PURPOSES........................................................ 4
ARTICLE III ADMINISTRATION................................................. 4
ARTICLE IV ELIGIBILITY..................................................... 5
ARTICLE V COMPENSATION DEDUCTIONS.......................................... 5
     5.01. Enrollment Form................................................. 5
     5.02. Participant's Account........................................... 6
ARTICLE VI OPTION GRANTS................................................... 6
     6.01. Number of Shares................................................ 6
     6.02. Option Price.................................................... 6
ARTICLE VII EXERCISE OF OPTION............................................. 6
     7.01. Automatic Exercise.............................................. 6
     7.02. Change in Control............................................... 7
     7.03. Nontransferability.............................................. 7
     7.04. Employee Status................................................. 7
     7.05. Delivery of Certificates........................................ 8
     7.06. Vesting......................................................... 8
ARTICLE VIII WITHDRAWAL AND TERMINATION OF EMPLOYMENT...................... 8

                                      -i-
<PAGE>

     8.01. Generally...................................................... 8
     8.02. Subsequent Participation....................................... 8
ARTICLE IX STOCK SUBJECT TO PLAN.......................................... 8
     9.01. Aggregate Limit................................................ 8
     9.02. Reallocation of Shares......................................... 9
ARTICLE X ADJUSTMENT UPON CHANGE IN COMMON STOCK.......................... 9
ARTICLE XI COMPLIANCE WITH LAW AND APPROVAL OF REGULATORY BODIES.......... 9
ARTICLE XII GENERAL PROVISIONS........................................... 10
     12.01. Effect on Employment and Service............................. 10
     12.02. Unfunded Plan................................................ 10
     12.03. Rules of Construction........................................ 10
ARTICLE XIII AMENDMENT................................................... 10
ARTICLE XIV DURATION OF PLAN............................................. 10
ARTICLE XV EFFECTIVE DATE OF PLAN........................................ 11

                                     -ii-
<PAGE>

                                   ARTICLE I

                                  DEFINITIONS

1.01.  Administrator.
       -------------

     Administrator means the Committee and any delegate of the Committee that is
appointed in accordance with Article III.

1.02.  Affiliate.
       ---------

     Affiliate means any "parent corporation" or "subsidiary corporation"
(within the meaning of Section 424 of the Code) of the Company, including a
corporation that becomes an Affiliate after the adoption of this Plan, that the
Board designates as a participating employer in the Plan.

1.03.  Board.
       -----

     Board means the Board of Directors of the Company.

1.04.  Change in Control.
       -----------------

     Change in Control means that following a Stock Acquisition Date, directly
or indirectly, (i) the Company shall consolidate with, or merge with and into,
any other Person (other than a Subsidiary of the Company in a transaction that
complies with Section 11(n) of the Rights Agreement), and the Company shall not
be the continuing or surviving corporation of such consolidation or merger, (ii)
any Person (other than a Subsidiary of the Company in a transaction that
complies with Section 11(n) of the Rights Agreement), shall consolidate with, or
merge with or into, the Company, and the Company shall be the continuing or
surviving corporation in such consolidation or merger and, in connection with
such consolidation or merger, all or part of the outstanding shares of Common
Stock shall be changed into or exchanged for stock or other securities of any
other person or cash or any other property, (iii) the Company shall be a party
to a statutory share exchange with any other Person (other than a Subsidiary of
the Company in a transaction that complies with Section 11(n) of the Rights
Agreement), after which the Company is a Subsidiary of any other Person, or (iv)
the Company shall sell or otherwise transfer (or one or more of its Subsidiaries
shall sell or otherwise transfer), in one transaction or a series of related
transactions, assets or earning power aggregating more than 50% of the assets or
earning power of the Company and it subsidiaries (taken as a whole) to any
Person or Persons (other than the Company or any Subsidiary of the Company in
one or more transactions each of which complies with Section 11(n) of the Rights
Agreement).  For purposes of this Plan, the terms "Stock Acquisition Date,"
"Person," and "Subsidiary" shall have the same meaning as assigned to such terms
in the Rights Agreement.

1.05.  Code.
       ----

     Code means the Internal Revenue Code of 1986, and any amendments thereto.

1.06.  Committee.
       ---------

     Committee means the Compensation Committee of the Board.
<PAGE>

1.07.  Common Stock.
       ------------

     Common Stock means the common stock of the Company.

1.08.  Company.
       -------

     Company means Lowe's Companies, Inc.

1.09.  Compensation.
       ------------

     Compensation means, as to payroll periods ending during an Offering Period,
(a) in the case of an employee who is classified as a full-time employee under
the payroll procedures of the Company or an Affiliate and who works at least 80
hours in a payroll period, the employee's base salary or wages for the biweekly
payroll period based on 80 hours of work during the payroll period, (b) in the
case of an employee who is classified as a full-time employee under the payroll
procedures of the Company or an Affiliate and who works less than 80 hours in a
payroll period, the employee's actual base salary or wages for the biweekly
payroll period, (c) in the case of an employee who is not classified as a full-
time employee under the payroll procedures of the Company or an Affiliate and
who works at least 40 hours in a payroll period, the employee's base salary or
wages for the biweekly payroll period based on 40 hours of work during the
payroll period and (d) in the case of an employee who is not classified as a
full-time employee under the payroll procedures of the Company or an Affiliate
and who works less than 40 hours in a payroll period, the employee's actual base
salary or wages for the biweekly payroll period.

1.10.  Control Change Date.
       -------------------

     Control Change Date means the date on which a Change in Control occurs.  If
a Change in Control occurs on account of a series of transactions, the "Control
Change Date" is the date of the last of such transactions.

1.11.  Date of Exercise.
       ----------------

     Date of Exercise means each November 30 next following the June 1 Date of
Grant and each May 31 next following the December 1 Date of Grant.

1.12.  Date of Grant.
       -------------

     Date of Grant means each June 1 and each December 1 during the term of the
Plan.

1.13.  Election Date.
       -------------

     Election Date means the last business day of the Enrollment Period.

                                      -2-
<PAGE>

1.14.  Eligible Employee.
       -----------------

     Eligible Employee means (a) an employee of the Company or an Affiliate who
is classified as a full-time employee under the payroll procedures of the
Company or Affiliate and (b) an employee of the Company or an Affiliate who is
not classified as a full-time employee under the payroll procedures of the
Company or Affiliate and who has completed at least twelve months of continuous
employment with the Company and its Affiliates.  The preceding sentence to the
contrary notwithstanding, an individual who is a Five Percent Shareholder is not
an Eligible Employee.

1.15.  Enrollment Form.
       ---------------

     Enrollment Form means the form, prescribed by the Administrator, that a
Participant uses to authorize a reduction in his Compensation in accordance with
Article V.

1.16.  Enrollment Period.
       -----------------

     Enrollment Period means (a) the month of May in the case of the Offering
Period beginning on June 1 and (b) the month of November in the case of the
Offering period beginning on December 1.

1.17.  Exchange Act.
       ------------

     Exchange Act means the Securities Exchange Act of 1934, as amended.

1.18.  Fair Market Value.
       -----------------

     Fair Market Value means, on any given date, the reported "closing" price of
a share of Common Stock on the primary exchange on which shares of the Common
Stock are listed.  If, on any given date, no share of Common Stock is traded on
an established stock exchange, then Fair Market Value shall be determined with
reference to the next preceding day that the Common Stock was so traded.

1.19.  Five Percent Shareholder.
       ------------------------

     Five Percent Shareholder means any individual who, immediately after the
grant of an Option owns or would be deemed to own more than five percent of the
total combined voting power or value of all classes of stock of the Company or
of an Affiliate.  For this purpose, (i) an individual shall be considered to own
any stock owned (directly or indirectly) by or for his brothers, sisters,
spouse, ancestors or lineal descendants and shall be considered to own
proportionately any stock owned (directly or indirectly) by or for a
corporation, partnership, estate or trust of which such individual is a
shareholder, partner or beneficiary, and (ii) stock of the Company or an
Affiliate that an individual may purchase under outstanding options (whether or
not granted under this Plan) shall be treated as stock owned by the individual.

                                      -3-
<PAGE>

1.20.  Offering Period.
       ---------------

     Offering Period means the period beginning on each Date of Grant and ending
on the next following Date of Exercise.

1.21.  Option.
       ------

     Option means a stock option that entitles the holder to purchase from the
Company a stated number of shares of Common Stock in accordance with, and
subject to, the terms and conditions prescribed by the Plan.

1.22.  Participant.
       -----------

     Participant means an Eligible Employee, including an Eligible Employee who
is a member of the Board, who satisfies the requirements of Article IV and who
elects to receive an Option.

1.23.  Plan.
       ----

     Plan means the Lowe's Companies Employee Stock Purchase Plan - Stock
Options for Everyone.

1.24.  Rights Agreement.
       ----------------

     Rights Agreement means the Amended and Restated Rights Agreement dated
December 2, 1999 between the Company and Equiserve Trust Company, N.A. as Rights
Agent.

                                  ARTICLE II

                                   PURPOSES

     The Plan is intended to assist the Company and its Affiliates in recruiting
and retaining individuals with ability and initiative by enabling such persons
to participate in the future success of the Company and its Affiliates and to
associate their interests with those of the Company and its shareholders.  The
Plan is intended to permit the grant of Options qualifying under Section 423 of
the Code.  No Option shall be invalid for failure to qualify under Section 423
of the Code.  The proceeds received by the Company from the sale of Common Stock
pursuant to this Plan shall be used for general corporate purposes.

                                  ARTICLE III

                                ADMINISTRATION

     The Plan shall be administered by the Administrator.  The Administrator
shall have complete authority to interpret all provisions of this Plan; to
adopt, amend, and rescind rules and regulations pertaining to the administration
of the Plan; and to make all other determinations

                                      -4-
<PAGE>

necessary or advisable for the administration of this Plan. The express grant in
the Plan of any specific power to the Administrator shall not be construed as
limiting any power or authority of the Administrator. Any decision made, or
action taken, by the Administrator in connection with the administration of this
Plan shall be final and conclusive. Neither the Administrator nor any member of
the Committee shall be liable for any act done in good faith with respect to
this Plan or any Option. All expenses of administering this Plan shall be borne
by the Company.

     The Committee, in its discretion, may delegate to one or more officers of
the Company all or part of the Committee's authority and duties.  The Committee
may revoke or amend the terms of a delegation at any time but such action shall
not invalidate any prior actions of the Committee's delegate or delegates that
were consistent with the terms of the Plan.

                                  ARTICLE IV

                                  ELIGIBILITY

     Each person who is or will be an Eligible Employee on the Date of Grant may
elect to participate in the Plan by completing an Enrollment Form in accordance
with Section 5.01 and returning it to the Administrator on or before the
Election Date.

                                   ARTICLE V

                            COMPENSATION DEDUCTIONS

5.01.  Enrollment Form.
       ---------------

        (a) An Eligible Employee who satisfies the requirements of Article IV
becomes a Participant for an Offering Period by completing an Enrollment Form
and returning it to the Administrator on or before the Election Date. The
Participant's Enrollment Form shall authorize deductions from his or her
Compensation for purposes of the Plan and shall specify the percentage of
Compensation to be deducted; provided, however, that the percentage shall be in
multiples of one percent and shall be at least one percent but not more than
twenty percent and shall not exceed $10,625 for any Offering Period.

        (b) A Participant may not contribute to, or otherwise accumulate funds
under, the Plan except by Compensation deductions in accordance with his or her
Enrollment Form.

        (c) A Participant's Enrollment Form becomes operative on the Election
Date. An Enrollment Form may be amended or revoked before the Election Date.
Once an Enrollment Form becomes operative it will continue in effect, and may
not be amended, until the earlier of the Date of Exercise, the Participant's
termination of employment or the Participant's withdrawal from the Plan in
accordance with Section 8.01.

                                      -5-
<PAGE>

5.02.  Participant's Account.
       ---------------------

     A recordkeeping account shall be established for each Participant.  All
amounts deducted from a Participant's Compensation pursuant to his or her
Enrollment Form shall be credited to his or her account.  No interest will be
paid or credited to the account of any Participant.

                                  ARTICLE VI

                                 OPTION GRANTS

6.01.  Number of Shares.
       ----------------

        (a) Each Eligible Employee who is a Participant on the Date of Grant
shall be granted an Option as of the Date of Grant. The number of shares of
Common Stock subject to such Option shall be the number of whole shares
determined by dividing the option price into the balance credited to the
Participant's account as of the Date of Exercise. Notwithstanding the preceding
sentence, no Participant will be granted an Option as of any Date of Grant for
more than a number of shares of Common Stock determined by dividing $12,500 by
the Fair Market Value on the Date of Grant.

        (b) An Option covering a fractional share will not be granted under the
Plan. Any amount remaining to the credit of the Participant's account after the
exercise of an Option shall remain in the account and applied to the payment of
the option price of the Option granted in the following Offering Period, if the
Participant continues to participate in the Plan or, if he or she does not
continue to participate in the Plan, shall be returned to the Participant.

6.02.  Option Price.
       ------------

     The price per share for Common Stock purchased on the exercise of an Option
shall be the lesser of (i) eighty-five percent of the Fair Market Value on the
Date of Grant or (ii) eighty-five percent of the Fair Market Value on the Date
of Exercise.

                                  ARTICLE VII

                              EXERCISE OF OPTION

7.01.  Automatic Exercise.
       ------------------

     Subject to the provisions of Articles VIII, IX and XI, each Option shall be
exercised automatically as of the Date of Exercise next following the Option's
Date of Grant for the number of whole shares of Common Stock that may be
purchased at the option price for that Option with the balance credited to the
Participant's account.

                                      -6-
<PAGE>

7.02.  Change in Control.
       -----------------

        (a) Notwithstanding any other provision of this Plan, in the event of a
Change in Control the Committee may prescribe that (i) the Date of Exercise for
all outstanding Options shall be the Control Change Date (in which case the
option price per share shall be the lesser of 85% of the Fair Market Value on
the Date of Grant or 85% of the Fair Market Value on the Control Change Date),
(ii) all outstanding Options shall be canceled as of the Control Change Date and
each Participant shall be entitled to a payment per share (in cash or other
property as determined by the Committee), equal to the Fair Market Value of the
number of shares of Common Stock that would have been issued to the Participant
if the Option had been exercised under the preceding clause (i) or (iii) a
substitute option shall be granted for each outstanding Option in accordance
with Section 424 of the Code.

        (b) A Participant shall be entitled to a payment under this Plan if (i)
any benefit, payment, accelerated vesting or other right under this Plan
constitutes a "parachute payment" (as defined in Code section 280G(b)(2)(A), but
without regard to Code section 280G(b)(2)(A)(ii)), with respect to such
Participant and (ii) the Participant incurs a liability under Code section 4999.
The amount payable to a Participant described in the preceding sentence shall be
the amount required to indemnify the Participant and hold him harmless from the
application of Code sections 280G and 4999. To effect this indemnification, the
Company must pay such Participant an amount sufficient to pay the excise tax
imposed on Participant under code section 4999 with respect to benefits,
payments, accelerated vesting and other rights under this Plan and any other
plan or agreement and any income, employment, hospitalization, excise or other
taxes attributable to the indemnification payment. The benefit payable under
this Section 7.02(b) shall be paid in a single cash sum not later than twenty
days after the date (or extended filing date) on which the tax return reflecting
liability for the Code section 4999 excise tax is required to be filed with the
Internal Revenue Service.

7.03.  Nontransferability.
       ------------------

     Each Option granted under this Plan shall be nontransferable.  During the
lifetime of the Participant to whom the Option is granted, the Option may be
exercised only by the Participant.  No right or interest of a Participant in any
Option shall be liable for, or subject to, any lien, obligation, or liability of
such Participant.

7.04.  Employee Status.
       ---------------

     For purposes of determining whether an individual is employed by the
Company or an Affiliate, the Administrator may decide to what extent leaves of
absence for governmental or military service, illness, temporary disability, or
other reasons shall not be deemed interruptions of continuous employment.

                                      -7-
<PAGE>

7.05.  Delivery of Certificates.
       ------------------------

     Subject to the provisions of Articles IX and XI, the Company shall deliver,
to a broker designated by the Administrator,  the certificate or certificates
evidencing the shares of Common Stock acquired by each Participant during an
Offering Period.  Certificates evidencing the shares acquired by a Participant
shall be delivered to the Participant as promptly as possible following the
Participant's request to such broker or, upon the Participant's direction, the
broker shall sell such shares of Common Stock and deliver the net sales proceeds
to the Participant.

7.06.  Vesting.
       -------

     A Participant's interest in the Common Stock purchased upon the exercise of
an Option shall be immediately vested and nonforfeitable.

                                 ARTICLE VIII

                                WITHDRAWAL AND

                           TERMINATION OF EMPLOYMENT

8.01.  Generally.
       ---------

     A Participant may revoke his or her Enrollment Form for an Offering Period
and withdraw from Participation in the Plan for that Offering Period by giving
written notice to that effect to the Administrator at any time before the Date
of Exercise.  In that event, all of the payroll deductions credited to his or
her account will be paid to the Participant promptly after receipt of the notice
of withdrawal and no further payroll deductions will be made from his or her
Compensation for that Offering Period.  A Participant shall be deemed to have
elected to withdraw from the Plan in accordance with this Section 8.01 if he or
she ceases to be an employee of the Company and its Affiliates for any reason.

8.02.  Subsequent Participation.
       ------------------------

     A Participant who has withdrawn his participation in the Plan under Section
8.01 may submit a new Enrollment Form to the Administrator and resume
participation in the Plan for any later Offering Period, provided that he or she
satisfies the requirements of Article IV and the Administrator receives his or
her Enrollment Form on or before the Election Date.

                                  ARTICLE IX

                             STOCK SUBJECT TO PLAN

9.01.  Aggregate Limit.
       ---------------

     The maximum aggregate number of shares of Common Stock that may be issued
under this Plan pursuant to the exercise of Options is 5,000,000 shares.  The
maximum aggregate

                                      -8-
<PAGE>

number of shares that may be issued under this Plan shall be subject to
adjustment as provided in Article X.

9.02.  Reallocation of Shares.
       ----------------------

     If an Option is terminated, in whole or in part, for any reason other than
its exercise, the number of shares of Common Stock allocated to the Option or
portion thereof shall be reallocated to other Options to be granted under this
Plan.

                                   ARTICLE X

                    ADJUSTMENT UPON CHANGE IN COMMON STOCK

     The maximum number of shares as to which Options may be granted under this
Plan and the terms of outstanding Options shall be adjusted as the Committee
shall determine to be equitably required in the event that (a) the Company (i)
effects one or more stock dividends, stock split-ups, subdivisions or
consolidations of shares or (ii) engages in a transaction to which Section 424
of the Code applies or (b) there occurs any other event which, in the judgment
of the Committee necessitates such action.  Any determination made under this
Article X by the Committee shall be final and conclusive.

     The issuance by the Company of shares of stock of any class, or securities
convertible into shares of stock of any class, for cash or property, or for
labor or services, either upon direct sale or upon the exercise of rights or
warrants to subscribe therefor, or upon conversion of shares or obligations of
the Company convertible into such shares or other securities, shall not affect,
and no adjustment by reason thereof shall be made with respect to, the maximum
number of shares as to which Options may be granted or the terms of outstanding
Options.

                                  ARTICLE XI

                            COMPLIANCE WITH LAW AND

                         APPROVAL OF REGULATORY BODIES

     No Option shall be exercisable, no Common Stock shall be issued, no
certificates for shares of Common Stock shall be delivered, and no payment shall
be made under this Plan except in compliance with all applicable federal and
state laws and regulations (including, without limitation, withholding tax
requirements), any listing agreement to which the Company is a party, and the
rules of all domestic stock exchanges on which the Company's shares may be
listed.  The Company shall have the right to rely on an opinion of its counsel
as to such compliance.  Any share certificate issued to evidence Common Stock
for which an Option is exercised may bear such legends and statements as the
Administrator may deem advisable to assure compliance with federal and state
laws and regulations.  No Option shall be exercisable, no Common Stock shall be
issued, no certificate for shares shall be delivered, and no payment shall be
made under this Plan until the Company has obtained such consent or approval as
the Administrator may deem advisable from regulatory bodies having jurisdiction
over such matters.

                                      -9-
<PAGE>

                                  ARTICLE XII

                              GENERAL PROVISIONS

12.01.  Effect on Employment and Service.
        --------------------------------

     Neither the adoption of this Plan, its operation, nor any documents
describing or referring to this Plan (or any part thereof) shall confer upon any
individual any right to continue in the employ of the Company or an Affiliate or
in any way affect any right and power of the Company or an Affiliate to
terminate the employment of any individual at any time with or without assigning
a reason therefor.

12.02.  Unfunded Plan.
        -------------

     The Plan, insofar as it provides for grants, shall be unfunded, and the
Company shall not be required to segregate any assets that may at any time be
represented by grants under this Plan.  Any liability of the Company to any
person with respect to any grant under this Plan shall be based solely upon any
contractual obligations that may be created pursuant to this Plan.  No such
obligation of the Company shall be deemed to be secured by any pledge of, or
other encumbrance on, any property of the Company.

12.03.  Rules of Construction.
        ---------------------

     Headings are given to the articles and sections of this Plan solely as a
convenience to facilitate reference.  The reference to any statute, regulation,
or other provision of law shall be construed to refer to any amendment to or
successor of such provision of law.

                                 ARTICLE XIII

                                   AMENDMENT

     The Board may amend or terminate this Plan from time to time; provided,
however, that no amendment may become effective until shareholder approval is
obtained if (i) the amendment increases the aggregate number of shares of Common
Stock that may be issued under the Plan or (ii) the amendment changes the class
of individuals eligible to become Participants.  No amendment shall, without a
Participant's consent, adversely affect any rights of such Participant under any
Option outstanding at the time such amendment is made.

                                  ARTICLE XIV

                               DURATION OF PLAN

     No Option may be granted under this Plan more than ten years after the
earlier of the date this Plan is adopted by the Board or the date this Plan is
approved by shareholders in accordance with Article XV.  Options granted before
that date shall remain valid in accordance with their terms.

                                     -10-
<PAGE>

                                  ARTICLE XV

                            EFFECTIVE DATE OF PLAN

     Options may be granted under this Plan upon its approval by a majority of
the votes entitled to be cast by the Company's shareholders, voting either in
person or by proxy, at a duly held shareholders' meeting within twelve months
after this Plan is adopted by the Board.

                                     -11-<PAGE>

                                                                   EXHIBIT 10.48

                    EMPLOYMENT AND NON-COMPETITION AGREEMENT
                    ----------------------------------------

     THIS AGREEMENT is effective as of the 1st day of January, 1999 by and among

James A. Toopes, Jr., an individual resident of 264 Highland Avenue, Ridgewood,
NJ 07450 (the "Executive"), Big V Holding Corp., a Delaware corporation
("Holding"), and Big V Supermarkets, Inc., a New York corporation (the
"Company").

                                    RECITALS
                                    --------

     WHEREAS, the Company and Holding are parties to a Management Agreement
under which Holding provides the services of senior management to the Company
(the "Management Agreement");

     WHEREAS, the Executive has been performing services for the Company under
the Management Agreement and wishes to continue performing such services as are
set forth herein; and

     WHEREAS, the Company and the Executive desire to set forth the terms and
conditions under which the Executive shall be employed by Holding and upon which
Holding shall compensate the Executive.

     NOW, THEREFORE, in consideration of the foregoing and the mutual promises
and agreements hereinafter set forth, Holding, the Company and the Executive
agree as follows:
<PAGE>

                                  SECTION ONE
                                  -----------

                                   EMPLOYMENT
                                   ----------

     1.01  Office.  Holding hereby employs, engages and hires the Executive, and
the Executive agrees to serve Holding, as an executive-level employee of Holding
for the term of employment specified in section 1.04 herein.

     1.02  Responsibilities.  The Executive shall serve as Executive Vice
President, Vice Chairman and Chief Financial Officer and Director of Holding and
the Company, performing such duties as shall reasonably be required of a person
holding such positions reporting only to the President, Chief Executive Officer
and the Board of Directors of Holding (the "Board").  The Executive shall have
such other powers and perform such other reasonable additional executive duties
as may from time to time be assigned to him by the President, Chief Executive
Officer or the Board.

     1.03  Full-Time Commitment.  The Executive will serve Holding faithfully
and to the best of his ability and will devote substantially all of his time,
energy, experience, and talents during regular business hours and as otherwise
reasonably necessary to such employment, to the exclusion of all other business
activities.

     1.04  Term.  The term of this Agreement (the "Term") shall be from the date
hereof until the earlier of (a) the termination of the Executive's employment
hereunder pursuant to Sections 3.01 or 3.04 hereof or (b) December 31, 2003,
provided, however, that the Term shall be automatically renewed for an
additional one-year period following December 31, 2003 and for additional one-
year periods thereafter unless (i) either Holding or the Executive notifies the
other of its or his desire not to renew the Term no later than December 31, 2002
or, with respect

                                      -2-
<PAGE>

to a year in which the Term has been renewed, one year prior to the last day of
such renewal year, or (ii) the Executive's employment is terminated pursuant to
Sections 3.01 or 3.04, in which case the Term shall end as of the date of such
termination, or (iii) the Executive's employment is terminated pursuant to
Sections 3.02, 3.03 or 3.05, in which case the Term shall end on December 31,
2003 or, with respect to any renewal years, December 31 of the year in which
such termination occurred.

                                  SECTION TWO
                                  -----------

                           COMPENSATION OF EXECUTIVE
                           -------------------------

     2.01  Base Salary.  During the Term the Executive shall receive as a base
salary $280,000 per annum (the "Base Salary"). The Base salary shall be paid in
weekly installments in arrears and subject to withholding and other applicable
taxes.  The Base Salary shall be reviewed annually at the end of each calendar
year beginning with calendar year 1999 by the Board and may be increased at that
time if the Board determines, in its sole discretion, that the Base Salary
warrants any increase.

     2.02  Bonuses.  The Executive shall be entitled to receive accrued annual
bonuses at the end of each calendar year in accordance with the Annual Incentive
Bonus Plan attached hereto as Schedule I (the "Plan"). The Annual Incentive
Bonus Plan initially provides for a $140,000 annual base bonus depending on the
Company's meeting certain performance criteria set forth in the Plan, and
subject to adjustment downward or upward for performance below or in excess of
the criteria set forth in the Plan.  The payment of the Executive's bonus shall
be subject to withholding and other applicable taxes.

                                      -3-
<PAGE>

     2.03  Vacation.  The Executive shall be entitled to take four weeks of paid
vacation annually during the Term, to be taken at such time or times as shall be
mutually convenient and consistent with his duties and obligations to Holding
and the requirements of the Company.

     2.04  Expenses.  Holding shall promptly pay or reimburse the Executive for
all reasonable expenses incurred by him in connection with the performance of
his duties and responsibilities hereunder, including, but not limited to,
expenses paid or incurred for travel relating to the business of Holding or the
Company.  All requests for reimbursement of expenses referred to in this
paragraph shall be accompanied by such underlying documents or other evidence as
are reasonably required to support the deduction of such expenses in accordance
with the rules established by Holding, which shall be consistent with the rules
in effect at the Company for the Company's executive officers.

     2.05  Life Insurance.  Subject to the Executive's reasonable insurability,
Holding shall obtain and keep in full force and effect during the Term, at its
own cost and expense, insurance covering the Executive's life in an amount equal
to 200% of his Base Salary as of January 1st of each year during the Term, or
such higher percentage as the Company may maintain from time to time with
respect to its senior executives, payable to his estate or such other person or
persons as he may from time to time direct.  In addition to such insurance,
Holding or the Company, in its discretion, and at its own cost and expense, may
also obtain insurance for its own benefit covering the Executive's life in such
amount as it considers advisable, and the Executive agrees to cooperate fully to
enable Holding or the Company to obtain such insurance.

     2.06  Automobile.  During the Term, Holding shall make available to the
Executive a luxury class automobile in accordance with the Company's car policy
for senior officers,

                                      -4-
<PAGE>

together with all normal maintenance of such automobile including insurance,
garage, repairs, etc. If Holding makes available to the Executive a leased
automobile, the Executive shall have the right to purchase the same with his own
funds at the end of the lease term at the purchase option exercise price.

     2.07  Relocation Loan.  In connection with the commencement of the
Executive's employment with the Company, the Executive has borrowed $300,000
(the "Loan") from the Company for the purpose of covering certain relocation-
related expenses.  The terms of such Loan are set forth in a promissory note
issued by the Executive to the Employer.  The principal amount of such Loan plus
any interest accrued thereon, is due on December 31, 2003; provided, however,
(i) in the case where the Executive is terminated pursuant to Section 3.01
hereto or the Executive voluntarily terminates this Agreement pursuant to
Section 3.04 hereto prior to December 31, 2003, the Executive shall be required
to repay, on the termination date, the principal amount due, plus any interest
accrued thereon as of the date of such termination; and (ii) in the case where
the Executive terminates his employment pursuant to Section 3.05(a) prior to
December 31, 2003, but only in the case where the Company offers the Executive
an alternative executive position having equivalent salary and benefits, the
Executive shall be required to repay a pro rata portion of the principal, plus
any interest accrued as of the date of such termination, based upon the ratio of
the number of full months prior to December 31, 2003 that the Executive's
employment is terminated to the total amount of months of the initial term of
this Agreement.  In the case where the Executive's employment continues past
December 31, 2003 or is otherwise terminated pursuant to Sections 3.02, 3.03 or
3.05 (except in the case where the Executive is offered an alternative executive
position with equal pay and benefits) prior to

                                      -5-
<PAGE>

such date, the Executive shall be fully and finally released, without further
action, from the obligation to repay any principal and interest due on such
Loan.

     2.08  Other Benefits.  The Executive shall be entitled to participate in
all employment benefit plans now existing or hereafter established by Holding,
which shall be consistent with such benefit plans or arrangements generally made
available to senior executive officers of the Company.

                                 SECTION THREE
                                 -------------

                                  TERMINATION
                                  -----------

     3.01  Cause.  The Executive may be terminated from his employment by
Holding at any time for Cause without prior notice, and Holding shall, upon such
termination, have no obligation to pay the compensation specified in section 2
herein except that Holding shall be obligated to pay the Base Salary specified
in Section 2.01 herein through the date of such termination.  For purposes of
this Agreement, "Cause" shall mean a termination of employment of the Executive
by Holding or any of its subsidiaries due to (a) the commission by the Executive
of an act of fraud or embezzlement (including the unauthorized disclosure of
confidential or proprietary information of Holding or the Company which results
in, or which could be reasonably expected to result in, a material injury to
Holding or the Company), (b) a felony conviction or guilty plea of the
Executive, (c) willful misconduct as an employee of Holding or the Company which
results in material injury to Holding or the Company or (d) the willful failure
of the Executive to render services to Holding or the Company in accordance with
his employment which failure amounts to a material neglect of his duties to
Holding or the Company; as determined in each case in good faith by the Board.
In the event of a termination

                                      -6-
<PAGE>

for Cause pursuant to this Section 3.01, the Executive's right to receive
compensation and other benefits I except for payments for services previously
rendered, shall cease immediately upon such termination.

     3.02  Disability; Death.  If the Executive shall fail to or be unable to
perform the duties required hereunder because of any serious physical or other
incapacity as determined by an independent medical doctor selected by the Board,
and such failure or inability shall continue for a period of 180 consecutive
days or longer during the Term, Holding shall have the right to terminate this
Agreement.  This Agreement shall terminate automatically upon the death of the
Executive.  In the event of termination due to death or disability pursuant to
this Section 3.02, the Executive's right to receive compensation hereunder shall
cease, except that (a) the Executive shall receive any life or disability
insurance benefits (as applicable) and Holding shall pay to the Executive or his
estate all bonus compensation earned or awarded hereunder to the date of
termination; (b) in the event of termination due to disability and, subject to
the Executive's reasonable insurability, during the Term the Executive shall
continue to receive medical and health insurance benefits otherwise made
available to other senior executives, except to the extent such coverage is
available to the Executive from sources other than Holding or the Company; (c)
in the event of termination due to disability, Holding shall continue to treat
the Executive as an employee for federal tax purposes but only if and to the
extent Holding is permitted to do so under applicable statutes, regulations and
rulings and only for so long as Holding is required to pay the Executive Base
Salary pursuant to the terms hereof and the Executive is not employed by any
other person or entity and (d) in the event of termination due to disability,
Holding shall continue to pay the Executive his Base Salary in accordance with

                                      -7-
<PAGE>

Section 2.01 hereof until the end of the Term, provided that any Base Salary
payable pursuant to this Section 3.02 shall be reduced by any compensation
received by the Executive during such period from any entity or person (it being
understood that the Executive shall not be obligated to seek other employment)
and by any disability insurance benefits received by the Executive.

     3.03  Termination Without Cause.  Holding shall have the right to terminate
the employment of the Executive at any time without Cause ("Cause" shall be
determined according to Section 3.01 herein).  In such case, the Executive's
right to receive compensation and other benefits hereunder, other than bonus
compensation earned or awarded to the date of such termination, shall cease.
Notwithstanding the foregoing, Holding shall continue to pay the Executive his
Base Salary in accordance with Section 2.01 hereof until the earlier of two (2)
years from the date of such termination or the end of the Term (the "Severance
Term"); provided that any Base Salary payable pursuant to this Section 3.03
shall be reduced by any compensation received by the Executive during such
period from any entity or person (it being understood that the Executive shall
not be obligated to seek other employment).

     3.04  Voluntary Termination.  The Executive may voluntarily terminate his
employment hereunder at any time, for any reason or for no reason.  In such
case, the Executive's right to receive compensation and other benefits
hereunder, other than Base Salary and bonus compensation earned or awarded, in
each case to the date of such termination, shall cease.

     3.05  Termination for Good Reason.  The Executive shall have the right to
terminate his employment with Holding for "Good Reason" upon written notice to
Holding, delivered to Holding promptly after the event or cause constituting
"Good Reason."  For purposes of this

                                      -8-
<PAGE>

Agreement, "Good Reason" shall mean (a) the failure to elect or appoint the
Executive as Executive Vice President and Chief Financial Officer and to the
Board of Directors of Holding or the Company or (b) the failure by Holding or
the Company to pay any compensation or other amount due the Executive under this
Agreement, which failure is not remedied within ten (10) business days after
written notice thereof is delivered to Holding by the Executive. The Executive's
termination for Good Reason hereunder shall be treated for purposes of this
Agreement, and for purposes of the Shareholders' Agreement by and among Holding
and the shareholders of Holding named therein, dated as of December 28, 1990
(the "Shareholders' Agreement"), and any, if applicable, stock option agreement,
issued pursuant to a stock option plan of the Company, entered into by the
Executive, as if the Executive were terminated without Cause by Holding pursuant
to Section 3.03 hereof.

                                  SECTION FOUR
                                  ------------

                            COVENANT NOT TO COMPETE
                            -----------------------

     4.01  Non-Competition.  So long as the Executive is employed by Holding and
for a period of one (1) year from the date of the Executive's termination of
employment hereunder or, if terminated pursuant to Sections 3.02, 3.03 and 3.05,
until the earlier of the expiration of the Term, notwithstanding such
termination, or the Severance Term, the Executive shall not, directly or
indirectly, by or for himself or as the agent of another or through another as
his agent (a) own any interest in (other than up to five percent of any publicly
traded security), provide consulting or other services to or serve as an officer
or director or engage in the management or operation of any entity that,
directly or indirectly, owns, manages or operates, or participates in the
operation of, any supermarket or other retail grocery store located within 20
miles of any supermarket

                                      -9-
<PAGE>

owned or operated by the Company or any subsidiary of the Company, or (b)
solicit for employment, employ or induce or advise any employee to leave the
employ of Holding, the Company or any of its subsidiaries. Notwithstanding the
foregoing, if the Executive is terminated pursuant to Sections 3.02, 3.03 or
3.05 hereof, after one year from the date of such termination the Executive may
elect by written instrument in form and substance reasonably acceptable to
Holding, to waive any and all rights to, and release Holding and the Company
from any and all obligations to pay or provide, any Base Salary or benefits to
which the Executive would otherwise be entitled pursuant to such Sections 3.02,
3.03 or 3.05. In such event, notwithstanding anything herein to the contrary,
from and after ten (10) business days following the date on which an originally
executed copy of such instrument is delivered to Holding, the Executive shall no
longer be subject to the restrictions set forth in this Section 5.01 and neither
Holding nor the Company shall be obligated to make any payments or provide any
benefits or other compensation to the Executive.

     4.02  Restitution.  In addition to all other remedies provided for
hereunder, the Executive agrees that if he shall violate any of the provisions
of this Section 5, Holding shall be entitled to an accounting and repayment of
all profits, compensation, remuneration or other benefits that the Executive may
realize arising from or related to any such violation.

     4.03  Modification.  The parties agree and acknowledge that the duration,
scope and geographic area of the covenant not to compete described in this
Section 4 are fair, reasonable and necessary in order to protect the good will
and other legitimate interests of Holding, that adequate compensation has been
received by the Executive for such obligations, and that these obligations do
not prevent the Executive from earning a livelihood.  If, however, for any
reason

                                      -10-
<PAGE>

any court determines under applicable law that the provisions in this Section 4
pertaining to duration, scope and geographic area in relation to non-competition
are too broad or otherwise unreasonable, that the consideration provided for
hereunder is inadequate or that the Executive has been prevented unlawfully from
earning a livelihood (together, such provisions being hereinafter referred to as
"Restrictions"), such Restrictions shall be interpreted, modified or rewritten,
and such court is hereby requested and authorized by the parties hereto to
revise the Restrictions, to include the maximum Restrictions as are valid and
enforceable under applicable law.

                                  SECTION FIVE
                                  ------------

                            CONFIDENTIAL INFORMATION
                            ------------------------

     5.01  Proprietary Information.  In the course of his service to Holding and
the Company, the Executive shall have access to confidential and proprietary
information, including, but not limited to strategic plans or data, financial
statements, information concerning marketing data, customer research and data,
information concerning sources of supply, pricing information and data, trade
secrets or the business, operations or financial condition of Holding, the
Company and its subsidiaries and affiliates and Wakefern Food Corporation.  Such
information shall be referred to hereinafter as "Proprietary Information" and
shall include any and all items enumerated in the preceding sentence whether
previously existing, now existing or arising hereafter, whether conceived or
developed by others or by the Executive alone or with others, and whether or not
conceived or developed during regular working hours.  Proprietary Information
which is in the public domain during the period of service by the Executive,
provided the same is not in the public domain as a consequence of disclosure
directly or

                                      -11-
<PAGE>

indirectly by the Executive in violation of this Agreement, shall not be subject
to the restrictions of Sections 5.01 through 5.03 herein.

     5.02  Fiduciary Obligations.  The Executive acknowledges that Holding and
the Company have expended, and will continue to expend, significant amounts of
time, effort and money in the procurement of their Proprietary Information, that
Holding and the Company have taken all reasonable steps in protecting the
secrecy of the Proprietary Information, that said Proprietary Information is of
critical importance to Holding and the Company and that a violation of this
Section 6 would seriously and irreparably impair and damage the business of both
Holding and the Company, and the Executive agrees to keep all Proprietary
Information in a fiduciary capacity for the sole benefit of Holding and the
Company.

     5.03  Non-Disclosure.  The Executive shall not disclose, directly or
indirectly (except as the Executive's duties in the regular and proper course of
business of Holding or the Company may require and except as required by law),
any Proprietary Information to any person other than Holding, the Company or
authorized employees thereof at the time of such disclosure, or to such other
persons to whom the Executive has been specifically instructed to make
disclosure by the Board of Directors of Holding or the Company and in all such
cases only to the extent required in the regular and proper course of business
of Holding and the Company.  At the termination of his employment, the Executive
shall deliver to Holding all notes, letters, documents and records which may
contain Proprietary Information which are then in his possession or control and
shall not retain or use any copies or summaries thereof.

                                      -12-
<PAGE>

                                  SECTION SIX
                                  -----------

                                   REMEDIES
                                   --------

     6.01  Remedies.  The Executive acknowledges that he has carefully read and
considered the terms of this Agreement and knows them to be essential to induce
Holding and the Company to enter into this Agreement and that any breach of the
provisions contained herein will result in serious and irreparable injury to
Holding and the Company.  Therefore, in the event of a breach of this Agreement,
Holding and the Company shall be entitled to equitable relief against the
Executive, including, without limitation, an injunction to restrain the
Executive from such breach and to compel compliance with this Agreement in
protecting or enforcing its rights and remedies.

                                 SECTION SEVEN
                                 -------------

                                 MISCELLANEOUS
                                 -------------

     7.01  Notice of Sale.  If, during the term of Executive's employment
hereunder, Holding, the Company or an Affiliate (as defined in the Shareholders'
Agreement) of the Company to which this Agreement is assigned is sold to a third
party (whether directly or indirectly, by sale of stock or assets, merger or
otherwise), Holding shall endeavor to give Executive such advance notice
therefor as is practicable in the circumstances, taking into account the need of
the parties to the transaction to maintain confidentiality of their negotiations
until public announcement thereof.  In such event, Executive shall not disclose
to any other person the pendency of such transaction until such public
announcement is made.

     7.02  Indemnification.  Holding and the Company shall indemnify Executive
in the event that he is a party or threatened to be made a party to any
threatened, pending or completed action, suit or proceeding, whether civil,
criminal, administrative or investigative, by reason of

                                      -13-
<PAGE>

the fact that he is or was a director or officer of Holding or the Company, its
subsidiaries or Affiliates, in which capacity he is or was serving at the
request of Holding or the Company, against expenses (including attorneys' fees
which shall be advanced as incurred) judgments, fines and amounts paid in
settlement actually and reasonably incurred by him in connection with such
action, suit or proceeding to the fullest extent and in the manner set forth and
permitted by the General Corporation Law of the State of Delaware, and any other
applicable law, as from time to time in effect.

     7.03  Notices.  All notices hereunder, to be effective, shall be in writing
and shall be deemed delivered when delivered by hand or five days after being
sent by first-class-certified mail, postage and fees prepaid, as follows (unless
and until notice of another or different address shall be given):

(i)  If to Holding:           Big V Holding Corp.
                              c/o Thomas H. Lee Company
                              75 State Street
                              Boston, Massachusetts 02109
                              Attn: Chairman

     Copy to:                 Charles W. Robins, Esquire
                              Hutchins, Wheeler & Dittmar
                              A Professional Corporation
                              101 Federal Street
                              Boston, Massachusetts 02110

(ii)  If to the Executive:    To the address set forth below.

     7.04  Modification.  This Agreement, together with the Stock Option
Agreement, Promissory Note, Pledge Agreement and Shareholders' Agreement,
constitute the entire agreement between the parties hereto with regard to the
subject matter hereof, terminating and

                                      -14-
<PAGE>

superseding all prior understandings and agreements, whether written or oral.
This Agreement may not be amended or revised except by a writing signed by the
parties.

     7.05  Assignment.  This Agreement and all rights hereunder are personal to
the Executive and may not be assigned by him.  Notwithstanding anything else in
this Agreement to the contrary, Holding and the Company may assign this
Agreement to and all rights hereunder shall inure to the benefit of any person,
firm or corporation succeeding to all or substantially all of the business or
assets of the Company whether by purchase, merger or consolidation.

     7.06  Captions.  Captions herein have been inserted solely for convenience
of reference and in no way define, limit or describe the scope or substance of
any provision of this Agreement.

     7.07   Severability.  The provisions of this Agreement are severable, and
the invalidity of any provision shall not affect the validity of any other
provision.  In the event that any arbitrator or court of competent jurisdiction
shall determine that any provision of this Agreement or the application thereof
is unenforceable because of the duration or scope thereof, the parties hereto
agree that said arbitrator or court in making such determination shall have the
power to reduce the duration and scope of such provision to the extent necessary
to make it enforceable, and that the Agreement in its reduced form shall be
valid and enforceable to the full extent permitted by law.

     7.08  Taking Effect.  The terms and conditions set forth in this Agreement
shall take effect and be binding upon the parties as of the date first above
written.

                                      -15-
<PAGE>

     7.09  Governing Law.   This Agreement shall be construed under and governed
by the laws of the State of New York.
                                      ****

                                      -16-
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as
a binding contract as of the day and year first above written.

                                         BIG V HOLDING CORP.

                                         By /s/  Mark S. Schwartz
                                            ----------------------
                                                       (signature)

                                         Mark S. Schwartz
                                         -------------------------
                                                      (print name)

                                         President & CEO
                                         -------------------------
                                                      (print title)
EXECUTIVE:  BIG V SUPERMARKETS, INC.

/s/  James A. Toopes, Jr.                By:/s/ Mark S. Schwartz
--------------------------                      ---------------------
James A. Toopes, Jr.                                      (signature)

                                         Mark S. Schwartz
                                         ------------------------------
                                                           (print name)

                                         President & CEO
                                         -------------------------------
                                                           (print title)

Executive's Home Address:

264 Highland Avenue
Ridgewood, NJ  07450

                                      -17-
<PAGE>

                                 SCHEDULE I TO
                 EMPLOYMENT AGREEMENT WITH JAMES A. TOOPES, JR.
                 ----------------------------------------------
                          ANNUAL INCENTIVE BONUS PLAN
                          ---------------------------

I.  ANNUAL INCENTIVE BONUS BASE AMOUNT AND SCALE

     The Annual Incentive Bonus base amount (the "Base Amount") for the
     Executive for each year shall equal 50% of his Base Salary for such year.
     For each year shown below, the Executive will earn all of the Base Amount
     upon the achievement by the Company of the "Plan Cash Flow" shown below for
     such year:

     YEAR                    PLAN CASH FLOW ($000)/1/
     ----                    --------------------

     1999
     2000                            *

     2001                            *

     2002                            *
     2003                            *
     Cumulative Plan Cash            *
     Flow for all Target
     Periods

     The achievement of the Plan Cash Flow target will result in the payment of
     an Annual Incentive Bonus equal to the Base Amount. The Bonus will be
     reduced by one eleventh (1/11) of the Base Amount for each one percent by
     which the Plan Cash Flow target exceeds the Company's actual Cash Flow for
     the applicable year; provided, however, that if less than 90% of the Plan
     Cash Flow target is achieved, no Bonus will be paid.

     In the event the Company's actual Cash Flow exceeds the Plan Cash Flow
     target for the applicable year, the Annual Incentive Bonus will be
     increased as follows: (i) by 0.2% of the Executive's Base Salary (as of the
     last day of the year) for each 0.1% by which the Company's actual Cash Flow
     exceeds the applicable Plan Cash Flow target but is less than 110% of the
     Plan Cash Flow target, (ii) by 0.3% of the Base Salary for each 0.1% by
     which the Company's actual Cash Flow exceeds 110% of the applicable Plan
     Cash Flow target but is less than 120% of the Plan Cash Flow target, and
     (iii) by 0.4% of the Base Salary for each 0.1% by which the Company's
     actual Cash Flow exceeds 120% of the applicable Plan Cash Flow target.

-----------
/1/ For the years ending 2000 through 2003 and including any extensions of this
    Agreement, the Plan Cash Flow targets shall be determined by the Executive
    Committee of Holding and approved by the Compensation Committee of the
    Board.

                                      -18-
<PAGE>

II.  "CASH FLOW" DEFINED
     -------------------

     For the purpose of this Agreement, "Cash Flow" shall mean the Company's
     consolidated income without reduction for non-cash compensation expense or
     deferred compensation expense, interest (except as indicated below), income
     taxes, depreciation or amortization but after deduction of: (i) all
     operating expenses (including up to $250,000 in management fees payable to
     Thomas H. Lee Company and J.S. Frelinghuysen & Co. pursuant to their
     respective Management Agreements with the Company) and (iii) other reserves
     required in connection with the operation of the Company's business in the
     ordinary course.  The determination of Cash Flow shall not take into
     account any income or expense attributable to LIFO reserves, or gains or
     losses on sales of assets or other extraordinary gains or losses.  Except
     as otherwise provided herein, Cash Flow shall be determined in accordance
     with generally accepted accounting principles consistently applied, all as
     reflected in the Company's most recently available consolidated audited
     financial statements for the immediately preceding fiscal year and as
     certified by the Chief Financial Officer of the Company. The Plan Cash Flow
     targets set forth above shall be adjusted in the manner and to the extent
     reasonably determined by the Company's Board of Directors in order to take
     into account (i) material changes in the Company's methods of accounting,
     (ii) the sale of substantial assets by the Company or (iii) the acquisition
     of ongoing business, whether by merger, consolidation or otherwise.  Any
     such adjustment shall be made in good faith with the intent that, after
     taking into account the nature of the cause of the adjustment, the measure
     of the Company's performance established by the Plan Cash Flow targets
     before and after the adjustment will be as nearly equivalent as is
     reasonably possible.

III. ANNUAL BONUS PAYMENT, EARLY TERMINATION PAYMENT
     -----------------------------------------------

     The Annual Incentive Bonus shall be paid by Holding on April 30 of the year
     immediately following the year in which it was earned or within thirty (30)
     days of the date on which the Company receives its audited financial
     statements for such year, whichever occurs first.  Such Bonus is not
     payable prior to such date unless the Company is sold or the Executive is
     terminated pursuant to Sections 3.02, 3.03 or 3.05 hereof.  If any of the
     events occur, the Bonus will vest to the extent that the Bonus would
     otherwise be payable by measuring the Company's Cash Flow as of the date
     the material terms of such sale were established (the "Sale Date") against
     the Plan Cash Flow target pro rated to the Sale Date, taking into account
     seasonal factors as determined in good faith by the Company's Board of
     Directors; provided, however, that the amount of any resulting Bonus will
     also be pro rated to the Sale Date based on the number of days elapsed (up
     to and including the Sale Date).   If the Executive's employment terminates
     for any other reason, no portion of his Annual Incentive Bonus will be paid
     without authorization and approval of the Board of Directors of Holding.
     Annual Incentive Bonus Payments are not assignable or transferable except
     by beneficiary designations to take effect at death.

                                      -19-
<PAGE>

     For the purpose of this Plan, a sale of the Company shall mean a sale of
     all or substantially all of the assets of the Company or the sale or other
     transfer of 50% or more of the common stock of the Company held by the
     Institutional Investors (as defined in the Shareholders' Agreement among
     Big V Holding Corp. and its shareholders dated as of December 28, 1990) to
     an unaffiliated third party or parties.

                                      -20-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00008-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00008-of-00352.parquet"}]]