Document:

<PAGE>

                                                                    Exhibit 10.2

                         CH2M HILL EMPLOYEE STOCK PLAN
                         -----------------------------
              (as amended and restated effective January 1, 2000)

<PAGE>

                               TABLE OF CONTENTS
<TABLE>
<CAPTION>
<S>                                                                          <C>
Article 1. Name, Effective Date, Purpose and Construction....................1-1

  1.1  Plan Name.............................................................1-1
  1.2  Effective Date........................................................1-1
  1.3  Purpose and History...................................................1-1
  1.4  Construction..........................................................1-1
  1.5  Employment Relationship Not Affected..................................1-2
  1.6  Terminated Participants Not Affected..................................1-2

Article 2. Definitions.......................................................2-1

  2.1  Account...............................................................2-1
  2.2  Adjustment Factor.....................................................2-1
  2.3  Affiliated Employer...................................................2-1
  2.4  Allowable Compensation................................................2-1
  2.5  Alternate Payee.......................................................2-2
  2.6  Beneficiary...........................................................2-2
  2.7  Board.................................................................2-2
  2.8  Break in Service......................................................2-2
  2.9  Code..................................................................2-2
  2.10 Company...............................................................2-2
  2.11 Date of Hire..........................................................2-2
  2.12 Deferred Retirement Date..............................................2-2
  2.13 Determination Date....................................................2-2
  2.14 Disability............................................................2-2
  2.15 Eligible Employee.....................................................2-3
  2.16 Eligible Participant..................................................2-3
  2.17 Employee..............................................................2-3
  2.18 Employer..............................................................2-3
  2.19 Employer Stock........................................................2-3
  2.20 Entry Date............................................................2-3
  2.21 ERISA.................................................................2-3
  2.22 Fiscal Year...........................................................2-4
  2.23 Forfeiture............................................................2-4
  2.24 GATT..................................................................2-4
  2.25 General Trust Fund....................................................2-4
  2.26 Hour of Service.......................................................2-4
  2.27 Inactive Participant..................................................2-4
  2.28 Key Employee..........................................................2-5
  2.29 Leased Employee.......................................................2-5
  2.30 Member Employer.......................................................2-5
  2.31 Non-Key Employee......................................................2-5
  2.32 Normal Retirement Date................................................2-5
</TABLE>

                                       i
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  2.33 OBRA '93..............................................................2-5
  2.34 Owner.................................................................2-5
  2.35 Participant...........................................................2-6
  2.36 Plan..................................................................2-6
  2.37 Plan Administrator....................................................2-6
  2.38 Plan Compensation.....................................................2-6
  2.39 Quarter...............................................................2-6
  2.40 Qualified Domestic Relations Order....................................2-7
  2.41 REA...................................................................2-7
  2.42 Savings Plan..........................................................2-7
  2.43 SBJPA.................................................................2-7
  2.44 Service...............................................................2-7
  2.45 Spousal Consent.......................................................2-7
  2.47 TEFRA.................................................................2-7
  2.48 Testing Compensation..................................................2-7
  2.49 Top-Heavy Plan........................................................2-8
  2.50 TRA '86...............................................................2-9
  2.51 Trust.................................................................2-9
  2.52 Trust Agreement.......................................................2-9
  2.53 Trust Fund............................................................2-9
  2.54 Trustees..............................................................2-9
  2.55 USERRA................................................................2-9
  2.56 Valuation Date........................................................2-9
  2.57 List of Terms Defined Elsewhere.......................................2-9

Article 3. Eligibility, Participation and Beneficiary Designation............3-1

  3.1 Definitions............................................................3-1
  3.2 Participation..........................................................3-1
  3.3 Beneficiary Designation................................................3-1
  3.4 Change from Ineligible to Eligible Employee............................3-2
  3.5 Former Employee Rehired................................................3-2
  3.6 Trustees Determine Eligibility.........................................3-2

Article 4. Contributions.....................................................4-1

  4.1 Employer Contribution..................................................4-1
  4.2 Top-Heavy Minimum Contribution.........................................4-1
  4.3 Timing of, Limitations on, and Return of Employer Contributions........4-1

Article 5. Allocation of Contributions and Forfeitures.......................5-1

  5.1 Definitions............................................................5-1
  5.2 Allocation Methods.....................................................5-3
  5.3 Limitations on Annual Allocations......................................5-4
  5.4 Overall Limitation for Different Types of Plans........................5-4

                                      ii
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  5.5 Restoration Procedures.................................................5-5

Article 6. Vesting of Accounts

  6.1 Automatic Vesting on Retirement, Death or Disability...................6-1
  6.2 Vesting Based on Service...............................................6-1
  6.3 Forfeitures and Restorations...........................................6-1
  6.4 No Divestment..........................................................6-2
  6.5 Amendment to Vesting...................................................6-2
  6.6 Lost Participants......................................................6-2

Article 7. Participants' Account Valuation...................................7-1

  7.1 Separate Accounts......................................................7-1
  7.2 Determination of Value of Participant Accounts.........................7-1
  7.3 Valuation Dates........................................................7-1
  7.4 Special Valuation Dates................................................7-1
  7.5 Accounts to be Valued..................................................7-1
  7.6 Statement of Accounts..................................................7-1
  7.7 Valuation of Account When Payment Due..................................7-2

Article 8. Distributions and Withdrawals.....................................8-1

  8.1 General................................................................8-1
  8.2 Administrative Rules...................................................8-1
  8.3 Timing of Distributions................................................8-1
  8.4 Treatment of Deferred Amounts..........................................8-3
  8.5 Methods of Distribution................................................8-3
  8.6 Distribution Upon Death of Participant.................................8-4
  8.7 Distributions to Minors or Legally Incompetents........................8-4
  8.8 Tax Information To Be Provided.........................................8-4
  8.9 Distributions After Age 59 1/2.........................................8-4
  8.10 Direct Rollovers......................................................8-4

Article 9. Service

  9.1 General Definitions....................................................9-1
  9.2 Crediting of Hours Subject to DOL Regulation...........................9-2
  9.3 Elapsed Time Service Definitions.......................................9-2

Article 10. Fiduciary Responsibility........................................10-1

  10.1 Named Fiduciaries....................................................10-1
  10.2 Fiduciary Standards..................................................10-1
  10.3 Fiduciaries Liable for Breach of Duty................................10-1
  10.4 Fiduciary May Employ Agents..........................................10-1

                                      iii
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  10.5 Authority Outlined...................................................10-1
  10.6 Fiduciaries Not to Engage in Prohibited Transactions.................10-2
  10.7 Duties of Plan Administrator.........................................10-2

Article 11. Administration of the Plan......................................11-1

  11.1 Selection of Trustees................................................11-1
  11.2 Trustees' Operating Rules............................................11-1
  11.3 Trustees' Administrative Authority...................................11-1
  11.4 Trustees May Retain Advisors.........................................11-1
  11.5 Claims Procedure.....................................................11-1

Article 12. Investments.....................................................12-1

  12.1 Investment Authority.................................................12-1
  12.2 Trustees May Hold Necessary Cash.....................................12-1
  12.3 Appointment of Investment Manager....................................12-1

Article 13. Trustee.........................................................13-1

  13.1 Trustees' Duties With Respect to Trust Assets........................13-1
  13.2 Indicia of Ownership Must Be in the United States....................13-1
  13.3 Permissible Trustees' Actions........................................13-1
  17.8 Voting of Employer Stock.............................................13-1
  13.4 Trustees' Fees for Services and Advisors Retained....................13-2
  13.5 Annual Accounting and Asset Valuation................................13-2
  13.6 Trustee Removal or Resignation.......................................13-2
  13.7 Approval of Trustees' Accounting.....................................13-2
  13.8 Trust Not Terminated Upon Trustees' Removal or Resignation...........13-3
  13.9 Trustees May Consult With Legal Counsel..............................13-3
  13.10 Trustees Not Required to Verify Identification or Addresses.........13-3
  13.11 Individual Trustee Rules............................................13-3
  13.12 Indemnification of Trustees and Insurance...........................13-3
  13.13 Income Tax Withholding..............................................13-4

Article 14. Amendment, Termination and Merger

  14.1 Trust Is Irrevocable.................................................14-1
  14.2 Employer May Amend Trust Agreement...................................14-1
  14.3 Employer May Terminate Plan..........................................14-1
  14.4 Timing of Plan Termination...........................................14-1
  14.5 Action Required Upon Plan Termination................................14-2
  14.6 Non-Reversion of Assets..............................................14-2
  14.7 Merger or Consolidation Cannot Reduce Benefits.......................14-2

                                      iv
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Article 15. Assignments.....................................................15-1

  15.1 No Assignment........................................................15-1
  15.2 Qualified Domestic Relations Order Permitted.........................15-1

Article 16. Adoption of the Plan by Affiliated Employers....................16-1

  16.1 Purpose..............................................................16-1
  16.2 Conditions of Subscription Agreement.................................16-1
  16.3 Participation of Affiliated Employers................................16-1
  16.4 Termination of Member Employer's Participation.......................16-3

Article 17. Miscellaneous...................................................17-1

  17.1 Special Rule Relating to Veterans Reemployment Rights Under USERRA...17-1

                                       v
<PAGE>

                         CH2M HILL EMPLOYEE STOCK PLAN

              (As Amended and Restated Effective January 1, 2000)

          THIS PLAN AND TRUST AGREEMENT is made and entered into by and between
CH2M HILL COMPANIES, LTD. (Employer) and FRED K. BERRY, SAMUEL H. IAPALUCCI,
SHARON SCHLECHTER, CLIFF THOMPSON, and STAN VINSON (Trustees).

                                   Article 1.

                 Name, Effective Date, Purpose and Construction

     1.1  Plan Name.  The Plan set forth in this Agreement shall be designated
          ---------
as the CH2M HILL EMPLOYEE STOCK PLAN.

     1.2  Effective Date.

          (a)  In General.  The Effective Date of this amended and restated Plan
               ----------
and Trust Agreement shall be January 1, 2000.

          (b)  Specific Articles.  Notwithstanding the above, certain Articles
               -----------------
within this Plan and Trust are effective as of the dates specified within those
Articles.

     1.3  Purpose and History.
          -------------------

          (a)  Purpose.  The Plan and Trust are intended to qualify as a Profit
               -------
Sharing Plan under Code Sections 401(a) and 501(a) and are created and
maintained for the exclusive benefit of Eligible Employees of the Employer and
their Beneficiaries to enable them to share in Employer profits, to provide
Eligible Employees with a means to accumulate retirement savings, to provide
retirement funds, and to provide benefits in the event of the death or
Disability of the Employee.

          (b)  History.  The original Plan and Trust Agreement was adopted as an
               -------
Employee Stock Ownership Plan effective January 1, 1977, and was subsequently
amended and restated effective in 1983 to convert it to a profit sharing plan
authorized to invest entirely in Employer Stock. The Plan and Trust Agreement
was restated effective January 1, 1989, and again effective January 1, 1996.

          (c)  Purposes of Restatement.  The principal purposes of this
               -----------------------
amendment and restatement are to recognize the limited trading market for
Employer Stock and to amend the Plan and Trust Agreement to comply with SBJPA,
GATT and USERRA.

     1.4  Construction.  The following miscellaneous provisions shall apply in
          ------------
the construction of this Trust Agreement:

          (a)  State Jurisdiction.  All matters respecting the validity, effect,
               ------------------
interpretation and administration of this Plan shall be determined in accordance
with the

                                      1-1
<PAGE>

laws of the State of Colorado except where preempted by ERISA or other federal
statutes.

         (b)  Gender.  Wherever appropriate, words used in the singular may
              ------
include the plural or the plural may be read as the singular, the masculine may
include the feminine, and the neuter may include both the masculine and the
feminine.

         (c)  Application of ERISA and Code References. All references to
              ----------------------------------------
sections of ERISA or the Code, or any regulations or rulings thereunder, shall
be deemed to refer to such sections as they may subsequently be modified,
amended, replaced or amplified by any federal statutes, regulations or rulings
of similar application and import enacted by the Government of the United States
or any duly authorized agency of the Government.

         (d)  Enforceable Provisions Remain Effective.  If any provision of this
              ---------------------------------------
Plan and Trust shall be held by a court of competent jurisdiction to be invalid
or unenforceable, the remaining provisions of the Plan shall continue to be
fully effective.

         (e)  Headings.  Headings are inserted for reference only and constitute
              --------
no part of the construction of this Agreement.

    1.5  Employment Relationship Not Affected.  Nothing in the Plan or Trust
         ------------------------------------
shall be deemed a contract between the Employer and any Employee, nor shall the
rights or obligations of the Employer or any Employee to continue or terminate
employment at any time be affected hereby.

    1.6  Terminated Participants Not Affected.  Notwithstanding anything to the
         ------------------------------------
contrary herein, the rights and remedies, if any, of any person hereunder shall
be determined as of the date his participation ceased or the date he ceased to
be an Eligible Employee, whichever occurs first, and shall be based on the terms
and conditions of the Plan in effect on such date, without regard to any changes
made by Articles which have specific effective dates subsequent to such date.

                    *  *  *  *  End of Article 1  *  *  *  *

                                      1-2
<PAGE>

                                   Article 2.

                                  Definitions

          Definitions.  Terms which are used only in a single Article (beginning
          ------------
with Article 3) are generally defined at the beginning of that Article.  Article
2.57 lists the terms so defined.  The following words and phrases are used
throughout this Trust Agreement and are defined below:

    2.1  "Account" means the aggregate of all records maintained by the Trustees
          -------
for purposes of determining a Participant's or Beneficiary's interest in the
Trust Fund and shall be adjusted by all amounts properly credited or debited to
such Account.

    2.2  "Adjustment Factor" means the cost of living factor prescribed by the
          -----------------
Secretary of the Treasury under Code Section 415(d) for years beginning after
December 31, 1987, as applied to such items and in such manner as the Secretary
shall provide.  For purposes of the OBRA '93 annual compensation limit under
Code Section 401(a)(17), the Adjustment Factor shall be applied as provided in
Code Section 401(a)(17)(B) for calendar years after 1994.

    2.3  "Affiliated Employer" means any corporation which is a member of a
          -------------------
controlled group of corporations (as defined in Code Section 414(b)) which
includes the Employer, any trade or business (whether or not incorporated) which
is under common control (as defined in Code Section 414(c)) with the Employer,
any organization (whether or not incorporated) which is a member of an
affiliated service group (as defined in Code Section 414(m)) which includes the
Employer, and any other entity required to be aggregated with the Employer
pursuant to regulations under Code Section 414(o).

    2.4  "Allowable Compensation" for purposes of determining the Top-Heavy
          ----------------------
minimum contributions, and for purposes of determining the limitations on
allocations pursuant to Article 5.3, means the total of all wages, salaries,
fees for professional services and other amounts paid by the Employer or an
Affiliated Employer during a Limitation Year to a Participant for services
actually rendered in the course of employment including (but not limited to)
bonuses, overtime, commissions and incentive compensation, but excluding
severance pay and amounts which are contributed to a retirement plan, deferred
compensation plan or other plan and which are not included as taxable income for
such year, or amounts which are not deemed to be income for current services
rendered such as amounts realized from the sale, exercise or exchange of
Employer Stock or stock options.

          Notwithstanding the foregoing, amounts earned in the Limitation Year
but paid during the first few weeks of the next year because of the timing of
pay periods and pay days may be included on a uniform and consistent basis in
the Allowable Compensation of all similarly situated Participants for the
Limitation Year.  In addition, for Limitation Years beginning before December
31, 1991, the requirement that the

                                      2-1
<PAGE>

amounts earned in a Limitation Year be paid in the first few weeks of the next
year shall not apply.

          Notwithstanding the foregoing, the amount determined above shall be
reduced by any amounts paid or reimbursed by the Employer and/or Affiliated
Employer for moving expenses incurred by the Participant, but only to the extent
that it is reasonable to believe that such expenses are deductible by the
Participant under Code Section 217.

          Notwithstanding the foregoing, for Fiscal Years beginning on or after
January 1, 1998, Allowable Compensation shall include any elective deferral (as
defined in Section 402(g)(3) of the Code) and any amount which is contributed or
deferred by the Employer at the election of the Employee which is not includible
in the gross income of the Employee by reason of Section 125 or 457 of the Code.

    2.5  "Alternate Payee" means any spouse, former spouse, child or other
          ---------------
dependent of a Participant recognized by a Qualified Domestic Relations Order as
having a right to receive all, or a portion of, a Participant's benefits under
the Plan.

    2.6  "Beneficiary" means any person designated by a Participant to receive
          -----------
benefits upon the death of such Participant, subject to the provisions of
Article 3.3.

    2.7  "Board" means the Board of Directors of the Company.
          -----

    2.8  "Break in Service" for purposes of applying the provisions of Article 6
          ----------------
for vesting credit applicable to a Participant's Account is defined in Article
9.3.

    2.9  "Code" means the Internal Revenue Code of 1986, as amended (and
          ----
regulations issued thereunder).

    2.10 "Company" means CH2M HILL COMPANIES, LTD.
          -------

    2.11  "Date of Hire" means the date on which an Employee first performs an
           ------------
Hour of Service for the Employer.

    2.12  "Deferred Retirement Date" means the date of actual retirement from
           ------------------------
the Employer by a Participant who remains in the employ of the Employer after
attaining his Normal Retirement Date.

    2.13  "Determination Date" means, with respect to any Fiscal Year, the last
           ------------------
day of the preceding Fiscal Year.

    2.14  "Disability" means the permanent incapacity of a Participant, by
           ----------
reason of physical or mental illness, to perform his usual duties for the
Employer, resulting in termination of his service with the Employer. Disability
shall be determined by the Trustees in a uniform and nondiscriminatory manner
after consideration of such

                                      2-2
<PAGE>

evidence as it may require, which shall include a report of such physician or
physicians as it may designate.

     2.15  "Eligible Employee" has the meaning set forth in Article 3.1.
            -----------------

     2.16  "Eligible Participant " means:
            --------------------

           (a)  For purposes of Employer contributions under Article 4.1:

                (i)   an Eligible Employee who completed at least 1,000 Hours of
Service in the Fiscal Year and who is an Employee and a Participant on the last
day of the Fiscal Year;

                (ii)  a Participant who was an Eligible Employee who terminated
employment during the Fiscal Year due to death or Disability, or after reaching
his Normal Retirement Date or after attaining age 55 and completing five Years
of Service; or

                (iii) a Participant who terminated employment and was rehired
during the Fiscal Year and who remained employed until the end of the Fiscal
Year at an annual rate of 1,000 Hours of Service or more.

           (b)  In the event the Plan does not otherwise meet the coverage
requirements of Code Section 410(b) for a Fiscal Year, and to the extent the
Trustees determine it necessary to meet such requirements, each other Eligible
Employee who:

                (i)  Is a Participant at any time during the year, and/or

                (ii) Completed a number of Hours of Service (as determined by
the Trustees) during the Fiscal Year, which is less than 1,000.

     2.17  "Employee " means any person in the Service of the Employer including
            --------
officers, but excluding directors who are not in the Employer's employ in any
other capacity and Leased Employees.  Sub-categories of "Employee" are defined
alphabetically in Article 2.

     2.18  "Employer" means the Company, and such of its successors or assigns
            --------
as may expressly adopt this Plan and Trust Agreement and agree in writing to
continue this Plan and Trust.

     2.19  "Employer Stock" means shares of any classes of preferred or common,
            --------------
voting or nonvoting, stock issued by the Employer.

     2.20  "Entry Date" means the first day of any month.
            ----------

     2.21  "ERISA" means the Employee Retirement Income Security Act of 1974 and
            -----
regulations issued thereunder.

                                      2-3
<PAGE>

       2.22  "Fiscal Year" means the accounting year of the Plan and Trust,
              -----------
which is the 12-consecutive month period ending December 31.

       2.23  "Forfeiture" is described in Article 6.4(a).
              ----------

       2.24  "GATT" means the Uruguay Round Agreements Act, implementing
              ----
Agreements under the General Agreement on Tariffs and Trade.

       2.25  "General Trust Fund" means that portion of the Trust Fund other
              ------------------
than property and income held as or for segregated Accounts or under separate
investment funds under the provisions of this Trust Agreement.

       2.26  "Hour of Service" has the meaning set forth in Article 9.1(b).
              ---------------

       2.27  "Inactive Participant" means a Participant who remains an Employee,
              --------------------
but who ceases to be an Eligible Employee because of a change in employment
status. Accounts of Inactive Participants shall share in allocations of
contributions and Forfeitures to the extent provided in Article 5, and such
Accounts shall continue to be adjusted by other amounts properly credited or
debited to such Accounts pursuant to Article 7.

       2.28  "Key Employee" means, with respect to a Fiscal Year, any Employee
              ------------
or former Employee (including any deceased Employee) who at any time during the
"testing period", consisting of the Fiscal Year containing the Determination
Date and the four preceding Fiscal Years, is or was:

             (a)  Officer.  An officer of the Employer, or an Employee with the
                  -------
authority of an officer, with Testing Compensation of more than 50% of the
applicable dollar limit under Code Section 415(b)(1)(A) for the applicable
Fiscal Year. However, no more than 50 Employees shall be treated as officers. In
addition, such Employees who meet the requirements of this paragraph and who had
the largest annual Testing Compensation from the Employer in any Fiscal Year
during the "testing period" shall first be counted as officers, without regard
to whether they are Key Employees for any other reason; or

             (b)  Owner.
                  -----

                  (i)   A 5% owner; or

                  (ii)  A 1% owner with annual Testing Compensation from the
Employer for the applicable Fiscal Year of more than $150,000;

                  (iii) A  1/2% owner who (1) is one of the 10 Employees who
have the largest ownership interest in the Employer, (2) has annual Testing
Compensation from the Employer which is greater than the dollar limitation under
Code Section 415(c)(1)(A) for the applicable Fiscal Year, and (3) does not meet
the criteria in (i) or

                                      2-4
<PAGE>

(ii).  For purposes of this (iii), if two Employees have the same ownership
interest in the Employer during the "testing period", then the Employee with the
greater annual Testing Compensation from the Employer for the Fiscal Year during
which the ownership interest existed shall be considered to have a larger
ownership interest in the Employer.

       (c)  Beneficiary.  A Beneficiary of a deceased Key Employee shall be
            -----------
considered to be a Key Employee, and a Beneficiary of a deceased Non-Key
Employee shall be considered a Non-Key Employee. Notwithstanding the above, the
Trustees shall be guided by the Code in determining Key Employees for any Fiscal
Year and shall maintain records adequate to determine Key Employees for any
Fiscal Year.

      2.29 "Leased Employee", for Fiscal Years beginning before January 1, 1997,
            ---------------
means any individual who would not otherwise be considered an Employee but who
has provided services to the Employer of a type historically performed by
employees in the Employer's field of business, pursuant to an agreement between
the Employer and any other entity, on a substantially full-time basis for a
period of at least one year.

          For Fiscal Years beginning on or after January 1, 1997, the term
"Leased Employee" means any person (other than an employee of the recipient) who
pursuant to an agreement between the recipient and any other person has
performed services for the recipient (or for the recipient and related persons
determined in accordance with Section 414(n)(6) of the Code) on a substantially
full time basis for a period of at least one (1) year and such services are
performed under the primary direction or control of the recipient.

          However, Leased Employees will not be considered Employees if they
constitute less than 20% of the Employer's Non-Highly Compensated Employees as
defined in Code section 414(q) and if they are covered by a plan described in
Code Section 414(n)(5).

      2.30  "Member Employer" shall mean the Employer and any Affiliated
             ---------------
Employer who adopts this Plan and Trust Agreement.

      2.31  "Non-Key Employee" means any Employee who is not a Key Employee,
             ----------------
including Employees who are former Key Employees.

      2.32  "Normal Retirement Date" means the date of a Participant's 65th
             ----------------------
birthday.

      2.33  "OBRA '93'" means the Omnibus Budget Reconciliation Act of 1993.
             --------

      2.34  "Owner" means any person who owns (within the meaning of Code
             -----
Sections 318 and 416(i)(1)(B)), or has owned within the four Fiscal Years prior
to the Fiscal Year under consideration, a portion of the outstanding stock or
voting power of the Employer. The ownership percentage of a "5%" Owner means
greater than a 5%

                                      2-5
<PAGE>

interest, that of a "1%" Owner means greater than a 1% interest and that of a
"1/2%" Owner means greater than a 1/2% interest.

       2.35  "Participant" means any Employee or former Employee who has entered
              -----------
the Plan in accordance with Article 3, and whose Account, if any, hereunder has
not subsequently been liquidated.

       2.36  "Plan" means the Plan created by this Agreement.
              ----

       2.37  "Plan Administrator" means the Trustees.
              ------------------

       2.38  "Plan Compensation" shall equal an Employee's basic hourly rate of
              -----------------
pay on the last day of the year, times the lesser of:

               (i)  the number of regular work hours for such year after his
Entry Date, or

               (ii) the number of Hours of Service for which he was paid during
such year while he was a Participant and an Eligible Employee.

             For an Employee who transfers to another Member Employer and is
still an Employee on the last day of the Fiscal Year, Plan Compensation with the
first Member Employer shall be calculated through his transfer date based on the
rate of pay on his transfer date.

             Periods of Disability during which the Participant is eligible to
receive Disability benefits under a plan maintained by the Employer or
Affiliated Employer, or would have been eligible if covered by such plan, and
periods of unpaid leave of absence shall be excluded in determining the
multiplier in (i) and (ii) above.

             Notwithstanding the above, Plan Compensation shall not exceed
$200,000, multiplied by the Adjustment Factor. For Fiscal Years beginning on or
after January 1, 1994, Plan Compensation shall not exceed the OBRA '93 annual
compensation limit of $150,000, multiplied by the Adjustment Factor.

             The total of the Plan Compensation received by (1) a Highly
Compensated Employee (as defined in Section 414(q) of the Code) who is one of
the 10 most Highly Compensated Employees, and/or a 5% Owner, (2) his spouse, and
(3) his lineal descendants who have not attained the age of 19 by the end of the
Fiscal Year, shall not exceed $200,000 ($150,000 for Fiscal Years beginning on
or after January 1, 1994) multiplied by the Adjustment Factor.  For Fiscal Years
beginning on or after January 1, 1997, the limitations of this paragraph shall
be applied without regard to sections (2) and (3) of this paragraph.

       2.39  "Quarter" means a calendar year quarter ending on March 31, June
              -------
30, September 30 or December 31.

                                      2-6
<PAGE>

       2.40  "Qualified Domestic Relations Order" ("QDRO") has the meaning set
              ----------------------------------
forth in Code Section 414(p).

       2.41  "REA" means the Retirement Equity Act of 1984.
              ---

       2.42  "Savings Plan" means the CH2M Hill Retirement and Tax-Deferred
              ------------
Savings Plan.

       2.43  "SBJPA" means Small Business Job Protection Act of 1996.
              -----

       2.44  "Service" has the meaning set forth in Article 9.1.
              -------

       2.45  "Spousal Consent" means the revocable written consent of the
              ---------------
Participant's spouse to an action taken by the Participant hereunder which
requires such consent under the terms of the Plan; provided that:

                   (i)   Such consent shall acknowledge the Beneficiary
designated by the Participant and the effect of such consent;

                   (ii)  Any change in the designated Beneficiary, other than to
make the spouse the Beneficiary of 100% of the Participant's vested Account,
shall require a new spousal consent;

                   (iii) Such consent shall be effective only with respect to
that spouse;

                   (iv)  Such consent shall be witnessed by a notary public; and

                   (v)   Such written consent shall not be required if it is
established to the satisfaction of a Plan representative that such consent
cannot be obtained because (1) there is no spouse or, (2) the spouse cannot be
located, or (3) such other circumstances exist as may be prescribed by
applicable regulations.

       2.46  [Reserved]

       2.47  "TEFRA" means the Tax Equity and Fiscal Responsibility Act of
              -----
1982.

       2.48  "Testing Compensation" for purposes of determining (1) whether an
              --------------------
Employee is a Key Employee, and (2) whether an Employee is a Highly Compensated
Employee means Allowable Compensation, except that amounts contributed by the
Employer pursuant to a salary reduction agreement which are not includible in
the Employee's income under Code Section 125, 402(e)(3), 402(h) or 403(b) shall
be included.

             Testing Compensation shall not exceed $200,000, multiplied by the
Adjustment Factor.  For Fiscal Years beginning on or after January 1, 1994,
Testing

                                      2-7
<PAGE>

Compensation shall not exceed the OBRA '93 limit of $150,000, multiplied
by the Adjustment Factor.

                The total of the Testing Compensation received by (1) a Highly
Compensated Employee in a group consisting of the 10 most Highly Compensated
Employees and/or a 5% Owner and (2) his spouse, and (3) his lineal descendants
who have not attained the age of 19 by the end of the Fiscal Year, shall not
exceed $200,000 ($150,000 for Fiscal Years beginning on or after January 1,
1994), multiplied by the Adjustment Factor. For Fiscal Years beginning on or
after January 1, 1997, the limitations of this paragraph shall be applied
without regard to sections (2) and (3) of this paragraph.

          2.49  "Top-Heavy Plan" means the Plan during each Fiscal Year in which
                 --------------
the aggregate value of the Accounts of Key Employees exceeds 60% of the
aggregate value of all Accounts under the Plan as of the Determination Date for
such Fiscal Year. For purposes of determining the value of Employees' Accounts
in the Plan, the following shall be excluded: (1) rollover contributions from a
non-related employer; (2) the Accounts of Participants who have not performed
any services for the Employer within the five year period ending on the
Determination Date; and (3) the Account of any individual who was a Key Employee
with respect to the Plan for any prior Fiscal Year but is not a Key Employee
with respect to the Plan for the applicable Fiscal Year. For purposes of
determining the aggregate value of Accounts and/or accrued benefits under this
Article, distributions made within a 5 year period ending on the Determination
Date shall be included to the extent required by applicable law and regulation.

          (a)  Required Aggregation to Determine Top-Heaviness.  If a Key
               -----------------------------------------------
Employee is a Participant in this Plan for any Fiscal Year and the Employer
maintains or has maintained any other plans (including terminated plans), (1) in
which a Key Employee is or was a participant within the 5 year period ending on
the Determination Date, or (2) which must be combined with this Plan in order to
meet the requirements of Code Sections 401(a)(4) or 410(b) for any Fiscal Year,
then this Plan's top-heaviness shall be determined for such Fiscal Year by
aggregating the Accounts and/or present value of accrued benefits of
participants in this Plan and all other such plans.

          (b)  Permissive Aggregation to Determine Top-Heaviness. If the
               -------------------------------------------------
Employer maintains or has maintained any plans (including terminated plans)
other than one described in (a) above, the Trustees may aggregate the accounts
and/or present value of accrued benefits of participants in any such plan with
those of this Plan to determine whether this Plan is a Top-Heavy Plan for any
Fiscal Year, provided that the requirements of Code Sections 401(a)(4) and
410(b) would continue to be met by treating this Plan, any plan that must be
aggregated with the Plan under (a) above and any other plan referred to in this
sentence as one unit.

                                      2-8
<PAGE>

          In determining top-heaviness and the aggregate value of Accounts
and/or accrued benefits under this Article, the Trustees shall be guided by the
provisions of the Code, including but not limited to Code Section 416(g)(3)(B).

       2.50 "TRA '86" means the Tax Reform Act of 1986.
             ------

       2.51 "Trust" means the legal entity created by this Trust Agreement as
             -----
part of the Plan.

       2.52 "Trust Agreement" means this Agreement.
             ---------------

       2.53 "Trust Fund" means all property and income held by the Trustees
             ----------
under the Trust Agreement.

       2.54 "Trustees" means FRED K. BERRY, SAMUEL H. IAPALUCCI, SHARON
             --------
SCHLECHTER, CLIFF THOMPSON, and STAN VINSON, and any duly appointed successor,
as provided in Article 11.1.

       2.55 "USERRA" means Uniformed Services Employment and Reemployment Rights
             ------
Act of 1994.

       2.56 "Valuation Date" means the last day of the Fiscal Year and such
             --------------
other date(s) as may be designated by the Trustees as provided in Article 7.

       2.57 List of Terms Defined Elsewhere:                             Article
            --------------------------------                             -------
            (a) "Annual Addition"                                        5.1
            (b) "Annual Amount"                                          5.1
            (c) "Annual Benefit"                                         5.1
            (d) "Defined Benefit Fraction"                               5.1
            (e) "Defined Contribution Fraction"                          5.1
            (f) "Dollar Limitation"                                      5.1
            (g) "Eligibility Computation Fraction"                       5.1
            (h) "Eligible Employee"                                      3.1
            (i) "Limitation Account"                                     5.1
            (j) "Limitation Year"                                        5.1
            (k) "Percentage Limitation"                                  5.1
            (l) "Projected Annual Benefits"                              5.1
            (m) "Social Security Normal Retirement Age"                  5.1
            (n) "Super Top-Heavy"                                        5.1
            (o) "Transition Amount"                                      5.1

                    *  *  *  *  End of Article 2  *  *  *  *

                                      2-9
<PAGE>

                                  Article 3.

            Eligibility, Participation and Beneficiary Designation

     3.1  Definitions.
          ------------

     (a)  "Eligible Employee" means any Employee, excluding an Employee who is
           -----------------
classified by the Employer as a temporary employee, or an Employee whose
compensation and conditions of employment are established by the terms of a
collective bargaining agreement to which the Employer is a party and which does
not specifically provide for coverage of such Employee under the Plan.

          (i)  "Eligibility Computation Period" means the 12 consecutive month
               -------------------------------
period beginning with the Employee's Date of Hire, and each Fiscal Year starting
after the Employee's Date of Hire.

     3.2  Participation.
          --------------

          (a)  Continuing Plan Participation. Each individual who was an
               ------------------------------
Eligible Employee and a Participant in the Plan immediately preceding the
effective date of this amendment and restatement shall continue to be a
Participant on such effective date.

               (i)  Plan Entry. Each other Eligible Employee shall become a
                    -----------
Participant in the Plan on the Entry Date coinciding with or next following the
last day of the Eligibility Computation Period in which he completes 1,000 Hours
of Service.

     3.3  Beneficiary Designation.
          ------------------------

          (a)  Designation Procedure. Each Eligible Employee, upon becoming a
               ----------------------
Participant, shall designate a Beneficiary or Beneficiaries to receive benefits
under the Plan after his death. A Participant may change his Beneficiary
designation at any time. Each Beneficiary designation shall be in a form
prescribed by the Trustees and will be effective only when filed with the
Trustees during the Participant's lifetime. Each Beneficiary designation filed
with the Trustees will cancel all previously filed Beneficiary designations.

          (b)  Spousal Consent. In the event that a married Participant wishes
               ----------------
to designate a Beneficiary other than his spouse for any portion of his vested
Account, such designation shall include Spousal Consent.

          (c)  Lack of Designation. In the absence of a valid designation by an
               --------------------
unmarried Participant or if no designated Beneficiary survives an unmarried
Participant, his interest shall be distributed to his estate. In the absence of
a valid designation by a married Participant or if no designated Beneficiary
survives a married Participant, his

                                      3-1
<PAGE>

interest shall be distributed to his surviving spouse, or if there is no
surviving spouse, then to his estate.

     3.4  Change from Ineligible to Eligible Employee. An Employee who is
          --------------------------------------------
excluded under Article 3.1 for any period shall be eligible to participate on
the first date he is no longer excluded, provided that the requirements of
Article 3.2 have been satisfied, but not earlier than the Entry Date on which he
would have entered the Plan had he not been excluded under Article 3.1.

     3.5  Former Employee Rehired. A former Employee who had completed the
          ------------------------
eligibility requirements of Article 3.2 with the Employer and who is reemployed
by the Employer shall become a Participant as of the date of reemployment as an
Eligible Employee, but not earlier than the Entry Date on which he would have
entered the Plan had his employment not terminated.

     3.6  Trustees Determine Eligibility.  Compliance with the eligibility
          -------------------------------
requirements shall be determined by the Trustees in their capacity as Plan
Administrator.

                   *  *  *  *  End of Article 3  *  *  *  *

                                      3-2
<PAGE>
                                  Article 4.

                                 Contributions

     4.1  Employer Contribution. As of the last day of each Fiscal Year, a
          ----------------------
Member Employer may make a contribution to the Trust for its own Employees in
such amount, if any, as is determined by the Member Employer. These
contributions will be allocated to such Member Employer's Participants' Accounts
as provided in Article 5.2.

     4.2  Top-Heavy Minimum Contribution. For any Fiscal Year during which the
Plan is a Top-Heavy Plan, the top-heavy minimum contribution shall be made in
the Savings Plan.

     4.3  Timing of, Limitations on, and Return of Employer Contributions.
          ----------------------------------------------------------------

          (a)  Amount and Timing of Contributions. Member Employer contributions
               -----------------------------------
shall not exceed an amount which is estimated to constitute the maximum
allowable deduction under Code Section 404(a). Member Employer contributions
shall be paid to the Trustee on or prior to the last day for filing the Member
Employer's federal income tax return for such year, including any extensions of
time granted for such filing. Contributions shall be made in cash or in Employer
Stock.

          (b)  Return of Employer Contributions. If an amount is contributed by
               ---------------------------------
a Member Employer due to a mistake of fact, the Member Employer shall be
entitled to recover such amount within one year of the date such contribution is
made. Unless otherwise provided in a resolution of the Board, any amounts
contributed by a Member Employer which are disallowed as a deduction under Code
Section 404 shall be returned to the Member Employer within one year of the date
such deduction is disallowed. Trust income attributable to the amount to be
recovered shall not be paid to the Member Employer, but Trust loss attributable
thereto shall reduce such amount.

                   *  *  *  *  End of Article 4  *  *  *  *

                                      4-1
<PAGE>
                                  Article 5.

                  Allocation of Contributions and Forfeitures

     5.1  Definitions.
          ------------

          (a)  "Annual Addition" means the sum for the Limitation Year to which
               ----------------
the allocation pertains (whether or not allocated in such year) of all Member
Employer and Employee contributions and Forfeitures allocated for such year to
the Participant's Account in this Plan and any other defined contribution plan
maintained by the Employer and an Affiliated Employer.

          (b)  "Annual Amount" means the lesser of 35% (1.4 x 25%) of the
               --------------
Participant's Allowable Compensation (as defined in Article 2) for such
Limitation Year or $37,500 (125% of $30,000) (or such other amount as may be
established for such Limitation Year under Code Section 415(d) for any
Limitation Year).

          (c)  "Annual Benefit" means the sum of all annual benefits payable in
               ---------------
the form of a single life annuity from all defined benefit plans (whether or not
terminated) maintained by a Member Employer. Benefits payable in any other form,
except a qualified joint and survivor annuity as defined in Code Section 417(b),
shall be adjusted to the actuarial equivalent of a single life annuity beginning
at the same age. The Annual Benefit shall not be adjusted for any pre-retirement
death or disability benefits provided.

          (d)  "Defined Benefit Fraction" means the fraction in which the:
               -------------------------

               (i)  Numerator equals the Participant's Projected Annual Benefit
in the defined benefit plan determined as of the close of the Limitation Year,
and

               (ii) Denominator equals the lesser of 140% of the Percentage
Limitation or 125% of the Dollar Limitation.

          (e)  "Defined Contribution Fraction" means the fraction in which the:
               ------------------------------

               (i)  Numerator equals the sum of a Participant's Annual Additions
for each Limitation Year to date from all defined contribution plans (whether or
not terminated) maintained by a Member Employer, less any Transition Amounts,
and

               (ii) Denominator equals the sum of the Annual Amounts for each
Limitation Year included in the Participant's Service, plus any Transition
Amounts.

          (f)  "Dollar Limitation" means the adjusted value of $90,000 (or such
               ------------------
other amount as may be in effect on the last day of the Limitation Year pursuant
to Code Section 415(d)) based on the age of the Participant when the benefit
begins as follows:

                                      5-1
<PAGE>

<TABLE>
<CAPTION>
Age                                                       Limitation Adjustment Under the Defined Benefit Plan
---                                                       ----------------------------------------------------
<S>                                                       <C>
Over the Social Security Normal Retirement Age            limitation is actuarially increased based on the
                                                          mortality table used for actuarial equivalence in the
                                                          Plan and 5% interest, but not more than the actuarial
                                                          increase (if any) specified in the Defined Benefit Plan

Social Security Normal Retirement Age                     no adjustment

Age 62 and over but below Social Security Normal          limitation is reduced by 5/9% for each of the first 36
Retirement Age                                            months and by 5/12% for each of the next 24 months that
                                                          the age precedes Social Security Normal Retirement Age

Under 62                                                  the lesser of:

                                                          (i)   actuarial equivalent of limitation for age 62,
                                                                based on the mortality table used for actuarial
                                                                equivalence in the Plan and 5% interest, and

                                                          (ii)  the limitation at age 62 multiplied by the ratio
                                                                of the Plan's early retirement factor at age of
                                                                commencement to the Plan's early retirement factor at
                                                                age 62
</TABLE>

If a Participant has completed less than ten years of Service in the Defined
Benefit Plan, the Dollar Limitation shall be adjusted by multiplying such
limitation by a fraction, the numerator of which is the Participant's number of
years (or part thereof) of Service not to exceed ten, and the denominator of
which is ten.

          (g)  "Limitation Account" means an account expressly set up and
               -------------------
maintained to hold Excess Annual Addition amounts contributed in error pursuant
to Article 5.3(b).

          (h)  "Limitation Year" means the Fiscal Year.
               ----------------

          (i)  "Percentage Limitation" means 100% of the average of Allowable
               ----------------------
Compensation (as defined in Article 2) paid or accrued over the three (or the
Participant's actual number of years of Service, if fewer) consecutive
Limitation Years included in the Participant's Service which produce the highest
average. If a Participant has completed less than ten years of Service with a
Member Employer, this limitation shall be adjusted by multiplying such amounts
by a fraction, the numerator of which is the Participant's number of years of
Service (or part thereof), and the denominator of which is ten. In no event
shall the reduction for less than 10 years of Service reduce this limitation to
an amount less than one-tenth of the applicable limitation (as determined
without regard to this paragraph).

                                      5-2
<PAGE>

          (j)  "Projected Annual Benefit" means the Annual Benefit that a
               -------------------------
Participant in a defined benefit plan would be entitled to under the terms of
that plan based on the following assumptions:

               (i)   The Participant will continue employment until normal
retirement age (or his current age, if later) under the terms of that plan;

               (ii)  The Participant's compensation for the applicable
limitation year will remain the same until his normal retirement age under (i)
above; and

               (iii) All other relevant factors used to determine benefits under
that plan for the applicable limitation year will remain constant for all future
limitation years.

          (k)  "Social Security Normal Retirement Age" means the age when
unreduced old-age benefits are available from Social Security (as adjusted
pursuant to Code (S) 415(b)(8)), rounded to the next higher year, according to
the following table:

                 Year of Birth                Social Security
                 -------------             Normal Retirement Age
                                           ---------------------
          1937 and Before                          65
          1938-1954                                66
          1955 and After                           67

          (l)  "Super Top-Heavy" means a Plan which is Top-Heavy after
               ----------------
substituting 90% for 60% in the definition for Top-Heavy in Article 2.

          (m)  "Transition Amount" means an amount which is permanently
               ------------------
subtracted from the numerator or added to the denominator of the Defined
Contribution Fraction pursuant to transition rules related to the amendments of
Code Section 415.

     5.2  Allocation Methods.
          -------------------

          (a)  Top-Heavy Minimum and Restoration Contributions. Top-Heavy
               ------------------------------------------------
Minimum and Restoration Contributions are allocated as provided in Article 4 and
Article 6.

          (b)  Contribution Allocation. Member Employer contributions and
               ------------------------
Forfeitures, and amounts in Limitation Accounts attributable to Member Employer
Accounts for any Fiscal Year shall be allocated as of the last day of such
Fiscal Year to the Accounts of all Eligible Participants of the Member Employer
in the ratio that each such Eligible Participant's Plan Compensation from such
Member Employer during the Fiscal Year bears to the aggregate Plan Compensation
of all Eligible Participants of the Member Employer for the Fiscal Year.

                                      5-3
<PAGE>

     5.3  Limitations on Annual Allocations.
          ----------------------------------

          (a)  Limitation Amount.
               ------------------

               (i)  Notwithstanding any other provision of this Plan to the
contrary, for Fiscal Years beginning before January 1, 1995, the Annual Addition
to a Participant's Account for any Limitation Year shall not exceed the lesser
of 25% of the Employee's Allowable Compensation or $30,000 (or, if greater, 1/4
of the dollar limitation in effect under Code Section 415(b)(1)(A)), or such
other amount for the Limitation Year as may be established by regulations under
Code Section 415(d).

               (ii) Notwithstanding any other provision of this Plan to the
contrary, for Fiscal Years beginning on or after January 1, 1995, the Annual
Addition to a Participant's Account for any Limitation Year shall not exceed the
lesser of 25% of the Employee's Allowable Compensation or $30,000, or such other
amount for the Limitation Year as may be established by regulations under Code
Section 415(d).

          (b)  Treatment of Excess Annual Addition Made in Error. In the event
               --------------------------------------------------
that (as a result of the allocation of Forfeitures, a reasonable error in
estimating a Participant's compensation, a reasonable error in determining the
amount of elective deferrals or other limited facts and circumstances which the
Internal Revenue Service finds to be applicable) an amount would otherwise be
allocated which would result in the Annual Addition limitation being exceeded
with respect to any Participant, the excess amount shall be eliminated:

               (i)  First, by applying the corrective measures in Article 5.3 of
the Savings Plan;

               (ii) Second, by holding any remaining excess amounts in a
Limitation Account. Any amounts in the Limitation Accounts shall be reallocated
among the appropriate Accounts of Eligible Participants pursuant to Article 5.2
as of the last day of each succeeding Fiscal Year until the excess is exhausted,
provided that the Annual Addition limitation with respect to any Participant may
not be exceeded in any Limitation Year. No allocation of contributions may be
credited to the Accounts of Eligible Participants in succeeding years until such
excess has been exhausted.

     5.4  Overall Limitation for Different Types of Plans.

          (a)  General Limitation. For Limitation Years beginning before January
               -------------------
1, 2000, if a Participant in this Plan is also a Participant in a qualified
defined benefit pension plan maintained by the Employer or an Affiliated
Employer (or was at any time a Participant in such a defined benefit pension
plan maintained by the Employer or an Affiliated Employer which has since been
terminated), the sum of the Defined Contribution Fraction and the Defined
Benefit Fraction for any Limitation Year shall not exceed 1.0. If a restriction
on contributions or benefits is required for any Employee, such restriction will
first be applied to the Retirement and Tax-Deferred Savings Plan.

                                      5-4
<PAGE>

For Limitation Years beginning on or after January 1, 2000, the limitation set
forth in this Article 5.4(a) shall no longer apply.

          (b)  Super Top-Heavy Limitation. For Limitation Years beginning before
               ---------------------------
January 1, 2000, for each Fiscal Year in which the Plan is Super Top-Heavy or if
the Plan is Top-Heavy and the minimum contribution under Article 5.2(d) is less
than 7.5%, 100% shall be substituted for 125% wherever it appears in Articles
5.1(b) and (d), unless no additional allocations or benefits accrue to any
affected Participant. For Limitation Years beginning on or after January 1,
2000, the limitation set forth in this Article 5.4(b) shall no longer apply.

     5.5  Restoration Procedures.
          -----------------------

          (a)  Computing Amounts. In the event that a Participant's Account was
               ------------------
improperly excluded in any year from an allocation of Member Employer
contributions and Forfeitures pursuant to Article 5.2, such Participant's
Account shall be restored to its correct status by the addition of amounts that
are determined as follows:

               (i)  First, an amount will be computed on the same basis as
Member Employer contributions and Forfeitures that were allocated to the
Accounts of other Eligible Participants under Article 5.2 in each year for which
restoration is necessary, and

               (ii) Second, Trust Fund income, gain or loss attributable to
amounts that should have been allocated under (i) above will be computed on the
same basis that Trust Fund income, gain or loss was allocated to other
Participants' Accounts in the valuation process described in Article 7.2 in each
year for which restoration is necessary.

          (b)  Income, Gain or Loss. In the event that a Participant's Account
               ---------------------
was improperly excluded in any year from an allocation of Trust Fund income,
gain or loss pursuant to the valuation process described in Article 7.2, such
Participant's Account shall be restored to its correct status by the addition or
subtraction of amounts that should have been allocated under Article 7.2 in each
year for which restoration is necessary.

          (c)  Source of Amounts. Such amounts shall be restored first from
               ------------------
Forfeitures, if any; and then, if necessary, the Member Employer shall
contribute an amount which is necessary to fully restore each improperly
excluded Account.

                   *  *  *  *  End of Article 5  *  *  *  *

                                      5-5
<PAGE>
                                  Article 6.

                              Vesting of Accounts

     6.1  Automatic Vesting on Retirement, Death or Disability. The value of a
          -----------------------------------------------------
Participant's Account shall become fully vested (i) when the Participant attains
his Normal Retirement Date or reaches age 55 and completes 5 Years of Service
while an Employee, or (ii) upon his termination of employment by reason of death
or Disability.

     6.2  Vesting Based on Service. Except as otherwise provided in Article
          -------------------------
6.4(d) and Article 14.3, a Participant's Account shall become vested in
accordance with the following schedule:

                     Years of Service             Vested Percentage
                     ----------------             -----------------
                    Less than 2 years                     0%
                        2 years                          20%
                        3 years                          40%
                        4 years                          60%
                        5 years                          80%
                    6 years or more                     100%

     6.3  Years of Service for Vesting.
          -----------------------------

          (a)  Year of Service. An Employee shall be credited with one year of
               ----------------
Service for vesting for each full year in his Period of Service, as defined in
Article 9.3.

          (b)  Termination Prior to Vesting. If the vested percentage applicable
               -----------------------------
to a Participant's Account is 0% at the time his Service terminates, his Service
prior to such termination shall be disregarded for vesting purposes if he is
reemployed after he has incurred 5 consecutive Breaks in Service.

     6.4  Forfeitures and Restorations.
          -----------------------------

          (a)  Date Forfeitures Occur. Any remainder of a terminating
               -----------------------
Participant's Account which is not vested shall be forfeited on the earliest to
occur of the following dates:

               (i)   The date of termination of the Participant, provided that
this date applies only if the Participant did not then have a vested interest in
his Account;

               (ii)  The date on which the terminated Participant receives
payment of his entire vested interest;

               (iii) The date on which the Participant completes five
consecutive one-year Breaks in Service.

          (b)  Forfeitures Reallocated. Forfeitures of a Member Employer's own
Employees' non-vested Account balances during a Fiscal Year which are not used
to

                                      6-1
<PAGE>

restore any of its Participant's Accounts as of the last day of such Fiscal Year
shall be allocated as of the last day of the Fiscal Year to the Accounts of its
Eligible Participants as provided in Article 5.2(b).

          (c)  Reemployment After Forfeiture. If a Participant is reemployed
               ------------------------------
before incurring 5 consecutive Breaks in Service, any amounts forfeited shall be
treated as follows:

               (i)   Restoration If No Distribution. In the event a Participant
                     -------------------------------
did not receive a distribution of his vested interest, any amounts previously
forfeited shall be fully restored as provided in (iii) below and shall be
recredited to the Participant's Account as of his reemployment date.

               (ii)  Restoration If Total Distribution Repaid. In the event a
                     -----------------------------------------
distribution of a Participant's entire vested Account was made to him, the
forfeited amount shall be fully restored as provided in (iii) below if he makes
an after-tax contribution of the full amount of the prior distribution before
the date which is 5 years after he is reemployed by the Employer or before the
date on which he incurs 5 consecutive Breaks in Service, if earlier. If the
Participant does not make such contribution by that date, the forfeited amount
will not be restored.

               (iii) Source of Restored Amounts. Forfeited amounts to be
                     ---------------------------
restored for any Fiscal Year may be restored from Forfeitures as of the last day
of a Fiscal Year, from additional Employer contributions for such Fiscal Year,
from Trust income, or from a combination of these methods, as determined by the
Trustees.

          (d)  No Restoration After 5 Consecutive Breaks in Service. If a
               -----------------------------------------------------
Participant is reemployed after 5 consecutive Breaks in Service, no portion of
his non-vested Account shall be restored and any undistributed vested interest
shall be maintained as a separate fully vested Account.

     6.5  No Divestment. Except as provided under Articles 4.3(b) and 6.7, a
          --------------
Participant's vested rights shall not be subject to divestment for any reason.

     6.6  Amendment to Vesting. Notwithstanding any other provisions of this
          ---------------------
Article 6, the vested percentage of an individual who was a Participant
immediately preceding the effective date of any amendment to the Plan is
determined by the provisions of the Plan existing immediately prior to such
amendment if such provisions provide a greater vested percentage at any relevant
time.

     6.7  Lost Participants.
          ------------------

          (a)  Participant's Account. If all or a portion of a Participant's
               ----------------------
Account becomes payable under Article 8 and the Trustees, after a reasonable
search, cannot locate the Participant or his Beneficiary (if such Beneficiary is
entitled to payment), the vested Account shall:

                                      6-2
<PAGE>

               (i)  Be used to establish an Individual Retirement Account in the
Participant's name; or

               (ii) Remain in the Plan for a sufficient period of time so that
under state law the Account would escheat, at which point the Account shall be
forfeited and reallocated, in accordance with Articles 4 and 5, as of such date
as the Trustees may decide.

          (b)  Search for Participants. The Trustees shall make a reasonable
               ------------------------
attempt to find such a Participant, including securing any assistance available
from the Internal Revenue Service.

          (c)  Restoration. If an Account is forfeited under this Article 6.7,
               ------------
and the Participant or his Beneficiary subsequently presents a valid claim for
benefits to the Trustees, the Trustees shall cause the vested Account, equal to
the amount that was forfeited under this Article 6, to be restored in accordance
with the provisions of Article 5.5.

                   *  *  *  *  End of Article 6  *  *  *  *

                                      6-3
<PAGE>
                                  Article 7.

                        Participants' Account Valuation

     7.1  Separate Accounts. The Trustees shall open and maintain a separate
          ------------------
Account for each Participant. Each Participant's Account shall reflect the
amounts allocated thereto and distributed therefrom and such other information
as affects the value of such Account pursuant to this Agreement. Employer Stock
allocated to a Participant shall be carried in a stock account. All other assets
shall be carried in another asset account.

     7.2  Determination of Value of Participant Accounts. As of each Valuation
          -----------------------------------------------
Date, the Trustees shall determine the net income or loss of the Trust Fund
based on the receipts and disbursements of the General Trust Fund since the
immediately preceding Valuation Date and of the fair market value of the Fund as
of the Valuation Date; provided, however, that if no valuation is available on
such Valuation Date the most recent valuation shall apply. The Trustees shall
use the same value as that calculated in accordance with the Employer's bylaws
to establish the "fair market value" of the Fund. Prior to any allocation of
contributions and Forfeitures to be made as of such date, the net income or loss
of the General Trust Fund since the immediately preceding Valuation Date,
including net appreciation or depreciation and excluding any expenses paid by
the Trust, shall be allocated to each Participant Account in the ratio that the
value, as of the immediately preceding Valuation Date, of each such Account
invested in the General Trust Fund bears to the value, as of the immediately
preceding Valuation Date, of all Accounts invested in the General Trust Fund.
Dividends on Employer Stock shall be allocated in proportion to shares held in
the stock account. Stock dividends shall be credited to the stock account and
cash dividends shall be credited to the other asset account.

     7.3  Valuation Dates. The General Trust Fund shall be valued as of the last
          ----------------
day of each Fiscal Year and as of any other date the Trustees decided to value
the Trust Fund, as provided in Article 7.4.

     7.4  Special Valuation Dates. The Trustees may determine the fair market
          ------------------------
value of the Trust Fund and may make a determination of Trust income or loss as
of any date other than the last day of a Fiscal Year. If the allocation of such
Trust income or loss will produce a significant change in the value of
Participants' Accounts, and if such valuation shall affect a distribution, then
such date shall thereupon be deemed a Valuation Date, and Trust income or loss
shall be allocated to Participant's Accounts in accordance with the provisions
of Article 7.2.

     7.5  Accounts to be Valued. All sub-accounts of all Participants shall be
          ----------------------
valued at each Valuation Date.

     7.6  Statement of Accounts. As soon as practicable after the end of each
          ----------------------
Fiscal Year, the Trustee shall furnish to each Participant a statement of his
Account,

                                      7-1
<PAGE>

determined as of the end of such Fiscal Year. Upon the discovery of any error or
miscalculation in an Account, the Trustees shall correct it, to the extent
correction is practically feasible. Statements to Participants are for reporting
purposes only, and no allocation, valuation or statement shall vest any right or
title in any part of the Trust Fund, nor require any segregation of Trust
assets, except as is specifically provided in this Agreement.

     7.7  Valuation of Account When Payment Due. The amount of the payment shall
          --------------------------------------
be based on the value of the Participant's Account at the time the payment is
processed; provided, however, that with respect to Employer Stock, the payment
shall be based on the amount received on the trade date determined in accordance
with Article 8.5(d).

                   *  *  *  *  End of Article 7  *  *  *  *

                                      7-2
<PAGE>
                                  Article 8.

                         Distributions and Withdrawals

     8.1  General. Benefits under the Plan shall be distributed solely from the
          --------
Trust. The Member Employers have no liability or responsibility for Plan
benefits or for the Trust. No distribution shall be made or commenced prior to
the Participant's termination of employment, except as required under Article
8.3(d) and permitted under Article 15.2(b). Distributions can also be made upon
termination of the Plan. All distributions from the Plan will be made in
accordance with Code Section 401(a)(9) and the regulations thereunder including
the transition rules in proposed regulation 1.401(a)(9)-l and the incidental
death benefit requirements of proposed regulation 1.401(a)(9)-2. The provisions
of Code Section 401(a)(9) shall override any distribution option under the Plan
which might be inconsistent with such provisions.

          A distribution to a Participant shall be made solely from his Account.
When a distribution is to be made, his Account shall be valued in accordance
with Article 7.2. The amount to be paid to him shall be based on his vested
interest as determined in Article 6.

     8.2  Administrative Rules.
          ---------------------

          (a)  Authority. Distributions shall be made only in accordance with
               ----------
the directions of the Trustees. The Trustees have the authority to direct the
distributions in accordance with the terms and conditions of the Plan, but the
Trustees shall have no power of discretion or consent with regard to a
Participant's or Beneficiary's choice of the form or timing of a distribution,
except as specifically stated herein or to the extent that the Trustees are
constrained by the options available under the Plan or by the requirements of
law or regulation.

          (b)  Claims. A Participant, Beneficiary or Alternate Payee has the
               -------
right to file a claim for benefits as set forth in Article 11.6.

     8.3  Timing of Distributions.
          ------------------------

          (a)  Cashout of Amounts Under $5,000. If the Participant's vested
               --------------------------------
Account does not exceed $5,000, and at the time of any prior distribution, if
any, has not exceeded $5,000, distribution shall be made in a lump sum as soon
as practicable after the Participant's termination of employment.

          (b)  Amounts Over $5,000. If the Participant's vested Account exceeds
               --------------------
the cashout requirements of Article 8.3(a), the Participant may elect to:

               (i)  Receive a distribution as soon as practicable after the
amount can be determined, or

                                      8-1
<PAGE>

               (ii)  Defer receipt of his distribution in accordance with (d)
below. Unless otherwise elected by the Participant under (d) below, the payment
of benefits under the Plan to the Participant will not begin later than the 60th
day after the end of the Fiscal Year in which the latest of the following
occurs:

                     (1)  The date on which the Participant attains the earlier
of Age 65 or his Normal Retirement Date,

                     (2)  The date which is the 10th anniversary of his
commencement of participation in the Plan, or

                     (3)  The date of termination of his service with the
Employer;

          However, if the amount of the payment cannot be ascertained and/or the
Participant cannot be located by the date required above, payment shall be made
within 60 days after all of these facts are known.

          Notwithstanding the foregoing, no payments may be made to a
Participant prior to his Normal Retirement Date or his 62nd birthday, whichever
is later, if his vested Account exceeds the cashout requirements of Article
8.3(a), unless the written consent of the Participant is obtained by the
Trustees within the 90-day period prior to commencement of the distribution.

          (c)  Information and Rights. The following applies to the
               -----------------------
Participant's written consent:

               (i)   The Participant must be informed of his right to defer
receipt of the distribution. If a Participant fails to consent, it shall be
deemed an election to defer commencement of the distribution.

               (ii)  Notice of the rights specified herein shall be provided no
less than 30 days and no more than 90 days before the first day on which all
events have occurred which entitle the Participant to such distribution.

               (iii) Written consent of the Participant to the distribution must
not be made before the Participant receives the notices and must not be made
more than 90 days before the first day on which all events have occurred which
entitle the Participant to such distribution.

               (iv)  No consent shall be valid if a significant detriment is
imposed under the Plan on any Participant who does not consent to the
distribution.

               (v)   If a distribution is one to which Section 401(a)(11) and
417 of the Internal Revenue Code do not apply, such distribution may commence
less than

                                      8-2
<PAGE>

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.

               (vi)  Notwithstanding anything in this Article 8.3(c) to the
contrary, effective for Fiscal Years beginning on or after January 1, 1997, the
written explanation described in Section 417(a)(3)(A) of the Code may be
provided after the annuity starting date. In such event, the 90-day applicable
election period to waive the qualified joint and survivor annuity described in
Section 417(a)(3)(A) of the Code shall not end before the 30th day after the
date on which such explanation is provided. Effective for Plan Years beginning
on or after January 1, 1997, a Participant may elect (with any applicable
spousal consent) to waive any requirement that the written explanation be
provided at least 30 days before the annuity starting date (or to waive the 30-
day requirement in the preceding sentence) if the distribution commences more
than 7 days after such explanation is provided.

          (d)  Required Minimum Distributions. A Participant who meets the
               -------------------------------
requirements of Article 8.3(b) may defer a distribution by providing the
Trustees with a written, signed notice specifying the date on which the
distribution is to commence, provided that the distribution shall be made no
later than the April 1 following the last day of the calendar year in which the
Participant attains age 70 1/2. Notwithstanding the foregoing, for Plan Years
beginning on or after January 1, 1997, a Participant may elect to defer a
distribution to the later of April 1 following the last day of (i) the calendar
year in which the Participant attains age 70 1/2, or (ii) the calendar year in
which the Participant retires.

     8.4  Treatment of Deferred Amounts. Where the distribution of a
          ------------------------------
Participant's Account is to be deferred, the vested portion shall continue to be
held and invested as an Account of the Trust subject to revaluation as provided
in Article 7.

     8.5  Methods of Distribution.
          ------------------------

          (a)  Method. Distribution to any Participant or Beneficiary shall be
               -------
made in a lump sum, in cash.

          (b)  Timing. If the amount of a distribution cannot be determined by
               -------
the date specified under Article 8.3, payment of benefits shall be made no later
than 60 days after the earliest date on which the amount of the distribution can
be determined.

                                      8-3
<PAGE>

          (c)  Distributions Delayed Until Trade Date. To the extent that a
               ---------------------------------------
Participant is entitled to a distribution of all or a portion of his Account
that is invested in Employer Stock, the Participant shall receive such
distribution as soon as reasonably practicable after the Trustees are able to
liquidate sufficient shares of Employer Stock to permit the distribution.

     8.6  Distribution Upon Death of Participant.
          ---------------------------------------

          (a)  Distribution Made to Participant's Beneficiary. The vested
               -----------------------------------------------
portion of a Participant's Account which remains at his death shall be
distributed to the Participant's Beneficiary in accordance with the provisions
of this Article 8.6.

          (b)  General Rules. If a Participant dies before his distribution has
               --------------
been made, his vested Account shall be distributed within 5 years after the
death of the Participant.

     8.7  Distributions to Minors or Legally Incompetents. In case of any
          ------------------------------------------------
distribution to a minor or to a legally incompetent person, the Trustees may
make the distribution to his legal representative, to a designated relative, or
directly to such person for his benefit. The Trustees shall not be required to
oversee the application, by any third party, of any distributions made pursuant
to this Article 8.7. Distributions made under this Article 8.7 shall be in
accordance with the provisions of this Article 8.

     8.8  Tax Information To Be Provided. The Trustees shall provide to each
          -------------------------------
Participant, Beneficiary or Alternate Payee who receives an eligible rollover
distribution (as defined in Code Section 402(f)), at the time such distribution
is made, a written explanation of the (1) provisions under which the
distribution will not be subject to tax if timely transferred to an eligible
retirement plan and, if applicable; (2) provisions regarding the availability of
10-year averaging or 5-year averaging tax treatment of the distribution.

     8.9  Distributions After Age 59 1/2 1/2. A Participant who has attained age
          -----------------------------------
59 1/2 may withdraw amounts from his Account by giving the Trustees notice of
his intention to make such a withdrawal at least 30 days prior to the
withdrawal.

     8.10 Direct Rollovers.
          -----------------

          (a)  In General. This Article 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 Article, a
distributes may elect, at the time and in the manner prescribed by the Trustees,
to have an eligible rollover distribution paid directly to an eligible
retirement plan specified by the distributes in a direct rollover.

                                      8-4
<PAGE>

          (b)  Definitions Pertaining to Direct Rollovers.
               -------------------------------------------

               (i)   Eligible rollover distribution: An eligible rollover
                     -------------------------------
distribution is any distribution 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 periodic payments
(not less frequently than annually) made for the life (or life expectancy) of
the distributee or the joint lives (or joint life expectancies) 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; 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).

               (ii)  Eligible retirement plan: An eligible retirement plan is an
                     -------------------------
individual retirement account described in Section 408(a) of the Code, an
annuity plan described in Section 403(a) of the Code, an individual retirement
annuity described in Section 408(b) 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.

               (iii) Distributee: 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.

               (iv)  Direct rollover: A direct rollover is a payment by the Plan
                     ----------------
to the eligible retirement plan specified by distributee.

                   *  *  *  *  End of Article 8  *  *  *  *

                                      8-5
<PAGE>
                                  Article 9.

                                    Service

     9.1  General Definitions.
          --------------------

          (a)  "Service" means an Employee's total period of employment with the
               --------
Employer, including service with a predecessor entity or an Affiliated Employer.
Throughout this Article 9, Employer shall include Affiliated Employer and any
predecessor entity.

          (b)  "Hour of Service" means:
               ----------------

               (i)   Each hour for which an Employee is paid, or entitled to
payment, for the performance of duties for the Employer.

               (ii)  Each hour for which an Employee is paid, or entitled to
payment, by the Employer on account of a period of time during which no duties
are performed (regardless of whether the employment relationship has terminated)
due to vacation, holiday, illness, incapacity (including disability), layoff,
jury duty, military duty or leave of absence; provided that no Hours of Service
shall be credited to an Employee:

                    (1)  For a period during which no duties are performed if
payment is made or due under a plan maintained solely for purpose of complying
with applicable worker's compensation, unemployment compensation, or disability
insurance laws;

                    (2)  On account of any payment made or due an Employee
solely as reimbursement for medical or medically related expenses incurred by
the Employee,

                    (3)  On account of any payment made to an Employee as
severance pay, unless the severance pay is in lieu of advance notice of
termination.

               (iii) Each hour not otherwise credited under the Plan for which
back pay, irrespective of mitigation of damages, has either been awarded or
agreed to by the Employer. Such hours are to be credited to the period or
periods to which the award or agreement pertains. If this provision results in
an Employee becoming an Eligible Participant for a Fiscal Year in which he was
not otherwise an Eligible Participant under Article 5 or if this provision
results in an increase in the vested percentage applicable to a Participant's
Account which has been forfeited under Article 6, the Trustees shall establish
equitable procedures for determining and allocating any resulting amounts to
such Employee's Account.

                                      9-1
<PAGE>

               (iv)  No more than 501 Hours of Service shall be credited under
Articles 9.1(b)(ii) or (iii) to an Employee on account of any single continuous
period of time during which the Employee performs no duties for the Employer.

     9.2  Crediting of Hours Subject to DOL Regulation. The calculation of the
          ---------------------------------------------
number of Hours of Service to be credited under Articles 9.1(b)(ii) and (iii)
for periods during which no duties are performed, and the crediting of such
Hours of Service to periods of time for purposes of computations under the Plan,
shall be determined by the Trustees in accordance with the rules set forth in
the Department of Labor Regulation Section 2530.200b-2 paragraphs (b) and (c),
which rules shall be consistently applied with respect to all employees within
the same job classifications.

     9.3  Elapsed Time Service Definitions.
          ---------------------------------

          (a)  "Break in Service" means a one year Period of Severance. Solely
               -----------------
for purposes of determining whether a Break in Service has occurred, a one year
period of absence shall be disregarded, provided such absence is:

                    (1)  By reason of pregnancy or the birth of a child of the
Employee;

                    (2)  By reason of the placement of a child with the Employee
in connection with his adoption of such child; or

                    (3)  For purposes of caring for any such child for a period
beginning immediately following such birth or placement, and further provided
that the Employee provides the Plan Administrator with such timely information
as the Plan Administrator may reasonably require to establish that the absence
is for a reason described above.

          (b)  "Employment Commencement Date" means each of the following:
               -----------------------------

               (i)   The date on which an Employee first performs an Hour of
Service for an Employer with respect to which such Employee is compensated or
entitled to compensation by the Employer.

               (ii)  In the case of an Employee who incurs a Period of Severance
and who is subsequently reemployed by the Employer, the term Employment
Commencement Date means the first day following such Period of Severance on
which such Employee performs an Hour of Service for the Employer with respect to
which he is compensated or entitled to compensation.

          (c)  "Period of Service" shall mean the period of time beginning on an
               ------------------
Employee's Employment Commencement Date and ending on his Severance Date.
Periods of Service shall be measured under the elapsed time method as authorized
under regulations promulgated by the Secretary of Labor.

                                      9-2
<PAGE>

               Periods of Service shall also be subject to the following:

               (i)  If an Employee severs from Service by quit, discharge or
retirement and returns to Service within 12 months, that Period of Severance
shall be considered as part of that Employee's Period of Service.

               (ii) Notwithstanding the rule in subparagraph (i) above, if an
Employee severs from Service by reason of quit, discharge or retirement after a
period of absence from service of 12 months or less, which period of absence
occurred for reasons other than a quit, discharge or retirement, such period of
absence shall be considered as part of the Employee's Period of Service only if
such Employee performs an Hour of Service within 12 months of the date on which
the Employee was first absent from service.

               An Employee is considered to have returned to service on his new
Employment Commencement Date.

          (d)  "Period of Severance" means the period of time beginning on an
               --------------------
Employee's Severance Date and ending on the Employee's new Employment
Commencement Date, if any, following thereafter.

          (e)  "Severance Date" means the date on which an Employee quits,
                --------------
retires, is discharged or dies, or, if earlier, the first anniversary of the
beginning of a period of absence from service (for reasons other than a quit,
retirement, discharge or death, such as vacation, holiday, sickness, disability,
leave of absence or lay off).

                   *  *  *  *  End of Article 9  *  *  *  *

                                      9-3
<PAGE>
                                  Article 10.

                           Fiduciary Responsibility

     10.1 Named Fiduciaries. The authority to control and manage the operation
          ------------------
and administration of the Plan shall be allocated as provided in this Agreement
between the Employer and the Trustees, all of whom are named fiduciaries under
ERISA.

          In addition, procedures for the appointment of another fiduciary, an
investment manager, are set forth in Article 12.3.

     10.2 Fiduciary Standards. Each fiduciary shall discharge its duties with
          --------------------
respect to the Plan solely in the interest of the Participants and Beneficiaries
as follows:

                    (1)  For the exclusive purpose of providing benefits to
Participants and their Beneficiaries;

                    (2)  With the care, skill, prudence and diligence under the
circumstances then prevailing that a prudent man acting in a like capacity and
familiar with such matters would use in the conduct of an enterprise of a like
character and with like aims;

                    (3)  By diversifying the investments of the Trust Fund so as
to minimize the risk of large losses, unless under the circumstances it is
clearly prudent not to do so; and

                    (4)  In accordance with this Trust Agreement.

     10.3 Fiduciaries Liable for Breach of Duty. A fiduciary shall be liable, as
          --------------------------------------
provided in ERISA, for any breach of his fiduciary responsibilities. In
addition, a fiduciary under this Plan shall be liable for a breach of fiduciary
responsibility of another fiduciary under this Plan as provided under ERISA
Section 405.

     10.4 Fiduciary May Employ Agents.  Any person or group of persons may
          ----------------------------
serve in more than one fiduciary capacity with regard to the Plan.  A fiduciary
may, with the consent of the Employer, employ one or more persons to render
advice and assistance with regard to any function such fiduciary has under the
Plan.  The expenses of such persons shall be paid by the Trust if not paid by
the Employer.

     10.5 Authority Outlined.
          -------------------

          (a)  Employer Authority. The Employer has the authority to amend and
               -------------------
terminate the Plan, to appoint and to remove Trustees.

          (b)  Trustees' Administrative Authority. The Trustees, in their role
               -----------------------------------
as Plan Administrator, have the authority to:

                                     10-1
<PAGE>

                (i)     Allocate the Employer contributions;

                (ii)    Determine the method for allocation of the Trust income
or loss;

                (iii)   Maintain separate Accounts for Participants;

                (iv)    Furnish, and correct errors in, statements of Accounts;

                (v)     Direct the method, timing and media of distributions
pursuant to Article 8;

                (vi)    Direct the segregation of assets;

                (vii)   Direct distribution of the interests of incompetent
persons and minors;

                (viii)  Construe the Plan and Trust Agreement and determine
questions thereunder;

                (ix)    Establish a funding policy;

                (x)     Appoint and delegate duties to an investment manager;
and

                (xi)    Employ advisors and assistants.

           Article 11 further describes the administrative authority and duties
of the Trustees.

           (c)  Trustees' Authority With Respect to Plan Assets.  The Trustees
                ------------------------------------------------
have the authority to establish the fair market value of the Trust Fund, to
value segregated Accounts, to employ advisors, agents and counsel, to hold the
Trust assets and to render accounts of their administration of the Trust.
Article 13 further describes the authority and duties of the Trustees with
respect to Plan assets.

     10.6  Fiduciaries Not to Engage in Prohibited Transactions.  A
           -----------------------------------------------------
fiduciary shall not cause the Plan to engage in a transaction if he knows or
should know that such transaction constitutes a prohibited transaction under
ERISA Section 406 or Code Section 4975, unless such transaction is exempted
under ERISA Section 408 or Code Section 4975.

     10.7  Duties of Plan Administrator.  The Trustees are the Plan
           -----------------------------
Administrator under ERISA and shall have the duty and authority to comply, with
those reporting and disclosure requirements of ERISA and the Code which are
specifically required of the Plan Administrator. The Plan Administrator is the
agent for the service of legal process. The Plan Administrator shall keep on
file a copy of this Plan and Trust Agreement, including any subsequent
amendments, all annual and interim reports of the Trustee and

                                     10-2
<PAGE>

the latest annual report required under Title I of ERISA for examination by
Participants during business hours.

                   *  *  *  *  End of Article 10  *  *  *  *

                                     10-3
<PAGE>

                                  Article 11.

                          Administration of the Plan

     11.1   Selection of Trustees.  There shall be five Trustees to manage and
            ----------------------
administer this Plan.  The Trustees shall be appointed by the chief executive
officer of the Company, who shall also select a successor Trustee upon
resignation, death or removal of a Trustee.

     11.2   Trustees' Operating Rules.  The Trustees shall act by agreement of a
            --------------------------
majority of their members, either by vote at a meeting or in writing without a
meeting.  By such action, the Trustees may authorize one or more members to
execute documents on their behalf, or may delegate such authority to another
person.  A Trustee, who is also a Participant hereunder, shall not vote or act
upon any matter relating solely to himself.  In the event of a deadlock or other
situation which prevents agreement of a majority of the Trustees, the matter
shall be decided by the Employer.

     11.3   Trustees' Administrative Authority.  The Trustees have the authority
            -----------------------------------
and duty to do all things necessary or convenient to effect the intent and
purpose of this Plan, whether or not such authority and duties are specifically
set forth herein. Not in limitation but in amplification of the foregoing, the
Trustees shall have the discretionary power to construe the Plan and Trust
Agreement and to determine all questions that shall arise hereunder. Decisions
of the Trustees made in good faith upon any matters within the scope of its
authority shall be final and binding on the Employer, the Participants, their
Beneficiaries and all others. The Trustees shall at all times act in a uniform
and nondiscriminatory manner in making and carrying out their decisions and
directions, and may from time to time prescribe and modify uniform rules of
interpretation and administration. The Trustees are the Plan Administrator and
have the duties outlined in Article 3.

     11.4   Trustees May Retain Advisors.  With the approval of the Employer,
            -----------------------------
the Trustees may from time to time or on a continuing basis, retain such agents
or advisors including, specifically, attorneys, accountants, actuaries,
investment counsel, consultants and administrative assistants, as it considers
necessary to assist it in the proper performance of its duties. The expenses of
such agents or advisors shall be paid by the Employer, or, if not paid by the
Employer, the Trustees may direct that such expenses be paid from the Trust
Fund; provided that only reasonable expenses of administering the Trust may be
paid from the Trust.

     11.5   Claims Procedure.
            -----------------

            (a)  Claim Must Be Submitted Within 60 Days.  The Trustees shall
                 ---------------------------------------
determine Participants', Alternate Payees' and Beneficiaries' rights to benefits
under the Plan. In the event of a dispute over benefits, a Participant,
Beneficiary or Alternate Payee may file a written claim for benefits with the
Trustees, provided that such claim is

                                     11-1
<PAGE>

filed within 60 days of the date the Participant, Beneficiary or Alternate Payee
receives notification of the Trustees' determination.

            (b) Requirements for Notice of Denial.  If a claim is wholly or
                ----------------------------------
partially denied, the Trustees shall provide the claimant with a Notice of
Denial, written in a manner calculated to be understood by the claimant, setting
forth:

                (i)     The specific reason for such denial;

                (ii)    Specific references to the pertinent Plan provisions on
which the denial is based;

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

                (iv)    Appropriate information as to the steps to be taken if
the claimant wishes to submit his or her claim for review.

            The Notice of Denial shall be given within a reasonable time period
but no later than 90 days after the claim is filed, unless special circumstances
require an extension of time for processing the claim.  If such extension is
required, written notice shall be furnished to the claimant within 90 days of
the date the claim was filed stating the special circumstances requiring an
extension of time and the date by which a decision on the claim can be expected,
which shall be no more than 180 days from the date the claim was filed.  If no
Notice of Denial is provided as herein described, the claimant may appeal the
claim as though the claim had been denied.

            (c) Claimant's Rights If Claim Denied.  The claimant and/or his
                ----------------------------------
representative may appeal the denied claim and may:

                (i)     Request a review upon written application to the
Trustees;

                (ii)    Review pertinent documents; and

                (iii)   Submit issues and comments in writing; provided that
such appeal is made within 60 days of the date the claimant receives
notification of the denied claim.

            (d) Time Limit on Review of Denied Claim.  Upon receipt of a request
                -------------------------------------
for review, the Trustees shall provide written notification of its decision to
the claimant stating the specific reasons and referencing specific Plan
provisions on which its decision is based, within a reasonable time period but
not later than 60 days after receiving the request, unless special circumstances
require an extension for processing the review. If such an extension is
required, the Trustees shall notify the claimant of

                                     11-2
<PAGE>

such special circumstances and of the date, no later than 120 days after the
original date the review was requested, on which the Trustees will notify the
claimant of its decision.

            (e) No Legal Recourse Until Claims Procedure Exhausted.  In the
                ---------------------------------------------------
event of any dispute over benefits under this Plan, all remedies available to
the disputing individual under this Article 11.6 must be exhausted before legal
recourse of any type is sought.

                   *  *  *  *  End of Article 11  *  *  *  *

                                     11-3
<PAGE>

                                  Article 12.

                                  Investments

     12.1  Investment Authority.  The Trustees are hereby granted full power and
           ---------------------
authority to invest and reinvest the Trust Fund or any part thereof in
accordance with the standards set forth in Article 10.  Without limiting the
generality of the foregoing, the Trustees may invest in bonds, notes, mortgages,
commercial or federal paper, preferred stock, common stock, or other securities,
rights, obligations or property, real or personal, including shares and
certificates of participation issued by investment companies or investment
trusts.  However, the Trustees shall accept and retain Employer Stock
contributed to the Trust and to invest all or substantially all cash
contributions in Employer Stock to the extent it is available.

     12.2  Trustees May Hold Necessary Cash.  The Trustees may hold in a cash or
           ---------------------------------
cash equivalent account such portion of the Trust Fund as may be deemed
necessary for the ordinary administration of the Trust and disbursement of
funds. Such funds may be deposited in any bank or savings and loan institution
subject to the rules and regulations governing such deposits.

     12.3  Appointment of Investment Manager.  The power of the Trustees to
           ----------------------------------
direct, control or manage the investment of the Trust Fund may be delegated to
one or more investment managers appointed by the Trustees. Any such investment
manager, if appointed, must acknowledge in writing that he is a fiduciary with
respect to the Trust Fund and shall then have the power to manage, acquire, or
dispose of any asset of the Trust Fund. An investment manager must be a person
who is (1) registered as an investment advisor under the Investment Advisors Act
of 1940; (2) a bank, as defined in that Act; or (3) an insurance company
qualified to perform such services under the laws of more than one state. If an
investment manager has been appointed, the Trustee shall neither be liable for
acts or omissions of such investment manager nor be under any obligation to
invest or otherwise manage any asset of the Trust Fund. The Trustees shall not
be liable for any act or omission of the investment manager in carrying out such
responsibility except to the extent that the Trustees violated Article 10.2 of
this Trust Agreement with respect to:

                (1)     Such designation,

                (2)     The establishment or implementation of the procedures
for the designation of an investment manager, or

                (3)     Continuing the designation, in which case the Trustees
would be liable in accordance with Article 10.3.

                   *  *  *  *  End of Article 12  *  *  *  *

                                     12-1
<PAGE>

                                  Article 13.

                                    Trustee

     13.1  Trustees' Duties With Respect to Trust Assets.  The duties of the
           ----------------------------------------------
Trustees with respect to Trust assets shall be to direct the receipt and payment
of funds of the Trust, the safeguarding and valuing of Trust assets, and the
investing and reinvesting of the Trust Funds.  The directions of the Trustees
shall be in writing and bear the signature of one or more persons designated as
its authorized signatory or signatories, as provided in Article 11.2. The
directions of an investment manager shall be in writing or in such other form as
is acceptable to the Trustee.  The Employer may, however, authorize the Trustees
to act with respect to any specific matter or class of matters by delivering to
the Trustees a certified copy of a resolution authorizing the Trustees so to
act.

     13.2  Indicia of Ownership Must Be in the United States.  The Trustees
           --------------------------------------------------
shall not maintain the indicia of ownership of any Trust assets outside the
jurisdiction of the district courts of the United States, except as authorized
by regulations issued by the Department of Labor.

     13.3  Permissible Trustees' Actions.  Except as provided in Article 13.4,
           ------------------------------
in the discharge of its duties, the Trustees have all the powers, authority,
rights and privileges of an absolute owner of the Trust Fund and, not in
limitation of but in amplification of the foregoing, may (i) receive, hold,
manage, invest and reinvest, sell, exchange, dispose of, encumber, hypothecate,
pledge, mortgage, lease, grant options respecting, repair, alter, insure, or
distribute any and all property in the Trust Fund; (ii) borrow money,
participate in reorganizations, pay calls and assessments, vote or execute
proxies, exercise subscription or conversion privileges and register in the name
of a nominee any securities in the Trust Fund; (iii) renew, extend the due date,
compromise, arbitrate, adjust, settle, enforce or foreclose by judicial
proceedings or otherwise or defend against the same, any obligations or claims
in favor of or against the Trust Fund; (iv) exercise options, employ agents;
and, (v) whether herein specifically referred to or not, do all such acts, take
all such actions and proceedings and exercise all such rights and privileges as
if the Trustees were the absolute owner of any and all property in the Trust
Fund. The Trustees have no authority or duty to determine the amount of the
Employer contribution or to enforce the payment of any Employer contribution to
it.

     13.4  Voting of Employer Stock.  Every Participant shall have the right to
           -------------------------
direct the Trustees with respect to the voting of the Employer Stock allocated
to his Account.  At the time of the mailing to shareholders of the notice of any
shareholders' meeting of the Employer, the Employer shall cause to be prepared
and delivered to each Participant a notice of the shareholders' meeting with a
descriptive statement of the items upon which the Participant has the right to
exercise his right to vote.  The Trustees shall vote any Employer Stock which a
Participant fails to vote as authorized by this Article in the

                                     13-1
<PAGE>

same proportion as the allocated shares for which voting instructions have been
received and are voted.

     13.5 Trustees' Fees for Services and Advisors Retained. Individual Trustees
          --------------------------------------------------
shall serve without compensation for their service as such. However, with the
approval of the Employer, the Trustees may from time to time or on a continuing
basis, retain such agents or advisors, including specifically accountants,
attorneys, investment counsel and administrators, as they consider necessary to
assist them in the proper performance of their duties. The expenses of such
agents or advisors and all other expenses of the Trustees shall be paid by the
Trust if not paid by the Employer, provided that only reasonable expenses of
administering the Plan may be paid from the Trust.

     13.6 Annual Accounting and Asset Valuation. Within 60 days or within a
          --------------------------------------
reasonable period following the close of each Fiscal Year, the Trustees shall
render to the Employer an accounting of the administration of the Trust during
the preceding year. The Trustees shall also determine the value of the Trust
Fund, at the close of the Fiscal Year in Article 7. Notwithstanding any other
provisions of this Agreement, if the Trustees find that the Trust Fund consists,
in whole or in part, of property not traded freely on a recognized market or
that information necessary to ascertain the fair market value thereof is not
readily available to the Trustees, the Trustees shall take such action as is
required to ascertain the fair market value of such property including the
retention of such counsel and independent appraisers as it considers necessary;
and in such event the fair market value so determined shall be conclusive and
binding.

     13.7 Trustee Removal or Resignation. A Trustee may resign at any time upon
          -------------------------------
30 days written notice to the Employer and the Trustees or such shorter period
as may be agreeable to the Employer. Upon receipt of instructions or directions
from the Employer with which the Trustees are unable or unwilling to comply, a
Trustee may resign upon written notice to the Employer, given within a
reasonable time under the circumstances then prevailing. After resignation, a
Trustee shall have no liability to the Employer, or any person interested herein
for failure to comply with any instructions or directions. The Employer may
remove a Trustee without cause at any time upon 30 days written notice. In case
of resignation or removal of all the Trustees, the Trustees shall have the right
of a settlement of their accounts, which may be made at the option of the
Trustees, either by judicial settlement in an action in a court of competent
jurisdiction or by agreement of settlement between the Trustees and the
Employer. The Trustees shall not be required to transfer assets of the Trust
Fund to a successor Trustee under Article 13.8 or otherwise until its accounts
have been settled.

     13.8 Approval of Trustees' Accounting. The written approval of any
          ---------------------------------
Trustees' accounting by the Employer shall be final as to all matters and
transactions stated or shown therein and binding upon the Employer, and all
persons who then shall be or thereafter shall become interested in this Trust.
Failure of the Employer to notify the

                                     13-2
<PAGE>

Trustees of its disapproval of an accounting within 90 days after it has been
received shall be the equivalent of written approval.

     13.9  Trust Not Terminated Upon Trustees' Removal or Resignation.
           -----------------------------------------------------------
Resignation or removal of all of the Trustees shall not terminate the Trust. If
all or any of the Trustees have died, resigned, or been removed, a successor
Trustee shall be appointed pursuant to Article 11.1. Any successor Trustee shall
have all the powers and duties herein conferred upon the former Trustee. The
title to all Trust property shall automatically vest in a successor Trustee
without the execution or filing of any instrument or the doing of any act, but
the former Trustee shall, nevertheless, execute all instruments and do all acts
which would otherwise, be necessary to vest such title in any successor. The
appointment of a successor Trustee may be effected by amendment to this Trust
Agreement or by a board resolution of the Employer, with the agreement of the
successor Trustee to act as such being evidenced by its execution of such
amendment or acceptance of such board resolution.

     13.10 Trustees May Consult With Legal Counsel. The Trustees may consult
           ----------------------------------------
with legal counsel (who may or may not be counsel to the Employer) concerning
any question which may arise with reference to its duties under this Agreement.

     13.11 Trustees Not Required to Verify Identification or Addresses. The
           ------------------------------------------------------------
Trustees shall not be required to make any investigation to determine the
identity or mailing address of any person entitled to benefits under this
Agreement and shall be entitled to withhold making payments until the identity
and mailing address of any person entitled to benefits are certified by the
Employer. In the event that any dispute shall arise as to the identity or rights
of persons entitled to benefits hereunder, the Trustees may withhold payment of
benefits until such dispute has been determined by a court of competent
jurisdiction or shall have been settled by written stipulation of the parties
concerned.

     13.12 Individual Trustee Rules. The action of individual Trustees shall be
           -------------------------
determined by the vote or other affirmative expression of the majority thereof,
and they shall designate one of their members, or some other person, to keep a
record of their decision on matters to be determined hereunder and of all dates,
documents and other matters pertaining to their administration of this Trust.
However, no Trustee who is a Participant shall vote on any action relating
specifically to himself, and in the event the remaining Trustees by majority
vote thereof are unable to come to a determination of any such question, the
matter shall be decided by the Employer.

     13.13 Indemnification of Trustees and Insurance. To the fullest extent
           ------------------------------------------
permitted by law, the Employer agrees to indemnify, to defend, and to hold
harmless the Trustees, individually and collectively, against any liability
whatsoever for any action taken or omitted by such Trustees in good faith in
connection with this Plan and Trust or duties hereunder and for any expenses or
losses for which the Trustees may become liable as a result of any such actions
or non-actions unless resultant from willful

                                     13-3
<PAGE>

misconduct. The Employer may purchase insurance for the Trustees to cover any of
their potential liabilities with regard to the Plan and Trust.

     13.14 Income Tax Withholding. In directing payments from the Trust, the
           -----------------------
Trustees shall be liable for federal income tax withholding, and shall withhold
the appropriate amount of tax, if any, as provided by applicable law and
regulation, from any payment made to a Participant, Beneficiary or Alternate
Payee.

                   *  *  *  *  End of Article 13  *  *  *  *

                                     13-4
<PAGE>
                                  Article 14.

                       Amendment, Termination and Merger

     14.1 Trust Is Irrevocable. The Trust shall be irrevocable but shall be
          ---------------------
subject to amendment and termination as provided in this Article 14.

     14.2 Employer May Amend Trust Agreement. The Employer reserves the right to
          -----------------------------------
amend this Trust Agreement to any extent and in any manner that it may deem
advisable by action of its Board of Directors. The Employer, the Trustees, all
Participants, their Beneficiaries and all other persons having any interest
hereunder shall be bound by any such amendment; provided, however, that no
amendment shall:

                    (1)  Cause or permit any part of the principal or income of
the Trust to revert to the Employer or to be used for, or be diverted to, any
purpose other than the exclusive benefit of Participants or their Beneficiaries
except as permitted by ERISA;

                    (2)  Change the duties or liabilities of the Trustees
without their written assent to such amendment;

                    (3)  Adversely affect the then accrued benefits of any
Participants; or

                    (4)  Eliminate an optional form of distribution for Account
balances accrued before such amendment, except as allowed under the Code.

     14.3 Employer May Terminate Plan. The Employer has established the Plan
          ----------------------------
with the bona fide intention and expectation that the Plan will continue
indefinitely, and that it will be able to make its contributions indefinitely,
but the Employer shall be under no obligation to continue its contributions or
to maintain the Plan for any given length of time and may, in its sole
discretion, terminate the Plan at any time without any liability whatsoever. In
the event of the termination of this Plan, the full value of the Accounts of all
Participants shall become fully vested and nonforfeitable. In the event of
partial termination of the Plan, the full value of the applicable Accounts of
the Participants involved in the partial termination shall become fully vested
and nonforfeitable.

     14.4 Timing of Plan Termination.  The Plan shall terminate:
          ---------------------------

          (a)  By Written Notice. Upon the date specified in a written notice of
               ------------------
such termination, executed by the Employer and delivered to the Trustee; or

          (b)  Purpose of Trust Accomplished. Upon the earlier of (i) the
               ------------------------------
complete accomplishment of all purposes for which the Plan has created, or (ii)
the death of the last person entitled to receive any benefits hereunder who is
living at the

                                     14-1
<PAGE>

date of execution of the Trust Agreement. However, if, upon the death of such
last survivor, the Trust may continue for a longer period without violation of
any law of the jurisdiction to which the Trust is subject, the Trust shall
continue until the complete accomplishment of all the purposes for which the
Plan and Trust are created, unless sooner terminated under the other provisions
hereof.

     14.5 Action Required Upon Plan Termination. Upon the termination of this
          --------------------------------------
Plan and after payment of all expenses of the Trust, including any amounts then
due the Trustees and agents of the Trustees, the Trust assets and all
Participants' Accounts shall be revalued according to the procedures provided in
Article 7. Limitation Accounts held pursuant to Article 5 shall be allocated as
of the date the Plan is terminated in accordance with Articles 4 and 5. The
Trustee shall hold and distribute such Accounts as directed by the Trustees in
accordance with the provisions of Article 8. Upon such termination, if the
Employer has ceased to exist, all rights, powers, and duties to be exercised or
performed by the Employer shall thereafter be exercised or performed by the
Trustees, including the filling of vacancies on the Trustees and the amending of
the Plan.

     14.6 Non-Reversion of Assets. Except as provided in Article 4.3(b), in no
          ------------------------
event shall any part of the principal or income of the Trust revert to the
Employer or be used for or diverted to any purpose other than the exclusive
benefit of Participants or their Beneficiaries.

     14.7 Merger or Consolidation Cannot Reduce Benefits. In no event shall this
          -----------------------------------------------
Plan or either portion thereof be merged or consolidated with any other plan,
nor shall there be any transfer of assets or liabilities from this Plan, or
either portion thereof to any other plan unless immediately after such merger,
consolidation or transfer, each Participant's benefits, if such other plan were
then to terminate, are at least equal to or greater than the benefits which the
Participant would have been entitled to had this Plan or such applicable portion
thereof been terminated immediately before such merger, consolidation or
transfer.

                   *  *  *  *  End of Article 14  *  *  *  *

                                     14-2
<PAGE>
                                  Article 15.

                                  Assignments

     15.1 No Assignment. Except as provided in Article 12.5(c) the interest
          --------------
herein, whether vested or not, of any Participant, former Participant or
Beneficiary, shall not be subject to alienation, assignment, pledging,
encumbrance, attachment, garnishment, execution, sequestration, or other legal
or equitable process, or transferability by operation of law in the event of
bankruptcy, insolvency or otherwise.

     15.2 Qualified Domestic Relations Order Permitted. The provisions of
          ---------------------------------------------
Article 15.1 above shall not prevent the creation, assignment or recognition of
any individual's right to a benefit payable with respect to a Participant
pursuant to a Qualified Domestic Relations Order (QDRO).

          (a)  Not All Domestic Relations Orders Qualify as QDROs. The Trustees
               ---------------------------------------------------
shall establish reasonable procedures to determine whether a domestic relations
order is a QDRO and to administer distributions under a QDRO. If any domestic
relations order is received by the Plan, the Trustees shall promptly notify the
Participant and each Alternate Payee that the order has been received, and shall
determine within a reasonable period after receipt of the order whether it is a
QDRO and notify the Participant and each Alternate Payee of the Trustees'
determination.

          (b)  Payments May Occur Before Termination of Service. The Plan may
               -------------------------------------------------
make benefit payments to an Alternate Payee under a QDRO before the
Participant's termination of Service if such payments are made on or after the
earlier of (i) at any time after the order is determined to be a QDRO; (ii) the
earliest date on which the Participant is entitled to a distribution under the
Plan; or (iii) the later of (A) the Participant's 50th birthday, or (B) the
earliest date on which the Participant could receiving benefits under the Plan
if the Participant separated from Service; in accordance with applicable law or
regulations.

          (c)  Separate Accounting of Alternate Payee's Account. During any
               -------------------------------------------------
period in which the issue of whether a domestic relations order is a QDRO is
being determined by the Trustees, a court of competent jurisdiction or
otherwise, the Trustees shall separately account for (herein referred to as "the
separate amounts") the amounts which would have been payable to the Alternate
Payee during such period if the order had been determined to be a QDRO. If the
order, or a modification of the order, is determined within the 18 month period
described herein to be a QDRO, the Trustees shall pay the separate amounts (as
adjusted by attributable investment income or loss), in accordance with the
Plan's provisions, to the entitled individuals). If, within the 18 month period
described herein, the order is determined not to be a QDRO or its status as a
QDRO is not resolved, the Trustees shall return the separate amounts (as
adjusted by attributable investment income or loss) to his Account; or if
applicable, the Trustees shall pay such separate amounts to the individuals who
would have been entitled to

                                     15-1
<PAGE>

receive such amounts absent such order. Any determination that an order is a
QDRO made after the close of the 18-month period described herein shall be
applied prospectively only. For purposes of this Article 15.2(c), the 18-month
period shall be the 18-month period beginning with the date on which the first
payment would be required to be made under the QDRO.

          (d)  Consent Requirements. Except as otherwise provided in a QDRO,
               ---------------------
payments made to an Alternate Payee shall not be subject to (1) Spousal Consent,
or (2) consent of the Alternate Payee.

                   *  *  *  *  End of Article 15  *  *  *  *

                                     15-2
<PAGE>
                                  Article 16.

                 Adoption of the Plan by Affiliated Employers

     16.1 Purpose. The purpose of this Article 16 is to describe the terms and
          --------
conditions under which an Affiliated Employer may adopt the Plan for the benefit
of its Eligible Employees.

     16.2 Conditions of Subscription Agreement. Any Affiliated Employer may,
          -------------------------------------
with the written consent of the Board, execute a Subscription Agreement under
which it shall agree:

          (a)  To be bound by all the provisions of the adopted Plan and Trust
in the manner set forth herein:

          (b)  To pay its share of the expenses of the Plan and Trust as they
may be determined from time to time in the manner specified in this Article 16;
and

          (c)  To provide the Board and the Trustees with full, complete and
timely information on all matters necessary to them in the operation of the Plan
and Trust.

     16.3 Participation of Affiliated Employers. In the event of the adoption
          --------------------------------------
of the Plan and Trust by an Affiliated Employer, the following shall apply with
respect to the participation of such Affiliated Employer hereunder:

          (a)  All the terms and conditions of the Plan and Trust shall apply to
the participation of such Member Employer and its Employees in the same manner
as set forth for the Employer and its Employees, except as follows:

               (i)   The right to designate an Affiliated Employer is
specifically reserved to the Board.

               (ii)  An Affiliated Employer which adopts the Plan shall have the
right to designate for purposes of Articles 2.38 and 5.2(b), an alternative
definition of Plan Compensation, and for purposes of Article 3, alternative
requirements which shall be met by its Eligible Employees in order to qualify as
Participants. In the event that no such designation is made, the current
requirements set forth in Article 2.38 and Article 3 shall apply to Employees of
such Member Employer.

               (iii) The right to appoint the Trustees as Plan Administrator is
specifically reserved to the Board, provided that a Member Employer may appoint
an Advisory Committee of such composition and size as it may determine to advise
the Trustees on any matters affecting such Member Employer or its Employees who
are Participants under the Plan. The Trustees shall be entitled to rely on any
information furnished it by any such Advisory Committee in the same manner as if
furnished by the

                                     16-1
<PAGE>
Member Employer appointing such Advisory Committee, but in no event shall the
existence of any such Advisory Committee modify or otherwise limit any of the
powers or duties of the Trustees under the Plan.

               (iv)  The right to direct, appoint, remove, approve the account
of or otherwise deal with the Trustees are specifically reserved to the Board
and/or the chief executive officer of the Company as otherwise set forth in this
Plan and Trust.

               (v)   The right to amend the Plan and Trust is specifically
reserved to the Board, and any such amendment, unless otherwise specified
therein, shall be fully binding with respect to the participation of any Member
Employer, provided that this reservation shall in no event be construed to
prevent any Member Employer from terminating at any time its participation in
the Plan and Trust.

          (b)  In the operation of the Plan with respect to a Member Employer,
the term "effective date" shall mean the effective date in this Restatement or
such later date as specified in such Member Employer's Subscription Agreement.

          (c)  The Trustees shall at all times maintain separate Accounts
reflecting the participation of the Eligible Employees of the Member Employer
and in no event shall there be a commingling of the Accounts of the Eligible
Employees of the Employer or any Member Employer, provided that this requirement
shall in no event be construed to be a limitation on the commingling of any
contributions of the Trust Fund for investment purposes nor shall it require the
Trustees to maintain separate accounts with respect to the Trust Fund except as
otherwise provided herein.

          (d)  Notwithstanding any other provisions of this Agreement to the
contrary, it is specifically understood that the participation of any Affiliated
Employer hereunder, the obligation of such Affiliated Employer to make
contributions hereunder, and the vesting and entitlements of any Participant
based on such contributions are conditional to the extent that if a notification
is received from the United States Treasury that its Subscription Agreement as
part of the Plan, or the same as it may have been amended, is not part of a
qualified plan under Section 401 of the Code, as amended by ERISA, with respect
to its participation, such Affiliated Employer shall not be a Member Employer
hereunder and the then value of any contributions made by such Affiliated
Employer or its Employees shall be returned from the Trust Fund, and no
Participant hereunder or his Beneficiary shall have any vested interest in, or
be entitled to, any benefit payments based on such contributions. Further, it is
understood and provided that upon receipt of an initial notification from the
United States Treasury Department that such Subscription Agreement and the Plan
and Trust, as they may have been amended in order to receive such notification,
are qualified and exempt from taxation under the applicable sections of the
Code, the participation of such Affiliated Employer as a Member Employer and the
vestings and entitlement of all Participants employed by such Member Employer
and their Beneficiaries shall be retroactive to the date of their occurrence in
accordance with the other provisions of the Plan, and this

                                     16-2
<PAGE>

Article 16.3 shall be of no further force or effect with respect to such Member
Employer and its Employees.

     16.4 Termination of Member Employer's Participation. Any Member Employer
          -----------------------------------------------
may at any time elect to terminate its participation in the Plan and Trust, or
any Member Employer may elect at any time by appropriate amendment or action
affecting only its own status hereunder to disassociate itself from the Plan and
Trust but to continue the Plan and the portion of the Trust as it pertains to
itself and its Employees as an entity separate and distinct from the Plan and
Trust if otherwise permitted by law. Termination of the participation of any
Member Employer shall not affect the participation of any other Member Employer
nor terminate the Plan or Trust with respect to them and their Employees;
provided that, if Employer shall terminate its participation, or disassociate
itself, then each remaining Member Employer shall make such arrangement and take
such action as may be necessary to assume the duties of providing for the
operation and continued administration of the Plan and Trust as the same
pertains to the Member Employer.

                   *  *  *  *  End of Article 16  *  *  *  *

                                     16-3
<PAGE>
                                  Article 17.

                                 Miscellaneous

     17.1 Special Rule Relating to Veterans Reemployment Rights Under USERRA.
          -------------------------------------------------------------------
Notwithstanding any provision 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 Section 414(u) of
the Code.

                   *  *  *  *  End of Article 17  *  *  *  *

                                     17-1
<PAGE>

          IN WITNESS WHEREOF, the Employer and the Trustees have caused this
Agreement to be executed by their respective duly authorized parties on this
_____ day of ___________________, 1999.

                              CH2M HILL COMPANIES, LTD.
                              (Employer)

                              By
                                ---------------------------------------
                              Its
                                 --------------------------------------

                              FRED K. BERRY
                              SAMUEL H. IAPALUCCI
                              SHARON SCHLECHTER
                              CLIFF THOMPSON
                              STAN VINSON

                              (Trustees)

                              By
                                ---------------------------------------

                              By
                                ---------------------------------------

                              By
                                ---------------------------------------

                              By
                                ---------------------------------------

                              By
                                ---------------------------------------<PAGE>

                                                                    EXHIBIT 10.3

                           CH2M HILL COMPANIES, LTD.
                            1999 STOCK OPTION PLAN

                            AS AMENDED AND RESTATED

                              SECTION 1: PURPOSE
                              ------------------

     The purpose of the CH2M HILL Companies, Ltd. 1999 Stock Option Plan As
Amended and Restated (the "Plan") is to further the growth and development of
CH2M HILL Companies, Ltd. (the "Company") by affording an opportunity for stock
ownership to selected employees and directors of and consultants to the Company
and certain other entities in which the Company has an ownership interest, who
are responsible for the conduct and management of the Company's business or who
are involved in endeavors significant to the Company's success.

                            SECTION 2: DEFINITIONS
                            ----------------------

  Unless otherwise indicated, the following words when used herein shall have
the following meanings:

  a. "Board of Directors" shall mean the Board of Directors of the Company.

  b. "Cause" shall mean a termination of affiliation with the Company on account
     of: (1) repeated refusal to obey written directions of the Board of
     Directors or a superior officer of the Company (so long as such directions
     do not involve illegal or immoral acts); (2) acts of substance abuse which
     are materially injurious to the Company; (3) fraud or dishonesty that is
     materially injurious to the Company; (4) commission of a criminal offense
     involving money or other property of the Company (excluding any traffic
     violations or similar violations); or (5) commission of a criminal offense
     that constitutes a felony in the jurisdiction in which the offense is
     committed.

  c. "Change in Control" shall be deemed to have occurred: (1) at such time as a
     third person, including a "group" as defined in Section 13(d)(3) of the
     Securities Exchange Act of 1934, becomes the beneficial owner of shares of
     the Company having 50% or more of the total number of votes that may be
     cast for the election of Directors of the Company; or (2) on the date on
     which the shareholders of the Company approve (i) any agreement for a
     merger or consolidation in which the Company will not survive as an
     independent corporation or (ii) any sale, exchange or other disposition of
     all or substantially all of the Company's assets; or (3) on the effective
     date of any sale, exchange or other disposition of greater than 50% in fair
     market value of the Company's assets; or (4) on the date on which a
     majority of the members of the Board of Directors consists of individuals
     who were not members of the Board of Directors on January 1, 2000 and whose
     election or appointment to the Board of Directors was not approved by a
     majority of the members of the Board of Directors as comprised immediately
     prior to such election or appointment. In determining whether clause (1) of
     the preceding sentence has been satisfied, the third person owning shares
     must be a person or entity other than an employee benefit plan of the
     Company. The Committee's reasonable
<PAGE>

                                                                          Page 2

     determination as to whether a Change in Control has occurred shall be final
     and conclusive.

  d. "Code" shall mean the Internal Revenue Code of 1986, as amended from time
     to time.

  e. "Committee" shall mean the Committee appointed by the Board of Directors in
     accordance with Section 4.1 to administer the Plan.

  f. "Common Stock" shall mean the Company's common stock (par value $0.01 per
     share) and any share or shares of the Company's capital stock hereafter
     issued or issuable in substitution for such shares.

  g. "Incentive Stock Option" shall mean any option granted to an eligible
     employee under the Plan, which the Company intends at the time the option
     is granted to be an Incentive Stock Option within the meaning of Section
     422 of the Code.

  h. "Nonqualified Stock Option" shall mean any option granted to an eligible
     participant under the Plan which is not an Incentive Stock Option.

  i. "Option" shall mean and refer collectively to Incentive Stock Options and
     Nonqualified Stock Options.

  j. "Option Agreement" shall mean the agreement specified in Section 7.2.

  k. "Optionee" shall mean any person who is granted an Option under the Plan.
     "Optionee" shall also mean the personal representative of the estate of a
     deceased Optionee or any designated beneficiary or other person who
     acquires the right to exercise an Option by bequest or inheritance.

  l. "Parent" shall mean a parent corporation of the Company as defined in
     Section 424(e) of the Code.

  m. "Subsidiary" shall mean a subsidiary corporation of the Company as defined
     in Section 424(f) of the Code.

                           SECTION 3: EFFECTIVE DATE
                           -------------------------

  The effective date of the Plan is January 1, 1999; provided, however, that the
adoption of the Plan by the Board of Directors is subject to approval and
ratification by the shareholders of the Company within twelve months before or
after the effective date.  Options granted under the Plan prior to approval of
the Plan by the shareholders of the Company shall be subject to approval of the
Plan by the shareholders of the Company and may not be exercised prior to the
approval of the Plan by the shareholders of the Company.  The effective date of
the amended and restated Plan is November 12, 1999,
<PAGE>

                                                                          Page 3

which is the date on which the Board of Directors approved the amended and
restated Plan.

                           SECTION 4: ADMINISTRATION
                           -------------------------

     4.1  Administrative Committee.  The Plan shall be administered by a
          ------------------------
Committee appointed by and serving at the pleasure of the Board of Directors.
The Committee shall at all times include at least two Directors and shall
include such other members (Directors or non-Directors) as the Board of
Directors may determine.  The Board of Directors may from time to time remove
members from or add members to the Committee, and vacancies on the Committee
shall be filled by the Board of Directors.

     4.2  Committee Meetings and Actions.  The Committee shall hold meetings at
          ------------------------------
such times and places as it may determine.  A majority of the members of the
Committee shall constitute a quorum, and the acts of a majority of the members
present at a meeting or a consent in writing signed by all members of the
Committee shall be the acts of the Committee and shall be final, binding and
conclusive upon all persons, including the Company, its shareholders, and all
persons having any interest in Options which may be or have been granted
pursuant to the Plan.  The Committee may delegate some or all of its duties
under this Plan to such other committees or employees as the Committee deems
appropriate in order to carry out such duties in an efficient manner.

     4.3  Powers of Committee.  The Committee shall have the full and exclusive
          -------------------
right to grant and to determine terms and conditions of all Options granted
under the Plan and to prescribe, amend and rescind rules and regulations for
administration of the Plan.  In granting Options, the Committee shall take into
consideration the contribution the Optionee has made or may make to the success
of the Company and such other factors as the Committee shall determine.

     4.4  Interpretation of Plan.  The determination of the Committee as to any
          ----------------------
disputed question arising under the Plan, including questions of construction
and interpretation, shall be final, binding and conclusive upon all persons,
including the Company, its shareholders, and all persons having any interest in
Options which may be or have been granted pursuant to the Plan.

     4.5  Indemnification.  Each person who is or shall have been a member of
          ---------------
the Committee or of the Board of Directors shall be indemnified and held
harmless by the Company against and from any loss, cost, liability or expense
that may be imposed upon or reasonably incurred in connection with or resulting
from any claim, action, suit or proceeding to which such person may be a party
or in which such person may be involved by reason of any action taken or failure
to act under the Plan and against and from any and all amounts paid in
settlement thereof, with the Company's approval, or paid in satisfaction of a
judgment in any such action, suit or proceeding against him, provided such
person shall give the Company an opportunity, at its own expense, to handle and
defend the same before undertaking to handle and defend it on such person's own
behalf.
<PAGE>

                                                                          Page 4

The foregoing right of indemnification shall not be exclusive of, and is in
addition to, any other rights of indemnification to which any person may be
entitled under the Company's Articles of Incorporation or Bylaws, as a matter of
law, or otherwise, or any power that the Company may have to indemnify them or
hold them harmless.

                     SECTION 5: STOCK SUBJECT TO THE PLAN
                     ------------------------------------

     5.1  Number.  The aggregate number of shares of Common Stock which may be
          ------
issued under Options granted pursuant to the Plan shall not exceed 8,000,000
shares (determined after the ten-to-one (10:1) stock split approved by the Board
of Directors on a conditional basis on November 6, 1998).  Shares which may be
issued under Options may consist, in whole or in part, of authorized but
unissued stock or treasury stock of the Company not reserved for any other
purpose.

     5.2  Unused Stock.  If any outstanding Option under the Plan is cancelled,
          ------------
expires, or for any other reason ceases to be exercisable, in whole or in part,
other than upon exercise of the Option, the shares which were subject to such
Option and as to which the Option had not been exercised shall continue to be
available under the Plan.

     5.3  Adjustment for Change in Outstanding Shares.  If there is any change,
          -------------------------------------------
increase or decrease, in the outstanding shares of Common Stock which is
effected without receipt of additional consideration by the Company, by reason
of a stock dividend, recapitalization, merger, consolidation, stock split,
combination or exchange of stock, or other similar circumstances, then in each
such event, the Committee shall make an appropriate adjustment in the aggregate
number of shares of stock available under the Plan, the maximum number of shares
of stock for which Options may be granted to a person under the Plan, the number
of shares of stock subject to each outstanding Option, and the Option prices, in
order to prevent the dilution or enlargement of any Optionee's rights. The
Committee's determinations in making adjustments shall be final and conclusive.

     5.4  Reorganization or Sale of Assets.  If the Company is merged or
          --------------------------------
consolidated with another corporation and the Company is not the surviving
corporation, or if all or substantially all of the assets of the Company are
acquired by another entity, or if the Company is liquidated or reorganized (each
of such events being referred to as a "Reorganization Event"), the Committee
shall, as to outstanding Options, either:  (1) make appropriate provision for
the protection of any such outstanding Options by the substitution on an
equitable basis of appropriate stock of the Company, or of the merged,
consolidated or otherwise reorganized corporation, which will be issuable in
respect of the Common Stock, provided that no additional benefits shall be
conferred upon Optionees as a result of such substitution, and provided further
that the excess of the aggregate fair market value of the shares subject to the
Options immediately after such substitution over the purchase price thereof is
not more than the excess of the aggregate fair market value of the shares
subject to such Options immediately before such substitution over the purchase
price thereof; or (2) upon written notice to all Optionees, which notice shall
be given not less than 20 days prior to the effective date of the Reorganization
Event,
<PAGE>

                                                                          Page 5

provide that all unexercised Options must be exercised within a specified
number of days (which shall not be less than ten) of the date of such notice or
such Options will terminate.  In response to a notice provided pursuant to
clause (2) of the preceding sentence, an Optionee may make an irrevocable
election to exercise the Optionee's Option contingent upon and effective as of
the effective date of the Reorganization Event.  The Committee may, in its sole
discretion, accelerate the exercise dates of outstanding Options in connection
with any Reorganization Event which does not also result in a Change in Control.

                            SECTION 6: ELIGIBILITY
                            ----------------------

  All employees of the Company and its Subsidiaries who are responsible for the
conduct and management of the Company's business or who are involved in
endeavors significant to the success of the Company shall be eligible to receive
both Incentive Stock Options and Nonqualified Stock Options under the Plan.
Directors of and consultants to the Company and employees and directors of and
consultants to entities in which the Company has a direct or indirect ownership
interest of at least 50%, who are not employees of the Company or its
Subsidiaries but who are involved in endeavors significant to the success of the
Company, shall be eligible to receive Nonqualified Stock Options, but not
Incentive Stock Options, under the Plan.  The Board of Directors may reduce the
50% ownership requirement in the preceding sentence, except that such percentage
shall not be reduced below 10%.  Notwithstanding the preceding sentences of this
Section, the Committee may from time to time, in its sole discretion, determine
that employees and directors of and consultants to specific entities are not
eligible to receive Options under the Plan.

                          SECTION 7: GRANT OF OPTIONS
                          ---------------------------

     7.1  Grant of Options.  The Committee may from time to time in its sole
          ----------------
discretion determine which of the eligible participants should receive Options,
the type of Options to be granted (whether Incentive Stock Options or
Nonqualified Stock Options), the number of shares subject to such Options, the
dates on which such Options are to be granted and, except as otherwise provided
by the Plan, all other terms and conditions relating to Options.  The terms and
conditions of an Option granted under the Plan need not be identical to the
terms and conditions of any other Option granted under the Plan.  No employee
may be granted Incentive Stock Options to the extent that the aggregate fair
market value (determined as of the time each Incentive Stock Option is granted)
of the Common Stock with respect to which any such Incentive Stock Options are
exercisable for the first time during a calendar year (under all incentive stock
option plans of the Company and its Parent and Subsidiaries) would exceed
$100,000.  No person shall be granted Options under the Plan to purchase more
than 350,000 shares of Common Stock.

     7.2  Option Agreement.  Each Option granted under the Plan shall be
          ----------------
evidenced by a written Option Agreement setting forth the terms upon which the
Option is granted.
<PAGE>

                                                                          Page 6

Each Option Agreement shall designate the type of Options being granted (whether
Incentive Stock Options or Nonqualified Stock Options) and shall state the
number of shares of Common Stock, as designated by the Committee, to which that
Option pertains. More than one Option may be granted to an eligible person.

     7.3  Option Price.  The option price per share of Common Stock under each
          ------------
Option shall be determined by the Committee and stated in the Option Agreement.
The option price for Incentive Stock Options granted under the Plan shall not be
less than 100% of the fair market value (determined as of the day the Option is
granted) of the shares subject to the Option.  The option price for Nonqualified
Stock Options granted under the Plan shall not be less than 90% of the fair
market value (determined as of the day the Option is granted) of the shares
subject to the Option.

     7.4  Determination of Fair Market Value.  For all purposes of the Plan and
          ----------------------------------
all Option Agreements under the Plan, the fair market value of each share of
Common Stock on any date shall be deemed to be the Formula Price per share in
effect on that date, as determined in accordance with the Company's Articles of
Incorporation and Bylaws as amended from time to time.

     7.5  Duration of Options.  Each Option shall be of a duration as specified
          -------------------
in the Option Agreement; provided, however, that the term of each Option shall
be no more than ten years from the date on which the Option is granted and shall
be subject to early termination as provided herein.  Each Option may be
cancelled, with or without cause, at any time by the Committee by written notice
of cancellation to the Optionee.  Upon cancellation of an Option by the
Committee, the Optionee shall not have any rights to purchase Common Stock under
the Option, and neither the Company nor the Committee shall have any liability
to the Optionee with respect to such Option or the cancellation of such Option.

     7.6  Additional Limitations on Grant.  No Incentive Stock Option shall be
          -------------------------------
granted to an employee who, at the time the Incentive Stock Option is granted,
owns stock (as determined in accordance with Section 424(d) of the Code)
representing more than 10% of the total combined voting power of all classes of
stock of the Company or of any Parent or Subsidiary, unless the option price of
such Incentive Stock Option is at least 110% of the fair market value
(determined as of the day the Incentive Stock Option is granted) of the Common
Stock subject to the Incentive Stock Option and the Incentive Stock Option by
its terms is not exercisable more than five years from the date it is granted.

     7.7  Other Terms and Conditions.  The Option Agreement may contain such
          --------------------------
other provisions, which shall not be inconsistent with the Plan, as the
Committee shall deem appropriate, including, without limitation, provisions that
relate the Optionee's ability to exercise an Option to the passage of time or
the achievement of specific goals established by the Committee or the occurrence
of certain events specified by the Committee.  The Option Agreement may also
provide, in the discretion of the Committee, that any shares of Common Stock
acquired upon exercise of an Option shall become, upon such acquisition, subject
to the terms of a Stock Restriction Agreement which shall be set forth as an
attachment to the Option Agreement.

<PAGE>

                                                                          Page 7

                        SECTION 8: EXERCISE OF OPTIONS
                        ------------------------------

     8.1  Manner of Exercise.  Subject to the limitations and conditions of the
          ------------------
Plan or the Option Agreement, an Option shall be exercisable, in whole or in
part, from time to time, by giving written notice of exercise to the Treasurer
of the Company, which notice shall specify the number of shares of Common Stock
to be purchased and shall be accompanied by all of the following: (1) payment in
full to the Company of the purchase price of the shares to be purchased; (2)
payment in full of such amount as the Company shall determine to be sufficient
to satisfy any liability that the Company or any other entity may have for any
withholding of federal, state or local income or other taxes incurred by reason
of the exercise of the Option; (3) a representation meeting the requirements of
Section 12.2, if demanded by the Company; and (4) a Stock Restriction Agreement
meeting the requirements of Section 12.3, if requested by the Committee.  An
Option shall be considered to be exercised on the earlier of the date on which
the Treasurer of the Company receives all of the items specified in the
preceding sentence or the date on which all of the items specified in the
preceding sentence are mailed to the Treasurer of the Company, as evidenced by a
United States Postal Service postmark.

     8.2  Payment of Purchase Price.  Payment for shares shall be in the form of
          -------------------------
either: (1) cash; or (2) a personal check to the order of the Company; or (3) a
combination of cash and a personal check.  In addition, unless the Committee, in
its discretion, provides otherwise, all or part of the payment for shares may be
made by tendering to the Company whole shares of Common Stock owned by the
Optionee, in an amount the fair market value of which (as determined in
accordance with Section 7.4) on the date of exercise equals or exceeds the
aggregate option price of the shares with respect to which the Option is being
exercised.  If shares of Common Stock owned by the Optionee are used to pay all
or part of the purchase price, such shares shall be evidenced by negotiable
certificates endorsed to the Company or, if authorized by the Committee, by a
written attestation of ownership of shares signed by the Optionee.

     8.3  Designation of Beneficiary.  Each Optionee may designate one or more
          --------------------------
beneficiaries (who may be designated contingently or successively) to whom the
right to exercise Options following the Optionee's death shall pass, if the
Option Agreement permits the exercise of unexercised Options after the
Optionee's death.  Each designation will automatically revoke any prior
designations by the same Optionee, shall be in writing in such form as may be
prescribed by the Committee, and shall be effective as of the date on which the
written designation is received by the Committee during the lifetime of the
Optionee.  If no valid designation of beneficiary is on file with the Committee
as of the date on which the Optionee dies, any right to exercise any unexercised
Options after the Optionee's death will pass to the Optionee's estate or to the
person or persons to whom the Optionee's rights under the Option pass by will or
by applicable law.

     8.4  Prohibition on Exercise of Options if Limits on Ownership of Common
          -------------------------------------------------------------------
Stock Would be Exceeded.  Notwithstanding any other provision of this Plan or of
-----------------------
any Option Agreement, an Option granted under this Plan may not be exercised if,
immediately after
<PAGE>

                                                                          Page 8

the exercise of such Option, the recipient of shares of Common Stock pursuant to
such exercise would own more shares of Common Stock of the Company than such
person is permitted to own under the Articles of Incorporation or Bylaws of the
Company.

                         SECTION 9: CHANGE IN CONTROL
                         ----------------------------

  Notwithstanding any vesting requirements contained in any Option Agreement,
all outstanding Options shall become immediately exercisable in full upon the
occurrence of a Change in Control.

               SECTION 10: EFFECT OF TERMINATION OF AFFILIATION
               ------------------------------------------------

     10.1  Involuntary Termination of Affiliation Other Than Upon Death or
           ---------------------------------------------------------------
Disability; Retirement.  The Committee shall provide in each Option Agreement
----------------------
that, upon involuntary termination of the Optionee's affiliation with the
Company other than upon death or disability (within the meaning of Section
22(e)(3) of the Code) and other than for Cause, and upon the retirement of an
Optionee, the Optionee may, at any time within three months after the date of
termination of affiliation or retirement, but not later than the date of
expiration of the Option, exercise the Option to the extent the Optionee was
entitled to do so on the date of termination of affiliation or retirement.  Any
Options not exercisable as of the date of termination of affiliation or
retirement and any Options or portions of Options of terminated Optionees not
exercised as provided herein shall terminate.  For purposes of this Section 10,
retirement shall mean the voluntary termination of an Optionee's employment with
the Company and all of its affiliates at or after age 65 (or at or after 55 if
the Optionee has at least ten years of service with the Company and its
affiliates.

     10.2  Termination of Affiliation by Death of Optionee.  The Committee shall
           -----------------------------------------------
provide in each Option Agreement that, if an Optionee dies while affiliated with
the Company or within a period of three months after termination of affiliation
with the Company or retirement under circumstances to which Section 10.1
applies, the personal representative of the Optionee's estate or the designated
beneficiary or other person or persons who shall have acquired the Option from
the Optionee by bequest or inheritance may exercise the Option at any time
within one year after the date of death but not later than the expiration date
of the Option, to the extent the Optionee was entitled to do so on the date of
death.  Any Options not exercisable as of the date of death and any Options or
portions of Options of deceased Optionees not exercised as provided herein shall
terminate.

     10.3  Termination of Affiliation by Disability of Optionee.  The Committee
           ----------------------------------------------------
shall provide in each Option Agreement that, upon termination of an Optionee's
affiliation with the Company by reason of the Optionee's disability (within the
meaning of Section 22(e)(3) of the Code), the Optionee may exercise the Option
at any time within one year after the date of termination of affiliation but not
later than the expiration date of
<PAGE>

                                                                          Page 9

the Option, to the extent the Optionee was entitled to do so on the date of
termination of affiliation. Any Options not exercisable as of the date of
termination of affiliation and any Options or portions of Options of disabled
Optionees not exercised as provided herein shall terminate.

     10.4  Other Terminations of Affiliation.  Upon termination of an Optionee's
           ---------------------------------
affiliation with the Company under circumstances other than those set forth in
Sections 10.1, 10.2 or 10.3, including without limitation a termination for
Cause and a voluntary termination on the part of the Optionee other than
retirement, Options granted to the Optionee shall terminate immediately.

     10.5  Definition of Termination of Affiliation.  For purposes of any
           ----------------------------------------
Nonqualified Stock Option granted under this Plan, an Optionee's affiliation
with the Company shall be deemed to be terminated as of the first day on which
the Optionee is no longer an employee or director of or a consultant to the
Company or by another entity that is eligible to participate in the Plan.  For
purposes of any Incentive Stock Option granted under this Plan, an Optionee's
employment with the Company shall be deemed to be terminated as of the first day
on which the Optionee is no longer employed by the Company or any Subsidiary of
the Company.

     10.6  Employees and Directors of and Consultants to Eligible Entity that
           ------------------------------------------------------------------
Becomes Ineligible.  If an entity whose employees, directors and consultants are
------------------
eligible to participate in the Plan becomes ineligible to participate in the
Plan because of a change in the Company's ownership of the entity or because of
a determination by the Committee under Section 6, all Options held by employees
and directors of an consultants to such entity shall become immediately
exercisable in full.  The change in the status of the entity to one whose
employees, directors and consultants are not eligible to participate in the Plan
shall be deemed to be an involuntary termination of affiliation with the Company
with respect to the employees and directors or and consultants to that entity.

     10.7  Exercise of Nonqualified Stock Option After Termination of
           ----------------------------------------------------------
Affiliation.  Notwithstanding any other provision of the Plan, the Committee
-----------
may, in its sole discretion, provide in an Option Agreement or otherwise that,
upon termination of an Optionee's affiliation with the Company, one or more
Nonqualified Stock Options held by the Optionee may be exercised at such time
and subject to such conditions as the Committee,  in its sole discretion, may
designate.

                  SECTION 11: NON-TRANSFERABILITY OF OPTIONS
                  ------------------------------------------

  Options granted pursuant to the Plan are not transferable by the Optionee
other than by will or the laws of descent and distribution and shall be
exercisable during the Optionee's lifetime only by the Optionee.  Upon any
attempt to transfer, assign, pledge, hypothecate or otherwise dispose of an
Option contrary to the provisions hereof, or upon the levy of any attachment or
similar process upon an Option, the Option shall immediately become null and
void.
<PAGE>

                                                                         Page 10

                        SECTION 12: ISSUANCE OF SHARES
                        ------------------------------

     12.1  Transfer of Shares to Optionee.  As soon as practicable after the
           ------------------------------
Treasurer of the Company has received an Optionee's written notice of exercise
of an Option and the other items specified in Section 8.1, the Company shall
issue or transfer to the Optionee the number of shares of Common Stock as to
which the Option has been exercised and shall deliver to the Optionee a
certificate or certificates therefor, registered in the Optionee's name.  In the
alternative, the Company may provide for the recording of ownership of shares
without the issuance of certificates. If the issuance or transfer of shares by
the Company would for any reason, in the opinion of counsel for the Company,
violate any applicable federal or state laws or regulations, the Company may
delay issuance or transfer of such shares to the Optionee until compliance with
such laws can reasonably be obtained.  In no event shall the Company be
obligated to effect or obtain any listing, registration, qualification, consent
or approval under any applicable federal or state laws or regulations or any
contract or agreement to which the Company is a party with respect to the
issuance of any such shares.

     12.2  Investment Representation.  Upon demand by the Company, the Optionee
           -------------------------
shall deliver to the Company a representation in writing that the purchase of
all shares with respect to which notice of exercise of the Option has been given
by the Optionee is being made for investment only and not for resale or with a
view to distribution, and containing such other representations and provisions
with respect thereto as the Company may require.  Upon such demand, delivery of
such representation promptly and prior to the transfer or delivery of any such
shares and prior to the expiration of the option period shall be a condition
precedent to the right to purchase such shares.

     12.3  Restrictions on Common Stock Acquired Through Exercise of Options.
           -----------------------------------------------------------------
All shares of Common Stock acquired through the exercise of Options granted
under this Plan shall be subject to all restrictions on shares of Common Stock
of the Company set forth in the Articles of Incorporation and Bylaws of the
Company, including:  (1) restrictions that grant the Company the right to
repurchase shares upon termination of the shareholder's affiliation with the
Company; (2) restrictions that grant the Company a right of first refusal if the
shareholder wishes to sell shares other than in the limited market maintained by
the Company; (3) restrictions that require the approval of the Company for any
other sale of shares; and (4) restrictions that define the Formula Price to be
applied in purchases and sales of shares.  In addition, if requested by the
Committee in its sole discretion, the Optionee shall execute and deliver to the
Company a Stock Restriction Agreement in such form as the Committee may provide
at the time of exercise of the Option.  Such Stock Restriction Agreement may
include, without limitation, restrictions in addition to those restrictions set
forth in the Articles of Incorporation and Bylaws of the Company.  Upon such
request, execution of the Stock Restriction Agreement by the Optionee prior to
the transfer or delivery of any shares and prior to the expiration of the option
period shall be a condition precedent to the right to purchase such shares,
unless such condition is expressly waived in writing by the Committee.

<PAGE>

                                                                         Page 11

                            SECTION 13: AMENDMENTS
                            ----------------------

  The Board of Directors may at any time and from time to time alter, amend,
suspend or terminate the Plan or any part thereof as it may deem proper, except
that no such action shall diminish or impair the rights under an Option
previously granted without the consent of the Optionee.  Unless the shareholders
of the Company shall have given their approval, the total number of shares for
which Options may be issued under the Plan shall not be increased, except as
provided in Section 5.3, and no amendment shall be made which reduces the option
price at which the Common Stock may be offered through Incentive Stock Options
under the Plan below the minimum required by Section 7.3, except as provided in
Section 5.3, or which materially modifies the requirements as to eligibility for
receipt of Incentive Stock Options under the Plan.  Subject to the terms and
conditions of the Plan, the Committee may modify, extend or renew outstanding
Options granted under the Plan, or accept the surrender of outstanding Options
to the extent not theretofore exercised and authorize the granting of new
Options in substitution therefor, except that no such action shall diminish or
impair the rights under an Option previously granted without the consent of the
Optionee.

                           SECTION 14: TERM OF PLAN
                           ------------------------

  This Plan shall terminate on December 31, 2008; provided, however, that the
Board of Directors may at any time prior thereto suspend or terminate the Plan.

                       SECTION 15: RIGHTS AS STOCKHOLDER
                       ---------------------------------

  An Optionee shall have no rights as a stockholder of the Company with respect
to any shares of Common Stock covered by an Option until the date of the
issuance of the stock certificate for such shares or the date of the recording
of the ownership of the shares in the Optionee's name.

                       SECTION 16: NO EMPLOYMENT RIGHTS
                       --------------------------------

  Nothing contained in this Plan or in any Option granted under the Plan shall
confer upon any Optionee any right with respect to the continuation of such
Optionee's affiliation with the Company or interfere in any way with the right
of the Company or any other entity participating in the Plan, subject to the
terms of any separate employment agreement to the contrary, at any time to
terminate such affiliation or to increase or decrease the compensation of the
Optionee from the rate in existence at the time of the grant of the Option.
<PAGE>

                                                                         Page 12

 SECTION 17: EMPLOYEES, DIRECTORS AND CONSULTANTS BASED OUTSIDE OF THE UNITED
 ----------------------------------------------------------------------------
                                     STATES
                                     ------

  With respect to Options granted to employees and directors of and consultants
to the Company and other participating entities who are based outside of the
United States, the Committee shall have complete discretion to determine which
such affiliates are eligible to receive Options, to define all terms and
conditions of Options granted to such affiliates (including the duration of such
Options and the option price under such Options), to modify and amend such
Options as may be necessary or appropriate to comply with the laws and
regulations of foreign jurisdictions, and to establish subplans and modified
procedures with respect to the grant and exercise of such Options.
Notwithstanding the provisions of Sections 7.3 and 7.5, the Committee may in its
discretion grant Options to employees and directors of and consultants to the
Company and other participating entities who are based outside of the United
States that have an option price that is less than 90% of the fair market value
(determined as of the day the Option is granted) of the shares subject to the
Options or that have a term of more than ten years from the date on which the
Options are granted, or both.

                           SECTION 18: GOVERNING LAW
                           -------------------------

     This Plan, and all Options granted under this Plan, shall be construed and
shall take effect in accordance with the laws of the State of Colorado, without
regard to the conflicts of laws rules of such State.

     Adopted (as amended and restated) this 12th day of November, 1999.

                              CH2M Hill Companies, Ltd.

                              By:  Samuel H. Iapalucci
                                   -------------------

                              Title: Chief Financial Officer and Secretary
                                     -------------------------------------

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