Document:

<PAGE>
                                                                   EXHIBIT 10.19

                             PARTICIPATION AGREEMENT
                         Terry Field Extension Prospect

         THIS AGREEMENT, made and entered into this 5th day of September, 2000,
by and between Oceanic Exploration Company, whose address is 7800 East Dorado
Place, Suite 250, Englewood, Colorado 80111 (hereinafter referred to as
"Oceanic"), and Mariah Energy, L.L.C., whose address is 1776 Lincoln Street,
Suite 1314, Denver, Colorado 80203 (hereinafter referred to as "Mariah"), and
Daniel R. Sommer, whose address is 1776 Lincoln Street, Suite 1314, Denver, CO
80203 (hereinafter referred to as "Sommer"). Oceanic, Mariah and Sommer may
sometimes be collectively referred to as the "Parties".

         WITNESSETH:

         WHEREAS, Mariah and Sommer represent that they have entered into a
certain Farmout Contract dated March 14, 2000, as amended, with Presco Western,
L.L.C. (hereinafter referred to as "Presco") covering Presco's rights in the
following lands in Finney County, Kansas (hereinafter the "Farmout Contract"):

<Table>
<Caption>
                  Township 23 South, Range 34 West
                  --------------------------------
<S>                            <C>
                  Section 3:   S/2
                  Section 4:   Lots 1, 2, 3, 4, S/2N/2, S/2 (All)
                  Section 10:  N/2
</Table>

A copy of the Farmout Contract and all amendments thereto is attached hereto and
made a part hereof as Exhibit "A"; and

         WHEREAS, Oceanic desires to acquire an interest in the Farmout
Contract, and the lands covered thereby, and participate in the drilling of an
exploration test well; and Mariah desires to sell Oceanic an interest in the
Farmout Contract, and allow Oceanic to participate in the drilling of the
exploration test well, all subject to the terms of this agreement.

         NOW, THEREFORE, for and in consideration of the mutual covenants and
conditions hereinafter set forth and other good and valuable consideration, the
Parties agree as follows:

1        Oceanic agrees to purchase a 75% interest in the Farmout Contract for a
         consideration payable to Mariah Energy, L.L.C. in the amount of $35.00
         per net acre covered by the Farmout Contract, or an amount of
         $33,600.00 (1,280.00 net acres X $35.00 per acre X 75%). The above
         consideration shall be paid to Mariah within five days after execution
         of this agreement.

2        Obligation Test Well.

         a)       As a further consideration of this Participation Agreement,
                  Oceanic hereby agrees to participate in the drilling and
                  testing of an exploration test well to be drilled at a legal
                  location in the SE/4SE/4 Section 4, Township 23 South, Range
                  34 West, Finney County, Kansas (hereinafter the "Obligation
                  Test Well") to the full extent of Oceanic's working interest
                  in the Farmout Contract. Such Obligation Test Well shall be
                  commenced on or before December 15, 2000, and thereafter
                  drilled to a depth of 4,900 feet, or to a depth sufficient to
                  adequately test (in Presco's opinion), the St. Louis
                  formation, whichever is the lesser depth (hereinafter
                  "Contract Depth"). Oceanic agrees and covenants to pay and
                  discharge 75% share of the costs incurred in the Obligation
                  Test Well. The Parties hereby agree that all operations
                  conducted in the drilling of the Obligation Test Well, will be
                  conducted pursuant to the terms of the Operating Agreement
                  attached as Exhibit "D" to the Farmout Contract, including
                  each Parties right to make a casing point election.

         b)       In the event the Operator is unable to drill the Obligation
                  Test Well to the Contract Depth, due to mechanical or other
                  difficulties beyond the reasonable control of Operator, then
                  Operator shall plug and abandon such well in accordance with
                  all applicable State regulations and shall, within fifteen
                  (15) days thereafter commence a substitute test well within
                  the same governmental quarter-quarter section or at such other
                  location mutually acceptable to all Parties (hereinafter
                  "Substitute Test Well") and thereafter drill such Substitute
                  Test Well to the Contract Depth pursuant to the Farmout
                  Contract such that the Substitute Test Well is deemed to be
                  the Obligation Test Well.

3        Optional Test Wells.

         a)       Following the drilling of the Obligation Test Well, any Party
                  hereto may propose the drilling of an additional test well or
                  wells on the lands covered by the Farmout Contract
                  (hereinafter an "Optional Test Well"). Any Party proposing to
                  drill an Optional Test Well shall (i) make such proposal
                  subject to the terms of the Farmout Contract, and (ii) shall
                  submit a written proposal to the all other Parties, specifying
                  the work to be performed, the location of the proposed well,
                  the proposed depth, objective zone, and the

                                   Page 1 of 4
<PAGE>

                  estimated cost of the operation. A proposal to drill an
                  Optional Test Well shall be made, and elections by the Parties
                  governed, pursuant to Article VI of the applicable Operating
                  Agreement. Notwithstanding anything contained to the contrary
                  in the applicable Operating Agreement, in the event Oceanic
                  elects not to participate in any such proposal it shall be
                  deemed to have relinquished to the participating Party(ies),
                  upon commencement of the Optional Test Well:

                  (i)      in the event such Test Well is completed as a well
                           capable of producing oil and casinghead gas and has a
                           gas-oil ratio of less than 15,000 to 1, all of such
                           non-participating Party's right, title and interest
                           in and to a stand up or lay down contiguous eighty
                           (80) acre tract of land, as designated by the
                           participating Party(ies), situated in the
                           governmental section upon which the Test Well is
                           drilled under the Farmout Contract, plus one
                           additional contiguous eighty (80) acre tract of land
                           as designated by the participating Party(ies); or

                  (ii)     in the event such Test Well is completed as a well
                           capable of producing gas and associated liquid
                           hydrocarbons and has a gas-oil ratio equal to or
                           greater than 15,000 to 1, all of such
                           non-participating Party's right, title and interest
                           in and to a stand up or lay down contiguous three
                           hundred and twenty (320) acre tract of land, as
                           designated by the participating Party(ies), situated
                           in the governmental section upon which the Test Well
                           is drilled under the Farmout Contract.

                  (iii)    in the event such Test Well is plugged and abandoned
                           as a dry hole there shall be no acreage
                           relinquishment by the non participating Party.

         b)       Without the written consent of all Parties hereto, no Party
                  may propose the drilling of a Optional Test Well if another
                  proposal to drill a well has been made by a Party covering
                  lands covered by the Farmout Contract, or if another well is
                  currently drilling or completing on lands covered by the
                  Farmout Contract.

4        Operating Agreement.

         a)       The Operating Agreement attached as Exhibit "D" to the Farmout
                  Contract (hereinafter referred to as the "Presco Operating
                  Agreement") shall govern joint operations as all lands subject
                  to the Farmout Contract. Upon the Parties execution of this
                  Participation Agreement such Presco Operating Agreement shall
                  become effective as between the Parties hereto and shall apply
                  to the lands described above on a Spacing Unit, as hereinafter
                  defined, by Spacing Unit basis. A separate Operating Agreement
                  will not be executed for each individual Spacing Unit unless
                  one of the Parties hereto so requests, however, prior to
                  commencement of each well drilled hereunder the Operator will
                  provide each Party with an Exhibit "A" to the Operating
                  Agreement for the Spacing Unit on which the well is situated.
                  A Spacing Unit shall mean the area of land earned by
                  completion of a producing Test Well under the Farmout
                  Contract. Mariah, or its designee, shall be designed as
                  Operator under the Presco Operating Agreement, and in such
                  capacity shall operate the drilling of all Test Wells on lands
                  subject thereto.

         b)       In the event there is a conflict between the terms of this
                  Participation Agreement and the terms of the Operating
                  Agreement, Parties acknowledge and agree that the terms of
                  this Participation Agreement shall control and prevail.

5        An Area of Mutual Interest (hereinafter referred to as "AMI") is hereby
         established by the Parties which shall consist of the following lands:

<Table>
<Caption>
                  Township 23 South, Range 34 West, Finney County, Kansas
                  -------------------------------------------------------
<S>                           <C>
                  Section  3: S/2
                  Section  4: Lots 1, 2, 3, 4, S/2N/2, S/2
                  Section 10: N/2
</Table>

                  The term of this AMI shall commence as of the date first
                  written above and extend for a period ending December 31,
                  2001, unless earlier terminated in writing by the Parties
                  hereto.

                  In the event a Party to this Participation Agreement (the
                  "Acquiring Party") acquires an oil and/or gas interest within
                  this area, including, but not limited to, lease purchases,
                  royalty or mineral interests, farmouts, farmins, options to
                  farmout or farmin, acreage contributions, bottom hole purchase
                  agreements, or any other type of acreage acquisition or
                  support of any kind, the other Party(s) hereto ("Offeree")
                  shall be entitled to acquire an interest in such acquisition
                  in the same proportion as his or its ownership set forth
                  below, upon payment of its proportionate part of the actual
                  costs of acquiring same. The Acquiring Party shall notify
                  Offeree of the acquisition, and send all copies of pertinent
                  information, setting forth the bonus costs of such acquisition
                  and other significant costs and terms thereof. The Offeree
                  shall have a period of thirty (30) days after receipt of
                  notice within which to elect to participate in the
                  acquisition. If, however, a well is then being drilled on
                  lands subject to this Agreement, the Acquiring Party shall so
                  advise the Offeree and the election must be made within
                  forty-eight (48) hours of receipt of notice, inclusive of
                  Saturdays, Sundays, and holidays.

                                  Page 2 of 4
<PAGE>

                  A Party electing to acquire its share of the acquisition shall
                  also bear the direct actual associated costs of acquiring the
                  interest in the proportion that the interest it acquires bears
                  to the whole acquisition.

                  If the Acquiring Party has not received an Offeree's election
                  within the period provided for above, said Offeree shall be
                  deemed to have elected not to participate in the acquisition.
                  Each Offeree accepting the offer shall be entitled, but not
                  obligated, to participate in a non-participating Offeree's
                  interest in the proportion that each participating Offeree's
                  interest bears to the total interest of all participating
                  Parties, including the Acquiring Party. An Offeree who elects
                  not to participate, or is deemed to have elected same, shall
                  have no further rights to such acquired interest. The acquired
                  interest shall be subject to the terms of the Participation
                  Agreement and the Operating Agreement (with appropriate
                  interest adjustments in the event less than all parties
                  elected to participate). In the event an interest acquired
                  hereunder is subject to the terms of a separate operating
                  agreement, such interest shall not be subject to the terms of
                  the Operating Agreement.

                  Notwithstanding anything to the contrary herein contained,
                  when any acreage contribution, as set forth under Article
                  VIII.C. of the Operating Agreement, is contingent upon the
                  completion of any one or more operations in which all of the
                  Parties hereto do not participate through the earning of such
                  contribution, the contribution shall belong solely to the
                  Party or Parties who participated in all steps of the
                  operation containing such condition precedent and any Party
                  not participating in all steps of such condition precedent
                  shall not receive any part of such contribution.

                  In the event there is a conflict between the ownership
                  percentages shown in the County records as to any Party's
                  interest in any leases within the AMI set forth above and the
                  interest set forth in this Participation Agreement and/or the
                  applicable Operating Agreement, then all Parties involved will
                  execute such assignments, other instruments, or further
                  assurances as are necessary to establish the ownership in the
                  leases as set forth in this Agreement. The interest of the
                  Parties to this Agreement are as follows:

<Table>
<S>                                                       <C>
                           Mariah                           12.50%
                           Daniel R. Sommer                  6.25%
                           Oceanic                          75.00%
                           Other parties                     6.25%
                                                          -------
                                    Total                  100.00%
</Table>

6        The liabilities of the Parties hereunder shall be several, not joint or
         collective. It is not the intention of the Parties to create, nor shall
         this Agreement be deemed as creating, a mining, tax or other
         partnership or association or to render the Parties liable as partners.
         Each Party shall be responsible only for its obligations hereunder and
         nothing contained in this Participation Agreement shall be deemed to
         create a partnership or agency relationship between the Parties. No
         Party hereto shall represent to third Parties or lead third parties to
         believe that such Party is the agent of any other Party hereto.

7        Gas Marketing.

         a)       In the event that pursuant to the Presco or Amoco Operating
                  Agreements any Party markets any other Party's share of
                  production from any well subject to this Agreement, the Party
                  marketing such production, and subject to the marketing
                  Party's receipt of an executed indemnifying Division Order,
                  shall (i) prior to its receipt of a Division Order Title
                  Opinion, remit the estimated net revenue share to any Parties
                  for whom it is marketing production on the basis of an
                  estimated division order deck within thirty (30) days of its
                  receipt of proceeds; and (ii) following its receipt of a
                  Division Order Title Opinion, make distribution of the working
                  interest net revenue share, and the royalty, and overriding
                  royalty interest burdening such Party within thirty (30) days
                  of the marketing Party's receipt.

         b)       In the event that pursuant to the Operating Agreement any
                  Party hereto markets any other Party's share of production
                  from any test well drilled on lands subject to this
                  Participation Agreement to its ultimate parent company
                  ("Parent") or an affiliate (An "affiliate" shall mean any
                  corporation, company or other entity in which a Party or its
                  Parent owns directly at least 50% of the issued shares
                  entitled to vote at a general meeting of shareholders), the
                  price received for such production shall not be less than the
                  prevailing price paid in the area for similar production by
                  third party purchasers, and fuel charges, compression,
                  transportation and gathering charges, if any apply, shall not
                  exceed the prevailing charges for such services in the area
                  offered by third party purchasers.

10       MISCELLANEOUS

         a)       Notices. All notices and other communications required or
                  permitted hereunder shall be deemed to have been properly
                  delivered if personally handed to an authorized representative
                  of the Party for whom intended, or sent by registered air
                  mail, or by Federal Express or DHL courier service, or by
                  facsimile to such Party at its address listed below. Notices
                  will be effective only upon receipt.

                                  Page 3 of 4
<PAGE>

                 Mariah Energy, L.L.C.              Oceanic Exploration Company
                 1776 Lincoln Street, Suite 1314    7800 East Dorado Place
                 Denver, Colorado 80203             Denver, Colorado 80111
                 Phone: (303) 866-0722              Phone: (303) 220-8330
                 Fax:   (303) 866-0715              Fax:   (303) 779-8644

                 Daniel R. Sommer
                 1776 Lincoln Street, Suite 1314
                 Denver, Colorado 80203
                 Phone: (303) 866-0722
                 Fax:   (303) 866-0715

         b)       Oceanic represents and warrants that (i) Oceanic is an
                  experienced and knowledgeable investor in the oil and gas
                  industry, (ii) Oceanic has made such investigation of the
                  interest being offered and to be assigned and has been
                  furnished with such information in connection therewith as
                  Oceanic deems appropriate under the circumstances, and (iii)
                  the interest being offered to and to be assigned to Oceanic is
                  being acquired by Oceanic for Oceanic's own account for
                  investment purposes only and not with a view toward the
                  redistribution thereof. It is reliance upon such
                  representations and warranties that the interest is being
                  offered hereunder and that the interest purchased herein will
                  be made by Mariah to Oceanic without registration pursuant to
                  the Federal Securities Act of 1933, as amended.

         c)       Further Assurances. Following the execution of this
                  Participation Agreement the Parties agree to execute,
                  acknowledge and deliver any such further instruments, and
                  shall take such other action as may be necessary to carry out
                  the intent of the Parties under this Participation Agreement.

         c.       Amendments. The Participation Agreement may not be altered or
                  amended nor any rights hereunder be waived, except by an
                  instrument in writing, executed by the Party charged with such
                  amendment or waiver.

         d.       Binding Effect. This Participation Agreement shall be binding
                  upon and shall inure to the benefit of the Parties hereto and
                  their respective successors and assigns.

         e.       Governing Law and Jurisdiction. This Agreement shall be
                  governed by, construed and enforced in accordance with the
                  laws of the State of Colorado.

EXECUTED to be effective for all purposes as of the date first written above.

MARIAH ENERGY, L.L.C.

By: /s/ J. Andrew Dunn
    ---------------------------------
         J. Andrew Dunn, Manager

    /s/ Daniel R. Sommer
-------------------------------------
         Daniel R. Sommer

OCEANIC EXPLORATION COMPANY

By: /s/ Charles N. Haas
    ---------------------------------

                                  Page 4 of 4<PAGE>
                                                                   EXHIBIT 10.20

                      CORDILLERA AND AFFILIATED COMPANIES
                       401(k) DEFERRED COMPENSATION PLAN

                  (Amended and Restated as of January 1, 2001)

<PAGE>
CONTENTS

<Table>
<Caption>
-------------------------------------------------------------------------------------------------------------------

<S>                                                                                                             <C>
          ARTICLE 1. INTRODUCTION                                                                                 1
1.1   Restatement of Plan                                                                                         1
1.2   Purpose of the Plan                                                                                         1
1.3   Applicability of the Plan                                                                                   1
1.4   Effect of Appendices                                                                                        2

          ARTICLE 2. DEFINITIONS                                                                                  3
2.1   Definitions                                                                                                 3
2.2   Gender and Number                                                                                          11
2.3   Requirement to Be in "Written Form"                                                                        11

          ARTICLE 3. PARTICIPATION AND SERVICE                                                                   12
3.1   Date of Participation                                                                                      12
3.2   Duration                                                                                                   12
3.3   Transfers                                                                                                  12
3.4   Leased Employees                                                                                           13
3.5   Special Provisions for Participants Who Enter the Armed Forces                                             13

          ARTICLE 4. PRETAX DEFERRALS                                                                            14
4.1   Amount of Contributions                                                                                    14
4.2   Excess Deferrals                                                                                           14
4.3   Elections                                                                                                  15
4.4   Compensation Reduction                                                                                     16
4.5   Transfer and Crediting of Pretax Deferrals                                                                 16
4.6   Restrictions on Pretax Deferrals                                                                           16
4.7   Refunds of Excess Pretax Deferrals                                                                         17
4.8   Rights of Returning Servicemen                                                                             19

          ARTICLE 5. MATCHING AND ROLLOVER CONTRIBUTIONS                                                         21
5.1   Matching Contributions                                                                                     21
5.2   Overall Conditions on Matching Contributions                                                               21
5.3   Transfer and Crediting of Matching Contributions                                                           21
5.4   Restrictions on Matching Contributions                                                                     21
5.5   Correction of Excess Matching Contributions                                                                23
</Table>

                                       i

<PAGE>
<Table>
<S>                                                                                                              <C>
5.6   Rollovers                                                                                                  24
5.7   Special Participation and Contribution Provisions for 1997                                                 26

          ARTICLE 6. MAXIMUM CONTRIBUTIONS AND BENEFIT LIMITATIONS                                               27
6.1   Limitation on Annual Addition                                                                              27
6.2   "Annual Addition" Defined                                                                                  27
6.3   Excess Annual Additions                                                                                    27
6.4   Defined Benefit Plans                                                                                      28
6.5   Deductibility Limitations                                                                                  29

          ARTICLE 7. VESTING AND BENEFITS                                                                        30
7.1   Vesting                                                                                                    30
7.2   Benefit Forms, Required Consent, and Payments After Separation From Service                                30
7.3   Death Benefits                                                                                             33
7.4   Minimum Distribution Requirements                                                                          33
7.5   Hardship Withdrawals                                                                                       34
7.6   Lump Sums and Other Eligible Rollover Distributions                                                        36
7.7   Loans to Participants                                                                                      37

          ARTICLE 8. INVESTMENT ELECTIONS                                                                        41
8.1   Investment of New Contributions                                                                            41
8.2   Investment Transfers                                                                                       41
8.3   Investment Elections                                                                                       41
8.4   Transfer of Assets                                                                                         42
8.5   Participant-Directed Investments                                                                           42

          ARTICLE 9. PARTICIPANT ACCOUNTS AND RECORDS                                                            43
9.1   Accounts and Records                                                                                       43
9.2   Valuation Adjustments                                                                                      43

          ARTICLE 10. FINANCING                                                                                  44
10.1  Funding of the Plan                                                                                        44
10.2  Employer Contributions                                                                                     44
10.3  Nonreversion                                                                                               44

          ARTICLE 11. ADMINISTRATION                                                                             46
11.1  The Benefits Committee                                                                                     46
11.2  Compensation and Expenses                                                                                  46
11.3  Manner of Action                                                                                           46
11.4  Chairman, Secretary, and Employment of Specialists                                                         46
11.5  Subcommittees                                                                                              47
11.6  Other Agents                                                                                               47
</Table>

                                       ii

<PAGE>

<Table>
<S>                                                                                                              <C>
11.7   Records                                                                                                   47
11.8   Rules                                                                                                     47
11.9   Benefits Committee's Powers and Duties                                                                    47
11.10  Investment Responsibilities                                                                               48
11.11  Benefits Committee's Decisions Conclusive                                                                 49
11.12  Indemnity                                                                                                 49
11.13  Fiduciaries                                                                                               49
11.14  Notice of Address                                                                                         50
11.15  Data                                                                                                      50
11.16  Nonalienation                                                                                             50
11.17  Incompetency                                                                                              51
11.18  Missing Persons                                                                                           52
11.19  Appeals From Denial of Claims                                                                             52

           ARTICLE 12. AMENDMENT AND TERMINATION                                                                 55
12.1   Authority to Amend or Terminate                                                                           55
12.2   Distribution on Termination                                                                               55
12.3   Corporate Reorganizations                                                                                 55
12.4   Plan Merger or Transfer                                                                                   56

           ARTICLE 13. TOP-HEAVY PROVISIONS                                                                      57
13.1   Application                                                                                               57
13.2   Key Employees                                                                                             57
13.3   Top-Heavy Group                                                                                           59
13.4   Additional Rules                                                                                          59
13.5   Combined Limit for Key Employees                                                                          60
13.6   Minimum Contribution                                                                                      60
13.7   Top-Heavy Vesting                                                                                         60

           ARTICLE 14. MISCELLANEOUS PROVISIONS                                                                  61
14.1   Employment Rights                                                                                         61
14.2   No Examination or Accounting                                                                              61
14.3   Investment Risk                                                                                           61
14.4   Severability                                                                                              61
14.5   Counterparts                                                                                              61
14.6   Service of Legal Process                                                                                  61
14.7   Headings of Articles and Sections                                                                         61
14.8   Applicable Law                                                                                            61

         APPENDIX A. SPECIAL RULES RELATED TO GUARANTEED INVESTMENT CONTRACT OF EXECUTIVE LIFE INSURANCE
         COMPANY OF CALIFORNIA                                                                                   64
</Table>

                                      iii

<PAGE>

ARTICLE 1. INTRODUCTION

1.1      RESTATEMENT OF PLAN

Cordillera Corporation (the "Company") hereby amends and restates the Cordillera
and Affiliated Companies 401(k) Deferred Compensation Plan, referred to in some
prior documents as the Cordillera Corporation and Affiliated Companies Profit
Sharing Thrift Retirement Plan (the "Plan"), effective as of January 1, 2001.

1.2      PURPOSE OF THE PLAN

This Plan is intended to encourage and assist Eligible Employees in adopting a
regular program of savings to provide security for the future. For tax purposes,
the Plan is intended to qualify as a profit sharing plan with a qualified Code
section 401(k) cash or deferred arrangement and related Employer Matching
Contributions. In accordance with Code section 401(a)(27), the determination of
the Plan as a qualified profit sharing plan shall be made without regard to
whether the Company has current or accumulated profits.

1.3      APPLICABILITY OF THE PLAN

The provisions set forth in this document apply only to Employees in the employ
of the Company, Affiliate, or Associated Company on or after January 1, 2001,
except as specifically provided in this document. If a particular provision of
this restatement has an effective date later than January 1, 2001, the relevant
provision of the prior version of the Plan shall continue to apply prior to such
effective date. If a particular provision of this restatement has an effective
date earlier than January 1, 2001, the relevant provision of this restatement
shall supersede the corresponding provision of the prior version of the Plan as
of the earlier effective date.

Notwithstanding any contrary Plan provision, if any modification of ERISA or the
Code (or regulations or rulings thereunder) requires that a conforming Plan
amendment be adopted as of a stated effective date in order for the Plan to
continue to be a qualified plan, this Plan shall be operated in accordance with
such requirements until the date when a conforming Plan amendment is adopted.

Except as otherwise required by rules of Plan qualification or by specific Plan
provisions to the contrary, any Employee who terminated employment before
January 1, 2001 shall remain subject to the terms of the Plan as in effect at
the time of such termination. However, regardless of when an Employee terminates
employment or whether he or she has ever had a termination of employment at all,
if an Employee has an Account balance attributable to an amount transferred
directly to this Plan from another qualified plan pursuant to a plan merger or
any other transaction requiring the other plan's Code section 411(d)(6)
protected benefits to be preserved hereunder, this Plan shall preserve all such
legally protected benefits with respect to such Account balance to the full
extent required by section 411(d)(6) and other applicable laws. This
preservation of section 411(d)(6) protected benefits shall apply

                                       1
<PAGE>

notwithstanding more restrictive rules for optional benefit forms or other Plan
rights that may apply to other Account balances not subject to such protection.

1.4      EFFECT OF APPENDICES

This Plan document may be supplemented by various appendices that provide
additional information and, in some cases, override general Plan provisions. In
the event of a conflict between a Plan provision and a provision in an appendix,
the provision in the appendix shall govern with respect to the Employees or
circumstances specified in the appendix, and the Plan provision shall continue
to govern with respect to other Employees or circumstances. The appendices shall
be, by this reference, incorporated into and become a part of this Plan.

                                       2
<PAGE>

ARTICLE 2. DEFINITIONS

2.1      DEFINITIONS

Whenever used in the Plan, the following terms shall have the respective
meanings set forth below unless otherwise required by the context in which they
are used:

(a)      "ACCOUNT" means the separate recordkeeping account maintained for each
         Participant which represents his or her total proportionate interest in
         the Trust Fund and which consists of the sum of the following
         subaccounts:

         (1)      "MATCHING ACCOUNT" means the subaccount which evidences the
                  value of Matching Contributions made on behalf of the
                  Participant pursuant to section 5.1, including related
                  investment gains and losses of the Trust Fund.

         (2)      "PRETAX DEFERRAL ACCOUNT" means the subaccount which evidences
                  the value of Pretax Deferrals made on behalf of the
                  Participant pursuant to section 4.1, including related
                  investment gains and losses of the Trust Fund.

         (3)      "ROLLOVER ACCOUNT" means the subaccount which evidences the
                  value of Rollover Contributions made by the Employee pursuant
                  to section 5.6, including related investment gains and losses
                  of the Trust Fund.

(b)      "AFFILIATE" means any business entity which is controlled by or under
         common control with the Company, within the meaning of Code sections
         414 and 1563. The determination of control shall be made without
         reference to paragraphs (a)(4) and (e)(3)(C) of Code section 1563, and
         solely for the purposes of applying the limitations of Articles 6 and
         13, the phrase "more than 50 percent" shall be substituted for the
         phrase "at least 80 percent" each place it appears in Code section
         1563(a)(1).

         In addition, to the extent required by Code section 414 and related
         regulations, Affiliate means--

         (1)      any member of an affiliated service group (within the meaning
                  of Code section 414(m)) of which the Company or any Affiliate
                  is a member; and

         (2)      any entity which, pursuant to Code section 414(o) and the
                  regulations thereunder, must be aggregated with the Company or
                  any other Affiliate for plan qualification purposes.

(c)      "ASSOCIATED COMPANY" means any entity that is not an Affiliate, but is
         under common ownership and control with the Company, to the extent of
         20 percent or more, as determined under rules applicable for purposes
         of section 414(c) of the Code.

                                       3
<PAGE>

(d)      "BENEFICIARY" means the person or persons (who may be named
         contingently or successively) designated by a Participant to receive
         the Participant's Account in the event of the Participant's death. Each
         designation shall be in the form prescribed by the Benefits Committee,
         shall be effective only when properly filed in writing with the
         Benefits Committee, and shall revoke all prior designations by the same
         Participant. The designation by a married Participant of someone other
         than the Participant's spouse as a Beneficiary shall be invalid
         unless--

         (1)      the spouse consents to the designation of a specific nonspouse
                  Beneficiary which may not be changed without spousal consent
                  (unless the spousal consent expressly permits the Participant
                  to change Beneficiary designations without further consent by
                  the spouse), and if the Participant has chosen a life annuity
                  as a benefit form, the spouse waives the Qualified Joint and
                  Survivor Annuity in accordance with procedural requirements of
                  the Plan that comply with the rules of Code section 401(a)(11)
                  and 417;

         (2)      the spouse acknowledges the effect of the consent to such
                  Beneficiary designation and, if applicable, the waiver of the
                  Qualified Joint and Survivor Annuity; and

         (3)      the consent and waiver are in a written instrument that is
                  notarized.

         No spousal consent or waiver shall be required if it is established to
         the satisfaction of the Plan representative that it cannot be obtained
         because there is no spouse or because the spouse cannot be located. If
         no Beneficiary is properly designated at the time of the Participant's
         death, or if no person so designated shall survive the Participant, the
         Beneficiary shall be the Participant's spouse, or if the deceased
         Participant has no surviving spouse, the Participant's estate.

(e)      "BENEFITS COMMITTEE" means the Benefits Committee appointed by the
         Board of Directors to administer the Plan in accordance with the
         provisions of Article 11 of this Plan.

(f)      "BOARD OF DIRECTORS" means the Board of Directors of the Company.

(g)      "BREAK IN SERVICE" means, prior to April 1, 1997, any year used in
         measuring Years of Service in which an Employee is not credited with
         more than 500 Hours of Service. However, if an Employee is absent from
         employment due to pregnancy, birth of the Employee's child, adoption of
         a child by the Employee, or child care immediately following such birth
         or adoption, any Hour of Service for which the Employee would have
         received credit (or if not determinable, eight hours for each day of
         absence) during such absence, up to a maximum of 501 Hours of Service,
         shall be credited to the Employee solely to prevent the Employee from
         incurring a Break in Service. Any such Hours of Service shall be
         credited for the Plan Year in

                                       4
<PAGE>

         which the absence begins if necessary to prevent a Break in Service
         during that Plan Year and, in all other cases, in the immediately
         following Plan Year.

         Effective April 1, 1997, the term "Break in Service" means a
         continuous period of time of at least 12 months during which the
         Employee is not employed by the Employer. This period of time shall
         begin on the date the Employee retires, quits, or is discharged, or if
         earlier, the 12-month anniversary of the date on which the Employee
         was otherwise first absent from service. However, if an Employee is
         absent from employment due to pregnancy, birth of the Employee's
         child, adoption of a child by the Employee, child care immediately
         following such birth or adoption, or, effective as of August 5, 1993,
         due to leave recognized under the Family and Medical Leave Act of
         1993, for purposes of determining whether an Employee has incurred a
         Break in Service, the Employee will be considered employed for the
         portion of such absence ending on the second anniversary of such
         Employee's absence from employment.

(h)      "CODE" means the Internal Revenue Code of 1986, as from time to time
         amended. Each Code reference in this Plan shall be deemed to include
         reference to any comparable or succeeding statutory provision which
         supplements or replaces such Code reference.

(i)      "COMPANY" means Cordillera Corporation or its successor in interest.

(j)      "COMPENSATION" means, with respect to an Employee for a period
         considered under the Plan, the Employee's full salary and wages from an
         the Employer for services rendered, including salary, wages,
         commissions, bonuses, and overtime, and salary reduction amounts under
         this or any other Code section 401(k) cash or deferred arrangement or
         any Code section 125 cafeteria plan maintained by the Company,
         Affiliate, or Associated Company, and, effective January 1, 2001,
         elective amounts that are not includable in gross income of the
         Employee by reason of Code section 132(f)(4), relating to qualified
         transportation fringe benefits, but excluding--

         (1)      directors' fees;

         (2)      reimbursement or other expense allowances;

         (3)      fringe benefits (cash and noncash);

         (4)      moving expenses;

         (5)      deferred compensation; and

         (6)      welfare benefits.

                                       5
<PAGE>

         The Compensation of any Employee that is taken into account under the
         Plan for any Plan Year beginning on or after January 1, 1989, shall not
         exceed the maximum dollar amount that is permitted as of the beginning
         of the year under Code section 401(a)(17) (determined after giving
         effect to any amendments to section 401(a)(17) and any indexing or
         other adjustments made pursuant to said section that are applicable for
         the year of the determination). If an Employee is a family member of a
         5-percent owner (as defined in section 13.2) or of a Highly Compensated
         Employee among the group of ten Employees receiving the highest
         compensation for the Plan Year, then such Employee shall not be
         considered a separate Employee. Any Compensation paid to such Employee
         shall be treated as having been paid to the Highly Compensated
         Employee. For this purpose, "family member" means the Employee's spouse
         and any lineal descendants of the Employee who have not attained age 19
         before the close of the Plan Year. Notwithstanding the three preceding
         sentences, these family aggregation rules shall not apply during Plan
         Years beginning on or after January 1, 1997.

         Notwithstanding the foregoing, the term "Compensation" for purposes of
         determining an Employee's average deferral percentage under section 4.6
         or average contribution percentage under section 5.4, and for purposes
         of determining whether an Employee is a Highly Compensated Employee,
         shall mean an Employee's Section 415 Compensation plus, for Plan Years
         beginning before January 1, 1998, any salary reduction elected by the
         Employee pursuant to Code section 125 or 401(k) under any plan of the
         Employer or an Affiliate in which the Employee participates.

(k)      "ELIGIBLE EMPLOYEE" means any Employee of an Employer except--

         (1)      any Employee who is included in a unit of Employees covered by
                  a collective bargaining agreement, if there is evidence that
                  retirement benefits were the subject of good faith bargaining,
                  unless such agreement provides for participation of those
                  Employees in this Plan;

         (2)      any Employee who is a nonresident alien and who receives no
                  earned income from an Employer which constitutes income from
                  sources within the United States; and

         (3)      any Employee who is not designated as an "employee" in the
                  Company's, any Affiliate's, or Associated Company's employment
                  records during a particular period of time, including a person
                  designated as an "independent contractor," even if a
                  determination is made by the Internal Revenue Service, the
                  Department of Labor, or any other government agency, court, or
                  other tribunal, that such person is an employee for any
                  purpose.

(l)      "EMPLOYEE" means any person employed by the Company, an Affiliate, or
         Associated Company.

                                       6
<PAGE>

(m)      "EMPLOYER" means the Company and any Affiliate or Associated Company
         which, with the approval of the Company, has adopted or adopts this
         Plan for the benefit of some or all of its Eligible Employees. As of
         January 1, 2001, and continuing through the date of adoption of this
         amendment and restatement of the Plan, the Employers include Cordillera
         Corporation; Utah Gas Service Company; Denver jetCenter, Inc.;
         jetCenters, Inc.; Salt Lake jetCenter, Inc.; Colorado jetCenter, Inc.;
         Fort Collins Loveland jetCenter, Inc.; and Wyoming Industrial Gas
         Company. In addition, Oceanic Exploration Company became an Employer as
         a result of adopting this Plan as of January 1, 1987; and Oceanic
         International Properties Corporation, a subsidiary of Oceanic
         Exploration Company, became an Employer thereafter when Employees of
         Oceanic Exploration Company transferred to it. Each of Oceanic
         International Properties Corporation and Oceanic Exploration Company
         have had Employees from time to time. Note that Utah Gas Service
         Company and Wyoming Industrial Gas Company ceased to be members of the
         group as of July 12, 2001. Also note that San Miguel Valley Corporation
         was an Employer under the terms of the Plan in effect prior to January
         1, 2001, but ceased to be an Employer as of December 31, 1999.

(n)      "ERISA" means the Employee Retirement Income Security Act of 1974, as
         from time to time amended. Each ERISA reference in this Plan shall be
         deemed to include reference to any comparable or succeeding statutory
         provision which supplements or replaces such ERISA reference.

(o)      "HIGHLY COMPENSATED EMPLOYEE" means, effective as of January 1, 1997,
         any Employee who--

         (1)      in the preceding Plan Year received compensation (as defined
                  in Code section 414(q)(4)) from the Company, an Affiliate, or
                  Associated Company, in excess of $80,000 indexed; or

         (2)      in the Plan Year or the preceding Plan Year was a "5-percent
                  owner" (as defined in section 13.2 of the Plan).

         The dollar limit described in (1) above is in effect during the 1997,
         1998, and 1999 Plan Years, and will thereafter be adjusted to reflect
         increases in the cost of living at the same time and in the same manner
         as adjustments are made to defined contribution and defined benefit
         limits under Code section 415(d).

         A former Employee shall be treated as a Highly Compensated Employee if
         the Employee was a Highly Compensated Employee either when the Employee
         incurred a Separation from Service or at any time after the Employee
         attained age 55.

(p)      "HOUR OF SERVICE" means--

                                       7
<PAGE>

         (1)      each hour for which the Employee is paid or entitled to
                  payment for the performance of duties.

         (2)      each hour for which the Employee is paid or entitled to
                  payment on account of a period of time during which no duties
                  are performed (irrespective of whether the employment
                  relationship has terminated) due to vacation, holiday,
                  illness, incapacity (including disability), layoff, jury duty,
                  or leave of absence. No more than 501 Hours of Service shall
                  be credited to an Employee on account of any single continuous
                  period during which the Employee performs no duties.

         (3)      each hour for which back pay (irrespective of mitigation of
                  damages) is either awarded or agreed to, with no duplication
                  of credit for hours under paragraphs (1) or (2) and this
                  paragraph (3).

         (4)      each hour credited pursuant to applicable ERISA regulations
                  for unpaid periods of absence for service in the United States
                  armed forces or Public Health Service during which the
                  Employee's reemployment rights are guaranteed by law, provided
                  that the Employee is reemployed as an Employee within the time
                  limits prescribed by such law.

         If or to the extent a record of an Employee's hours of employment is
         not maintained, the Employee shall be credited with 190 Hours of
         Service for each calendar month for which the Employee would be
         required to be credited with at least one Hour of Service.

         All Hours of Service shall be determined and credited to computation
         periods in accordance with reasonable standards and policies consistent
         with Department of Labor regulations section 2530.200b-2(b) and (c).

         Notwithstanding the foregoing provisions of this section 2.1(p),
         effective April 1, 1997, the term "Hour of Service" shall mean--

         (A)      Each hour for which the Employee is paid or entitled to
                  payment for the performance of duties.

         (B)      Each hour credited pursuant to applicable ERISA regulations
                  for unpaid periods of absence for service in the United States
                  armed forces or Public Health Service during which the
                  Employee's reemployment rights are guaranteed by law, provided
                  that the Employee is reemployed as an Employee within the time
                  limits prescribed by such law.

(q)      "INVESTMENT FUND" means--

         (1)      for any Participant who is not exercising full investment
                  direction over his account pursuant to section 8.1, such
                  investment companies registered under

                                       8
<PAGE>

                  the Investment Company Act of 1940, as amended, the shares of
                  which are designated by the Benefits Committee as an
                  investment option under the Plan; or

         (2)      for any Participant who is exercising full investment
                  direction over his account pursuant to section 8.1--

                  (A)      such securities that are publicly traded on a
                           national securities exchange, share or units issued
                           by an investment company registered under the
                           Investment Company Act of 1940, as amended, subject
                           to such restrictions imposed by the Benefits
                           Committee as to investment in certain investment
                           vehicles; and

                  (B)      any obligations issued or guaranteed by the U.S.
                           government, its agencies, and instrumentalities.

         (r)      "MATCHING CONTRIBUTIONS" means matching contributions
                  described in section 5.1 that are made by an Employer on
                  behalf of a Participant and are conditioned on Pretax
                  Deferrals made by or on behalf of the Participant.

         (s)      "NORMAL RETIREMENT AGE" means the date of the Participant's
                  attainment of age 65.

         (t)      "PARTICIPANT" means any Eligible Employee who has met the
                  requirements to become a Participant as set forth in section
                  3.1, and shall include, where appropriate to the context, any
                  former Participant described in section 3.2.

         (u)      "PLAN YEAR" means the 12-consecutive month period ending each
                  December 31.

         (v)      "PRETAX DEFERRALS" means the contributions made by the
                  Employer on behalf of a Participants pursuant to the
                  Participant's election to reduce Compensation, as described in
                  section 4.1.

         (w)      "ROLLOVER CONTRIBUTIONS" means those contributions made by an
                  Employee, as described in section 5.6.

         (x)      "SECTION 415 COMPENSATION" means an Employee's wages,
                  salaries, commissions, professional fees and other amounts
                  received for personal services rendered in the course of
                  employment with the Company, Affiliate, or Associated Company,
                  as determined for purposes of reporting (in Box 1 on the 2000
                  version of Form W-2 or in such other place as may be
                  appropriate for any other reporting year) the Employee's wages
                  that are subject to income tax withholding or are otherwise
                  reportable for income tax purposes under Code sections
                  6041(d), 6051(a)(3), and 6052, increased, for Plan Years
                  beginning on and after January 1, 1998, by salary reduction
                  amounts under any Code section 401(k) cash or deferred
                  arrangement or a cafeteria plan under Code section 125 and,
                  effective January 1, 2001, elective

                                       9
<PAGE>

                  amounts that are not includable in gross income of the
                  Employee by reason of Code section 132(f)(4), relating to
                  qualified transportation fringe benefits.

         (y)      "SEPARATION FROM SERVICE" means any termination of the
                  employment relationship between an Employee and the Company or
                  Affiliate or Associated Company for any reason other than
                  death, including resignation, discharge, retirement or
                  disability. A Separation from Service shall not occur upon a
                  Participant's transfer to a position where the individual
                  continues to be an Employee but is no longer an Eligible
                  Employee, nor shall a Separation from Service occur as a
                  result of a leave of absence authorized by the Employer, other
                  Affiliate or Associated Company if the Employee returns to
                  employment upon expiration of such leave.

                  Except as otherwise agreed by the parties to the transaction,
                  a disposition of the stock or other ownership interest in a
                  subsidiary or a disposition of substantially all the assets
                  used in a trade or business of an Employer shall be treated as
                  a Separation from Service for the purpose of making single sum
                  distributions to the Employees who continue to work in
                  essentially the same business and employment position
                  following the disposition, provided that such disposition is
                  treated as a permissible distribution event under Code
                  sections 401(k)(2)(B)(i)(II) and 401(k)(10) and related
                  regulations.

                  The following provisions apply in the case of a sale of
                  corporate assets by the Employer to an unrelated purchaser,
                  which does not result in a Separation from Service under Code
                  section 401(k)(10)(A). On and after September 1, 2000, such a
                  sale of assets shall constitute a Separation from Service,
                  with respect to a Participant affected by such sale, provided
                  that the following conditions are satisfied:

                  (1)      the Participant does not continue employment with the
                           Company, an Affiliate, or an Associated Company; and

                  (2)      the Participant's Account is not directly transferred
                           to a tax-qualified plan maintained by the purchaser
                           of assets described above, pursuant to a
                           "trust-to-trust" transfer within a reasonable time
                           following the sale.

         (z)      "TRUST AGREEMENT" means any agreement in the nature of a trust
                  established to form a part of the Plan to receive, hold,
                  invest, and dispose of the Trust Fund.

         (aa)     "TRUSTEE" means any person, bank, or trust company selected by
                  the Company to act as Trustee under any Trust Agreement at any
                  time of reference.

         (bb)     "TRUST FUND" means the assets of every kind and description
                  held under any Trust Agreement forming a part of the Plan.

         (cc)     "VALUATION DATE" means each business day of the Plan Year
                  recognized by the New York Stock Exchange.

                                       10
<PAGE>

         (dd)     "YEARS OF SERVICE" means, prior to April 1, 1997, periods of
                  12 consecutive months during which the Employee completes at
                  least 1,000 Hours of Service, where the first such period is
                  measured from the date on which the Employee first performs an
                  Hour of Service after being hired or after being rehired after
                  a Break in Service, and each subsequent period in the Plan
                  Year, beginning with the Plan Year that commences with or
                  within the first period.

                  Effective April 1, 1997, the term "Years of Service" means the
                  aggregate of all periods commencing with the first day the
                  Employee has an Hour of Service with the Employer and ending
                  on the date a Break in Service begins. An Employee shall also
                  receive credit for any absence from service which would
                  otherwise constitute a Break in Service except that the length
                  of absence is less than 12 consecutive months provided he
                  returns to service within such 12-month period. Fractional
                  periods of a year will be expressed in terms of days. For
                  vesting purposes, only whole Years of Service will be counted,
                  but fractional periods shall be aggregated.

                  In the case of an individual who was an Employee prior to
                  April 1, 1997 and whose service has been determined on the
                  basis of computation periods and the general method of
                  crediting service as set forth in 29 CFR section 2530.200b-2,
                  for the 1997 Plan Year, the Employee shall receive credit for
                  a period of service consisting of the greater of--

                  (1)      the period of service that would be credited to the
                           Employee under the elapsed time method for this
                           service during the entire computation period in which
                           the change to an elapsed time methodology occurs; or

                  (2)      the service taken into account under the computation
                           periods method as of the later of the effective date
                           of the amendment which incorporates the elapsed time
                           methodology or the date said amendment was adopted by
                           the Company.

2.2 GENDER AND NUMBER

Except when otherwise indicated by the context, any masculine or feminine
terminology in this document shall also include the other gender, and the
definition of any term in the singular or plural shall also include the opposite
number.

2.3 REQUIREMENT TO BE IN "WRITTEN FORM"

Various notices provided by the Company or Benefits Committee, and various
elections made by a Participant are required to be in written form. Except as
otherwise provided under IRS or DOL regulations or other guidance, these notices
and elections may be conveyed through an electronic system.

                                       11
<PAGE>

ARTICLE 3. PARTICIPATION AND SERVICE

3.1 DATE OF PARTICIPATION

Every Employee who was an Eligible Employee and a Participant on December 31,
2000, and continues to be an Eligible Employee shall continue to be a
Participant thereafter. On and after January 1, 2001, every other Eligible
Employee shall become a Participant in the Plan on the first January 1, April 1,
July 1, or October 1 entry date that coincides with or next follows the date he
or she has attained age 21, has completed one Year of Service, and has become an
Eligible Employee.

3.2 DURATION

An Employee who becomes a Participant shall remain a Participant until the
Employee has a Separation from Service, and shall be a former Participant
thereafter for as long as the individual is entitled to receive any benefits
under this Plan.

A Participant who has a Separation from Service and is subsequently reemployed
shall again become a Participant as of the later of the Participant's
reemployment date or the date the Participant again becomes an Eligible
Employee.

3.3 TRANSFERS

An Employee, who transfers from a nonparticipating Affiliate or Associated
Company to employment status where he or she becomes an Eligible Employee, shall
receive credit for prior service with such Affiliate or Associated Company in
determining his or her Years of Service and shall become a Participant in
accordance with section 3.1 after having satisfied the eligibility conditions
specified therein.

Any Participant who transfers out of Eligible Employee status with the Employer
but who remains an Employee shall become an inactive Participant. An inactive
Participant shall not be eligible to elect Pretax Deferrals with respect to
Compensation earned after the date of the Employee's transfer.

If a Participant becomes an inactive Participant, the Participant's Account
shall continue to be held under the Plan until the Participant becomes entitled
to a distribution under the provisions of section 7.2. The inactive
Participant--

(a)      shall continue to earn Years of Service for purposes of vesting in
         Employer contributions;

(b)      shall be eligible to request and receive a hardship withdrawal in
         accordance with the provisions of section 7.5;

(c)      shall be eligible to request and receive a loan in accordance with the
         provisions of section 7.7; and

                                       12
<PAGE>

(d)      shall be eligible to make investment elections in accordance with the
         rules for active Participants.

3.4 LEASED EMPLOYEES

Effective January 1, 1997, a person who is not an Employee of a controlled group
Employer and who performs services for the controlled group Employer pursuant to
an agreement between the controlled group Employer and a leasing organization
shall be considered a "leased employee" if he performed the services on a
substantially full-time basis for a year and the services are performed under
the primary direction or control of the service recipient. A person who is
considered a leased employee of the controlled group Employer shall not be
considered an Eligible Employee for purposes of the Plan. However, if a leased
employee participates in the Plan as a result of subsequent employment with the
Company, Affiliate, or Associated Company, he shall receive Service for such
employment as a leased employee. Notwithstanding the preceding provisions of
this section, a leased employee will be included as an Employee for purposes of
applying the requirements described in section 414(n)(3) of the Code. For
purposes of this section, the term "Employer" includes an Employer participating
in the Plan and only those affiliates of such entity that must be aggregated and
treated as a single employer for purposes of Code section 414 and related
Treasury regulations.

3.5 SPECIAL PROVISIONS FOR PARTICIPANTS WHO ENTER THE ARMED FORCES

If a Participant is absent from employment for voluntary or involuntary military
service with the armed forces of the United States and returns to employment
within the period required under the law pertaining to veterans' reemployment
rights, he shall receive Service for the period of his absence from employment.
Notwithstanding any provisions of this Plan to the contrary, effective as of
December 12, 1994, contributions, benefits, and service credit with respect to
qualified military service will be provided in accordance with Code section
414(u).

                                       13
<PAGE>

ARTICLE 4. PRETAX DEFERRALS

4.1 AMOUNT OF CONTRIBUTIONS

Each Participant may elect to have the Employer contribute on the Participant's
behalf as Pretax Deferrals an amount equal to any whole percentage from 1
percent to 10 percent of the Participant's Compensation from such Employer
during the period for which the election is in effect. No benefits other than
Matching Contributions shall be conditioned on a Participant's election to make
Pretax Deferrals under this Plan. The Participant's election shall be made in
accordance with the rules set forth in this Article 4 and such other
administrative rules as the Benefits Committee may prescribe.

4.2 EXCESS DEFERRALS

(a)      In accordance with Code section 401(a)(30), this Plan and all other
         plans of the Company, Affiliate, or Associated Company shall not permit
         elective deferrals (including Pretax Deferrals under this Plan) to
         exceed $10,500 (or such other amount as may at the time be prescribed
         under Code section 402(g)) for the Participant's taxable year. The
         Benefits Committee shall prescribe procedures designed to prevent this
         limit from being exceeded and to cause Pretax Deferrals (and the
         corresponding salary reductions) that have been elected by the
         Participant to be stopped at any time during the Participant's taxable
         year when this limit has been reached.

(b)      In addition, the Benefits Committee shall adopt reasonable procedures
         to assist a Participant in fulfilling the Participant's responsibility
         of ensuring that Pretax Deferrals made on behalf of the Participant
         under this Plan for the Participant's taxable year do not exceed
         $10,500 (or such other amount as may at the time be prescribed under
         Code section 402(g)) less any other elective deferrals made on behalf
         of the Participant by someone other than the Company, Affiliate, or
         Associated Company. If the Participant notifies the Benefits Committee
         in writing no later than March 1 following the Participant's taxable
         year of the amount of any excess Pretax Deferrals under this subsection
         for such taxable year, the Plan may, but need not, distribute such
         excess (and any income or investment gains or losses allocable to such
         excess) to the Participant no later than April 15 following such
         taxable year.

(c)      The Participant will be treated as having a calendar taxable year,
         unless the Participant notifies the Benefits Committee differently, in
         writing, before the beginning of the Participant's taxable year or, if
         later, by the date that the Employee first becomes a Participant.

(d)      For purposes of this section, "elective deferrals" includes--

                                       14
<PAGE>

         (1)      Employer contributions to a qualified cash or deferred
                  arrangement to the extent excluded from the Participant's
                  gross income for the taxable year pursuant to Code section
                  402(a)(8);

         (2)      Employer contributions to a simplified employee pension to the
                  extent excluded from the Participant's gross income for the
                  taxable year under Code section 402(h)(1)(b); and

         (3)      Employer contributions to purchase an annuity contract under
                  Code section 403(b) under a salary reduction agreement.

(e)      Excess Pretax Deferrals which are distributed from the Plan under this
         section shall not be included as an Annual Addition. The Participant's
         income for the taxable year of the excess Pretax Deferral (or, the year
         of distribution or other year or years that may be specified pursuant
         to Treasury rules or regulations) shall be increased by the amount
         distributed under this section, including both the excess Pretax
         Deferral and allocable income or investment gains or losses. Allocable
         income and investment gains or losses shall be determined in the manner
         described in section 4.7. The distribution described in this section
         may be made notwithstanding any other Plan provision.

(f)      The Benefits Committee shall adopt reasonable procedures for
         coordinating distributions of excess Pretax Deferrals and allocable
         income under this section and section 4.7, in accordance with any
         applicable Treasury regulations. Specifically, the amount of any excess
         deferrals for a Plan Year that may be distributed under this section
         shall be reduced by the amount of excess contributions previously
         distributed to the Participant under section 4.7.

4.3 ELECTIONS

Each Participant (or Employee expected to become a Participant by the time that
the election will take effect) shall make the election described in section 4.1
by completing the election form made available by the Benefits Committee.
Elections shall remain in effect until a new election to begin, stop, increase,
or decrease the Participant's Pretax Deferrals is received by the Benefits
Committee. If a Participant has elected to begin, stop, increase or decrease
Pretax Deferrals, the Participant may not file any new election to change Pretax
Deferrals until the first day of the next calendar month.

Regardless of the type of election being made, if the election form is received
by the Benefits Committee on or before the fifteenth day of the calendar month,
then the election shall take effect for the pay period that ends first in the
month following the Benefits Committee's receipt of the election form. If the
election form is received after the fifteenth day of the calendar month, it
shall take effect for the pay period that ends first in the second month
following the Benefits Committee's receipt of the election form. Except as
otherwise

                                       15
<PAGE>

provided in this Plan, all elections shall be irrevocable for each pay period
beginning on or after the effective date of the election.

4.4 COMPENSATION REDUCTION

Each Participant, who makes an election to have the Employer contribute a
percentage of the Participant's Compensation as Pretax Deferrals, shall by the
act of making such election, agree to have such Compensation reduced by an
equivalent amount for so long as the election remains in effect. The
Participant's Compensation shall not be reduced to the extent that the Employer
does not contribute the Pretax Deferrals to the Plan on behalf of the
Participant.

4.5 TRANSFER AND CREDITING OF PRETAX DEFERRALS

Pretax Deferrals shall be transferred to the Trust Fund as soon as practicable
after each payroll payment date. Pretax Deferrals shall be allocated to the
Participant's Pretax Deferral Account as of the payroll date on which the
corresponding amount would have been paid in the absence of the election under
section 4.1, provided that, for purposes of accounting for the investment return
on Pretax Deferrals during the valuation period in which they are transferred to
the Trust Fund, the Benefits Committee may provide that all new Pretax Deferrals
will be considered to have been received in the middle of such valuation period
or may prescribe the uniform use of any other acceptable convention of trust
accounting.

4.6 RESTRICTIONS ON PRETAX DEFERRALS

For Plan Years beginning after 1996, as of the last day of each Plan Year and at
such other times throughout the Plan Year as the Benefits Committee may
determine, the Benefits Committee shall require testing of Pretax Deferrals (and
any other Employer contributions that the Company elects to include in this
testing in accordance with applicable conditions specified under Code section
401(k) and related regulations) to assure that the average deferral percentage
for the Plan Year of Participants who are Highly Compensated Employees shall not
exceed the greater of--

(a)      1.25 times the average deferral percentage for the prior Plan Year of
         all other Participants; or

(b)      the lesser of--

         (1)      two percentage points more than; or

         (2)      two times the average deferral percentage for the prior Plan
                  Year of all other Participants.

The rules of this Plan section 4.6 shall be applied separately to each
controlled group Employer, as determined after any aggregation required pursuant
to Code section 414(b), (c), (m), (n), and (o).

                                       16
<PAGE>

By an amendment to the Plan, the Benefits Committee may elect to apply
subsections (a) and (b) by using the current Plan Year rather than the preceding
Plan Year except that such election may not be changed unless permitted by the
Internal Revenue Service.

The term "average deferral percentage" for each group of Participants for any
period shall be the average of the percentages, calculated separately for each
Participant in such group, of Pretax Deferrals (and any other Employer
contributions that the Company elects to include in this testing in accordance
with applicable conditions specified under Code section 401(k) and related
regulations) made on behalf of the Participant for the applicable Plan Year to
that Participant's Compensation earned while a Participant for that Plan Year.
To the extent required by Treasury regulations, excess Pretax Deferrals under
section 4.2 shall be treated as a Pretax Deferral amount elected under section
4.1 and contributed to the Plan, whether or not such excess Pretax Deferral is
distributed under section 4.2.

Advanced testing done under this section shall be based on a Participant's
annual rate of Compensation while a Participant in effect at the time of the
test, and corrections made to reduce the amount in excess of the maximum
permissible deferral percentage shall be made from Compensation to be earned for
the remainder of the Plan Year. Final Plan Year compliance with the restrictions
of this section shall be based on the Participant's actual Compensation while a
Participant and Pretax Deferrals for the Plan Year.

If this Plan is aggregated with one or more other plans, which include qualified
cash or deferred arrangements, for purposes of Code section 401(a)(4) or 410(b),
then the cash or deferred arrangements of this Plan and such other plans shall
be treated as one arrangement for purposes of this section. If any Highly
Compensated Employee is a participant under two or more qualified cash or
deferred arrangements of the Company or Affiliate, all such cash or deferred
arrangements shall be treated as one such arrangement for purposes of
determining the average deferral percentage of the Highly Compensated Employee.

4.7 REFUNDS OF EXCESS PRETAX DEFERRALS

For a Plan Year that begins after 1996, if the Benefits Committee determines
after the end of the Plan Year that the limitation of section 4.6 has not been
satisfied, the Plan shall first determine, in the manner described in subsection
(a), the aggregate excess Pretax Deferrals that must be eliminated to satisfy
the limitation of section 4.6, then shall allocate and distribute the aggregate
excess amount and allocable earnings in the manner described in subsections (b)
and (c), and forfeit related Matching Contributions.

(a)      For the sole purpose of determining the amount of the aggregate excess
         Pretax Deferrals to be distributed under subsection (b) (and not the
         amount to be distributed to a specific Highly Compensated Employee),
         the aggregate amount of excess Pretax Deferrals is determined by--

         (1)      computing a reduction in the amount of the Pretax Deferrals of
                  the Highly Compensated Employee with the highest average
                  deferral percentage so that

                                       17
<PAGE>

                  such percentage does not exceed the average deferral
                  percentage of the Highly Compensated Employee with the next
                  highest average deferral percentage, or if less, the amount
                  necessary so that the limitation of section 4.6 is satisfied;
                  and

         (2)      if the amount of the reduction pursuant to paragraph (1) is
                  insufficient to reduce the average deferral percentage for the
                  Highly Compensated Employees so that it does not exceed the
                  limitation of section 4.6, then repeating the process
                  described in paragraph (1) in descending order of the average
                  deferral percentages of the Highly Compensated Employees until
                  the average deferral percentage for the group of Highly
                  Compensated Employees satisfies the limitation of section 4.6.

(b)      The aggregate excess Pretax Deferrals determined under subsection (a)
         shall be eliminated by--

         (1)      distributing Pretax Deferrals to the Highly Compensated
                  Employee with the highest dollar amount of Pretax Deferrals
                  until it equals the dollar amount of the Pretax Deferrals of
                  the Highly Compensated Employee with the next highest dollar
                  amount of Pretax Deferrals, or if less, the aggregate amount
                  of the excess amount determined under subsection (a); and

         (2)      if the distribution described in paragraph (1) does not
                  eliminate the excess amount determined under subsection (a),
                  repeating the foregoing process in descending order of the
                  dollar amounts of the Pretax Deferrals until the aggregate
                  excess amount under subsection (a) has been distributed.

         The distributions described in this section may be made notwithstanding
         any other Plan provision. The Benefits Committee shall adopt reasonable
         procedures for coordinating distributions of excess Pretax Deferrals
         under this section and section 4.2.

         If the distributions required by this subsection (b) are made, the
         limitation of section 4.6 is satisfied notwithstanding that the average
         deferral percentage of the Highly Compensated Employees recomputed
         after the distributions may still exceed the limitation of section 4.6.

(c)      The Plan shall distribute the amounts determined under subsection (b)
         to the Participants no later than the last day of the Plan Year
         following the Plan Year in which the limitation of section 4.6 is
         exceeded, or the Plan may distribute the amounts within 2 1/2 months
         after such Plan Year if the Benefits Committee deems it desirable for
         tax purposes. All distributions shall be adjusted in accordance with
         subsection (d) to reflect investment gains and losses.

(d)      The income and investment gains and losses attributable to distributed
         excess Pretax Deferrals shall take into consideration income and
         investment gains and losses on the

                                       18
<PAGE>

         Participant's Account for the Plan Year. Unless a different method is
         selected by the Benefits Committee, the income and investment gains and
         losses allocable to distributed excess Pretax Deferrals for the Plan
         Year shall be that portion of income and investment gains and losses on
         the Participant's Account for the Plan Year that bears the same ratio
         to total income and investment gains and losses for the Plan Year as
         the distributed excess Pretax Deferrals bears to the total Account
         balance determined as of the end of the Plan Year, before income and
         investment gains and losses for the Plan Year are added to the Account.

(e)      Notwithstanding any other provision of this Plan to the contrary, the
         Benefits Committee shall take steps to ensure that this section is
         interpreted and administered so as to comply with applicable legal
         requirements for the determination of what amounts constitute excess
         Code section 401(k) elective deferrals and for the return of such
         excess amounts and any income and investment gain or loss attributable
         thereto. All determinations under this section shall comply with Code
         section 401(k) and the regulations thereunder. The Benefits Committee
         shall keep adequate records to show compliance with these requirements.
         In the event of any conflict, the rules of the Code and regulations
         shall control.

4.8 RIGHTS OF RETURNING SERVICEMEN

A person who leaves employment with an Employer for military service, and who
returns to employment with an Employer on or after December 12, 1994, and within
the time prescribed by law for reinstatement of his employment rights, and who
thereby initially becomes a Participant or who resumes participation in the
Plan, shall have the right to make up Pretax Deferrals in accordance with this
section.

(a)      PERIOD FOR MAKE-UP PRETAX DEFERRALS. Such Participant's make-up period,
         which shall begin on the date of his reemployment, shall be equal to
         three times the period of his military service, up to a maximum of five
         years.

(b)      AMOUNT OF MAKE-UP PRETAX DEFERRALS. For all or part of his period of
         military service, such Participant may make Pretax Deferrals at any of
         the rates permitted under section 4.1 that were in effect during his
         period of military service. Such contributions shall be made by payroll
         reduction over the interval specified by him that is consistent with
         (a) above. The basis for making such contributions shall be such
         Participant's average Compensation during the 12-month period
         immediately prior to entry into military service. Such contributions
         shall be in addition to any Pretax Deferrals the Participant is making
         under section 4.1 for his current period of employment.

(c)      ADJUSTMENT, SUSPENSION, OR RESUMPTION. Such make-up contributions may
         be adjusted, suspended, or resumed by such Participant as provided in
         section 4.3 during the make-up period specified in (a) above, but there
         shall be no penalty for any discontinuance of such contributions.

                                       19
<PAGE>

(d)      MATCHING CONTRIBUTIONS. The Participant shall be entitled to Matching
         Contributions in accordance with section 5.1 that match such make-up
         Pretax Deferrals.

(e)      LIMITATIONS NOT APPLICABLE. The limitations and restrictions of
         sections 4.2, 4.6, 5.4, and 6.1 of the Plan and section 404(a) of the
         Code shall not be applicable to any Participant make-up Pretax
         Deferrals and Matching Contributions with respect to the year in which
         such contributions are made, and such limitations shall apply for the
         year for which the contributions are made only to the extent provided
         by rules prescribed by the Secretary of the Treasury.

(f)      EARNINGS, GAINS, OR LOSSES. Such make-up Pretax Deferrals and related
         Matching Contributions shall not be credited with any earnings, gains,
         or losses on such contributions, nor shall any forfeiture be credited
         to the Participant's Account, with respect to the period during which
         the Participant was in military service.

                                       20
<PAGE>

ARTICLE 5. MATCHING AND ROLLOVER CONTRIBUTIONS

5.1 MATCHING CONTRIBUTIONS

Each Participant for whom Pretax Deferrals were credited to the Participant's
Account during a payroll period shall be entitled to a Matching Contribution
equal to 100 percent of the first 6 percent of Compensation deferred as Pretax
Deferrals on behalf of the Participant for that payroll period.

Notwithstanding the preceding paragraph, with respect to the Plan Year ending
December 31, 1998, Participants who are employed by San Miguel Valley
Corporation shall be eligible to receive a maximum rate of Matching Contribution
under this Plan which is not greater than the highest maximum rate of Matching
Contribution provided under any other qualified retirement plan maintained by a
member of the controlled group of corporations (as defined in Code sections 414
and 1563), of which San Miguel Valley Corporation is a part.

5.2 OVERALL CONDITIONS ON MATCHING CONTRIBUTIONS

Notwithstanding any Plan provision to the contrary, any Matching Contribution
(including any investment gain attributable thereto), which relates to an excess
Pretax Deferral under section 4.2 or section 4.6, shall be forfeited and shall
not be treated as a Matching Contribution with respect to the Participant for
the Plan Year.

5.3 TRANSFER AND CREDITING OF MATCHING CONTRIBUTIONS

Matching Contributions shall be transferred to the Trust Fund as soon as
practicable. Matching Contributions shall be allocated to the Participant's
Matching Account as of the date for which the Pretax Deferrals to which the
relate are allocated.

5.4 RESTRICTIONS ON MATCHING CONTRIBUTIONS

For Plan Years beginning after 1996, as of the last day of each Plan Year and at
such times throughout each Plan Year as the Benefits Committee may determine,
the Benefits Committee shall require testing of Matching Contributions to assure
that the contribution percentage for the Plan Year of Participants who are
Highly Compensated Employees shall not exceed the greater of--

(a)      1.25 times the contribution percentage for the prior Plan Year of all
         other Participants; or

(b)      The lesser of--

         (1)      two percentage points more than; or

         (2)      two times the average deferral percentage for the prior Plan
                  Year of all other Participants.

                                       21
<PAGE>

The rules of this Plan section 5.4 shall be applied separately to each
controlled group Employer, as determined after any aggregation required pursuant
to Code section 414(b), (c), (m), (n), and (o).

By an amendment to the Plan, the Benefits Committee may elect to apply
subsections (a) and (b) by using the current Plan Year rather than the preceding
Plan Year except that such election may not be changed unless permitted by the
Internal Revenue Service.

The term "contribution percentage" for each group of Participants shall be the
average of the ratios, calculated separately for each Participant in such group,
of the sum of all Matching Contributions made by or on behalf of the Participant
for the applicable Plan Year to that Participant's Compensation earned while a
Participant during that Plan Year.

To the extent permitted by Code section 401(m) and related regulations, the
Company may elect, in computing contribution percentages, to treat Pretax
Deferrals for the applicable Plan Year as Matching Contributions, to the extent
such Pretax Deferrals exceed the amount of Pretax Deferrals needed to comply
with the average deferral percentage test of section 4.6.

Advanced testing done under this section shall be based on a Participant's
Matching Contributions and annual rate of Compensation while a Participant in
effect at the time of the test, and corrections made to reduce the amount in
excess of the maximum permissible contribution percentage shall be from Matching
Contributions to be made for the remainder of the Plan Year. Final Plan Year
compliance with the restrictions of this section shall be based on the
Participant's actual Compensation while a Participant and Matching Contributions
for the Plan Year.

If this Plan is aggregated with one or more other plans, which include employer
matching or employee after-tax contributions subject to contribution testing
under Code section 401(m), for purposes of Code section 401(a)(4) or 410(b),
then this Plan and such other plans shall be treated as one arrangement for
purposes of this section, and the after-tax contributions and matching
contributions in the aggregated plans shall be treated like Matching
Contributions hereunder in conducting the test. If a Highly Compensated Employee
participates in this Plan and one or more other plans of the Company or an
Affiliate to which contributions required to be tested under Code section 401(m)
are made, all such contributions shall be aggregated for purposes of determining
the Highly Compensated Employee's contribution percentage.

In addition to the limitation on Pretax Deferrals specified in section 4.6 and
the limitation on Matching Contributions specified in this section, Pretax
Deferrals and Matching Contributions with respect to Highly Compensated
Employees shall be subject to compliance with applicable Treasury regulations
that prevent the multiple use of the alternative percentage limitations in Code
sections 401(k)(3)(A)(ii)(II) and 401(m)(2)(A)(ii). If multiple use of the
alternative percentage limitation occurs, such multiple use shall be corrected,
in accordance with Treasury regulation section 1.401(m)-2(c), by reducing the
average deferral percentages of Highly Compensated Employees.

                                       22
<PAGE>

5.5 CORRECTION OF EXCESS MATCHING CONTRIBUTIONS

For a Plan Year that begins after 1996, if the Benefits Committee determines
after the end of the Plan Year that the limitation of section 5.4 has not been
satisfied, the Plan shall first determine, in the manner described in subsection
(a), the aggregate Matching Contributions that must be eliminated to satisfy the
limitation of section 5.4, then shall allocate and distribute the aggregate
excess amount and allocable earnings in the manner described in subsections (b)
and (c).

(a)      For the sole purpose of determining the amount of the aggregate excess
         Matching Contributions to be distributed under subsection (b) (and not
         the amount to be distributed to a specific Highly Compensated
         Employee), the aggregate amount of excess Matching Contributions is
         determined by--

         (1)      computing a reduction in the amount of Matching Contributions
                  of the Highly Compensated Employee with the highest
                  contribution percentage so that such percentage does not
                  exceed the contribution percentage of the Highly Compensated
                  Employee with the next highest contribution percentage, or if
                  less, the amount necessary so that the limitation of section
                  5.4 is satisfied; and

         (2)      if the amount of the reduction pursuant to paragraph (1) is
                  insufficient to reduce the contribution percentage for the
                  Highly Compensated Employees so that it does not exceed the
                  limitation of section 5.4, then repeating the process
                  described in paragraph (1) in descending order of the
                  contribution percentages of the Highly Compensated Employees
                  until the contribution percentage for the group of Highly
                  Compensated Employees satisfies the limitation of section 5.4.

(b)      The limitation of section 5.4 is deemed to be satisfied if the
         aggregate excess Matching Contributions determined under subsection (a)
         is eliminated by--

         (1)      distributing Matching Contributions to the Highly Compensated
                  Employee with the highest dollar amount of such contributions
                  until it equals the dollar amount of such contributions of the
                  Highly Compensated Employee with the next highest dollar
                  amount of such contributions, or if less, the aggregate amount
                  of the excess amount determined under subsection (a); and

         (2)      if the distribution described in paragraph (1) does not
                  eliminate the excess amount determined under subsection (a),
                  repeating the foregoing process in descending order of the
                  dollar amounts of the Matching Contributions until the
                  aggregate excess amount under subsection (a) has been
                  distributed.

         If the distributions required by this subsection are made, the
         limitation of section 5.4 is satisfied notwithstanding that the
         contribution percentage of the Highly Compensated Employees recomputed
         after the distributions may still exceed the limitation of section 5.4.

                                       23
<PAGE>

(c)      The Plan shall distribute the amounts determined under subsection (b)
         to the Participants no later than the last day of the Plan Year
         following the Plan Year in which the limitation of section 5.4 is
         exceeded, or the Plan may distribute the amounts within 2 1/2 months
         after such Plan Year if the Benefits Committee deems it desirable for
         tax purposes. All distributions shall be adjusted in accordance with
         subsection (d) to reflect investment gains and losses.

(d)      The income and investment gains and losses attributable to excess
         Matching Contributions for the Plan Year shall be determined by the
         same procedure as set forth in section 4.7 for determining income
         attributable to excess Pretax Deferrals.

(e)      Notwithstanding any other provision of this Plan to the contrary, the
         Benefits Committee shall take steps to ensure that this section is
         interpreted and administered so as to comply with applicable legal
         requirements for the determination of what amounts constitute excess
         contribution amounts under Code section 401(m) and for the return of
         such excess amounts and any income and investment gain or loss
         attributable thereto. All determinations under this section shall
         comply with Code section 401(m) and the regulations thereunder. The
         Benefits Committee shall keep adequate records to show compliance with
         these requirements. In the event of any conflict, the rules of the Code
         and regulations shall control.

5.6 ROLLOVERS

Amounts which an Eligible Employee has received from any other qualified
employee benefit plan may, subject to the Benefits Committee's approval and in
accordance with uniform, nondiscriminatory procedures designed to protect the
qualification and the integrity of the Plan, be transferred by the Eligible
Employee to this Plan in cash provided the following conditions are satisfied:

(a)      The amounts distributed to or on behalf of the Eligible Employee from
         another qualified plan and rolled over to this Plan shall not be
         subject to the distribution rules of the plan from which they came
         after being transferred to this Plan. Upon receipt by this Plan, such
         amounts shall be fully vested and shall be credited to the Eligible
         Employee's Rollover Account.

(b)      In case of a rollover of a distribution made from a qualified plan
         before January 1, 1993, the amount to be rolled over to this Plan must
         be solely attributable to a Code section 402(a)(5) qualified total
         distribution, and must be transferred to this Plan in a timely manner
         following a distribution from--

         (1)      a plan qualified under Code section 401(a); or

         (2)      a rollover or conduit individual retirement account or annuity
                  which has received only rollover contributions described in
                  Code section 408(d)(3) (determined without regard to
                  subparagraphs (A)(iii) and (D) thereof).

                                       24
<PAGE>

(c)      In case of a rollover of a distribution made from a qualified plan on
         or after January 1, 1993, the amount to be rolled over to this Plan
         must be solely attributable to a Code section 402(c)(4) eligible
         rollover distribution, and must be transferred in a timely manner to
         this Plan following a distribution from--

         (1)      a plan qualified under Code section 401(a); or

         (2)      a rollover or conduit individual retirement account or annuity
                  which has received a rollover contribution described in Code
                  section 408(d)(3) (determined without regard to subparagraphs
                  (A)(iii) and (D) thereof) and to which no other contributions
                  have been made.

(d)      The amounts tendered must not include nondeductible employee
         contributions to a qualified plan by an Eligible Employee or amounts
         attributable to--

         (1)      contributions to an individual retirement account or annuity
                  that are deductible under Code section 219;

         (2)      accumulated deductible employee contributions described in
                  Code section 72(o)(5)(B);

         (3)      contributions or deferrals to an annuity described in Code
                  section 403(b); or

         (4)      in the case of a distribution that occurred before January 1,
                  1993, a partial distribution described in Code section
                  402(a)(5)(D).

(e)      The transfer to this Plan of amounts described in paragraph (b) shall
         only be accepted if the Eligible Employee presents to the Benefits
         Committee the IRS Form 1099 or equivalent, the original distribution
         check or a copy thereof, or such other evidence as the Benefits
         Committee may require to verify the nature of the amount and ensure
         that its receipt will not adversely affect the qualified status of this
         Plan.

(f)      Amounts must be received by this Plan not later than 60 days after a
         distribution was received by the Eligible Employee.

(g)      The Benefits Committee may establish additional procedures, consistent
         with the rules of the Code, related regulatory guidance and this
         section, concerning the acceptance of rollovers, including sixty-day
         rollovers and direct rollovers of eligible rollover distributions,
         under this Plan.

(h)      Upon approval by the Benefits Committee, rollover amounts shall be
         transmitted to the Trustee, to be invested in such Investment Funds as
         the Eligible Employee may select in accordance with such rules and
         procedures as the Benefits Committee may establish for this purpose.

                                       25
<PAGE>
5.7 SPECIAL PARTICIPATION AND CONTRIBUTION PROVISIONS FOR 1997

For the Plan Year ending December 31, 1997 (and thereafter if required), the
term "Participant" shall be expanded to include such number of nonhighly
compensated employees as are required to meet minimum coverage testing
requirements of Code section 410(b) and the regulations thereunder. For this
purpose, a "nonhighly compensated employee" is any Employee who is not a Highly
Compensated Employee, as defined in section 2.1(o).

Such Specially Included Participant(s) (SIPS)) shall be those participant(s)
with the lowest compensation included in a qualified retirement plan maintained
by another member of the controlled group of corporations (as defined in Code
sections 414 and 1563) of which San Miguel Valley Corporation is a part, who
would otherwise be Eligible Employees as defined in section 2.1(k), and who
would not be Highly Compensated Employees, if actually employed by San Miguel
Valley Corporation.

If necessary to comply with Code section 410(b) and the regulations thereunder,
each SIP shall receive a Qualified Nonelective Contribution allocated to the
SIP's Pretax Deferral Account for the 1997 Plan Year (and thereafter, if
necessary) equal to the product of his Compensation for the Plan Year and the
average deferral percentage of the Plan Year for all other Participants employed
by San Miguel Valley Corporation who are not Highly Compensated Employees.
Further, each SIP shall also receive an additional Qualified Nonelective
Contribution allocated to the SIP's Matching Account for the Plan year equal to
the product of his Compensation for the Plan Year and contribution percentage
for the Plan Year for all other Participants employed by San Miguel Valley
Corporation who are not Highly Compensated Employees. For purposes of this
Section 5.7, the term "Qualified Nonelective Contribution" shall mean a
contribution (which may be zero in amount) made by San Miguel Valley
Corporation, other than Pretax Deferrals and Matching Contributions, that are
nonforfeitable once they are made and subject to the restrictions on
distributions described in Article 7.

                                       26
<PAGE>

ARTICLE 6. MAXIMUM CONTRIBUTIONS AND BENEFIT LIMITATIONS

6.1 LIMITATION ON ANNUAL ADDITION

Notwithstanding anything to the contrary contained in this Plan, the total
Annual Additions of a Participant for any Plan Year, which shall be the
limitation year for purposes of Code section 415, shall not exceed the lesser
of--

(a)      $35,000 or such larger amount as may be prescribed under Code section
         415(d), or

(b)      25 percent of the Participant's Section 415 Compensation for the
         limitation year.

6.2 "ANNUAL ADDITION" DEFINED

The term "Annual Addition" means, with respect to each Participant for the Plan
Year, the aggregate of:

(a)      the amount of Company, Affiliate, or Associated Company contributions
         (including Pretax Deferrals) and forfeitures allocated to the
         Participant's Account under this Plan and any other defined
         contribution plan, as defined in Code section 414(i), maintained by the
         Employer for the Plan Year;

(b)      the amount of a Participant's after-tax contributions for such Plan
         Year under this Plan and any other defined contribution plan, as
         defined in Code section 414(i), maintained by the Employer for the Plan
         Year;

(c)      for purposes of section 6.1(a), the amount of contributions allocated
         to an individual medical account, as defined in Code section 415(l)(2),
         which is part of a pension or annuity plan; and

(d)      for purposes of section 6.1(a), the amount of contributions
         attributable to post-retirement medical benefits, which are allocated
         to the separate account of a key employee, as defined in Code section
         419A(d)(3), under a welfare benefit fund, as defined in Code section
         419(e).

6.3 EXCESS ANNUAL ADDITIONS

If, as a result of the allocation of forfeitures or a reasonable error in
estimating a Participant's Section 415 Compensation for the Plan Year (or any
other circumstance permitted under Code section 415 and applicable Treasury
regulations), the Annual Additions for a Participant is exceeded, such excess
amount shall be reduced in accordance with the provisions of this section. The
Participant's excess Annual Additions shall first be reduced under this Plan
before reductions are made under any other qualified defined contribution plan
maintained by the Company, Affiliate, or Associated Company.

                                       27
<PAGE>

The Participant's excess Annual Additions shall be reduced under this Plan as
follows:

(a)      Pretax Deferrals made on behalf of the Participant for the Plan Year
         (as well as income and investment gains and losses attributable
         thereto) shall be refunded to the Participant to the extent necessary
         to eliminate the excess Annual Additions. If further reductions are
         required, Matching Contributions (as well as income and investment
         gains and losses attributable thereto) for the Plan Year shall be
         reduced and held in a suspense account to the extent necessary to
         eliminate the excess Annual Additions.

(b)      If even further reductions are required, excess Annual Additions shall
         be reduced under other defined contribution plans maintained by the
         Company or an Affiliate, in accordance with the terms of such other
         plans.

(c)      The refund of Pretax Deferrals under subsection (a) and any reduction
         of Matching Contributions under subsection (b) are disregarded for
         purposes of the actual deferral percentage test under Plan section 4.6
         and the average contribution percentage test under Plan section 5.4.

(d)      Excess amounts held in the suspense account shall be used to reduce
         Employer contributions (including, for this purpose, Pretax Deferrals
         and Matching Contributions) for that Participant for the next Plan Year
         (and succeeding Plan Years, if necessary), provided that the
         Participant is covered by the Plan during the Plan Year. If the
         Participant is not covered by the Plan as of the end of the Plan Year
         in which the excess Annual Additions were made, the excess amounts
         shall be allocated and, if necessary, reallocated in the next Plan Year
         to all remaining Participants before any Employer contributions (again
         including, for this purpose, Pretax Deferrals and Matching
         Contributions) for all remaining Participants can be made to the Plan
         for that Plan Year.

6.4 DEFINED BENEFIT PLANS

If a Participant in this Plan is or was also a participant in a qualified
defined benefit plan, as defined in Code section 414(j), maintained or
previously maintained by the Company, Affiliate, or Associated Company, and the
sum of the Participant's defined contribution plan fraction and defined benefit
plan fraction (as these terms are defined in Code section 415(e)) exceeds 1.0
for the Plan Year, then in addition to the limitations contained in section 6.1,
the Annual Additions of the Participant shall be limited first under any other
qualified defined contribution plans of the Company, Affiliate, or Associated
Company and then under this Plan to the extent necessary to comply with the
limitations set forth in Code section 415(e). Notwithstanding the foregoing, the
limitations described in this section shall not apply to Plan Years beginning on
or after January 1, 2000.

                                       28
<PAGE>

6.5 DEDUCTIBILITY LIMITATIONS

The aggregate dollar amount of Pretax Deferrals and Matching Contributions for
any Plan Year shall be limited to the amount deductible by the Employer under
section 404 of the Code for the taxable year.

                                       29
<PAGE>

ARTICLE 7. VESTING AND BENEFITS

7.1 VESTING

Each Participant's interest in his or her Pretax Deferral Account, Rollover
Account, and Matching Account shall be fully vested at all times, including the
time at which the Participant attains Normal Retirement Age.

7.2 BENEFIT FORMS, REQUIRED CONSENT, AND PAYMENTS AFTER SEPARATION FROM SERVICE

Every Participant who incurs a Separation from Service shall receive a
distribution of the value of his or her vested Account in a permissible form
that, as determined below, is either paid automatically or elected by the
Participant.

(a)      If the vested Account balance of a Participant who is entitled to a
         distribution under this section has not ever exceeded $3,500 ($5,000
         effective January 1, 1998) at a time when the Participant was entitled
         to a distribution, such balance shall automatically be distributed to
         the Participant as an immediate lump sum, determined as of the
         Valuation Date on which the distribution is made.

(b)      Except as provided in section 7.2(a) above, the Plan shall not make a
         distribution to any Participant, whether before or after Separation
         from Service, if the distribution would occur prior to the
         Participant's attainment of Normal Retirement Age and does not have the
         Participant's written consent. After a Participant's attainment of
         Normal Retirement Age, the Participant's written consent to an
         immediate distribution is not required, and, subject to sections 7.3
         and 7.4, the Plan shall make or commence distribution of the
         Participant's vested Account balance as soon as is practicable after
         the later of the Participant's Separation from Service or attainment of
         Normal Retirement Age.

(c)      If a Participant has had a Separation from Service, is not subject to
         section 7.2(a), and has not elected a life annuity form of payment, the
         Participant's normal form of distribution is an immediate lump sum,
         payable as soon as practicable on or after all events requiring the
         distribution have occurred, including the Participant's Separation from
         Service and either the Participant's written consent to the
         distribution or the Participant's attainment of Normal Retirement Age.
         The normal form for required minimum distributions under section 7.4 to
         a Participant who has not had a Separation from Service and has not
         elected a life annuity form of payment is a payment over the life
         expectancy of the Participant that satisfies the minimum distribution
         requirements of Code section 401(a)(9) and related regulations. The
         normal form of distribution for a Participant who elects a life annuity
         form of payment is, if the Participant is not married, an annuity for
         the life of the Participant, and is, if the Participant is married, a
         Qualified Joint and Survivor Annuity described in section 7.2(h).

                                       30
<PAGE>

(d)      In lieu of the normal form, a Participant who has had a Separation from
         Service or who has not had a Separation of Service but is required to
         commence benefits under section 7.4, and who is not subject to section
         7.2(a), may elect an optional form of distribution. Optional forms
         include--

         (1)      substantially equal installments payable no less frequently
                  than annually over a period not extending beyond the
                  Participant's life expectancy;

         (2)      a combination of a lump sum and such installments;

         (3)      an annuity for the life of the Participant; and

         (4)      a joint and 50 percent survivor annuity.

(e)      On and after January 1, 1993, as elected by the Participant in
         accordance with Code sections 401(a)(31) and 402(c) and section 7.6 of
         this Plan with respect to an optional form that constitutes an eligible
         rollover distribution, the Plan shall arrange for a direct transfer of
         a Participant's distribution amount to an eligible retirement plan
         instead of distributing such amount to the Participant. The Plan shall
         also provide for the required notice to the Participant and tax
         withholding concerning any eligible rollover distribution.

(f)      If the Participant's consent to a distribution is required under this
         section, the Participant must give the consent in writing by filing a
         completed election form in the manner prescribed by the Benefits
         Committee. The Participant's Account balance shall be the amount
         determined on the Valuation Date on which the distribution is made.

(g)      Except as otherwise required for required minimum distributions under
         section 7.4 due to "look-back" rules of Code section 401(a)(9) and
         related regulations that focus on an earlier Valuation Date, the amount
         of any payment that is due shall be determined based on the
         Participant's vested Account balance as of the Valuation Date which is
         the date of payment.

(h)      If a Participant elects a life annuity form of benefit under section
         7.2(d)(3) or (4) and is married on the annuity starting date for paying
         such benefits, such Participant shall be deemed to have automatically
         elected a Qualified Joint and Survivor Annuity unless such form is
         waived as follows. For this purpose, a "Qualified Joint and Survivor
         Annuity" means an annuity described in Code section 417(b) that can be
         purchased from an insurance company with the Participant's vested
         Account balance and provides payments for the Participant's life with a
         survivor annuity to the spouse to whom the Participant was married on
         the annuity starting date in an amount equal to 50 percent of the
         annuity payable during the Participant's lifetime. To receive an
         annuity other than a Qualified Joint and Survivor Annuity, the
         Participant must make an election to which the Participant's spouse
         consents in a writing that is notarized

                                       31
<PAGE>

         and acknowledges the effect of the spouse's consent and recognizes and
         accepts the specific nonspouse Beneficiary, if any, who may receive
         benefits in the event of the Participant's death. Spousal consent to
         the Participant's waiver of a Qualified Joint and Survivor Annuity
         shall be effective only with respect to the spouse signing the consent.
         Such consent shall not be required if the Participant establishes to
         the satisfaction of the Benefits Committee that the consent cannot be
         obtained for valid reasons described in the Code or regulations
         thereunder.

(i)      To satisfy the notice requirements of the Code, a Participant who
         elects a life annuity as an optional benefit form under section
         7.2(d)(3) or (4) shall receive (by mail or personal delivery), no less
         than 30 days nor more than 90 days before the annuity starting date, a
         written explanation of--

         (1)      the terms and conditions of the automatic election of a
                  Qualified Joint and Survivor Annuity in the previous
                  paragraph;

         (2)      the Participant's right to make (and the effect of) an
                  election to waive such benefit;

         (3)      the right of the Participant's spouse to consent in writing to
                  such waiver;

         (4)      the fact that the waiver and consent are irrevocable or, if
                  applicable, the right to make (and the effect of) a revocation
                  of such waiver during the 90-day election period that precedes
                  the annuity starting date; and

         (5)      the eligibility conditions and other material features and
                  relative values of optional forms of benefits.

(j)      Notwithstanding the preceding subsection, effective as of September 22,
         1995, the Participant's annuity starting date may occur as soon as
         eight days subsequent to the delivery of notice to the Participant (or
         any earlier date permitted under IRS regulations), provided that the
         Participant is afforded the opportunity to consider whether to take an
         election for at least 30 days, but affirmatively elects (subject to
         spousal consent, if applicable) to have his retirement benefit commence
         prior to the expiration of the 30-day period. Any such election shall
         be revocable by the Participant until the later of--

         (1)      the expiration of the seven-day period following the delivery
                  of notice; or

         (2)      the Participant's annuity starting date (which may precede the
                  date of the Participant's election).

         Although the procedures described in the preceding two paragraphs shall
         normally apply, it shall be permissible for the Benefits Committee to
         provide the written explanation described above after the Participant's
         annuity starting date, so as to

                                       32
<PAGE>

         permit retroactive payment of benefits. Under these circumstances, the
         30-day and eight-day timing requirements described above shall continue
         to apply.

7.3 DEATH BENEFITS

Upon the death of a Participant who has elected a life annuity form of benefit,
the death benefits, if any, shall be determined under the elected form,
provided, however, that if the Participant dies before the annuity starting date
and leaves a surviving spouse, the death benefit shall be paid as a Qualified
Preretirement Survivor Annuity, subject to the following. For this purpose, a
"Qualified Preretirement Survivor Annuity" means an annuity described in Code
section 417(c) that can be purchased with the Participant's vested Account
balance and provides payments for the spouse's life in the amount which can be
purchased from an insurance company with such balance. Notwithstanding the
foregoing, the surviving spouse may elect an immediate lump sum distribution of
the Participant's vested Account balance in lieu of the Qualified Preretirement
Survivor Annuity.

Upon the death of a Participant who has not elected an annuity form of benefit
and has not received a complete distribution of his or her vested Account, the
Plan shall pay the Participant's entire Account balance to the Beneficiary in a
single sum payment. The Account balance shall be the amount determined as of the
Valuation Date on which the payment is made to the Beneficiary. The payment to
the Beneficiary shall be made as soon as practicable; provided, however, that if
the Beneficiary is the Participant's spouse and the vested Account balance,
prior to any distributions, exceeds $3,500 ($5,000 effective January 1, 1998),
then payment shall not be made without the spouse's written consent prior to the
date that the Participant would have attained Normal Retirement Age. If the
spouse defers receipt of the death benefit described in this section, the
Account balance to be distributed shall be determined under the procedures in
section 7.2 for distributions requiring the Participant's consent, except that
the spouse's consent shall be substituted for the Participant's consent.

The Benefits Committee may require such proper proof of death and such evidence
of the right of any person to receive payment of the value of the Participant's
vested Account as the Benefits Committee may deem desirable. The Benefits
Committee's determination of death and of the right of any person to receive
payment shall be conclusive.

7.4 MINIMUM DISTRIBUTION REQUIREMENTS

This section provides for the latest time that the Participant's vested Account
may be distributed; it takes precedence over any inconsistent Plan provision.
All distributions required under this section shall be determined and made in
accordance with Code sections 401(a)(9) and 401(a)(14) as well as regulations
thereunder, including the minimum distribution incidental benefit requirements,
which are incorporated herein by this reference.

Payment of benefits to a Participant shall be made or commence not later than
the sixtieth day after the close of the Plan Year in which occurs the later of
the Participant's Separation

                                       33
<PAGE>

from Service or the Participant's attainment of Normal Retirement Age. If for
any reason the amount which is required to be paid cannot be ascertained on the
date payment would be due hereunder, payment shall be made not later than 90
days after the earliest date on which the amount of such payment can be
ascertained.

Moreover, distribution of the Participant's vested Account must begin not later
than the April 1 following the calendar year in which the Participant attains
age 70 1/2 even if the Participant has not incurred a Separation from Service by
such date.

If distribution of the Participant's benefit has commenced before the
Participant dies, the remaining benefit, if any, shall be distributed at least
as rapidly as the method in effect at the Participant's death. If distribution
of the Participant's benefit has not commenced before the Participant dies, then
any death benefit payable to a nonspouse Beneficiary under the terms of the Plan
shall be paid within one year of the Participant's death. If the distribution
has not commenced when the Participant dies and the death benefit is to be paid
to the Participant's surviving spouse, the payment of such death benefit must
commence no later than the end of the Plan Year following the calendar year in
which the Participant would have attained age 70 1/2.

7.5 HARDSHIP WITHDRAWALS

(a)      On or after January 1, 1994, upon application and demonstration to the
         satisfaction of the Benefits Committee that the Participant is
         confronted with a financial hardship, a Participant shall be permitted
         to make a cash withdrawal of up to the amount which is the sum of
         following, determined as of the Valuation Date immediately preceding
         the Benefits Committee's receipt of the application for a hardship
         withdrawal:

         (1)      the Participant's Rollover Account balance (if any);

         (2)      the Participant's Pretax Deferral Account balance exclusive of
                  post-1988 earnings on Pretax Deferrals; and

         (3)      the vested portion of the Participant's Matching Account
                  balances exclusive of post-1988 earnings on Matching
                  Contributions.

(b)      In compliance with applicable regulations under Code section 401(k),
         the Benefits Committee may establish a hierarchy among the Accounts to
         determine the amount available for a hardship withdrawal under
         subsection (a) and use it to determine the order in which funds are
         considered withdrawn from Investment Funds when a less than total
         withdrawal occurs. Amounts may not be withdrawn from the Participant's
         Pretax Deferral Account until all other amounts available for
         withdrawal have been withdrawn.

                                       34
<PAGE>

(c)      Application for withdrawals shall be made on such forms as the Benefits
         Committee prescribes and may be made at any time effective following
         satisfaction of the requirements in this section. Distribution of
         withdrawals shall be made in a single sum in cash as soon as is
         administratively possible following such date.

(d)      For purposes of this section, a distribution is on account of
         "financial hardship" only if the Benefits Committee determines that the
         distribution is both on account of an immediate and heavy financial
         need of a Participant and necessary to satisfy such a need.

         (1)      The determination that the distribution is on account of an
                  immediate and heavy financial need of a Participant shall be
                  made in accordance with uniform principles consistently
                  applied and with pertinent Code sections and corresponding
                  regulations, provided that distributions for the following
                  reasons shall be deemed to be made on account of immediate and
                  heavy financial need:

                  (A)      medical expenses incurred by the Participant, his
                           spouse, any of his dependents;

                  (B)      the purchase (excluding mortgage payments) of the
                           Participant's primary residence;

                  (C)      tuition and related educational fees for the next 12
                           months of college or other post-secondary education
                           of the Participant or the Participant's spouse,
                           children, or other dependents;

                  (D)      the need to prevent the Participant's eviction from
                           his principal residence or foreclosure on the
                           mortgage of his principal residence; or

                  (E)      another need not mentioned above that has been
                           recognized by the Commissioner of Internal Revenue
                           pursuant to regulations as constituting a deemed
                           immediate and heavy financial need.

         (2)      The amount of any distribution under this section shall be
                  limited to the amount which is necessary to satisfy the
                  hardship expense and which is not available from other
                  reasonably liquid assets from other sources outside or within
                  the Plan.

                  For this purpose and effective April 1, 1989, a distribution
                  shall be considered necessary to satisfy an immediate and
                  heavy financial need of a Participant if all of the following
                  requirements are satisfied:

                  (A)      the distribution is not in excess of the amount of
                           the immediate and heavy financial need of the
                           Participant;

                                       35
<PAGE>

                  (B)      the Participant has obtained all distributions, other
                           than hardship distributions, and all nontaxable loans
                           currently available under all plans maintained by the
                           Company and Affiliates;

                  (C)      the Participant's Pretax Deferrals, and similar
                           contributions and after-tax contributions elected by
                           the Participant under all other qualified plans
                           maintained by the Company or an Affiliate, shall be
                           suspended for at least twelve months after receipt of
                           the hardship distribution; and

                  (D)      the Participant's Pretax Deferrals for the calendar
                           year immediately following the year of the hardship
                           withdrawal shall not exceed $7,000 (or such other
                           amount as may be prescribed under Code section
                           402(g)(5) for Plan Years beginning after 1989) less
                           the amount of the Participant's Pretax Deferrals for
                           the year of the hardship withdrawal.

         The Benefits Committee may, without further investigation, accept the
         written statement of the Participant as to the amount necessary to meet
         the immediate and heavy financial need of the Participant and as to the
         lack of other funds available to meet this need unless it has reason to
         believe that the statement is in error.

(e)      Amounts that are withdrawn pursuant to this section may not be
         subsequently repaid to the Plan.

7.6 LUMP SUMS AND OTHER ELIGIBLE ROLLOVER DISTRIBUTIONS

Lump sums and other eligible rollover distributions under the Plan shall comply
with the requirements of Code section 401(a)(31) as follows. This section
applies to distributions made on or after January 1, 1993. Notwithstanding any
provision of the Plan to the contrary that would otherwise limit a distributee's
election under this section, a distributee may elect, at the time and in the
manner prescribed by the Committee, to have any portion of an eligible rollover
distribution paid directly to an eligible retirement plan specified by the
distributee in a direct rollover. For purposes of this section, the following
definitions shall apply.

An "eligible rollover distribution" is any distribution of all or any portion of
the balance to the credit of the distributee, except that an "eligible rollover
distribution" does not include: any distribution that is one of a series of
substantially equal period payments (not less frequently than annually) made for
the life (or life expectancy) of the distributee and the distributee's
designated Beneficiary, or for a specified period of ten years or more; any
distribution to the extent such distribution is required under section 401(a)(9)
of the Code; any hardship distribution made from a 401(k) or 403(b) plan after
1998; and the portion of any distribution that is not includible in gross income
(determined without regard to the exclusion for net unrealized appreciation with
respect to employer securities); and provided further that the determination of
what constitutes an "eligible rollover distribution" shall at all times be made
in accordance with the current rules of Code section 402(c), which shall be
controlling for this purpose.

                                       36
<PAGE>

An "eligible retirement plan" is an individual retirement account described in
section 408(a) of the Code, an individual retirement annuity described in
section 408(b) of the Code, an annuity plan described in section 403(a) of the
Code, or a qualified trust described in section 401(a) of the Code that accepts
the distributee's eligible rollover distribution. However, in the case of an
eligible rollover distribution to the surviving spouse, an "eligible retirement
plan" is an individual retirement account or individual retirement annuity.

A "distributee" includes an Employee or former Employee. In addition, the
Employee's or former Employee's surviving spouse and the Employee's or former
Employee's spouse or former spouse who is the alternate payee under a qualified
domestic relations order, as defined in section 414(p) of the Code, are
distributees with regard to the interest of the spouse or former spouse.

A "direct rollover" is a payment by the Plan to the eligible retirement Plan
specified by the distributee.

In prescribing the manner of making elections with respect to eligible rollover
distributions, as described above, the Committee may provide for the uniform,
nondiscriminatory application of any restrictions permitted under applicable
sections of the Code and related rules and regulations, including a requirement
that a distributee may not elect a partial direct rollover in an amount less
than $500 and a requirement that a distributee may not elect to make a direct
rollover from a single eligible rollover distribution to more than one eligible
retirement plan. Moreover, if a distribution is one to which sections 401(a)(11)
and 417 of the Code do not apply, such distribution may commence less than 30
days after the notice required under section 1.411(a)-11(c) of the Income Tax
Regulations is given, provided that--

(1)      the Plan administrator clearly informs the Participant that the
         Participant has a right to a period of at least 30 days after receiving
         the notice to consider the decision of whether or not to elect a
         distribution (and, if applicable, a particular distribution option);
         and

(2)      the Participant, after receiving the notice, affirmatively elects a
         distribution.

7.7 LOANS TO PARTICIPANTS

The Benefits Committee, upon application by an eligible Participant, shall
permit the Plan to make a loan to such Participant, provided that all loans
shall comply with such rules and regulations as the Benefits Committee may
establish for making Plan loans consistent with the following terms and
conditions:

(a)      Loans shall be made available to all Participants, subject to the
         following conditions, provided that loans granted on or after July 1,
         1994, shall be available only to Participants who are "parties in
         interest" for purposes of section 3(14) of ERISA. These loans shall at
         all times be available on a nondiscriminatory and reasonably

                                       37
<PAGE>
         equivalent basis under uniform rules prescribed by the Benefits
         Committee in accordance with the requirements of the Code and ERISA and
         this section 7.7. A Participant who is also requesting a hardship
         withdrawal under section 7.5 must first take a loan in the maximum
         amount available under this section 7.7 before he can then take a
         hardship withdrawal under section 7.5 to the extent he is still
         eligible for such a withdrawal.

(b)      Loans may be processed as of any Valuation Date following such
         reasonable notice as the Benefits Committee may require. To receive a
         loan from the Plan, a Participant and his or her spouse, if any, must
         execute a promissory note and have their signatures witnessed by a
         notary public on a form prescribed by the Benefits Committee that shows
         loan amount and authorize payroll deductions for payment of interest
         and principal in accordance with procedures adopted by the Benefits
         Committee. To secure repayment of the loan, the Participant (and the
         Participant's spouse, if any) shall, within the 90 day period before
         the loan is made, consent to any distribution resulting from a setoff
         of the loan against the Participant's Account under subsection (h). Any
         consent by a Participant's spouse must comply with the Plan's
         requirements for waiving a Qualified Joint and Survivor Annuity or a
         Qualified Preretirement Survivor Annuity. Therefore, the consent must
         be in writing, must acknowledge the effect of the loan, and must be
         witnessed by a notary public.

(c)      The amount of the loan shall not be less than $1,000 nor more than 50
         percent of the first $100,000 of the vested balance in the
         Participant's Account. The 50 percent limitation shall be reduced by
         the highest outstanding balance of loans to the Participant from the
         Plan during the 1-year period ending on the day before the date on
         which the loan is made. If such Participant is also covered under
         another qualified plan maintained by the Company, Affiliate, or
         Associated Company, the above limitations shall be applied as though
         all such qualified plans are one plan. In no event may a Participant
         have more than one outstanding loan from this Plan at any time.

(d)      The loan repayment period shall not exceed 60 months. However, loans
         which are used to acquire the Participant's principal residence may be
         repaid over a reasonable period not exceeding 180 months. Moreover, in
         no event shall the loan repayment period for a loan granted on or after
         July 1, 1994 end later than the end of the second month following the
         month in which the Participant ceases to be a party in interest for
         purposes of section 3(14) of ERISA.

(e)      The Benefits Committee shall determine the interest rate for Plan loans
         or the method for determining such rate and communicate it to
         Participants in advance. For this purpose, the following rules shall
         apply. Each loan shall bear an interest rate equal to the prime rate of
         a bank selected by the Benefits Committee or equal to the prime rate as
         reported in the WALL STREET JOURNAL or other Benefits Committee-

                                       38
<PAGE>

         selected publication of general circulation. The interest rate so
         determined shall be the one in effect at the time the loan is granted
         and shall remain fixed for the term of the loan. Notwithstanding the
         foregoing, the Benefits Committee may select and publish another method
         for determining the interest rate that complies with applicable law if
         it determines that the use of a method like the foregoing is not
         permitted under ERISA or other applicable law.

(f)      The Benefits Committee shall establish a Loan Fund representing the
         Participant's individual investment in the loan of amounts that were
         withdrawn from various Investment Funds in which the Participant's
         Account was invested and prior to being lent to the Participant. Unpaid
         loan amounts shall remain in the Loan Fund under the Participant's
         Account, which shall serve as security for the loan to the extent so
         invested. The Accounts and Investment Funds of the Participant that are
         used to provide the amount lent to the Participant shall be determined
         under uniform procedures established by the Benefits Committee after
         consulting with the Trustee and recordkeeper as appropriate to ensure
         their feasibility. Each repayment of principal on the loan received by
         the Trustee from the Participant shall reduce the Participant's
         investment in his Loan Fund and such repayment of principal together
         with each payment of loan interest shall increase pro rata the amount
         invested in each other Investment Fund in accordance with the
         Participant's investment elections at the time of such repayment,
         subject to any Investment Fund restrictions.

(g)      Except as otherwise provided below, repayment in equal installments of
         interest and principal shall be accomplished through regular payroll
         deductions. The obligation to make repayments of principal and interest
         shall be suspended during the period not to exceed one year that the
         Participant is on an authorized leave of absence without pay. If the
         unpaid leave continues thereafter, the Participant shall be required to
         recommence repayments, on a monthly basis by check, until he returns to
         pay status and resumes regular repayments by means of payroll
         deductions. To satisfy legal requirements, the Benefits Committee may
         specify rules for redetermining the amount, timing, or manner of
         repayments following a period of suspension due to unpaid leave; but
         such redetermination shall not be made for other reasons. The
         obligation to make repayments shall continue during a paid leave of
         absence or a transfer to a paid status as an Employee who is no longer
         an Eligible Employee. Where it is not feasible in such a case to
         continue processing the loan repayments as payroll deductions under a
         payroll system that currently covers the Participant, the repayments
         shall be made by the Participant by check on a monthly basis. A
         Participant shall be entitled at any time to prepay, without penalty,
         any or all of the accrued interest and outstanding principal amount of
         the loan by direct payment. Notwithstanding the foregoing, loan
         repayments will be suspended under this Plan as permitted under section
         414(u)(4) of the Code.

                                       39
<PAGE>

(h)      If a Participant incurs a Separation from Service and either receives
         an immediate distribution of his remaining interest in the Plan or does
         not pay the total accrued interest and outstanding principal amount of
         the loan within 60 days, the Participant's note shall be canceled and
         the principal deemed distributed by the Trust Fund to him or, if
         applicable, his Beneficiary. This paragraph shall not apply, however,
         to any loan granted before July 1, 1994, nor shall it apply to any loan
         granted after such date in the case of a Participant who,
         notwithstanding his Separation from Service, continues to be a party in
         interest under section 3(14) of ERISA, who, while not in default on his
         regular loan repayments, is legally entitled to continue his loan. Any
         Participant whose loan continues following Separation from Service
         pursuant to this paragraph shall be allowed to make required loan
         repayments by monthly checks or other appropriate means approved by the
         Benefits Committee once he or she ceases to be covered by a payroll of
         the Company, Affiliate, or Associated Company.

(i)      The Company and the Trustee may make suitable arrangements, consistent
         with the requirements of the Code and ERISA, for holding the
         Participant's note under an agency, subtrust or other vehicle that
         provides adequate safeguards while simplifying the handling of the loan
         and eliminating the need to transfer the note to the Trustee.

(j)      The foregoing provisions of this section notwithstanding, the Benefits
         Committee reserves the right to stop granting loans to Participants at
         any time.

                                       40
<PAGE>

ARTICLE 8. INVESTMENT ELECTIONS

8.1 INVESTMENT OF NEW CONTRIBUTIONS

All contributions made by and on behalf of a Participant each Plan Year shall be
invested as the Participant shall designate in the Investment Funds then
available in increments of 1 percent of the aggregate amount of such
contributions. If the Participant fails to make a valid election, contributions
made by and on behalf of the Participant shall be invested in the Schwab money
market fund.

Notwithstanding the preceding paragraph, the Benefits Committee, in its sole
discretion, may permit Participants to exercise full investment discretion over
their Accounts by instructing the Broker as to the investment of the assets held
by the Trustee in the Participant's Account in the available Investment Funds as
described in section 2.1(q)(2) in increments of 1 percent. The Benefits
Committee reserves the authority to restrict a Participant's investment in
certain of the investment vehicles which constitute Investment Funds. A separate
account at the Broker shall be established for each Participant who exercises
full investment discretion over his Account. For purposes of this paragraph, the
term "Broker" means Charles Schwab & Co., Inc. of its successor or assign
serving from time to time, which shall be a broker-dealer registered under the
Securities Exchange Act of 1934, as amended.

8.2 INVESTMENT TRANSFERS

Subject to any investment instructions and procedures that may apply from time
to time, each Participant, including inactive and former Participants, may elect
to transfer any amounts invested in an Investment Fund to one or more other
Investment Funds as any time. Each Participant, including inactive and former
Participants, who is instructing the Broker as to the investment of the assets
in his Account may direct the Broker to reinvest such assets at any time and
from time to time, subject to the internal rules and policies of the Broker.
Further, each Participant, including inactive and former Participants, may elect
to transfer all amounts invested in Investment Funds to a separate account with
the Broker for the purpose of exercising full investment discretion over his
Account. Alternatively, each Participant including inactive and former
Participants, may elect to transfer all amounts which are held in an account
with the Broker to one or more of the Investment Funds. Any investment transfer
shall become effective as soon as administratively possible, according to the
rules and procedures established by the Benefits Committee, recordkeeper,
Trustee and/or Broker, as applicable.

8.3 INVESTMENT ELECTIONS

Each Participant may make the election described in section 8.1 by filing an
election form with the Benefits Committee upon becoming a Participant. The
elections described in sections 8.1 and 8.2 may be changed together or
separately by making an election in the manner acceptable to the Benefits
Committee.

                                       41
<PAGE>

Subject to such rules as the Benefits Committee may prescribe, Beneficiaries and
alternate payees shall have the same investment election rights as Participants
under this Plan.

8.4 TRANSFER OF ASSETS

The Benefits Committee shall establish procedures to transmit investment
directions of the Participants to the recordkeeper. The recordkeeper shall
instruct the Trustee to invest and reinvest assets held in the Participants'
Accounts based on such directions.

8.5 PARTICIPANT-DIRECTED INVESTMENTS

(a)      INTENT TO MEET ERISA SECTION 404(c). The Plan provisions pertaining to
         Participant-directed investments are intended to permit the Plan and
         Participant-directed transactions under it to comply with requirements
         in ERISA section 404(c) and related regulations so that a Participant
         will not be deemed to be a fiduciary by reason of exercising control
         over assets in his or her Account, and no person who is otherwise a
         fiduciary shall be liable, either for any loss or by reason of any
         breach, which results from the exercise of such control. For purposes
         of carrying out this intent, any Plan reference to a Participant who
         exercises control over Account assets shall be deemed to include a
         Beneficiary or an alternate payee who exercises such control, and any
         reference to a specific Department of Labor regulation shall be deemed
         to include a reference to any other currently applicable rule or
         regulation pertaining to the same subject.

(b)      FIDUCIARY FOR DISCLOSURES AND INSTRUCTIONS. To comply with ERISA
         section 404(c) and Department of Labor regulation 2550.404(c)-1
         thereunder, the Benefits Committee is designated as the Plan fiduciary
         responsible for giving Participants, Beneficiaries and alternate payees
         (together referred to as "eligible investors") all required
         information, receiving and carrying out investment directions from
         eligible investors and giving eligible investors written confirmation
         of instructions received from them. Accordingly, the Benefits Committee
         (or a person or persons designated by the Benefits Committee to act on
         its behalf) shall provide information to eligible investors in
         accordance with section 1((b)(2)(B) of the above Department of Labor
         regulation, shall receive investment instructions provided by such
         eligible investors in accordance with this article of the Plan, and
         shall provide eligible investors with written confirmation of such
         instructions. The Benefits Committee and any person or persons it has
         designated to act on its behalf shall comply with all such investment
         instructions from eligible investors except in cases where the Benefit
         Committee declines to implement such instructions in accordance with
         sections 1(b)(2)(ii)(B) and 1(d)(2)(ii) of the above Department of
         Labor regulation.

                                       42
<PAGE>

ARTICLE 9. PARTICIPANT ACCOUNTS AND RECORDS

9.1 ACCOUNTS AND RECORDS

The accounts and records of the Plan shall be maintained at the direction of the
Benefits Committee and shall accurately disclose the value of the Account of
each Participant or Beneficiary in the Plan. Such accounts and records may be
kept in dollars or in units or both, as determined in accordance with generally
accepted principles of trust accounting approved by the Benefits Committee.

Each subaccount of a Participant's Account shall be assigned a share of each
Investment Fund in which the Participant's Account is invested in the proportion
which the balance of such subaccount bears to the total Participant's Account.
The Benefits Committee shall cause records to be maintained relative to a
Participant's Account so that there may be determined as of any Valuation Date
the current value of the Participant's Account in the Trust Fund and the
adjustments from the previous Valuation Date that have produced such current
value. If the Participant is exercising full investment discretion over his
Account, such Participant's Account shall be credited with the earnings, gains,
and losses attributable to the assets in the Participant's Account.

9.2 VALUATION ADJUSTMENTS

As of each Valuation Date, the Recordkeeper shall credit the Accounts of
Participants and Beneficiaries with contributions made during the day and debit
such Accounts with withdrawals and distributions during such day. The net worth
of an Investment Fund shall be determined by the trustee in accordance with
generally accepted principles of trust accounting and shall be conclusive and
binding upon all persons having an interest under the Plan.

                                       43
<PAGE>

ARTICLE 10. FINANCING

10.1 FUNDING OF THE PLAN

The Company shall maintain a Trust Fund to finance the benefits under the Plan,
by entering into one or more Trust Agreements or insurance and bank investment
contracts approved by the Company, or by causing insurance and bank investment
contracts to be held under a Trust Agreement. Any Trust Agreement is designated
as and shall constitute a part of this Plan. All rights which may accrue to any
person under this Plan shall be subject to all the terms and provisions of such
Trust Agreement. A Trustee shall be appointed by the Company and shall have such
powers as provided in the Trust Agreement. The Company may modify any Trust
Agreement or insurance and bank investment contract from time to time to
accomplish the purpose of the Plan and may replace any insurance company or bank
or appoint a successor Trustee or Trustees. By entering into such Trust
Agreements or insurance or bank investment contracts, the Company shall vest in
the Trustee, or in one or more investment managers appointed under the terms of
the Trust Agreement from time to time by action of the Benefits Committee,
responsibility for the management and control of the Trust Fund. In the event
the Benefits Committee appoints any such investment manager, the Trustee shall
not be liable for the acts or omissions of the investment manager or have any
responsibility to invest or otherwise manage any portion of the Trust Fund
subject to the management and control of the investment manager. The Company
from time to time shall establish a funding policy which is consistent with the
objectives of the Plan and shall communicate it to the Trustee and each
investment manager so that they may coordinate investment policies with such
funding policy. Nothing in this section shall eliminate the responsibility of
Participants for the results of investment elections that are within their
control, as provided in Article 8.

10.2 EMPLOYER CONTRIBUTIONS

Each Employer shall make the contributions to the Trust Fund that are required
of it under the terms of this Plan, subject to the right of the Company to
discontinue the Plan.

10.3 NONREVERSION

Anything in this Plan to the contrary notwithstanding, it shall be impossible at
any time for the contributions of the Company (or any Employer) or any part of
the Trust Fund to revert to the Company, Affiliate, or Associated Company or to
be used for or diverted to any purpose other than the exclusive benefit of
Participants or their Beneficiaries, except that--

(a)      if all or a portion of any contribution is made by an Employer by a
         mistake of fact, upon written request to the Trustee, such contribution
         or such portion (less any investment losses attributable thereto) and
         any increment thereon shall be returned to the Employer within one year
         after the date of payment; and

(b)      in the event that a deduction for any contributions made by the
         Employer is disallowed by the Internal Revenue Service in any Plan
         Year, then that portion of the

                                       44
<PAGE>

         Employer contribution (less any investment losses attributable thereto)
         that is not deductible shall be returned to the Employer within one
         year from the date of receipt of notice by the Internal Revenue Service
         of the disallowance of the deduction.

                                       45
<PAGE>

ARTICLE 11. ADMINISTRATION

11.1 THE BENEFITS COMMITTEE

The Plan shall be administered by a Benefits Committee appointed by the Board of
Directors. The Benefits Committee shall be composed of as many members as the
Board may appoint from time to time, but not fewer than three members, and shall
hold office at the pleasure of the Board. Such members may, but need not, be
Employees of the Company.

Any member of the Benefits Committee may resign by delivering a written
resignation to the Board and to the Benefits Committee Secretary with 30 days'
advance notice. Such resignation shall be effective no earlier than the date of
the written notice.

Vacancies in the Benefits Committee arising by resignation, death, removal or
otherwise, shall be filled by the Board.

11.2 COMPENSATION AND EXPENSES

The members of the Benefits Committee shall serve without compensation for
services as a member of the Benefits Committee. Any member of the Benefits
Committee may receive reimbursement by the Company of expenses properly and
actually incurred in the performance of duties as a Benefits Committee member.

All administrative expenses of the Plan shall be paid out of Plan assets if not
paid directly by the Company. Such expenses shall include any expenses incident
to the functioning of the Benefits Committee and the Trustee, including, but not
limited to, fees of the Plan's accountants, outside counsel and other
specialists, Trustee's fees, asset management fees, and other costs of
administering the Plan.

11.3 MANNER OF ACTION

A majority of the members of the Benefits Committee at the time in office shall
constitute a quorum for the transaction of business. All resolutions adopted,
and other actions taken by the Benefits Committee at any meeting shall be by the
vote of a majority of those present at any such meeting. Upon the unanimous
written consent of the members at the time in office, action of the Benefits
Committee may be taken otherwise than at a meeting.

11.4 CHAIRMAN, SECRETARY, AND EMPLOYMENT OF SPECIALISTS

The members of the Benefits Committee shall elect one of their number as
Chairman and shall elect a Secretary who may, but need not, be a member of the
Benefits Committee. They may authorize one or more of their number or any agent
to execute or deliver any instrument or instruments on their behalf, and may
employ such counsel, auditors, and other specialists and such clerical,
actuarial and other services as they may require in carrying out the provisions
of the Plan.

                                       46
<PAGE>

11.5 SUBCOMMITTEES

The Benefits Committee may appoint one or more subcommittees and delegate such
of its power and duties as it deems desirable to any such subcommittee, in which
case every reference herein made to the Benefits Committee shall be deemed to
mean or include the subcommittees as to matters within their jurisdiction. The
members of any such subcommittee shall consist of such officers or other
Employees of the Company and such other persons as the Benefits Committee may
appoint.

11.6 OTHER AGENTS

The Benefits Committee may also appoint one or more persons or agents to aid it
in carrying out its duties as Plan administrator. The Benefits Committee may
delegate such of its powers and duties as it deems desirable to such persons or
agents.

11.7 RECORDS

All resolutions, proceedings, acts and determinations of the Benefits Committee
shall be recorded under the Secretary's supervision. All such records, together
with such documents and instruments as may be necessary for the administration
of the Plan, shall be preserved in the custody of the Secretary.

11.8 RULES

Subject to the limitations contained in the Plan, the Benefits Committee shall
be empowered from time to time in its discretion to adopt by-laws and establish
rules for the conduct of its affairs and the exercise of the duties imposed upon
it under the Plan.

11.9 BENEFITS COMMITTEE'S POWERS AND DUTIES

The Benefits Committee shall have responsibility for the general administration
of the Plan and for carrying out its provisions. The Benefits Committee shall
have such powers and duties as may be necessary to discharge its functions
including, but not limited to, the following:

(a)      to construe and interpret the Plan, to decide all questions of
         eligibility and determine the amount, manner and time of payment of any
         benefits hereunder;

(b)      to make a determination as to the right of any person to an allocation,
         and the amount thereof;

(c)      to obtain from the Employees and Employers such information as shall be
         necessary for the proper administration of the Plan and, when
         appropriate, to furnish such information promptly to the Trustees or
         other persons entitled thereto;

(d)      to prepare and distribute, in such manner as the Company determines to
         be appropriate, information explaining the Plan;

                                       47
<PAGE>

(e)      to establish and maintain such accounts in the name of each Participant
         as are necessary;

(f)      to instruct the Trustee with respect to the payment of benefits
         hereunder;

(g)      to provide for any required bonding of fiduciaries and other persons
         who may from time to time handle Plan assets;

(h)      to prepare and file any reports required by ERISA;

(i)      to engage an independent public accountant to conduct such examinations
         and to render such opinions as may be required by ERISA;

(j)      to allocate contributions and Trust Fund gains or losses to the
         Accounts of Participants; and

(k)      to correct any mistakes and cure any defects in the administration of
         the Plan.

11.10 INVESTMENT RESPONSIBILITIES

The Benefits Committee shall have the authority and responsibility to direct the
Trustee with respect to the investment and management of the Trust Fund. Except
as otherwise provided in ERISA, the Benefits Committee may delegate such
authority and responsibility to direct the Trustee to any person who
acknowledges in writing that it is a fiduciary with respect to the Plan and who
provides the Benefits Committee with a written affirmation that it is qualified
to act as an investment manager within the meaning of ERISA. If the Benefits
Committee delegates to an investment manager the authority and responsibility to
so direct the Trustee, such investment manager, and not the Benefits Committee
or the Trustee, shall have sole responsibility for the investment and management
of so much of the Trust Fund as has been entrusted to his or her management and
control, and, except to the extent otherwise required by ERISA, such delegation
shall relieve the Benefits Committee and the members thereof of all duties and
responsibilities with respect to the authority and responsibility so delegated.

The Benefits Committee may relinquish to the Trustee the Benefits Committee's
power to direct the Trustee with respect to the investment and management of the
Trust Fund. In the event the Benefits Committee so relinquishes said power to
the Trustee and the Trustee accepts such responsibility in writing, the Trustee
shall have sole and exclusive power and responsibility with respect to the
investment and management of the Trust Fund. The Benefits Committee may regain
the power so relinquished by appropriate Benefits Committee action and notice to
the Trustee.

Nothing in this section shall eliminate the responsibility of Participants for
the results of investment elections that are within their control, as provided
in Article 8.

                                       48
<PAGE>

11.11 BENEFITS COMMITTEE'S DECISIONS CONCLUSIVE

Benefits under this Plan shall be paid only if the Benefits Committee decides in
its discretion that the applicant is entitled to them. The Benefits Committee
shall have the exclusive right and discretionary authority to interpret the
terms and provisions of the Plan and to resolve all questions arising
thereunder, including, without limitation, the right to resolve and remedy
ambiguities, inconsistencies, or omissions in the Plan; provided, however, that
the construction necessary for the Plan to conform to the Code shall in all
cases control. The Benefits Committee shall endeavor to act in such a way as not
to discriminate in favor of any class of Employees, Participants, or other
persons. Any and all disputes with respect to the Plan that may arise involving
Participants, Beneficiaries, or alternate payees shall be referred to the
Benefits Committee, and its decisions shall be final, conclusive, and binding.
All findings of fact, interpretations, determinations, and decisions of the
Benefits Committee in respect of any matter or question arising under the Plan
shall be final, conclusive, and binding upon all persons, including, without
limitation, Employees, Participants, Beneficiaries, alternate payees, and any
and all other persons having, or claiming to have, any interest in or under the
Plan and shall be given the maximum possible deference allowed by law.

11.12 INDEMNITY

The Company shall indemnify each member of the Benefits Committee (which, for
purposes of this section, includes any Employee to whom the Benefits Committee
has delegated fiduciary or other duties) against any and all claims, losses,
damages, expenses, including counsel fees, incurred by the member and any
liability, including any amounts paid in settlement with the Company's approval,
arising from the member's or the Company's action or failure to act, except when
the same is judicially determined to be attributable to the gross negligence or
willful misconduct of such member. The right of indemnity described in the
preceding sentence shall be conditioned upon--

(a)      the timely receipt of notice by the Company of any claim asserted
         against the member, which notice, in the event of a lawsuit shall be
         given within 90 days after receipt by the member of the complaint; and

(b)      the receipt by the Company of an offer from the member of an
         opportunity to participate in the settlement or defense of such claim.

11.13 FIDUCIARIES

The fiduciaries named in this Article shall have only those specific powers,
duties, responsibilities and obligations as are specifically given them under
this Plan or the Trust Agreement. The Employers shall have the sole
responsibility for making the contributions under the Plan. Except as provided
in section 12.1, the Company shall have the sole authority to amend or
terminate, in whole or in part, this Plan or the Trust Agreement and to appoint
or remove the Trustee. The Benefits Committee shall be the Named Fiduciary under
the Plan and shall have the sole responsibility for the administration of this
Plan. The officers and

                                       49
<PAGE>

Employees of the Company shall have the responsibility of implementing the Plan
and carrying out its provisions as the Benefits Committee shall direct. Except
as provided under ERISA with respect to investment and elections of Participants
allowed under Article 8, the Benefits Committee, the Trustee, and any investment
manager shall have the sole responsibility for the administration of the Trust
Fund and the management of the assets held under the Trust Agreement. A
fiduciary may rely upon any direction, information or action of another
fiduciary as being proper under this Plan or the Trust Agreement, and is not
required under this Plan or the Trust Agreement to inquire into the propriety of
any such direction, information or action. It is intended under this Plan and
the Trust Agreement that each fiduciary shall be responsible for the proper
exercise of that fiduciary's own powers, duties, responsibilities and
obligations under this Plan and the Trust Agreement and shall not be responsible
for any act or failure to act of another fiduciary. No fiduciary guarantees the
Trust Fund in any manner against investment loss or depreciation in asset value.
Any party may serve in more than one fiduciary capacity with respect to the Plan
or the Trust Agreement.

11.14 NOTICE OF ADDRESS

For purposes of distributing benefits, the Benefits Committee may rely upon the
address of record of the Participant, Beneficiary or other payee on file with
the Benefits Committee. Each person entitled to benefits from the Plan must file
with the Benefits Committee, in writing, each change of post office address. Any
communication, statement or notice addressed to such a person at his or her
latest reported post office address shall be binding upon that person for all
purposes of the Plan, and neither the Benefits Committee nor the Company or any
Trustee shall be obliged to search for or ascertain the person's whereabouts.

11.15 DATA

All persons entitled to benefits from the Plan must furnish to the Benefits
Committee such documents, evidence, or information, including information
concerning marital status, as the Benefits Committee considers necessary or
desirable for the purpose of administering the Plan. It is an express condition
of this Plan that each such person must furnish such information and sign such
documents as the Benefits Committee may require before any benefits become
payable from the Plan. The Benefits Committee shall be entitled to distribute
benefits to a nonspouse Beneficiary in reliance upon the signed statement of the
Participant that the Participant is unmarried without any further liability to a
spouse if such statement is false.

11.16 NONALIENATION

(a)      Plan benefits may not be assigned unless the Plan authorizes a specific
         exception to this general rule. Accordingly, except as permitted by the
         Plan in accordance with Code section 401(a)(13) and ERISA section
         206(d) with respect to assignments to alternate payees under qualified
         domestic relations orders, no benefit payable at any time under the
         Plan shall be subject to the debts or liabilities of a Participant or
         his or her Beneficiary, and any attempt to alienate, sell, transfer,
         assign, pledge, or

                                       50
<PAGE>

         otherwise encumber any such benefit, whether presently or thereafter
         payable, shall be void. Effective as of August 5, 1997, the Plan may
         offset payments described in a judgment, order, decree, or settlement
         agreement relating to a breach of fiduciary duty or criminal act
         against the Plan, as further described in Code section 401(a)(13).
         Subject to the foregoing exceptions, no benefit under the Plan shall be
         subject in any manner to attachment, garnishment, or encumbrance of any
         kind.

(b)      Assignments of Plan benefits may be made in accordance with the
         following specific exception for qualified domestic relations orders.
         Pursuant to procedures established by the Benefits Committee that are
         consistent with Code section 414(p) (including procedures requiring
         prompt notification of the affected Participant and each alternate
         payee of the Plan's receipt of a domestic relations order and its
         procedures for determining the qualified status of such order),
         judicial orders for purposes of enforcing family support obligations or
         pertaining to domestic relations (which orders do not alter the amount,
         timing or form of benefit other than to have it commence at the
         earliest permissible date) shall be honored by the Plan if the Benefits
         Committee determines that they constitute qualified domestic relations
         orders.

         (1)      Except as may otherwise be required by Department of Labor
                  regulations, a qualified domestic relations order may not
                  require a retroactive transfer of all or part of a
                  Participant's Account to or from the benefit of an alternate
                  payee without permitting an appropriate adjustment for
                  earnings and investment gains or losses that have occurred in
                  the interim, nor shall such orders require the Plan to provide
                  loans, self-directed investment elections, or other rights to
                  alternate payees that are not available to Beneficiaries
                  generally.

         (2)      To the full extent permitted by Code section 414(p)(10) and by
                  the terms of a qualified domestic relations order, amounts
                  assigned to an alternate payee may be paid as soon as possible
                  in a lump sum, notwithstanding the age, financial hardship,
                  employment status, or other factors affecting the ability of
                  the Participant to make a withdrawal or otherwise receive a
                  distribution of balances to the Participant's credit under the
                  Plan. In cases where such full and prompt payment of amounts
                  assigned to an alternate payee will not be made, the assigned
                  amounts shall be transferred within a reasonable time to the
                  Investment Funds selected by the alternate payee or to the
                  Schwab money market fund if the alternate payee does not make
                  a valid election within a reasonable time, as determined by
                  the Benefits Committee.

11.17 INCOMPETENCY

Every person receiving or claiming benefits under the Plan shall be conclusively
presumed to be mentally competent and of age until the date on which the
Benefits Committee receives a written notice, in a form and manner acceptable to
the Benefits Committee, that such person

                                       51
<PAGE>

is incompetent or a minor, for whom a guardian or other person legally vested
with the care of the person or estate has been appointed; provided, however,
that if the Benefits Committee shall find that any person to whom a benefit is
payable under the Plan is unable to care for his or her affairs because of
incompetency, or is a minor, any payment due (unless a prior claim therefor
shall have been made by a duly appointed legal representative) may be paid to
the spouse, a child, a parent or a brother or sister, or to any person or
institution deemed by the Benefits Committee to have incurred expense for such
person otherwise entitled to payment. To the extent permitted by law, any such
payment so made shall be a complete discharge of liability therefor under the
Plan.

In the event a guardian of the estate of any person receiving or claiming
benefits under the Plan shall be appointed by a court of competent jurisdiction,
benefit payments may be made to such guardian, provided that proper proof of
appointment and continuing qualification is furnished in a form and manner
acceptable to the Benefits Committee. To the extent permitted by law, any such
payment so made shall be a complete discharge of any liability therefor under
the Plan.

11.18 MISSING PERSONS

If the Benefits Committee is unable, within two years after the Participant's
distribution becomes due, to make payment because the identity or whereabouts of
the Participant or Beneficiary cannot be ascertained, the Benefits Committee may
mail a notice by registered mail to the last known address of such person
stating that unless such person makes written reply to the Benefits Committee
within 60 days from the mailing of such notice, the Benefits Committee shall
direct that the Participant's Account shall be forfeited and all further
benefits with respect to such person shall be discontinued and all liability for
the payment thereof shall terminate. In the event of the subsequent reappearance
of the Participant or Beneficiary prior to termination of the Plan, the benefits
which were due and payable and which such person failed to receive shall be paid
in a single sum, and any future benefits due such person shall be reinstated in
full. The amount payable to such person shall be equal to the benefit forfeited,
without interest on such amount for the period commencing on the date such
benefit was forfeited and ending on the date of the claim. If the Participant's
Account is reinstated under this section and available forfeitures are
insufficient to cover the reinstatement, then the Company shall contribute to
the Trust an amount which shall equal the reinstatement described above, without
interest or earnings for the period between such reallocation and the
reappearance.

11.19 APPEALS FROM DENIAL OF CLAIMS

(a)      If a Participant, Beneficiary or alternate payees (each of which may be
         "Claimant") believes he or she is entitled to a benefit, or a benefit
         different from the one received, then the Claimant may file a claim for
         the benefit by writing a letter to the Benefits Committee or its
         authorized delegate. If any claim for benefits under the Plan is wholly
         or partially denied, the Claimant shall be given notice in writing of
         such denial within 90 days after receipt of the claim or within an
         additional 90 days if

                                       52
<PAGE>

         special circumstances require an extension of time, and written notice
         of the extension shall be furnished to the Claimant. If special
         circumstances justify extending the claim period up to an additional 90
         days, the Claimant shall be given written notice of this extension
         within the original 90-day period, and such notice shall set forth the
         special circumstances and the date a decision is expected.

(b)      A notice of the denial, written in a manner calculated to be understood
         by the Claimant, shall set forth the following information:

         (1)      the specific reason or reasons for the denial;

         (2)      specific reference to pertinent Plan provisions on which
                  denial is based;

         (3)      a description of any additional material or information
                  necessary for the claimant to perfect the claim and an
                  explanation of why such material or information is necessary;

         (4)      an explanation that a full and fair review by the Benefits
                  Committee of the decision denying the claim may be requested
                  by the claimant or the claimant's authorized representative by
                  filing with the Benefits Committee, within 60 days after such
                  notice has been received, a written request for such review;
                  and

(c)      If such request is so filed, the claimant or the claimant's authorized
         representative may review pertinent documents and submit issues and
         comments in writing within the same 60-day period.

(d)      The decision of the Benefits Committee upon review shall be made
         promptly, and not later than 60 days after the Benefits Committee's
         receipt of the request for review, unless special circumstances require
         an extension of time for processing, in which case the claimant shall
         be so notified and a decision shall be rendered as soon as possible,
         but not later than 120 days after receipt of the request for review. If
         the claim is denied, wholly or in part, the claimant shall be given a
         copy of the decision promptly. The decision shall be in writing and
         shall include specific reasons for the denial, specific references to
         the pertinent Plan provisions on which the denial is based and shall be
         written in a manner calculated to be understood by the claimant.

(e)      All decisions made under the procedure set out in this section shall be
         final, and there shall be no further right of appeal. No person may
         initiate a lawsuit before fully pursuing the procedures set out in this
         section, including appeal. In addition, no legal action with respect to
         a claim for benefits may be initiated after the later of--

         (1)      365 days after receiving the written response of the Benefits
                  Committee to the Claimant's request for review pursuant to
                  subsection (d); or

                                       53
<PAGE>

         (2)      two years after the Claimant's original claim for benefits
                  pursuant to subsection (a).

                                       54
<PAGE>

ARTICLE 12. AMENDMENT AND TERMINATION

12.1 AUTHORITY TO AMEND OR TERMINATE

The Company expects the Plan to be permanent and continue indefinitely, but
since future conditions affecting the Company cannot be anticipated or foreseen,
the Company must necessarily and does hereby reserve the right to amend, modify
or terminate the Plan at any time by action of its Board of Directors. The
Benefits Committee may make any modifications or amendments to the Plan that are
necessary or appropriate to meet the requirements of ERISA, the Code or any
other law. The Benefits Committee may also make any technical or clerical
amendments which do not significantly increase or decrease benefit levels or
costs. No amendment of the Plan shall cause any part of the Trust Fund to be
used for, or diverted to, purposes other than for the exclusive benefit of the
Participants or their Beneficiaries covered by the Plan. Plan amendments may not
decrease the Account balance of any Participant. In addition, neither the
Company nor the Benefits Committee may, through the exercise of discretion or by
Plan amendment, deny a Participant a benefit or right protected under Code
section 411(d)(6) and the related regulations to which the Participant is
otherwise entitled.

Notwithstanding the preceding paragraph of this section 12.1, Oceanic
Exploration Company is hereby authorized to amend or modify the Plan solely with
respect to the employees of Oceanic Exploration Company and its Affiliates and
their participation under the Plan, at any time by action of the Board of
Directors of Oceanic Exploration Company.

12.2 DISTRIBUTION ON TERMINATION

Upon termination of the Plan, in whole or in part, or upon complete
discontinuance of contributions to the Plan by the Company, the value of the
proportionate interest in the Trust Fund of each Participant affected by such
termination having an interest in the Trust Fund shall be determined by the
Benefits Committee as of the date of such termination or discontinuance. The
Accounts of such Participants shall be fully vested and nonforfeitable.
Thereafter, distribution shall be made to such Participants as directed by the
Benefits Committee.

Upon the partial termination of the Plan, the Benefits Committee shall determine
the timing of a distribution of the balance of the affected Participants'
Accounts.

12.3 CORPORATE REORGANIZATIONS

In the event the Company is dissolved or liquidated or shall by appropriate
legal proceedings be adjudged a bankrupt, or in the event judicial proceedings
of any kind result in the involuntary dissolution of the Company, the Plan shall
be terminated. The merger, consolidation or reorganization of the Company, or
the sale of the Company or of all or substantially all of its assets or stock,
shall not terminate the Plan if there is delivery to the Company, by its
successor or by the purchaser of all or substantially all of its stock or
assets, a written instrument requesting that it be substituted for the Company
and agreeing to

                                       55
<PAGE>

perform all the provisions hereof which the Company is required to perform
hereunder. Upon the receipt of said instrument, with the approval of the
Company, the successor or the purchaser shall be substituted for the Company
herein, and the Company shall be relieved and released from all obligations of
any kind, character or description herein or in any trust agreement.

12.4 PLAN MERGER OR TRANSFER

This Plan shall not merge or consolidate with, or transfer assets and
liabilities to, or accept a transfer from, any other employee benefit plan
unless each Participant in this Plan will (if the Plan had then terminated)
receive a benefit immediately after the merger, consolidation or transfer which
is not less than the benefit the Participant would have been entitled to receive
immediately before the merger, consolidation or transfer of assets (if this Plan
had then terminated).

                                       56
<PAGE>

ARTICLE 13. TOP-HEAVY PROVISIONS

13.1 APPLICATION

The provisions of this Article shall be interpreted and administered in
accordance with the requirements of Code section 416 and related Treasury
regulations. Because the Plan is a multiple employer plan, as described in Code
section 413(c), the top-heavy requirements of Code section 416 and related
Treasury regulations apply to each controlled group Employer separately to the
extent that benefits under the Plan are provided to Employees with respect to
service for that controlled group Employer. For purposes of this Article, the
term "Employer" includes an Employer under the Plan and only those Affiliates of
such entity that must be aggregated and treated as a single employer for
purposes of Code section 414 and related Treasury regulations.

If, as of the Determination Date in any Plan Year, the sum of the Accounts of
Employees who are Key Employees of a controlled group Employer for such Plan
Year exceeds 60 percent of the sum of the Accounts of all Employees of the
controlled group Employer and their Beneficiaries or the Plan is part of a
Top-Heavy Group, then the following provisions under this Article shall apply
for such Plan Year. The foregoing notwithstanding, the provisions of this
Article shall not apply to the Plan in any Plan Year during which it is part of
an Aggregation Group (as defined in Plan section 13.3(a)) with respect to a
controlled group Employer, whether or not it is top-heavy as a single plan,
unless the Aggregation Group of which it is a part is top-heavy with respect to
the controlled group Employer in such Plan Year.

The "Determination Date," which is the date for determining the applicability of
this Article, is--

(a)      for the first Plan Year beginning after 1983, the last day of the Plan
         Year; and

(b)      for any other Plan Year, the last day of the preceding Plan Year.

13.2 KEY EMPLOYEES

(a)      For purposes of this Article, the term "Key Employee" means any
         Employee or former Employee (and the Beneficiary of such an Employee)
         who at any time during the Plan Year in which a determination of
         top-heaviness is made or any of the four preceding Plan Years is--

         (1)      an officer of the controlled group Employer whose Section 415
                  Compensation during the relevant Plan Year exceeded 50 percent
                  of the dollar limitation in effect under Code section
                  415(b)(1)(A); provided, however, that no more than the lesser
                  of--

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<PAGE>

                  (A)      50 Employees; or

                  (B)      the greater of three Employee or ten percent of all
                           Employees

                  shall be treated as officers;

         (2)      one of the ten Employees having Section 415 Compensation for
                  the relevant Plan Year in excess of the dollar limitation in
                  effect under Code section 415(c)(1)(A) and owning (or
                  considered as owning within the meaning of Code section 318,
                  as modified by Code section 416(i)(1)(B)) the largest
                  interests in the controlled group Employer; provided, however,
                  that if two Employees have the same interest in the controlled
                  group Employer, then the Employee with the greater Section 415
                  Compensation shall be treated as having the larger interest;

         (3)      a 5-percent owner of the controlled group Employer; or

         (4)      a 1-percent owner of the controlled group Employer having
                  annual Section 415 Compensation of more than $150,000.

(b)      A 5-percent owner is any Employee who owns (or is considered as owning
         within the meaning of Code section 318, as modified by Code section
         416(i)(1)(B)) more than five percent of the value of the outstanding
         stock of the of the Employer or stock possessing more than five percent
         of the total combined voting power of all stock of the Employer.
         Similarly, a 1-percent owner is any Employee who owns (or is considered
         as owning within the meaning of Code section 318, as modified by Code
         section 416(i)(1)(B)) more than one percent of the value of the
         outstanding stock of the of the Employer or stock possessing more than
         one percent of the total combined voting power of all stock of the
         Employer. For purposes of determining five-percent and 1-percent
         owners, the aggregation and other rules of subsections (b), (c) and (m)
         of Code section 414 do not apply.

(c)      If an Employee who has not terminated employment ceases to be a Key
         Employee, such Employee's Account balance or accrued benefit shall be
         disregarded under the top-heavy plan computation for any Plan Year
         following the last Plan Year for which the individual was treated as a
         Key Employee. The Account balance or accrued benefit of any Employee or
         former Employee, who has not performed any services for the controlled
         group Employer at any time during the five-year period ending on the
         Determination Date, shall not be taken into account to determine
         whether the Plan or Aggregation Group is top-heavy.

A "non-Key Employee" means any Participant who is not a Key Employee, but who is
an Employee on the last day of the Plan Year.

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<PAGE>

13.3 TOP-HEAVY GROUP

For purposes of determining whether the Plan is a part of a Top-Heavy Group, the
following rules shall apply:

(a)      AGGREGATION GROUP. The Aggregation Group shall include any plan
         maintained by the controlled group Employer which covers a Key Employee
         and any other plan which enables a plan covering a Key Employee to meet
         the requirements of Code section 401(a)(4) or 410.

(b)      TOP-HEAVY GROUP. An Aggregation Group is a Top-Heavy Group if the sum
         of the account balances of Key Employees under all defined contribution
         plans included in the group and the present value of the accumulated
         accrued benefits for Key Employees under all defined benefit plans in
         the group exceeds 60 percent of a similar sum determined for all
         Employees and their Beneficiaries under all such plans in the group.
         The present value of accrued benefits under defined benefit plans and
         the account balances under defined contribution plans shall be
         determined separately as of each plan's determination date. For
         purposes of determining whether an Aggregation Group is a Top-Heavy
         Group, the present value of accrued benefits under all defined benefit
         plans in the Aggregation Group shall be determined using a single set
         of actuarial assumptions, as defined in such defined benefit plans. The
         determination of whether the Aggregation Group is a Top-Heavy Group
         shall be made using each plan's results as of that plan's determination
         date which falls within the calendar year. In any Plan Year, in testing
         for top-heaviness under this Article, the controlled group Employer
         may, in its discretion, take into account accumulated accrued benefits
         and account balances in any other plan maintained by it, so long as
         such expanded Aggregation Group continues to meet the requirements of
         Code sections 401(a)(4) and 410.

13.4 ADDITIONAL RULES

In determining the present value of the accrued benefits under a defined benefit
plan and the sum of the account balances under a defined contribution plan,
Employer contributions and voluntary Employee contributions shall be taken into
account and any rollover contribution or similar transaction initiated by the
Employee, which results in a transfer to this Plan, shall not be taken into
account. The present value of the accrued benefits in a defined benefit plan and
the account balance in a defined contribution plan shall include any amount
distributed to an Employee or Beneficiary within the five-year period ending on
that plan's determination date.

The present value of any Employee's accrued benefit under any defined benefit
plan as of any determination date shall be calculated:

(a)      as of the most recent Actuarial Valuation Date which is within a
         12-month period ending on the Determination Date;

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<PAGE>

(b)      as if employment terminated as of such valuation date; and

(c)      without regard to the automatic preretirement survivor annuity benefit
         or any other nonproportional subsidy.

The term "Actuarial Valuation Date" shall mean the valuation date used for
computing plan costs for minimum funding.

13.5 COMBINED LIMIT FOR KEY EMPLOYEES

If the Plan is determined to be top-heavy in any Plan Year, then the combined
limits of Code section 415(e) and section 6.4 of the Plan shall be applied in
accordance with Code section 416(h)(1) by substituting "1.0" for "1.25" in
computing the defined benefit fraction and the defined contribution fraction
under paragraphs (2)(B) and (3)(B) of Code section 415(e). Notwithstanding the
foregoing, the limitations described in this section shall not apply to Plan
Years beginning on or after January 1, 2000.

13.6 MINIMUM CONTRIBUTION

If this Plan is determined to be top-heavy in any Plan Year, then the aggregate
contributions to be made by the Employer on behalf of each non-Key Employee for
the Plan Year (excluding Pretax Deferrals or other Employer contributions
attributable to a salary reduction arrangement) shall not be less than three
percent of the Participant's Section 415 Compensation for such year (or such
lesser percentage as represents the maximum percentage of Section 415
Compensation contributed on behalf of a Key Employee for the Plan Year), as
determined under Code section 416(c).

13.7 TOP-HEAVY VESTING

If this Plan is determined to be top-heavy in any Plan Year, the vesting
schedule specified in section 7.1 shall continue to apply.

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<PAGE>

ARTICLE 14. MISCELLANEOUS PROVISIONS

14.1 EMPLOYMENT RIGHTS

Nothing contained in this Plan or any modification of the Plan or act done in
pursuance hereof shall be construed as giving any person any legal or equitable
right against the Company, Affiliate, or Associated Company, the Trustee or the
Trust Fund, unless specifically provided herein, or as giving any person a right
to be retained in the employ of the Company, Affiliate, or Associated Company.
All Participants shall remain subject to assignment, reassignment, promotion,
transfer, layoff, reduction, suspension and discharge to the same extent as if
this Plan had never been established.

14.2 NO EXAMINATION OR ACCOUNTING

Neither this Plan nor any action taken thereunder shall be construed as giving
any person the right to an accounting or to examine the books or affairs of the
Company, Affiliate, or Associated Company.

14.3 INVESTMENT RISK

The Participants and their Beneficiaries shall assume all risks in connection
with any decrease in the value of any assets or funds which may be invested or
reinvested in the Trust Fund which supports this Plan.

14.4 SEVERABILITY

In the event any provision of this Plan shall be held illegal or invalid for any
reason, such illegality or invalidity shall not affect the remaining parts of
this Plan, and it shall be construed and enforced as if such illegal or invalid
provision had never been inserted herein.

14.5 COUNTERPARTS

This Plan may be executed in any number of counterparts, each of which shall be
deemed to be an original. All the counterparts shall constitute but one and the
same instrument and may be sufficiently evidenced by any one counterpart.

14.6 SERVICE OF LEGAL PROCESS

The Secretary of the Company is hereby designated agent of the Plan for the
purpose of receiving service of summons, subpoena or other legal process.

14.7 HEADINGS OF ARTICLES AND SECTIONS

The headings of sections and subsections are included solely for convenience of
reference. If there is any conflict between such headings and the text of the
Plan, the text shall control.

14.8 APPLICABLE LAW

Except to the extent superseded or preempted by ERISA, the Plan and all rights
hereunder shall be governed, construed and administered in accordance with the
laws of the State of Colorado with the exception that any Trust Agreement which
may constitute a part of the

                                       61
<PAGE>

Plan may provide that it will be construed and enforced in all respects under
and by the laws of the state in which the Trustee thereunder is located.

                               * * * * * * * * * *

                                       62
<PAGE>
IN WITNESS WHEREOF, Cordillera Corporation has caused this restated Plan to be
executed this 7th day of December, 2001, to be effective as indicated in section
1.3.

                                           CORDILLERA CORPORATION

ATTEST:
                                           By   /s/ John E. Jones
                                               --------------------------------
                                               John E. Jones
                                               Its:  Executive Vice President
By  /s/ Lettie S. Flower
    --------------------------------
    Lettie S. Flower
    Its:  Assistant Secretary                              (Corporate Seal)

                                       63
<PAGE>

APPENDIX A. SPECIAL RULES RELATED TO GUARANTEED INVESTMENT CONTRACT OF EXECUTIVE
LIFE INSURANCE COMPANY OF CALIFORNIA

(1)      APPLICABILITY. This appendix supplements the Cordillera and Affiliated
         Companies 401(k) Deferred Compensation Plan (the "Plan") and provides
         the special rules applicable to amounts held in the Trust Fund and
         previously invested through Fund A (as defined by the Plan as in effect
         prior to January 1, 2001) in the guaranteed investment contract issued
         by Executive Life Insurance Company of California (the "Executive Life
         GIC"). As explained herein, this appendix is generally effective April
         1, 1991.

(2)      BACKGROUND. In April, 1991, the California State Insurance Commission
         took court-supervised conservatorship of Executive Life Insurance
         Company. The Benefits Committee, in response to this extraordinary
         event and in the exercise of its duties and responsibilities under the
         Plan, took prompt action to protect the interests of Participants and
         Beneficiaries. By way of documentation and not limitation, these
         actions are reflected in this appendix. Nothing in this appendix shall
         be construed or interpreted to limit or restrict the authority of the
         Benefits Committee to take any further action concerning the Executive
         Life GIC that it deems appropriate in the interest of Participants and
         Beneficiaries.

(3)      Action Steps. In response to the court appointment of the California
         Insurance Commission as conservator of Executive Life Insurance Company
         and to protect the interests of Participants and Beneficiaries, the
         following steps were implemented:

         (a)      All Plan transactions, including valuation of Accounts,
                  through and as of the March 31, 1991 Valuation Date were
                  completed under the terms of the Plan, without regard to
                  events subsequent to that Valuation Date.

         (b)      As of April 1, 1991, the Executive Life GIC is segregated from
                  the other assets of Fund A. No new contributions or investment
                  transfers are allocated to the segregated Executive Life GIC.

         (c)      A proportionate allocation of the Executive Life GIC
                  investment is identified for each Account invested in Fund A
                  as of April 1, 1991.

         (d)      A temporary hold is placed on each such proportionate
                  allocation in the Executive Life GIC. Until the status of the
                  Executive Life GIC under the court-supervised conservatorship
                  is resolved, the proportionate allocation shall not be:

                  (1)      transferable to other Investment Funds pursuant to
                           Article 8;

                  (2)      available for hardship withdrawals pursuant to Plan
                           section 7.5;

                                       64
<PAGE>

                  (3)      available for distribution under the Plan, including
                           distributions specified under Plan section 7.2 on
                           account of Separation from Service, Plan section 7.3
                           on account of the Participant's death or under Plan
                           section 7.4 relating to the minimum distribution
                           rules.

         (e)      As of April 1, 1991, the investment return for the
                  nonsegregated assets in Fund A does not include investment
                  results related to the Executive Life GIC.

         (f)      The Plan was amended, effective as of April 1, 1991, to
                  provide that distributions on account of Separation from
                  Service or death are valued as of the Valuation Date following
                  the Separation from Service or death or, if the distribution
                  is deferred, as of a later Valuation Date as further described
                  in Plan sections 7.2 and 7.3.

         (g)      The temporary hold described above in section 3(d) of this
                  appendix shall be lifted as follows. As Executive Life GIC
                  settlement proceeds become available to the plan in liquid
                  form following the reorganization of Executive Life pursuant
                  to its court-supervised conservatorship, the Benefits
                  Committee shall:

                  (1)      cause each affected Participant's proportionate share
                           in such proceeds to be determined based on the value
                           of the Participant's interest relative to the value
                           of the interest of all Participants in the Executive
                           Life GIC as of April 1, 1991; and

                  (2)      provide each affected Participant:

                           (A)      with an election to transfer his or her
                                    share of the available settlement proceeds
                                    to other Investment Funds in the time and
                                    manner prescribed by the Benefits Committee,
                                    and

                           (B)      if eligible, the ability to receive such
                                    settlement proceeds in the form of a
                                    hardship withdrawal, a loan, or a
                                    distribution from the Plan in accordance
                                    with applicable Plan provisions.

         The above process shall be repeated as soon as practicable after each
         occasion on which Executive Life GIC settlement proceeds become
         available to the Plan so that no liquid settlement proceeds will remain
         in the segregated Executive Life GIC that continues to be subject to
         the temporary hold described in section 3(d) of Appendix A. If a
         Participant fails to make a valid election pursuant to paragraph (2)(A)
         above, the Participant's share of available settlement proceeds shall
         be transferred to the Cash Reserves Fund (or, effective April 1, 1997,
         the Schwab money market fund). When the last payment of Executive Life
         GIC settlement proceeds has been received and processed as described
         above, Appendix A shall cease to apply.

                                       65

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