Document:

FROZEN FOOD EXPRESS INDUSTRIES, INC.
                               401(K) SAVINGS PLAN

                                  ARTICLE ONE
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                                     PURPOSE

     SECTION 1.1. INTRODUCTION. Frozen Food Express Industries, Inc., a Texas
corporation, (hereinafter referred to as "Employer") previously established the
Savings Plan for Employees of Frozen Food Express (the "Prior Plan") as a 401(k)
Profit Sharing Plan for the exclusive benefit of its eligible Employees and
their Beneficiaries. FFE Transportation Services, Inc. and Conwell Corporation
previously established the FFE Transportation Services, Inc. Employee Stock
Ownership Plan (the "FFE Transportation Services ESOP") and the Conwell
Corporation Employee Stock Ownership Plan (the "Conwell ESOP"), respectively,
for the exclusive benefit of their eligible Employees and their Beneficiaries.
Pursuant to that certain Plan Merger Agreement effective December 31, 1999, the
Prior Plan is hereby restated as the Frozen Food Express Industries, Inc. 401(k)
Savings Plan (the "Plan") and incorporates the FFE Transportation Services ESOP
and the Conwell ESOP accounts as ESOP Accounts. As restated, the Plan is
intended to be qualified under Sections 401(a), 401(k), and 4975(e)(7) of the
Internal Revenue Code of 1986, as amended (the "Code"), and Section 407(d)(6) of
the Employee Retirement Income Security Act ("ERISA") and applicable regulations
thereunder. The restated Plan is generally effective January 1, 2000, except as
otherwise provided herein. The Plan consists of the Plan document herein and the
separate Trust Agreement.

     SECTION 1.2. PURPOSE. The purpose of the Plan is to reward eligible
Employees for their loyal and faithful service, to share with such Employees a
portion of the Employers' profits, to help such Employees accumulate funds for
their retirement, and to provide funds for such Employees or their Beneficiaries
in the event of death or disability. The benefits provided by the Plan will be
paid from the Trust and will be in addition to the benefits eligible Employees
are entitled to receive under any other programs of the Employer and/or from the
federal Social Security Act. The Plan and the Trust are established and shall be
maintained for the exclusive benefit of the eligible Employees and their
Beneficiaries.

     SECTION 1.3. LIMITATION. The provisions of this Plan, as amended and
restated, shall apply solely to an Employee who terminates employment with the
Employer on or after the restated Effective Date of this Plan. If an Employee
terminates employment with the Employer prior to the restated Effective Date,
that Employee shall be entitled to benefits under the terms of the Prior Plan,
the FFE Transportation Services ESOP, or the Conwell ESOP, as applicable.

                                  * * * * * * *

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                                  ARTICLE TWO
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                                   DEFINITIONS

     When used herein, the following words and phrases shall have the respective
meanings set forth below, unless the context clearly indicates otherwise:

     SECTION 2.1. ACCOUNTING DATE means the last business day of each calendar
quarter of any Plan Year.

     SECTION 2.2. ACCOUNTS means the value of all of the accounts maintained by
the Committee for a particular Participant, including his Discretionary Employer
Contribution Account, Matching Employer Contribution Account, Rollover Account,
Savings Account, W & B Plan Rollover Account, ESOP Transfer Account, and ESOP
Rollover Account.

     SECTION 2.3. ADMINISTRATOR means the Committee designated by the Employer
unless the Employer designates another person to hold the position of
Administrator by written Employer action.

     SECTION 2.4. AFFILIATE means any company, other than an Employer, included
within a "controlled group of corporations" defined by Code Section 1563(a)
determined without regard to Code Sections 1563(a)(4) and (e)(3)(C) and Code
Section 409(l)(4), which contains an Employer.

     SECTION 2.5. ALTERNATE PAYEE means any spouse, former spouse, child, or
other dependent of a Participant who is recognized by a domestic relations order
as having a right to receive all, or a portion of, the benefits payable under
the Plan with respect to such Participant.

     SECTION 2.6. BENEFICIARY means a person or entity, either in an individual
or fiduciary capacity, designated by a Participant or Former Participant
pursuant to Article 8 to receive any benefit payable under this Plan upon the
death of such Participant or Former Participant.

     SECTION 2.7. BREAK IN SERVICE.

          (a) A Break in Service, for purposes of eligibility, means a Period of
     Severance of at least twelve (12) consecutive months. A Period of Severance
     means a continuous period of time during which an Employee is not employed
     by the Employer. Such period shall begin on the date the Employee retires,
     quits, is discharged, or dies, or, if earlier, the twelve (12) month
     anniversary of the date on which the Employee was otherwise first absent
     from work.

          (b) A Break in Service, for purposes of vesting, means a Period of
     Severance of at least twelve (12) consecutive months. A Period of Severance
     means a continuous period of time during which an Employee is not employed
     by the Employer. Such period shall begin on the date the Employee retires,
     quits, is discharged, or dies, or, if earlier, the twelve (12) month
     anniversary of the date on which the Employee was otherwise first absent
     from work.

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          (c) An Employee shall receive credit for purposes of determining
     whether he has incurred a Break in Service under subsection (a) or (b)
     above for the aggregate of all time period(s) commencing with the first day
     such Employee completes an Hour of Service, the Employment Commencement
     Date, (including such day following reemployment) and ending on the date a
     Break in Service begins. An Employee shall also receive credit for any
     Period of Severance of less than twelve (12) consecutive months. Fractional
     periods of a year shall be expressed in terms of days.

          (d) Further, solely for the purpose of determining whether a
     Participant has incurred a Break in Service under (a) or (b) above, Hours
     of Service shall be recognized for "authorized leaves of absence" and
     "maternity and paternity leaves of absence."

               (i) An "authorized leave of absence" means an unpaid temporary
          cessation from active employment with the Employer pursuant to an
          established nondiscriminatory policy, whether occasioned by illness,
          military service or any other reason if:

                    (A) a person is absent on a leave of absence with the prior
               consent of his Employer, which consent shall be granted under
               uniform rules applied to all Employees on a nondiscriminatory
               basis, but only if such person is an Employee immediately prior
               to the commencement of such period of authorized absence and
               resumes employment with an Employer not later than the first
               working day following the expiration of such period of authorized
               absence;

                    (B) a person is a member of the Armed Forces of the United
               States and his reemployment rights are guaranteed by law, but
               only if such person is an Employee immediately prior to becoming
               a member of such Armed Forces and resumes employment with an
               Employer within the period during which his reemployment rights
               are guaranteed by law; or

                    (C) a person who is at any time an Employee who is employed
               by an entity which is not an Employer but whose employees are
               deemed, under Code Section 414, to be employed, together with all
               Employees, by a common entity, including a period or periods of
               such employment prior to or after any particular time such person
               is an Employee.

               (ii) A "maternity or paternity leave of absence" means an absence
          from work for any period because of the Employee's pregnancy, birth of
          the Employee's child, placement of a child with the Employee relating
          to the adoption of the child, or any absence for the purpose of caring
          for the child for a period immediately following the birth or
          placement. For purposes of a maternity and paternity leave of absence,
          Hours of Service shall be credited for the Computation Period in which
          the absence from work begins, only if the credit is necessary to
          prevent the Employee from incurring a Break in Service, or, in any
          other case, in the immediately following Computation Period. The Hours
          of Service credited for a "maternity or paternity leave of absence"
          shall be those which would normally have been credited but for the
          absence, or, in any case in which the Administrator is unable to
          determine the hours normally credited, eight (8) Hours of Service per
          day. The total Hours of Service required to be credited for a
          "maternity or paternity leave of absence" shall not exceed five
          hundred one (501) hours.

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          (e) Notwithstanding the foregoing, no credit will be given for such
     absences from work unless the Employee furnishes to the Committee such
     timely information as it may reasonably require to establish that the
     absence from work is for the reason(s) referred to above and the number of
     days for which there was such an absence.

     SECTION 2.8. CODE means the Internal Revenue Code of 1986, as amended from
time to time.

     SECTION 2.9. COMMITTEE means the Savings Plan Committee appointed pursuant
to Article 17 to administer the Plan.

     SECTION 2.10. COMPANY means Frozen Food Express Industries, Inc., a
corporation organized under the laws of the State of Texas.

     SECTION 2.11. COMPANY STOCK

          (a) Company Stock means those unrestricted shares of voting common
     stock issued by the Company and any common or preferred stock issued by the
     Employer or by an Affiliate which constitute Employer Securities under Code
     Sections 409(l) and 4975(e)(8).

          (b) Qualifying Company Stock means:

               (i) Common stock issued by the Employer (or by a corporation
          which is a member of the same controlled group) which is readily
          tradable on an established securities market; or

               (ii) If there is no common stock which meets the requirements of
          (i) above, then common stock issued by the Employer (or by a
          corporation which is a member of the same controlled group) having a
          combination of voting power and dividend rights equal to or in excess
          of:

                    (A) that class of common stock of the Employer (or any other
               such corporation) having the greatest voting power; and

                    (B) that class of common stock of the Employer (or of any
               other such corporation) having the greatest dividend rights; or

               (iii) Noncallable preferred stock, if such stock is convertible
          at any time into stock which meets the requirements of (i) or (ii)
          (whichever is applicable) and if such conversion is at a conversion
          price that is reasonable. A preferred stock will be considered
          noncallable if after the call there will be a reasonable opportunity
          for a conversion which meets the requirements of the preceding
          sentence in accordance with applicable Treasury regulations.

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         Notwithstanding the foregoing, references in the Plan to Company Stock
shall mean Qualifying Company Stock as defined in this subsection (b).

     SECTION 2.12. COMPENSATION.

          (a) Compensation, pursuant to the safe harbor definition of Treasury
     Regulation Section 1.415-2(d)(10), means wages, salaries, and fees for
     professional services and other amounts received (without regard to whether
     or not an amount is paid in cash) for personal services actually rendered
     in the course of employment with the Employer maintaining the Plan to the
     extent that the amounts are includable in gross income including, but not
     limited to, commissions paid salesmen, compensation for services on the
     basis of a percentage of profits, commissions on insurance premiums, tips,
     bonuses, fringe benefits, and reimbursements or other expense allowances
     under a nonaccountable plan described in Treasury Regulation Section
     1.62-2(c), plus, effective for Plan Years beginning on or after January 1,
     1998, any amounts excluded from income pursuant to Code Sections 125 and
     401(k), and excluding the following:

               (i) contributions by the Employer to any qualified deferred
          compensation plan (to the extent not includable in the Participant's
          gross income) or simplified employee pension defined in Code Section
          408(k) (to the extent not includable in the Participant's gross
          income) (other than, effective for Plan Years beginning on or after
          January 1, 1998, amounts contributed pursuant to Code Section 401(k));

               (ii) distributions from any plan of deferred compensation;

               (iii) amounts realized from the exercise of any nonqualified
          stock option, or, in the case of restricted stock, when such stock
          becomes freely transferable or is no longer subject to a substantial
          risk of forfeiture;

               (iv) amounts realized from the sale, exchange, or other
          disposition of stock acquired under a qualified stock option; and

               (v) other amounts which receive special tax benefits such as
          premiums paid by the Employer (to the extent not includable in the
          Participant's gross income) under group term life insurance,
          contributions by the Employer to an annuity under Code Section 403(b)
          (to the extent not includable in the Participant's gross income), and
          any other amounts received under any Employer sponsored fringe benefit
          plan (to the extent not includable in the Participant's gross income).

          (b) Compensation for any Limitation Year includes compensation
     received by an Employee in that Limitation Year from an Employer prior to
     the Employee becoming a Participant in the Plan.

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          (c) Notwithstanding the foregoing, Compensation taken into account for
     determining all benefits provided under the Plan for any determination
     period shall not exceed $150,000, or such larger amount the Secretary of
     the Treasury may prescribe for the relevant year. If the period for
     determining compensation used in calculating an Employee's allocation for a
     determination period is a short Plan Year, the Compensation limit is an
     amount equal to the otherwise applicable Compensation limit multiplied by a
     fraction, the numerator of which is the number of months in the short Plan
     Year and the denominator of which is twelve (12). If Compensation for any
     prior determination period is taken into account in determining an
     Employee's allocations or benefits for the current determination period,
     the Compensation for such prior year is subject to the applicable
     Compensation limit in effect for that prior year.

          (d) For purposes of determining whether the Plan discriminates in
     favor of Highly Compensated Employees, Compensation means Compensation
     defined in this Section 2.12, except any exclusions from Compensation other
     than the exclusions described in clauses (a)(i), (ii), (iii), (iv), and (v)
     do not apply. The Employer also may elect to use an alternate
     nondiscriminatory definition, under Code Section 414(s) and the applicable
     Treasury regulations. In determining Compensation under this paragraph, the
     Employer may elect to include all Savings Contributions made by the
     Employer on behalf of the Employees. The Employer's election to include
     Savings Contributions must be consistent and uniform for Employees and all
     plans of the Employer for any particular Plan Year. The Employer may make
     this election to include Savings Contributions for nondiscrimination
     testing purposes, whether or not this Section includes Savings
     Contributions in the general Compensation definition of the Plan.

          (e) Notwithstanding the foregoing, Compensation for any Self-Employed
     Individual means earned income.

     SECTION 2.13. CURRENT MARKET VALUE means the Current Market Value of each
asset included in the Trust Assets on any particular date, which shall be that
amount determined by the Trustee on a basis uniformly applied which, in the
Trustee's opinion, fairly reflects the fair market value of such asset on such
date.

     SECTION 2.14. DISABILITY means a physical or mental condition which, in the
opinion of the Committee, totally and presumably permanently prevents a
Participant or Former Participant from satisfactorily performing substantially
the same duties assigned to him by his Employer (which includes for purposes of
this Section 2.14 an employing entity described in Section 2.42 at the time such
condition develops, or if such Participant or Former Participant is on an
authorized leave of absence (other than an authorized leave of absence referred
to in Section 2.7(d)(i)) or any other leave of absence approved by his Employer
when such condition develops, substantially the same duties assigned to him by
his Employer immediately prior to the commencement of such period of authorized
or approved absence or such other duties which the Employer makes available to
the Participant and for which the Participant is qualified by reason of his
training, education, or experience. A determination that Disability exists shall
be based upon competent medical evidence satisfactory to the Committee. The date
any person's Disability occurs shall be deemed to be the date such condition is
determined to exist by the Committee.

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     SECTION 2.15. DISCRETIONARY EMPLOYER CONTRIBUTION means any contribution to
the Plan made by an Employer for the Plan Year and allocated to a Participant's
Discretionary Employer Contribution Account.

     SECTION 2.16. DISCRETIONARY EMPLOYER CONTRIBUTION ACCOUNT means the account
or record maintained or caused to be maintained by the Trustee showing the
composition and value of the individual interest of a particular Participant,
Former Participant or Beneficiary in the Trust Assets attributable to
Discretionary Employer Contributions, if any.

     SECTION 2.17. EARLY RETIREMENT means the date the Participant attains age
55 and completes ten (10) Years of Service

     SECTION 2.18. EARLY RETIREMENT DATE means the first day next following the
date the Participant attains Early Retirement Age and which immediately follows
the last day on which the Participant is an Employee, or, if later, the last day
of the Participant's authorized leave of absence, if any.

     SECTION 2.19. EFFECTIVE DATE. The original Effective Date of this Plan is
October 1, 1987. The Effective Date of this Plan as restated is January 1, 2000,
except as otherwise provided herein.

     SECTION 2.20. EMPLOYEE.

          (a) Employee means any individual currently employed by the Employer
     maintaining the Plan or of any other Employer required to be aggregated
     with the Employer under Code Sections 414(b), (c), (m) or (o).

          (b) The Plan does not treat any Leased Employee as an Employee of the
     Employer. A Leased Employee is an individual, who otherwise is not an
     Employee of the Employer, who, pursuant to a leasing agreement between the
     Employer and any other person, has performed services for the Employer (or
     for the Employer and any persons related to the Employer within the meaning
     of Code Section 144(a)(3)) on a substantially full time basis for at least
     one (1) year and who performs services under the primary direction and
     control of the Employer.

          (c) Notwithstanding the preceding, the term "Employee" shall not
     include any individual who is designated as an "Independent Contractor" by
     the Employer, even if the status of such individual subsequently is changed
     from that of an Independent Contractor to that of an employee as a result
     of administrative or legal proceedings.

     SECTION 2.21. EMPLOYER CONTRIBUTIONS means the Matching Employer
Contributions, Discretionary Employer Contributions and Incentive Contributions
made by the Employer pursuant to Section 4.2.

     SECTION 2.22. EMPLOYER means FROZEN FOOD EXPRESS INDUSTRIES, INC., FFE
TRANSPORTATION SERVICES, INC., CONWELL CORPORATION, W & B REFRIGERATION SERVICE
COMPANY, INC., LISA MOTOR LINES, INC., GLOBAL REFRIGERANT MANAGEMENT, INC., or
any other Affiliate who, with the written consent of the Plan Sponsor, adopts
this Plan on the effective date of its election to participate.

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     SECTION 2.23. EMPLOYMENT COMMENCEMENT DATE means the first day for which an
Employee is to be credited with an Hour of Service.

     SECTION 2.24. ENTRANCE DATE means the first business day of the month
following an Employee's completion of ninety (90) days of employment.

     SECTION 2.25. ERISA means the Employee Retirement Income Security Act of
1974, as amended from time to time.

     SECTION 2.26. ESOP ACCOUNTS means the ESOP Transfer Accounts and ESOP
Rollover Accounts maintained under this Plan.

     SECTION 2.27. ESOP ROLLOVER ACCOUNT means the account(s) or record(s)
maintained or caused to be maintained by the Plan Administrator showing the
composition and value of the individual interest of a particular Participant,
Former Participant, or Beneficiary in the Trust Assets attributable to Rollover
Contributions to the FFE Transportation Services ESOP and/or the Conwell ESOP
contributed to the Trust pursuant to that certain Plan Merger Agreement
effective December 31, 1999.

     SECTION 2.28. ESOP TRANSFER ACCOUNT means the account(s) or record(s)
maintained or caused to be maintained by the Plan Administrator showing the
composition and value of the individual interest of a particular Participant,
Former Participant, or Beneficiary in the Trust Assets attributable to the
Participant's or Former Participant's Employer Securities Account and Employer
Investment Account under the FFE Transportation Services ESOP or Conwell ESOP
contributed to the Trust pursuant to that certain Plan Merger Agreement
effective December 31, 1999.

     SECTION 2.29. FORMER PARTICIPANT means a Participant who is no longer
participating in the Plan but who has a vested account balance which has not
been paid in full.

     SECTION 2.30. HIGHLY COMPENSATED EMPLOYEE means any Participant or Former
Participant who is a Highly Compensated Employee, defined in Code Section
414(q). Generally, any Participant or Former Participant is considered a Highly
Compensated Employee if the Participant or Former Participant:

          (a) was at any time during the Plan Year or during the preceding Plan
     Year a Five Percent Owner as defined in Section 12.2(g)(iii); or

          (b) for the preceding Plan Year (i) had Compensation from the Employer
     in excess of $80,000, as adjusted by the Secretary of the Treasury for the
     relevant year and (ii) was in the top-paid group during the preceding Plan
     Year.

          (c) An Employee is in the top-paid group of Employees for any Plan
     Year if such Employee is in the group consisting of the top twenty percent
     (20%) of the Employees when ranked on the basis of Compensation paid during
     the Plan Year. However, solely for determining the total number of active
     Employees for a year, the following Employees are disregarded:

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               (i) The Employees described in this subsection (i) are excluded
          on the basis of age or Service:

                    (A) Employees who have not completed six (6) months of
               Service by the end of the year. (An Employee's Service in the
               immediately preceding year is added to the Employee's Service in
               the current year to determine whether the exclusion applies in
               the current year.);

                    (B) Employees who normally work less than 17 1/2 hours per
               week. (This determination is made independently for each year.
               Weeks during which the Employee did not work are not considered.
               An Employee who works less than 17 1/2 hours a week for fifty
               percent (50%) or more of the total weeks worked by the Employee
               during the year is deemed to normally work less than 17 1/2 hours
               per week under this rule.);

               (ii) Employees who are included in a unit of employees covered by
          an agreement that the Secretary of Labor finds to be a collective
          bargaining agreement between Employee representatives and the Employer
          which satisfies Code Section 7701(a)(46) and Temporary Treasury
          Regulation Section 301.7701-17T are included in determining the number
          of Employees in the top-paid group unless the following exception
          applies. If ninety percent (90%) or more of the Employees of the
          Employer are covered under collective bargaining agreements that the
          Secretary of Labor finds to be collective bargaining agreements
          between Employee representatives and the Employer, which agreements
          satisfy Code Section 7701(a)(46) and Temporary Treasury Regulation
          Section 301.7701-17T, and the Plan covers only Employees who are not
          covered under the agreements, then the Employees who are covered under
          the agreements are (A) not counted in determining the number of
          noncollective bargaining employees who will be included in the
          top-paid group in testing the Plan; and (B) not included in the
          top-paid group in testing the Plan.

          The Committee must make the determination of who is a Highly
          Compensated Employee consistent with Code Section 414(q) and
          regulations issued under that Code Section. The Employer may make a
          calendar year election to determine the Highly Compensated Employees
          for the preceding Plan Year, as prescribed by Treasury regulations. A
          calendar year election must apply to all plans and arrangements of the
          Employer.

          For purposes of this Section, Compensation means Compensation defined
          in Section 2.12, and including deferrals under (a) Code Section
          402(a)(8) relating to a Code Section 401(k) arrangement; (b) Code
          Section 125 relating to a cafeteria plan; (c) Code Section 403(b)
          relating to a tax sheltered annuity plan; (d) Code Section 408(h)
          relating to a simplified employee pension; and (e) effective January
          1, 1998, Code Section 402(k) relating to a simple retirement account.
          Compensation from each Related Employer shall be taken into account.

                                       9
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     SECTION 2.31. HOURS OF SERVICE.

          (a) Hours of Service shall be credited for periods during which an
     Employee is either:

               (i) directly or indirectly paid, or entitled to payment, by an
          Employer or an entity described in Section 2.42 for the performance of
          duties in his capacity as an Employee of such Employer or entity;

               (ii) directly or indirectly paid or entitled to payment, by an
          Employer or an entity described in Section 2.42 on account of a period
          of time during which no duties are performed (irrespective of whether
          the employment relationship has terminated) due to vacation, holiday,
          illness, incapacity (including disability), layoff, jury duty,
          military duty or any other leave of absence approved by such Employer
          or entity;

               (iii) entitled to back pay, irrespective of mitigation of
          damages, which is either awarded or agreed to by an Employer or an
          entity described in Section 2.42; or

               (iv) on an authorized leave of absence.

          (b) An Employee shall not receive credit for the same Hours of Service
     under more than one paragraph of this Section 2.31(a);

          (c) An Employee shall also receive credit for any additional Hours of
     Service required by applicable federal law (other than ERISA) to be
     credited to him, the nature and extent of such credit to be determined
     under such law.

          (d) (i) (A) Except as provided in subparagraph (B) of this Subsection
     2.31(d)(i), Hours of Service under Subsection 2.31(a)(i) shall be computed
     by crediting an Employee with 190 Hours of Service for each month such
     Employee is entitled to be credited with one Hour of Service under
     Subsection 2.31(a)(i).

                    (B) If an Employee is a part-time Employee, such Employee
               shall receive credit for Hours of Service equal to the actual
               number of hours worked by such Employee, as determined from the
               appropriate payroll records.

               (ii) Hours of Service under Subsection 2.31(a)(ii) shall be
          determined pursuant to the rules set forth in paragraphs (b) and (c)
          of Section 2530.200b-2 of the United States Department of Labor
          Regulations, which rules are hereby incorporated and made a part of
          this Plan by reference.

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               (iii) Except for part-time Employees, Hours of Service under
          Subsection 2.31(a)(iv) shall be credited on the basis of 190 hours for
          each complete calendar month of a person's authorized leave of
          absence, but no such Hours of Service shall be credited for any month
          for which an Employee receives credit for Hours of Service under
          Subsection 2.31(a)(i) or (ii).

               (iv) For purposes of this Section an Employee works "part-time"
          if he normally is employed for less than twenty (20) hours per week or
          less than six (6) months per Plan Year.

          (e) The terms defined in this Section 2.31 shall include Hours of
     Service rendered by an Employee prior to the Effective Date for an Employer
     or a member of a controlled group of corporations including an Employer.

     SECTION 2.32. INCENTIVE CONTRIBUTIONS means any contribution to the Plan
made by FFE Transportation Services, Inc. pursuant to the 1994 Incentive Bonus
Plan and allocated to a Participant's Savings Account. All Employer
Contributions under Section 4.2(b)(ii) are Incentive Contributions.

     SECTION 2.33. MATCHING EMPLOYER CONTRIBUTION means any contribution to the
Plan made by an Employer for the Plan Year and allocated to a Participant's
Matching Employer Contribution Account by reason of the Participant's Savings
Contributions. All Employer Contributions under Section 4.2(a) are Matching
Employer Contributions.

     SECTION 2.34. MATCHING EMPLOYER CONTRIBUTION ACCOUNT means the account or
record maintained or caused to be maintained by the Trustee showing the
composition and value of the individual interest of a particular Participant,
Former Participant or Beneficiary in the Trust Assets attributable to Matching
Employer Contributions and Special Employer Contributions, if any.

     SECTION 2.35. NAMED FIDUCIARY means one or more fiduciaries named in this
Agreement who jointly and severally shall have authority to control or manage
the operation and administration of the Plan. Frozen Food Express Industries,
Inc. shall be the Named Fiduciary unless it designates another person by written
Employer action.

     SECTION 2.36. NONFORFEITABLE means a vested interest attained by a
Participant or Beneficiary in that part of the Participant's benefit under the
Plan arising from the Participant's Service, which claim is unconditional and
legally enforceable against the Plan.

     SECTION 2.37. NON-HIGHLY COMPENSATED EMPLOYEE. An Employee who is not a
Highly Compensated Employee.

     SECTION 2.38. NORMAL RETIREMENT AGE. The 65th birthday of a Participant or
Former Participant.

     SECTION 2.39. NORMAL RETIREMENT DATE means, for each Participant, the first
day next following the date the Participant attains Normal Retirement Age and
which immediately follows the last day on which the Participant is an Employee,
or, if later, the last day of the Participant's authorized leave of absence, if
any.

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     SECTION 2.40. OWNER-EMPLOYEE means a sole proprietor or a partner who owns
more than ten percent (10%) of either the capital interest or profits interest
in an unincorporated Employer and who receives income from such unincorporated
Employer for personal services.

     SECTION 2.41. PARTICIPANT means an Employee of the Employer who has met the
eligibility requirements of this Plan and who has been enrolled as a Participant
in this Plan pursuant to Article 3.

     SECTION 2.42. PARTICIPATING EMPLOYER means any Related Employer that may
elect to adopt this Plan pursuant to Article 14.

     SECTION 2.43. PARTICIPATION means any period commencing on the date the
Employee becomes a Participant and ending on the date on which the Employee
incurs a Severance from Service.

     SECTION 2.44. PLAN means the Frozen Food Express Industries, Inc. 401(k)
Savings Plan, as restated herein.

     SECTION 2.45. PLAN SPONSOR means Frozen Food Express Industries, Inc.

     SECTION 2.46. PLAN YEAR. The annual period beginning on January 1 and
ending on December 31.

     SECTION 2.47. PRIOR PLAN means the Savings Plan for the Employees of Frozen
Food Express, as in effect prior to the Effective Date.

     SECTION 2.48. RE-EMPLOYMENT COMMENCEMENT DATE. The first date on which an
Employee is credited with an Hour of Service upon his return to employment with
an Employer after he has Separated from Service.

     SECTION 2.49. RELATED EMPLOYER. A related group of employers is a
controlled group of corporations (defined in Code Section 414(b)), trades or
businesses (whether or not incorporated) which are under common control (defined
in Code Section 414(c)) or an affiliated service group (defined in Code Section
414(m) or in Code Section 414(o)). If the Employer is a member of a related
group, the term "Employer" includes the related group members for purposes of
crediting Hours of Service, determining Years of Service and Breaks in Service
under Articles 2 and 6, applying the participation test of Code Section
401(a)(26) and the coverage test of Code Section 410(b), applying the
limitations on allocations in Article 5, applying the top-heavy rules and the
minimum allocation requirements of Article 12, the definitions of Employee,
Highly Compensated Employee, Compensation and Leased Employee, and for any other
purpose required by the applicable Code Section or by a Plan provision. However,
an Employer may contribute to the Plan only by being a signatory to a
Participation Agreement to the Plan. If one or more of the Employer's related
group members become Participating Employers by executing a Participation
Agreement to the Plan, the term "Employer" includes the participating related
group members for all purposes of the Plan, and Administrator means the Employer
that is the signatory to the Plan. For Plan allocation purposes, Compensation
does not include Compensation received from a Related Employer that is not
participating in this Plan.

                                       12
<PAGE>

     SECTION 2.50. RETIREMENT. A Participant's or Former Participant's being
Separated from Service on or after his Normal Retirement Date. Retirement shall
be considered as commencing on that day which occurs on or after a Participant
or Former Participant had reached Normal Retirement Date and which immediately
follows (i) the last day of which such Participant or Former Participant is an
Employee or, if later, (ii) the last day of an authorized leave of absence or
any other leave of absence approved by such Participant's or Former
Participant's Employer.

     SECTION 2.51. ROLLOVER ACCOUNT. The account(s) or record(s) maintained or
caused to be maintained by the Trustee showing the composition and value of the
individual interest of a particular Participant, Former Participant or
Beneficiary in the Trust Assets attributable to each contribution of a Rollover
Amount (as defined in Section 4.5) or a direct trustee-to-trustee transfer of
assets to the Trust from a qualified plan or Code Section 403(b) annuity on
behalf of a Participant.

     SECTION 2.52. SAVINGS ACCOUNT. The account or record maintained or caused
to be maintained by the Trustee showing the composition and value of the
individual interest of a particular Participant, Former Participant or
Beneficiary in the Trust Assets attributable to Savings Contributions elected by
Participants, Incentive Contributions, Qualified Non-Elective Contributions and
Qualified Matching Contributions.

     SECTION 2.53. SAVINGS CONTRIBUTIONS means Employer contributions to the
Plan made pursuant to Participants' elections under Section 4.1.

     SECTION 2.54. SELF-EMPLOYED INDIVIDUAL means, regarding an unincorporated
business, an individual described in Code Section 401(c)(1). A Self-Employed
Individual shall be treated as an Employee if the individual has an ownership
interest in either the capital or profits interest of an unincorporated Employer
and receives income from the Employer for personal services.

     SECTION 2.55. SEPARATION FROM SERVICE occurs whenever a person ceases to be
an Employee of the Employer and is no longer being credited with Hours of
Service.

     SECTION 2.56. SERVICE means any period of time the Employee is in the
employ of the Employer. Service in all cases includes periods during which the
Employee is on an "authorized leave of absence" or a "maternity or paternity
leave of absence" defined in Section 2.7(d) relating to a Break in Service.
Leaves of absence also shall include periods of absence in connection with
military service during which the Employee's re-employment rights are legally
protected. Except for absence by reason of military service, leaves of absence
shall be for a maximum period of two (2) years. Leaves of absence shall be
granted on a uniform and nondiscriminatory basis.

     If the Employer maintains the plan of a Predecessor Employer, Service shall
include service for the Predecessor Employer. To the extent it may be required
under applicable Treasury regulations under Code Section 414, Service shall
include all service for any Predecessor Employer.

                                       13
<PAGE>

     For purposes of determining vesting of a Participant's ESOP Transfer
Account, the Participant will be credited with the greater of (i) his service as
determined in accordance with the elapsed time method described in the Plan, or
(ii) the Years of Service credited to such Participant as of December 31, 1999,
under the FFE Transportation Services ESOP and/or the Conwell ESOP, plus the
number of Years of Service credited under this Plan from and after January 1,
2000 (using the elapsed time method from such date forward).

     SECTION 2.57. SHAREHOLDER-EMPLOYEE means a Participant who owns more than
five percent (5%) of the Employer's outstanding capital stock during any year in
which the Employer elected to be taxed as a Small Business Corporation under
Code Section 1362(a) and who receives income from the Employer for personal
services.

     SECTION 2.58. SEPARATED FROM SERVICE. A person is Separated from Service
when he is no longer an Employee.

     SECTION 2.59. SPECIAL EMPLOYER CONTRIBUTIONS means the Special Employer
Contributions made by the Employers pursuant to the terms of the Prior Plan.

     SECTION 2.60. SPOUSE means the spouse to whom a Participant or Former
Participant is married on the date the Participant or Former Participant becomes
entitled to benefit payments under the Plan, or if such entitlement has not
occurred, the spouse to whom the Participant or Former Participant was married
on the date of his death; provided, however, that the Participant or Former
Participant had been married to such spouse for at least one year ending on the
date the Participant becomes entitled to benefit payments or the date of the
Participant's or Former Participant's death.

     SECTION 2.61. TRUST means the trust created by the Trust Agreement between
Frozen Food Express Industries, Inc. and the Trustee.

     SECTION 2.62. TRUST AGREEMENT means the agreement, entered into by Frozen
Food Express Industries, Inc. and the Trustee, or any successor Trustee,
establishing the Trust and specifying the duties of the Trustee.

     SECTION 2.63. TRUST FUND means all assets of any kind and nature from time
to time held by the Trustee or its agent under the Trust Agreement without
distinction between income and principal. This Plan contemplates a single Trust
for all Employers participating under the Frozen Food Express Industries, Inc.
401(k) Savings Plan. However, the Trustee will maintain separate records of
account to reflect properly each Participant's Account Balance from each
Participating Employer.

     SECTION 2.64. TRUSTEE means at any particular time, the then acting Trustee
or, collectively, if there is more than one, the then acting Trustees of the
Trust.

     SECTION 2.65. VALUATION DATE means any business day on which the Nasdaq
National Market is open.

                                       14
<PAGE>

     SECTION 2.66. VESTED PERCENTAGE means that percentage of a Participant's
Discretionary Employer Contribution Account, Matching Employer Contribution
Account, W & B Plan Rollover Account, and ESOP Transfer Account, if any, in
which the Participant's rights are nonforfeitable and fully vested, which
percentage is determined by reference to the vesting schedule set forth in
Section 6.2.

     SECTION 2.67. W & B PLAN ROLLOVER ACCOUNT means the account(s) or record(s)
maintained or caused to be maintained by the Plan Administrator showing the
composition and value of the individual interest of a particular Participant,
Former Participant, or Beneficiary in the Trust assets attributable to the
direct trustee-to-trustee transfers of assets to the Trust from the W & B
Refrigeration Service Co., Inc. Employees' Profit Sharing Plan and Trust.

     SECTION 2.68. YEAR OF SERVICE.

          (a) For purposes of eligibility, a Year of Service means the twelve
     (12) consecutive month period commencing on an Employee's Employment
     Commencement Date and ending on the anniversary of the Employee's
     Employment Commencement Date. If an Employee fails to complete a Year of
     Service on the first anniversary of the Employment Commencement Date, the
     Employee shall be deemed to complete a Year of Service upon the completion
     of twelve (12) months of Service. An Employee shall receive credit for the
     aggregate of all time periods commencing with the first day the Employee is
     entitled to credit for an Hour of Service, including the Re-Employment
     Commencement Date, and ending on the date a Break in Service begins. An
     Employee also shall receive credit for any Period of Severance of less than
     twelve (12) consecutive months. Fractional periods of a year shall be
     expressed in terms of months, with credit for a month of service being
     given for each thirty (30) days of Elapsed Time.

          (b) For purposes of vesting, and subject to Section 6.3, a Year of
     Service means twelve (12) months of Service. For purposes of determining an
     Employee's Years of Service for vesting purposes, an Employee shall receive
     credit for the aggregate of all time periods commencing on an Employee's
     Employment Commencement Date, including the Re-Employment Commencement
     Date, and ending on the date a Break in Service begins. An Employee also
     shall receive credit for any Period of Severance of less than twelve (12)
     consecutive months. Fractional periods of a year shall be expressed in
     terms of months, with credit for a month of service being given for each
     thirty (30) days of Elapsed Time. In computing an Employee's Years of
     Service, the following rules shall apply:

               (i) For an Employee who terminates employment and is subsequently
          re-employed after incurring a Break in Service, Service prior to the
          Break in Service shall not be taken into account until the Employee
          has completed a Year of Service after re-employment.

               (ii) For a Participant who terminates employment and who
          subsequently is re-employed after incurring five (5) consecutive
          Breaks in Service, Years of Service after the Break in Service shall
          not be taken into account for purposes of determining the
          Nonforfeitable percentage of an Employee's Account Balance derived
          from Employer Contributions which accrued before the Break in Service.

                                       15
<PAGE>

               (iii) For a Participant who terminates employment without any
          vested right to his Discretionary Employer Contribution Account or
          Matching Employer Contribution Account and who is re-employed after a
          Break in Service, Service before the Break in Service shall not be
          taken into account if the number of consecutive Breaks in Service
          equals or exceeds the greater of (A) five (5), or (B) the aggregate
          number of Years of Service before the Break in Service.

               (iv) Years of Service, for purposes of vesting, shall include all
          Years of Service of the Employee with any Predecessor Employer.

               (v) Years of Service with the Employer before a Participant
          enters the Plan shall be considered for purposes of vesting.

               (vi) If the Employer is a member of a group of Related Employers,
          then Year of Service for purposes of vesting shall include Service
          with any Related Employer.

               (vii) For purposes of determining Years of Service for vesting,
          the following definitions shall apply:

                    (A) Employment Commencement Date means the date on which an
               Employee is first entitled to credit for an Hour of Service.

                    (B) Period of Severance means the period of time commencing
               on the Severance from Service Date and ending on the date on
               which the Employee again performs an Hour of Service for the
               Employer.

                    (C) Re-Employment Commencement Date means the first date,
               following a Period of Severance which is not required to be
               considered under the Service rules, on which the Employee
               performs an Hour of Service for the Employer.

                    (D) Severance from Service Date means the date on which
               occurs the earlier of: (i) the date on which an Employee quits,
               retires, is discharged or dies; or (ii) the first anniversary of
               the first date of a period in which an Employee remains absent
               from Service, with or without pay, with the Employer for any
               other reason, such as vacation, holiday, sickness, disability,
               leave of absence or layoff.

          (c) For purposes of vesting, an Employee's years of service with W & B
     Refrigeration Service Co., Inc. shall be counted as Years of Service under
     this Plan to the extent that such service was counted as years of service
     under the W & B Refrigeration Service Co., Inc. Employees' Profit Sharing
     Plan and Trust.

          (d) For purposes of determining vesting of a Participant's ESOP
     Transfer Account, the Service crediting provisions of Section 2.56 of the
     Plan shall apply.

                                       16
<PAGE>

          (e) The terms defined in this Section 2.68 shall include Years of
     Service performed by an Employee prior to the Effective Date.

                                   * * * * * *

                                       17
<PAGE>

                                 ARTICLE THREE
                                 -------------

                          ELIGIBILITY AND PARTICIPATION

     SECTION 3.1. ELIGIBILITY.

          (a) Any Employee included under the provisions of the Prior Plan, the
     FFE Transportation Services ESOP, or the Conwell ESOP as of December 31,
     1999 shall continue to participate in accordance with the provisions of
     this Plan.

          (b) Any other Employee shall become a Participant as of the Entrance
     Date following the date on which he completes ninety (90) days of
     employment.

          (c) An Employee who has not satisfied the requirements of Section
     3.1(b) above and is entitled to receive an allocation of Incentive
     Contributions under the FFE Transportation Services, Inc. 1994 Incentive
     Bonus Plan shall become a Participant in the Plan as of the Entrance Date
     immediately following his completion of one day of employment; provided,
     however, that such participation shall be limited to his ability to receive
     an allocation of Incentive Contributions under Section 4.2(b)(ii) and shall
     not cause him to be eligible to receive an allocation of any other
     contributions to the Plan.

     SECTION 3.2. ELIGIBILITY FOLLOWING SEPARATION FROM SERVICE. If an Employee
who has satisfied the eligibility requirements of Section 3.1 has Separated from
Service and later returns to Service with an Employer, he shall become a
Participant on his Re-Employment Commencement Date; provided, however, that any
Employee who Separated from Service at a time when he had no Vested Percentage
and who has incurred five consecutive Breaks-in-Service before his Re-Employment
Commencement Date, must meet the eligibility requirements of Section 3.1 anew
before he will become or again become a Participant.

     SECTION 3.3. PARTICIPATION DURING LEAVE OF ABSENCE. During an authorized
leave of absence or any other leave of absence approved by a Participant's or
Former Participant's Employer:

          (a) The Participant's Accounts shall share in the allocation of net
     earnings, net losses, taxes (if any) and expenses of the Trust during such
     period; and

          (b) In the case of an authorized leave of absence under Section 2.7,
     the Participant's interest in his Discretionary Employer Contribution
     Account, Matching Employer Contribution Account, and ESOP Transfer Account
     shall continue to vest, as provided in Article 6, until he is Separated
     from Service. In the case of any other authorized leave of absence or any
     other leave of absence approved by his Employer, his interest in his
     Discretionary Employer Contribution Account, Matching Employer Contribution
     Account and ESOP Transfer Account shall continue to vest, as provided in
     Article 6, but only if he resumes employment with an Employer not later
     than the first working day following the expiration of the period of such
     leave. If such employment is not so resumed, the date he is Separated from
     Service for purposes of such vesting shall be deemed to be the last day of
     employment prior to the commencement of such authorized or approved absence
     and such Participant or Former Participant shall not receive credit for any
     Hours of Service under Section 2.31(a)(ii) after such last day.

                                       18
<PAGE>

          SECTION 3.4. NOTIFICATION OF ELIGIBILITY AND COMMENCEMENT OF
     PARTICIPATION. As soon as administratively feasible prior to each Entrance
     Date, the Employers shall furnish the Committee with a list of all
     Employees who become eligible or re-eligible to participate in the Plan as
     of that Entrance Date. The Committee shall promptly notify each such
     Employee of his prospective participation and provide each such Employee
     with such explanation of the Plan as the Committee may provide for that
     purpose, together with such forms as the Committee may prescribe for
     elections to participate in the Plan. Such forms shall include elections
     for (1) Savings Contributions (via payroll deduction); (2) investment
     direction of a Participant's accounts and (3) Beneficiary designation. Each
     Employee shall be eligible to have Savings Contributions made on his behalf
     as of the Entrance Date concurrent with or next following the date on which
     he (1) becomes a Participant in accordance with Plan Section 3.1, and (2)
     has signed and returned all election forms as required by the Employer. If
     the Employee has not submitted all election forms as of the Entrance Date
     concurrent with or next following the date on which he becomes a
     Participant, the Employee shall be eligible to have Savings Contributions
     made on his behalf as of the payroll period concurrent with or next
     following the date the Employee submits such election forms.

                                  * * * * * * *

                                       19
<PAGE>

                                  ARTICLE FOUR
                                  ------------

                                  CONTRIBUTIONS

     SECTION 4.1. SAVINGS CONTRIBUTIONS

          (a) Subject to the provisions of Sections 4.1(d) and (f), each
     Participant may elect that an amount, in any whole percentage of his
     Compensation, not to exceed twenty percent (20%) of his Compensation, be
     withheld from his Compensation and contributed by his Employer to the
     Trust. The Plan Administrator may permit a Participant to make an election
     under this Section through any written, electronic or telephonic means
     authorized by the Committee. Such contributions shall be known as Savings
     Contributions.

          (b) A Participant who does not have an election to have Savings
     Contributions made on his behalf in effect, or any Participant who would
     like to amend his election, may make such election or amend such election,
     effective as of the next following payroll period by filing an election
     with the Plan Administrator within a reasonable time prior to commencement
     of such payroll period. The Plan Administrator may permit a participant to
     make an election under this Section through any written, electronic or
     telephonic means authorized by the Committee. Any such election or
     amendment of an election shall be effective only with respect to
     Compensation payable after the Plan Administrator receives such election.

          (c) Savings Contributions shall be effected by payroll deductions for
     each pay period of the electing Participant commencing after the effective
     date of his election and shall be paid over to the Trustee no later than
     the fifteenth (15th) business day of the month following the month of such
     payroll deduction.

          (d) No Employee shall be permitted to have Savings Contributions made
     under this Plan during any Plan Year which exceed the statutory dollar
     limitation under Code Section 402(g) for the taxable year of the
     Participant, as adjusted annually by the Secretary of the Treasury ($10,000
     for 1999). In computing this limitation, a Participant shall include any
     Elective Deferrals under other retirement arrangements. For this purpose,
     "Elective Deferrals" means, for any taxable year, the sum of:

               (i) any Employer contribution under a qualified cash or deferred
          arrangement defined in Code Section 401(k), to the extent not
          includable in gross income for the taxable year under Code Section
          402(e)(3), determined without regard to the dollar limitation under
          Code Section 402(g);

               (ii) any Employer contribution under a simplified employee
          pension as defined in Code Section 408(k)(6), pursuant to a salary
          reduction agreement;

               (iii) any Employer contribution toward the purchase of a tax
          sheltered annuity contract as defined in Code Section 403(b), pursuant
          to a salary reduction agreement; and

                                       20
<PAGE>

               (iv) effective January 1, 1998, any Employer contribution under a
          SIMPLE Plan pursuant to Code Section 408(p)(2)

          If the statutory dollar limitation under Code Section 402(g) is
     exceeded, the Committee shall direct the Trustee to distribute the Excess
     Elective Deferrals (defined below), and any income or loss allocable to
     such Excess Elective Deferrals, to the Participant not later than the first
     April 15 following the close of the Participant's taxable year. The amount
     of Excess Elective Deferrals to be distributed to an Employee for a taxable
     year will be reduced by Excess Contributions previously distributed or
     recharacterized for the Plan Year beginning in the taxable year of the
     Employee. The term "Excess Elective Deferrals" means those Elective
     Deferrals that are includable in a Participant's gross income under Code
     Section 402(g) to the extent the Participant's Elective Deferrals for a
     taxable year exceed the dollar limitation under Code Section 402(g). Excess
     Elective Deferrals under this Plan shall be treated as Annual Additions
     under the Plan, unless such amounts are distributed no later than the first
     April 15 following the close of the Participant's taxable year.

          If a Participant is also a Participant in (i) another qualified cash
     or deferred arrangement defined in Code Section 401(k); (ii) a simplified
     employee pension defined in Code Section 408(k); (iii) a salary reduction
     arrangement pursuant to which an employer purchases a tax sheltered annuity
     contract defined in Code Section 403(b) or (iv) a SIMPLE Plan defined in
     Code Section 408(p), and the Elective Deferrals made under the other
     arrangement(s) and this Plan cumulatively exceed the amount of the dollar
     limitation under Code Section 402(g) in effect on January 1 of each
     calendar year, as adjusted annually by the Secretary of the Treasury
     ($10,000 for 1999), then the Participant may, not later than March 1
     following the close of the Participant's taxable year, notify the
     Administrator in writing of the excess and request that the Participant's
     Savings Contributions under this Plan be reduced by an amount specified by
     the Participant. The specified amount then shall be distributed in the same
     manner as provided in the preceding paragraph. A Participant is deemed to
     notify the Administrator of any Excess Elective Deferrals that arise by
     taking into account only those Elective Deferrals made to this Plan and any
     other plans of this Employer.

          (e) LIMITATIONS ON SAVINGS CONTRIBUTIONS.

               (i) ACTUAL DEFERRAL PERCENTAGE TEST. The annual allocation
          derived from Savings Contributions to a Participant's Savings Account
          shall satisfy one of the following tests:

                    (A) The Average Actual Deferral Percentage for Participants
               who are Eligible Highly Compensated Employees for the Plan Year
               shall not exceed the Average Actual Deferral Percentage for
               Participants who are Eligible Non-Highly Compensated Employees
               for the current Plan Year multiplied by 1.25; or

                                       21
<PAGE>

                    (B) The Average Actual Deferral Percentage for Participants
               who are Eligible Highly Compensated Employees for the Plan Year
               shall not exceed the Average Actual Deferral Percentage for
               Participants who are Eligible Non-Highly Compensated Employees
               for the current Plan Year multiplied by two (2); provided that
               the Average Actual Deferral Percentage for Participants who are
               Eligible Highly Compensated Employees for the Plan Year does not
               exceed the Average Actual Deferral Percentage for Participants
               who are Eligible Non-Highly Compensated Employees for the current
               Plan Year by more than two (2) percentage points or the amount as
               may be prescribed in applicable Treasury regulations to prevent
               the multiple use of this alternative limitation for any Highly
               Compensated Employee.

               (ii) DEFINITIONS. For the purposes of this Section, the following
          definitions shall apply:

                    (A) ACTUAL DEFERRAL PERCENTAGE means the ratio, expressed as
               a percentage, of (i) the amount of Savings Contributions actually
               paid to the Trust Fund on behalf of the Eligible Participant for
               the Plan Year to (ii) the Eligible Participant's Compensation for
               the Plan Year, whether or not the Employee was a Participant for
               the entire Plan Year. Savings Contributions on behalf of any
               Participant shall include: (i) any Savings Contributions,
               (including Excess Elective Deferrals of Highly Compensated
               Employees), but excluding (1) Excess Elective Deferrals of
               Non-Highly Compensated Employees that arise solely from Savings
               Contributions made under this plan or plans of this Employer, and
               (2) Savings Contributions that are taken into account in the
               Contribution Percentage Test (provided the Actual Deferral
               Percentage Test is satisfied both with and without exclusion of
               these Savings Contributions); and (ii) at the election of the
               Employer, Qualified Non-Elective Contributions and Qualified
               Matching Contributions. A Savings Contribution will be taken into
               account under the Actual Deferral Percentage Test for a Plan Year
               only if it relates to compensation that either would have been
               received by the Employee in the Plan Year, but for the deferral
               election, or is attributable to services performed by the
               Employee in the Plan Year and would have been received by the
               Employee within two and one-half (2-1/2) months after the close
               of the Plan Year, but for the deferral election. To compute
               Actual Deferral Percentages, an Employee who would be a
               Participant but for the failure to make Savings Contributions
               shall be treated as a Participant on whose behalf no Savings
               Contributions are made.

                    (B) AVERAGE ACTUAL DEFERRAL PERCENTAGE means the average,
               expressed as a percentage, of the Actual Deferral Percentages of
               the Eligible Participants in a group.

                    (C) Eligible Participant means any Employee of the Employer
               who is directly or indirectly eligible under the Plan to have
               Savings Contributions (or Qualified Non-Elective Contributions or
               Qualified Matching Contributions, or both, if treated as Savings
               Contributions for the Actual Deferral Percentage Test) allocated

                                       22
<PAGE>

               to his or her Savings Account for all or any portion of the Plan
               Year. Eligible Participant includes an Employee whose eligibility
               to make Savings Contributions has been suspended because of an
               election (other than certain one-time elections) not to
               participate, a distribution, or a loan; and an Employee who
               cannot defer because of Code Section 415 limitations.

                    (D) QUALIFIED NON-ELECTIVE CONTRIBUTIONS means Employer
               Contributions, other than Savings Contributions and Matching
               Contributions, allocated to Participants' accounts which are 100%
               Nonforfeitable at all times and which are subject to the
               distribution restrictions described in Section 4.1(g). Employer
               Contributions are not 100% nonforfeitable at all times if the
               Employee has a 100% nonforfeitable interest because of Years of
               Service taken into account under a vesting schedule. Any Employer
               Contributions allocated to a Participant's Savings Account under
               the Plan automatically satisfy the definition of Qualified
               Non-Elective Contributions.

                    (E) QUALIFIED MATCHING CONTRIBUTIONS means Matching Employer
               Contributions allocated to Participants' accounts which are 100%
               nonforfeitable at all times and which are subject to the
               distribution restrictions described in Section 4.1(g). Matching
               Contributions are not 100% nonforfeitable at all times if the
               Employee has a 100% nonforfeitable interest because of Years of
               Service taken into account under a vesting schedule. Any Matching
               Contributions allocated to a Participant's Savings Account under
               the Plan automatically satisfy the definition of Qualified
               Matching Contributions.

               (iii) SPECIAL RULES.

                    (A) For purposes of this Section, the Actual Deferral
               Percentage for any Participant who is a Highly Compensated
               Employee for the Plan Year who is eligible to have Savings
               Contributions (or Qualified Non-Elective Contributions or
               Qualified Matching Contributions, or both, if treated as Savings
               Contributions for the Actual Deferral Percentage Test) allocated
               to his or her account under two (2) or more plans or arrangements
               described in Code Section 401(k) that are maintained by the
               Employer or a Related Employer shall be determined as if all
               Savings Contributions (and, if applicable, Qualified Non-Elective
               Contributions or Qualified Matching Contribution, or both) were
               made under a single arrangement. If a Highly Compensated Employee
               participates in two (2) or more cash or deferred arrangements
               that have different plan years, all cash or deferred arrangements
               ending with or within the same calendar year shall be treated as
               a single arrangement. Notwithstanding the foregoing, certain
               plans shall be treated as separate if mandatorily disaggregated
               under applicable Treasury regulations pursuant to Code Section
               401(k).

                                       23
<PAGE>

                    (B) If this Plan satisfies the requirements of Code Sections
               401(k), 401(a)(4) or 410(b) only if aggregated with one or more
               other plans, or if one or more other plans satisfy the
               requirements of the Code Sections only if aggregated with this
               Plan, then this Section shall be applied by determining the
               Actual Deferral Percentage of Employees as if all such plans were
               a single plan. Plans may be aggregated to satisfy Code Section
               401(k) only if they have the same Plan Year.

                    (C) To determine the Actual Deferral Percentage Test,
               Savings Contributions, Qualified Non-Elective Contributions, and
               Qualified Matching Contributions must be made before the last day
               of the twelve (12) month period immediately following the Plan
               Year to which contributions relate.

                    (D) The Employer shall maintain records sufficient to
               demonstrate satisfaction of the Actual Deferral Percentage Test
               and the amount of Qualified Non-Elective Contributions or
               Qualified Matching Contributions, or both, used in the test.

                    (E) The determination and treatment of the Actual Deferral
               Percentage amounts of any Participant shall satisfy other
               requirements prescribed by applicable Treasury regulations.

               (iv) FAIL-SAFE PROVISIONS. If the initial allocations of the
          Savings Contributions do not satisfy one of the tests set forth in
          paragraph (i) of this Subsection, the Administrator shall adjust the
          accounts of the Participants pursuant to one (1) or more of the
          following options:

                    (A) DISTRIBUTION OF EXCESS CONTRIBUTIONS. If the Committee
               determines that the initial allocations of the Savings
               Contributions do not satisfy one of the Actual Deferral
               Percentage Tests set forth in paragraph (i) of this Subsection,
               the Administrator must distribute the Excess Contributions, as
               adjusted for allocable income, during the next Plan Year.
               However, the Employer will incur an excise tax equal to 10% of
               the amount of Excess Contributions for a Plan Year not
               distributed to the appropriate Highly Compensated Employees
               during the first 2-1/2 months of the next Plan Year. The Excess
               Contributions are the amount of Savings Contributions made at the
               election of the Highly Compensated Employees which causes the
               Plan to fail to satisfy the Actual Deferral Percentage Test. The
               Administrator shall make distributions to each Highly Compensated
               Employee of his or her respective share of the Excess
               Contributions pursuant to the following steps:

                         (1) The Administrator shall calculate total Excess
                    Contributions for the Highly Compensated Employees.

                         (2) The Administrator shall calculate the total dollar
                    amount by which the Excess Contributions for the Highly
                    Compensated Employees must be reduced in order to satisfy
                    the Average Deferral Percentage Test.

                                       24
<PAGE>

                         (3) The Administrator shall calculate the total dollar
                    amount of the Excess Contributions for each Highly
                    Compensated Employee.

                         (4) The Administrator shall reduce the Excess
                    Contributions of the Highly Compensated Employee(s) with the
                    highest dollar amount of Excess Contributions by refunding
                    such contributions to such Highly Compensated Employee(s) in
                    the amount required to cause the dollar amount of such
                    Highly Compensated Employee(s)' Savings Contributions to
                    equal the dollar amount of the Savings Contributions of the
                    Highly Compensated Employee(s) with the next highest dollar
                    amount of Savings Contributions.

                         (5) If the total dollar amount distributed pursuant to
                    Step (4) above is less than the total dollar amount of
                    Excess Contributions, Step (4) shall be applied to the
                    Highly Compensated Employee(s) with the next highest dollar
                    amount of Excess Contributions until the total amount of
                    distributed Excess Contributions equals the total dollar
                    amount calculated in Step (2).

                         (6) When calculating the amount of a distribution under
                    Step (4), if a lesser reduction, when added to any amounts
                    already distributed under this Section, would equal the
                    total amount of distributions necessary to permit the Plan
                    to satisfy the requirements of paragraph (i) of this
                    Subsection, the lesser amount shall be distributed from the
                    Plan.

                    (B) ALLOCABLE INCOME. To determine the amount of the
               corrective distribution required under this Section, the
               Administrator must calculate the allocable income for the Plan
               Year in which the Excess Contributions arose. The income
               allocable to Excess Contributions is equal to the sum of the
               allocable gain or loss for the Plan Year.

                         (1) METHOD OF ALLOCATING INCOME. The Administrator may
                    use any reasonable method for computing the income allocable
                    to Excess Contributions, provided that the method does not
                    violate Code Section 401(a)(4), is used consistently for all
                    Participants and for all corrective distributions under the
                    Plan for the Plan Year, and is used by the Plan for
                    allocating income to Participants' Accounts.

                                       25
<PAGE>

                         (2) ALTERNATIVE METHOD OF ALLOCATING INCOME. A Plan may
                    allocate income to Excess Contributions by multiplying the
                    income for the Plan Year allocable to Savings Contributions
                    and amounts treated as Savings Contributions by a fraction.
                    The numerator of the fraction is the Excess Contributions
                    for the Employee for the Plan Year. The denominator of the
                    fraction is equal to the sum of:

                              (a) The total account balance of the Employee
                         attributable to Savings Contributions and amounts
                         treated as Savings Contributions as of the beginning of
                         the Plan Year; plus

                              (b) The Employee's Savings Contributions, and
                         amounts treated as Savings Contributions for the Plan
                         Year.

                         (C) RECHARACTERIZATION OF MATCHING CONTRIBUTIONS. A
                    portion of the Employer's Matching Contribution shall be
                    deemed a Savings Contribution for purposes of paragraph (i)
                    of this Subsection and for vesting and withdrawal purposes.
                    The portion shall be equal to an amount necessary to satisfy
                    one of the tests set forth in paragraph (i) of this
                    Subsection, taking into account the Administrator's action
                    under any option herein and shall be reallocated to the
                    Savings Account. Reallocation of the Employer's Matching
                    Contribution shall be made on behalf of Participants who are
                    Non-Highly Compensated Employees.

                         (D) QUALIFIED NON-ELECTIVE AND QUALIFIED MATCHING
                    CONTRIBUTIONS. The Employer shall make Qualified
                    Non-Elective Contributions or Qualified Matching
                    Contributions on behalf of Participants who are Non-Highly
                    Compensated Employees in an amount sufficient to satisfy one
                    of the tests set forth in paragraph (i) of this Subsection,
                    taking into account the Administrator's action under any
                    option herein. These contributions shall be made in the
                    minimum amount of dollars required to satisfy the
                    requirements of paragraph (i) of this Subsection and shall
                    be allocated first to the lowest-paid such Participant,
                    subject to Section 5.6, and then to the next lowest-paid
                    Participant, subject to Section 5.6, and thereafter in like
                    manner in ascending order until the limitations of paragraph
                    (i) are met. Such additional contributions shall be fully
                    vested and subject to the distribution restrictions of
                    Section 4.1(g) hereof, and must be made prior to the last
                    day of the twelve month period immediately following the
                    Year to which they relate.

                         The Qualified Non-Elective and Qualified Matching
                    Contributions may be treated as Savings Contributions
                    provided that each of the following requirements, to the
                    extent applicable, is satisfied:

                              (1) The amount of Employer Contributions,
                         including those Qualified Non-Elective Contributions
                         treated as Savings Contributions for purposes of the
                         Actual Deferral Percentage Test, satisfies the
                         requirements of Code Section 401(a)(4).

                                       26
<PAGE>

                              (2) The amount of Employer Contributions,
                         excluding those Qualified Non-Elective Contributions
                         treated as Savings Contributions for purposes of the
                         Actual Deferral Percentage Test and those Qualified
                         Non-Elective Contributions treated as Matching
                         Contributions under Treasury Regulations Section
                         1.401(m)-1(b)(5) for purposes of the Average
                         Contribution Percentage Test, satisfies the
                         requirements of Code Section 401(a)(4).

                              (3) The Matching Contributions, including those
                         Qualified Matching Contributions treated as Savings
                         Contributions for purposes of the Actual Deferral
                         Percentage Test, satisfy the requirements of Code
                         Section 401(a)(4).

                              (4) The Matching Contributions, excluding those
                         Qualified Matching Contributions treated as Savings
                         Contributions for purposes of the Actual Deferral
                         Percentage Test, satisfy the requirements of Code
                         Section 401(a)(4).

                              (5) The Qualified Non-Elective Contributions and
                         Qualified Matching Contributions satisfy the
                         requirements of Treasury Regulations Section
                         1.401(k)-1(b)(4)(i) for the Plan Year as if the
                         contributions were Savings Contributions.

                              (6) The plan that includes the cash or deferred
                         arrangement and the plan or plans to which the
                         Qualified Non-Elective Contributions and Qualified
                         Matching Contributions are made could be aggregated for
                         purposes of Code Section 410(b).

          (f) WRAP-PLAN PROVISIONS. Savings Contributions elected by
     Participants who are Highly Compensated Employees may be prospectively
     limited by the Committee without the Participant's consent if necessary to
     meet the limits of Section 4.1(e). Any Participant in this Plan who is both
     a Highly Compensated Employee and a Participant for the Plan Year in the
     FFE Transportation Services, Inc. 401(k) Wrap Plan ("Highly Compensated
     Wrap Plan Participant") may not elect to have Savings Contributions made on
     his behalf by payroll deductions under this Plan during such Plan Year. In
     lieu of Savings Contributions effected by payroll deductions on behalf of
     any Highly Compensated Wrap Plan Participant, as soon as administratively
     feasible after the end of a Plan Year, but in no event later than 2-1/2
     months following the end of that Plan Year, the Committee shall permit the
     transfer to the Plan of all the Nonqualified Savings Contributions credited
     to the Nonqualified Savings Account of each Highly Compensated Wrap Plan
     Participant in the FFE Transportation Services Inc, 401(k) Wrap Plan, but
     in no event shall an amount be transferred that would cause this Plan to
     exceed the limitations of Code Section 401(k)(3) set forth in Plan Section
     4.1(e) for such Plan Year. In determining the permitted transfer amounts,
     the Employers may authorize a Qualified Non-Elective Contribution or
     Qualified Matching Contribution to be made for such year, and allocated as
     provided in Section 4.1(e)(iv)(C).

                                       27
<PAGE>

          (g) RESTRICTIONS ON DISTRIBUTIONS. Subject to the following
     limitations, amounts held in the Participant's Savings Account may not be
     distributable prior to the earliest of:

               (i) separation from Service, total and permanent disability or
          death;

               (ii) attainment of age fifty-nine and one-half (59-1/2) years;

               (iii) Plan termination without establishment of another defined
          contribution plan, other than an employee stock ownership plan (as
          defined in Code Sections 4975(e) or 409) or a simplified employee
          pension plan as defined in Code Section 408(k);

               (iv) disposition by a corporation to an unrelated corporation of
          substantially all of the assets (within the meaning of Code Section
          409(d)(2)) used in a trade or business of the corporation, if the
          corporation continues to maintain this Plan after the disposition, but
          only with respect to Employees who continue employment with the
          corporation acquiring the assets;

               (v) disposition by a corporation to an unrelated entity of the
          corporation's interest in a subsidiary (within the meaning of Code
          Section 409(d)(3)) if the corporation continues to maintain this Plan,
          but only with respect to Employees who continue employment with the
          subsidiary; or

               (vi) proven financial hardship, subject to the limitations set
          forth in Article 10.

          All distributions that may be made pursuant to one or more of the
          foregoing distributable events are subject to the spousal and
          Participant consent requirements, if applicable, of Code Sections
          401(a)(11) and 417. In addition, distributions that are triggered by
          one of the preceding events enumerated as (iii), (iv), (v), or (vi)
          must be made in a lump sum distribution.

     SECTION 4.2. EMPLOYER CONTRIBUTIONS.

          (a) MATCHING EMPLOYER CONTRIBUTIONS. In addition to the total amount
     of Savings Contributions elected for each month pursuant to Section 4.1,
     but subject to the limits of Section 4.2(c), each Employer shall, as a
     Matching Employer Contribution to the Plan, pay to the Trustee for each
     calendar quarter an amount equal to 100% of each Participant's Savings
     Contributions for each payroll period pursuant to Section 4.1 hereof which
     does not exceed four percent (4%) of his Compensation for such payroll
     period.

          (b) QUALIFIED NON-ELECTIVE CONTRIBUTIONS AND QUALIFIED MATCHING
     CONTRIBUTIONS.

                                       28
<PAGE>

               (i) GENERAL. The Employer may, in its discretion, make Qualified
          Non-Elective Contributions and/or Qualified Matching Contributions to
          the Plan from time to time. Any Qualified Non-Elective Contributions
          made pursuant to this Section 4.2(b)(i) shall be treated as a Savings
          Contribution for purposes of Section 4.1(e)(i) and shall be allocated
          as provided in Section 4.1(e)(iv)(C). Any Qualified Matching
          Contributions made pursuant to this Section shall be treated as a
          Matching Employer Contribution for purposes of Section 4.2(c)(i) and
          shall be allocated as provided in Section 4.2(c)(iv)(C).

               (ii) INCENTIVE CONTRIBUTIONS. FFE Transportation Services, Inc.
          shall make Qualified Non-Elective Contributions to the Plan as
          provided pursuant to the terms of the FFE Transportation Services,
          Inc. 1994 Incentive Bonus Plan. Contributions under this Section
          4.2(b)(ii) shall be treated as Savings Contributions for purposes of
          Plan Section 4.1(e)(i) and shall be contributed to the Plan on an
          annual basis.

          (c) LIMITATIONS ON MATCHING EMPLOYER CONTRIBUTIONS.

               (i) AVERAGE CONTRIBUTION PERCENTAGE TEST. The annual allocation
          derived from Matching Contributions and Qualified Matching
          Contributions to a Participant's Individual Account shall satisfy one
          of the following tests:

                    (A) The Average Contribution Percentage for Participants who
               are Eligible Highly Compensated Employees for the Plan Year shall
               not exceed the Average Contribution Percentage for Participants
               who are Eligible Non-Highly Compensated Employees for the current
               Plan Year multiplied by 1.25; or

                    (B) The Average Contribution Percentage for Participants who
               are Eligible Highly Compensated Employees for the Plan Year shall
               not exceed the Average Contribution Percentage for Participants
               who are Eligible Non-Highly Compensated Employees for the current
               Plan Year multiplied by two (2); provided that the Average
               Contribution Percentage for Participants who are Eligible Highly
               Compensated Employees for the Plan Year does not exceed the
               Average Contribution Percentage for Participants who are Eligible
               Non-Highly Compensated Employees for the current Plan Year by
               more than two (2) percentage points or the amount prescribed in
               applicable Treasury regulations to prevent the multiple use of
               this alternative limitation for any Highly Compensated Employee.

               (ii) DEFINITIONS.

                    (A) AGGREGATE LIMIT means the greater of (1) or (2),
               described as follows:

                         (1) The sum of:

                              (a) 1.25 multiplied by the greater of the Actual
                         Deferral Percentage or the Average Contribution
                         Percentage for Participants who are Eligible Non-Highly
                         Compensated Employees, and

                                       29
<PAGE>

                              (b) Two (2) percentage points plus the lesser of
                         Actual Deferral Percentage or the Average Contribution
                         Percentage of Participants who are Eligible Non-Highly
                         Compensated Employees. (In no event shall this amount
                         exceed twice the lesser of the Actual Deferral
                         Percentage or Average Contribution Percentage of
                         Participants who are Eligible Non-Highly Compensated
                         Employees).

                         (2) The sum of:

                              (a) 1.25 multiplied by the lesser of the Actual
                         Deferral Percentage or the Average Contribution
                         Percentage of Participants who are Eligible Non-Highly
                         Compensated Employees, and

                              (b) Two (2) percentage points plus the greater of
                         Actual Deferral Percentage or the Average Contribution
                         Percentage of Participants who are Eligible Non-Highly
                         Compensated Employees. (In no event shall this amount
                         exceed twice the greater of the Actual Deferral
                         Percentage or Average Contribution Percentage of
                         Participants who are Eligible Non-Highly Compensated
                         Employees).

                    (B) AVERAGE CONTRIBUTION PERCENTAGE means the average,
               expressed as a percentage, of the Contribution Percentages of the
               Eligible Participants in a group.

                    (C) CONTRIBUTION PERCENTAGE means the ratio, expressed as a
               percentage, of the sum of the Matching Contributions and
               Qualified Matching Contributions, if any, under the Plan on
               behalf of the Eligible Participant for the Plan Year to the
               Eligible Participant's Compensation for the Plan Year.

                    (D) CONTRIBUTION PERCENTAGE AMOUNTS means the sum of the
               Matching Contributions and Qualified Matching Contributions, to
               the extent not taken into account for purposes of the Actual
               Deferral Percentage Test, made under the Plan on behalf of the
               Participant for the Plan Year. Contribution Percentage Amounts
               shall include Forfeitures of Excess Aggregate Contributions or
               Matching Contributions allocated to the Participant's Account
               that shall be taken into account in the year in which the
               Forfeiture is allocated. Notwithstanding the foregoing,
               Contribution Percentage Amounts shall not include Matching
               Contributions that are forfeited either to correct Excess
               Aggregate Contributions or because the contributions to which
               they relate are Excess Deferrals, Excess Contributions, or Excess
               Aggregate Contributions. The Employer may include Qualified
               Non-Elective Contributions in the Contribution Percentage
               Amounts. The Employer also may elect to use Savings Contributions
               in the Contribution Percentage Amount if the Actual Deferral
               Percentage Test is met before the Savings Contributions are used
               in the Average Contribution Percentage Test and continues to be
               met following the exclusion of those Savings Contributions that
               are used to meet the Average Contribution Percentage Test. In the
               case of an Eligible Participant who makes no Savings
               Contributions and receives no Matching Contributions, the
               Contribution Percentage Amount shall be zero.

                                       30
<PAGE>

                    (E) ELIGIBLE PARTICIPANT means any Employee who is eligible
               to make a Savings Contribution, if the Employer takes the
               contributions into account in calculating the Contribution
               Percentage, or to receive a Matching Contribution, including
               Forfeitures, or a Qualified Matching Contribution.

                    (F) MATCHING CONTRIBUTION means an Employer Contribution
               made to this or any other defined contribution plan on behalf of
               a Participant on account of a Savings Contribution made by the
               Participant, or on account of a Participant's election to defer a
               portion of his or her Compensation under a plan maintained by the
               Employer.

                    (G) QUALIFIED NON-ELECTIVE CONTRIBUTIONS means Employer
               Contributions, other than Savings Contributions and Matching
               Contributions, allocated to Participants' accounts which are 100%
               nonforfeitable at all times and which are subject to the
               distribution restrictions described in Section 4.1(g). Employer
               Contributions are not 100% nonforfeitable at all times if the
               Employee has a 100% nonforfeitable interest because of Years of
               Service taken into account under a vesting schedule. Any Employer
               Contributions allocated to a Participant's Savings Account under
               the Plan automatically satisfy the definition of Qualified
               Non-Elective Contributions.

                    (H) QUALIFIED MATCHING CONTRIBUTIONS means Matching Employer
               Contributions allocated to Participants' accounts which are 100%
               nonforfeitable at all times and which are subject to the
               distribution restrictions described in Section 4.1(g). Matching
               Contributions are not 100% nonforfeitable at all times if the
               Employee has a 100% nonforfeitable interest because of Years of
               Service taken into account under a vesting schedule. Any Matching
               Contributions allocated to a Participant's Savings Account under
               the Plan automatically satisfy the definition of Qualified
               Matching Contributions.

               (iii) SPECIAL RULES

                    (A) MULTIPLE USE. If one or more Highly Compensated
               Employees participate in both a cash or deferred arrangement
               subject to Code Section 401(k) and a plan maintained by the
               Employer subject to Code Section 401(m) and the sum of the Actual
               Deferral Percentage and Average Contribution Percentage of those

                                       31
<PAGE>

               Highly Compensated Employees subject to either or both tests
               exceeds the Aggregate Limit, then the Average Contribution
               Percentage of those Highly Compensated Employees who also
               participate in a cash or deferred arrangement will be reduced in
               the manner described in Section 4.1(e) so that the limit is not
               exceeded. The amount by which each Highly Compensated Employee's
               Contribution Percentage Amount is reduced shall be treated as an
               Excess Aggregate Contribution. The Actual Deferral Percentage and
               Average Contribution Percentage of the Highly Compensated
               Employees are determined after:

                         (1) use of Qualified Non-Elective Contributions and
                    Qualified Matching Contributions to meet the Actual Deferral
                    Percentage Test;

                         (2) use of Qualified Non-Elective Contributions and
                    Elective Contributions to meet the Actual Deferral
                    Percentage Test;

                         (3) any corrective distribution or forfeiture of Excess
                    Deferrals, Excess Contributions or Excess Aggregate
                    Contributions; and

                         (4) after any recharacterization of Excess
                    Contributions required without regard to multiple use of the
                    alternative limitation;

               and are deemed to be the maximum permitted under such tests for
               the Plan Year.

               Multiple use occurs if the Actual Deferral Percentage and Average
               Contribution Percentage of the Highly Compensated Employees
               exceeds the Aggregate Limit. For purposes of this Section, the
               "Aggregate Limit" is the greater of:

                         (1) the sum of (i) 1.25 times the greater of the
                    relevant actual deferral percentage or the relevant actual
                    contribution percentage, and (ii) two percentage points plus
                    the lesser of the relevant actual deferral percentage or the
                    relevant actual contribution percentage; provided, however,
                    that this amount may not exceed twice the lesser of the
                    relevant actual deferral percentage or the relevant actual
                    contribution percentage; or

                         (2) the sum of (i) 1.25 times the lesser of the
                    relevant actual deferral percentage or the relevant actual
                    contribution percentage, and (ii) two percentage points plus
                    the greater of the relevant actual deferral percentage or
                    the relevant actual contribution percentage; provided,
                    however, that this amount may not exceed twice the greater
                    of the relevant actual deferral percentage or the relevant
                    actual contribution percentage.

                                       32
<PAGE>

               For purposes of the preceding sentence, the "relevant" actual
               deferral percentage and actual contribution percentage is the
               actual deferral percentage and actual contribution percentage of
               the Non-Highly Compensated Employees.

                    (B) For purposes of this Section, the Contribution
               Percentage for any Participant who is an Eligible Highly
               Compensated Employee for the Plan Year who is eligible to have
               Contribution Percentage Amounts allocated under two (2) or more
               plans described in Code Section 401(a) or arrangements described
               in Code Section 401(k) that are maintained by the Employer or a
               Related Employer shall be determined as if the total of the
               Contribution Percentage Amounts were made under each plan. If a
               Highly Compensated Employee participates in two (2) or more cash
               or deferred arrangements that have different plan years, all cash
               or deferred arrangements ending with or within the same calendar
               year shall be treated as a single arrangement. Notwithstanding
               the foregoing, certain plans shall be treated as separate if
               mandatorily disaggregated under regulations pursuant to Code
               Section 401(m).

                    (C) If this Plan satisfies the requirements of Code Sections
               401(m), 401(a)(4) or 410(b) only if aggregated with one (1) or
               more other plans, or if one (1) or more other plans satisfy the
               requirements of the Code Sections only if aggregated with this
               Plan, then this Section shall be applied by determining the
               Contribution Percentages of Eligible Participants as if all such
               plans were a single plan.

                    (D) The Employer shall maintain records sufficient to
               demonstrate satisfaction of the Average Contribution Percentage
               Test.

                    (E) The determination and treatment of the Contribution
               Percentage of any Participant shall satisfy other requirements
               prescribed by applicable Treasury regulations.

               (iv) FAIL SAFE PROVISIONS. If the initial allocations of the
          Matching Employer Contributions do not satisfy one of the tests set
          forth in paragraph (i) of this Section, the Administrator shall adjust
          the accounts of the Participants pursuant to one (1) or more of the
          following options:

                    (A) DISTRIBUTION OF EXCESS AGGREGATE CONTRIBUTIONS. The
               Administrator will determine Excess Aggregate Contributions after
               determining Excess Elective Deferrals under Section 4.1(d) and
               Excess Contributions under Section 4.1(e). If the Administrator
               determines that the Plan fails to satisfy the Average
               Contribution Percentage Test for a Plan Year, it must distribute
               the Excess Aggregate Contributions, as adjusted for allocable
               income, during the next Plan Year. However, the Employer will

                                       33
<PAGE>

               incur an excise tax equal to 10% of the amount of Excess
               Aggregate Contributions for a Plan Year not distributed to the
               appropriate Highly Compensated Employees during the first 2-1/2
               months of the next Plan Year. The Excess Aggregate Contributions
               are the amount of aggregate contributions allocated on behalf of
               the Highly Compensated Employees which causes the Plan to fail to
               satisfy the Average Contribution Percentage Test. The
               Administrator shall make distributions to each Highly Compensated
               Employee of his or her respective share of the Excess Aggregate
               Contributions in accordance with the following steps:

                         (1) The Administrator shall calculate total Excess
                    Aggregate Contributions for the Highly Compensated
                    Employees.

                         (2) The Administrator shall calculate the total dollar
                    amount by which the Excess Aggregate Contributions for the
                    Highly Compensated Employees must be reduced in order to
                    satisfy the Average Contribution Percentage Test.

                         (3) The Administrator shall calculate the total dollar
                    amount of the Excess Aggregate Contributions for each Highly
                    Compensated Employee.

                         (4) The Administrator shall reduce the Excess Aggregate
                    Contributions of the Highly Compensated Employee(s) with the
                    highest dollar amount of Excess Aggregate Contributions by
                    refunding such contributions to such Highly Compensated
                    Employee(s) in the amount required to cause the dollar
                    amount of such Highly Compensated Employee(s)' Matching
                    Employer Contributions to equal the dollar amount of the
                    Matching Employer Contributions of the Highly Compensated
                    Employee(s) with the next highest dollar amount of such
                    contributions.

                         (5) If the total dollar amount distributed pursuant to
                    Step (4) above is less than the total dollar amount of
                    Excess Aggregate Contributions, Step (4) shall be applied to
                    the Highly Compensated Employee(s) with the next highest
                    dollar amount of Excess Aggregate Contributions until the
                    total amount of distributed Excess Aggregate Contributions
                    equals the total dollar amount calculated in Step (2).

                         (6) When calculating the amount of a distribution under
                    Step (4), if a lesser reduction, when added to any amounts
                    already distributed under this Section, would equal the
                    total amount of distributions necessary to permit the Plan
                    to satisfy the requirements of Section 4.2(c)(i), the lesser
                    amount shall be distributed from the Plan.

                                       34
<PAGE>

                    (B) ALLOCABLE INCOME. To determine the amount of the
               corrective distribution required under this Section, the
               Administrator must calculate the allocable income for the Plan
               Year in which the Excess Aggregate Contributions arose. The
               income allocable to Excess Aggregate Contributions is equal to
               the sum of the allocable gain or loss for the Plan Year.

                         (1) METHOD OF ALLOCATING INCOME. The Administrator may
                    use any reasonable method for computing the income allocable
                    to Excess Aggregate Contributions, provided that the method
                    does not violate Code Section 401(a)(4), is used
                    consistently for all Participants and for all corrective
                    distributions under the Plan for the Plan Year, and is used
                    by the Plan for allocating income to Participants' Accounts.

                         (2) ALTERNATIVE METHOD OF ALLOCATING INCOME. A Plan may
                    allocate income to Excess Aggregate Contributions by
                    multiplying the income for the Plan Year allocable to
                    Matching Contributions and amounts treated as Matching
                    Contributions by a fraction. The numerator of the fraction
                    is the Excess Aggregate Contributions for the Employee for
                    the Plan Year. The denominator of the fraction is equal to
                    the sum of:

                              (a) The total account balance of the Employee
                         attributable to Matching Contributions and amounts
                         treated as Matching Contributions as of the beginning
                         of the Plan Year; plus

                              (b) The Matching Contributions and amounts treated
                         as Matching Contributions for the Plan Year.

                    (C) CHARACTERIZATION OF EXCESS AGGREGATE CONTRIBUTIONS. The
               Administrator will treat a Highly Compensated Employee's
               allocable share of Excess Aggregate Contributions in the
               following priority: (i) first as attributable to his or her
               Matching Contributions allocable with respect to Excess
               Contributions determined under the Actual Deferral Percentage
               Test described in Section 4.1(e); (ii) then on a pro rata basis
               to Matching Contributions and to the Savings Contributions
               relating to those Matching Contributions which the Administrator
               has included in the Average Contribution Percentage Test; (iii)
               then on a pro rata basis to Savings Contributions which are
               mandatory contributions, if any, and to the Matching
               Contributions allocated on the basis of those mandatory
               contributions; and (iv) last to Qualified Non-Elective
               Contributions used in the Average Contribution Percentage Test.
               To the extent the Highly Compensated Employee's Excess Aggregate
               Contributions are attributable to Matching Contributions, and he
               or she is not 100% vested in the Account Balance attributable to
               Matching Contributions, the Administrator will distribute only
               the vested portion and forfeit the nonvested portion. The vested
               portion of the Highly Compensated Employee's Excess Aggregate
               Contributions attributable to Matching Employer Contributions is
               the total amount of the Excess Aggregate Contributions (as
               adjusted for allocable income) multiplied by his or her vested
               percentage (determined as of the last day of the Plan Year for
               which the Employer made the Matching Contribution).

                                       35
<PAGE>

                    (D) QUALIFIED NON-ELECTIVE AND QUALIFIED MATCHING
               CONTRIBUTIONS. The Employer shall make Qualified Non-Elective
               Contributions or Qualified Matching Contributions that, in
               combination with Matching Contributions, satisfy one of the tests
               set forth in paragraph (i) of this Subsection, taking into
               account the Administrator's action under any option herein. Any
               such contribution shall be treated as a Participant Savings
               Contribution and shall be allocated to the Account of each
               Participant. The total of these contributions shall be at least
               equal to the amount necessary to satisfy the requirements of
               paragraph (i) of this Subsection and shall be allocated first to
               the lowest-paid such Participant, subject to Section 5.6, and
               then to the next lowest-paid Participant, subject to Section 5.6,
               and thereafter in like manner in ascending order until the
               limitations of paragraph (i) are met. Such additional
               contributions shall be fully vested and subject to the
               distribution restrictions of Section 4.1(g) hereof, and must be
               made prior to the last day of the twelve month period immediately
               following the Year to which they relate. The Qualified
               Non-Elective and Qualified Matching Contributions may be treated
               as Matching Contributions provided that each of the following
               requirements, to the extent applicable, is satisfied:

                         (1) The amount of Employer Contributions, including
                    those Qualified Non-Elective and Qualified Matching
                    Contributions treated as Matching Contributions for purposes
                    of the Average Contribution Percentage Test, satisfies the
                    requirements of Code Section 401(a)(4).

                         (2) The amount of Employer Contributions, excluding
                    those Qualified Non-Elective Contributions and Qualified
                    Matching treated as Matching Contributions for purposes of
                    the Average Contribution Percentage Test and those Qualified
                    Non-Elective Contributions treated as Elective and Qualified
                    Matching Contributions under Treasury Regulations Section
                    1.401(k)-1(b)(5) for purposes of the Actual Deferral
                    Percentage Test, satisfies the requirements of Code Section
                    401(a)(4).

                         (3) The Savings Contributions, including those treated
                    as Qualified Matching Contributions for purposes of the
                    Average Contribution Percentage Test, satisfy the
                    requirements of Code Section 401(k)(3) for the Plan Year.

                                       36
<PAGE>

                         (4) The Qualified Non-Elective and Qualified Matching
                    Contributions are allocated to the Employee under the Plan
                    as of a date within the Plan Year, and the Savings
                    Contributions satisfy the requirements of Treasury
                    Regulations Section 1.401(k)-1(b)(4)(i) for the Plan Year.

                         (5) The plan that takes Qualified Non-Elective
                    Contributions and Qualified Matching Contributions into
                    account in determining whether Savings and Matching
                    Contributions satisfy the requirements of Code Section
                    401(m)(2)(A), and the plans to which the Qualified
                    Non-Elective Contributions and Qualified Matching
                    Contributions are made, are or could be aggregated for
                    purposes of Code Section 410(b).

                    (E) FORFEITURE OF NON-VESTED MATCHING EMPLOYER
               CONTRIBUTIONS. Matching Employer Contributions that are not
               vested may be forfeited to correct Excess Aggregate
               Contributions. Notwithstanding the foregoing sentence, Excess
               Aggregate Contributions for a Plan Year may not remain
               unallocated or be allocated to a suspense account for allocation
               to one or more Employees in any future year. Forfeitures of
               Matching Contributions to correct Excess Aggregate Contributions
               shall be applied to reduce the Employers' Matching Employer
               Contributions for the Plan Year in which the excess arose.

          (d) Notwithstanding the foregoing provisions of this Section 4.2 the
     Employer Contribution specified therein shall be limited by and in no event
     shall exceed the following limits:

               (i) The total amount deductible by such Employer under Code
          Section 404; or

               (ii) The maximum amount that may be allocated to a particular
          Participant's Accounts under the annual additions limit of Section 5.6
          (and, if applicable, Article 12).

     SECTION 4.3. DISCRETIONARY EMPLOYER CONTRIBUTIONS. For each Plan Year, the
amount of the Discretionary Employer Contribution to the Trust Fund will equal
the amount, if any, the Employer may from time to time determine and authorize.
Although the Employer may contribute to this Plan whether or not it has net
profits, the Employer intends the Plan to be a profit sharing plan, including a
qualified cash or deferred arrangement, and an employee stock ownership plan,
for all purposes of the Code. The Employer shall not authorize contributions at
such times or in such amounts that the Plan in operation discriminates in favor
of Highly Compensated Employees. Notwithstanding the foregoing, the
Discretionary Employer Contribution for any Plan Year shall not exceed the
maximum amount allowable as a deduction to the Employer under Code Section 404.
The Discretionary Employer Contributions shall be allocated to the Participants'
Discretionary Employer Contribution Accounts under the formula provided in
Section 5.4.

     SECTION 4.4. PAYMENT OF EMPLOYER CONTRIBUTIONS.

                                       37
<PAGE>

          (a) Matching Employer Contributions shall be paid to the Trustee as
     soon as administratively feasible following the payroll period to which
     they relate. Notwithstanding the preceding sentence, Employer Contributions
     shall be paid to the Trustee no later than the date prescribed by law for
     filing such Employer's federal income tax return for its taxable year
     ending with or within the Plan Year for which such contribution is made,
     including extensions which have been granted for the filing of such tax
     return. The Trustee shall hold all such Employer Contributions subject to
     the provisions of the Plan and Trust Agreement, and no part of such
     contributions shall be used for, or diverted to, any purpose other than
     those specified in the Plan and Trust Agreement.

          (b) Notwithstanding anything to the contrary contained herein, an
     Employer Contribution for a Plan Year may be returned to the Employer to
     the extent that the amount of such contribution exceeds the amount that
     such Employer would have contributed for such Plan Year but for (i) a good
     faith mistake of fact made in determining the amount of such contribution
     or (ii) a good faith mistake in determining that the contribution made
     would be deductible under Code Section 404.

          The return of a portion of an Employer Contribution shall be subject
     to the following conditions: (i) earnings attributable to the amount to be
     returned may not be distributed to the Employer but losses attributable
     thereto must reduce the amount to be returned; (ii) the amount to be
     returned shall be limited so as to avoid reducing the balance in the
     Participant's Discretionary Employer Contribution Account and Matching
     Employer Contribution Account to less than the balance which would have
     been in such account if the amount attributable to such mistake had not
     been contributed; (iii) the return of an amount attributable to a mistake
     of fact may only be made within one year after such amount was paid to the
     Trustee; and (iv) the return of an amount attributable to a mistake in
     determining such deductibility may only be made within one year after the
     disallowance of such deduction. Except as provided in the preceding
     sentence, an appropriate adjustment shall be made in the Participant's
     Discretionary Employer Contribution Account and Matching Employer
     Contribution Account, if any, to reflect the return of a portion of an
     Employer Contribution.

     SECTION 4.5. ROLLOVER CONTRIBUTIONS.

          (a) Upon approval by the Committee, an Employee who has received an
     eligible rollover distribution, as defined in Code Section 402(c)(4) may
     contribute such eligible rollover distribution to a Rollover Account under
     the Plan. An Employee may also transfer to a Rollover Account under the
     Plan (upon Committee approval) an eligible rollover distribution from an
     individual retirement account or from an individual retirement annuity, but
     only if such distribution or proceeds qualify for tax-free rollovers under
     Code Section 408(d)(3)(A)(ii). In addition, the Plan will accept (upon
     Committee approval) direct trustee-to-trustee transfers from another
     qualified plan or a Code Section 403(b) annuity and will account for such
     transfers separately from any other Rollover Account. Notwithstanding the
     foregoing, in no event shall an eligible rollover distribution be
     contributed to an ESOP Account under the Plan.

                                       38
<PAGE>

          (b) Any contribution under this Section 4.5 shall be treated as the
     contribution of a "Rollover Amount" and, except in the case of
     trustee-to-trustee transfers, shall be subject to the following
     requirements and conditions:

               (i) The Employee must transfer the Rollover Amount or cause to be
          transferred such amount to the Committee for delivery to the Trustee
          or, if the Committee directs, to the Trustee, in time for the Trustee
          to receive such amount on or before the 60th day after the day on
          which such amount was received by the Employee.

               (ii) The Employee must furnish such evidence as the Committee may
          require that such Rollover Amount includes all of (and does not
          include anything other than) the amount required to be transferred by
          Code Section 402(c)(4) or 408(d)(3)(A)(ii), as appropriate.

          (c) The Committee shall not deliver or cause the delivery of any
     Rollover Amount to the Trustee prior to its receipt of such evidence as may
     be required by it pursuant to Section 4.5(b) and, except in the case of
     trustee-to-trustee transfers, shall not deliver or cause the delivery of
     any Rollover Amount to the Trustee if such Rollover Amount would not be
     received by the Trustee on or before the 60th day after the day on which
     such amount was received by the Employee who wishes to transfer such amount
     to the Plan.

          (d) An Employee shall be eligible to transfer amounts to a Rollover
     Account pursuant to this Section 4.5 notwithstanding the provisions of
     Article 3 hereof.

          (e) An Employee who establishes and maintains a Rollover Account or
     Accounts shall be deemed to be a Participant under the Plan notwithstanding
     the provisions of Article 3, but no such Employee shall be entitled to
     share in any Employer Contributions or elect Savings Contributions unless
     he is otherwise participating under Article 3.

          (f) Fees and expenses of the Trustee attributable to the maintenance
     of Rollover Accounts shall be paid as provided in Section 16.7.

          (g) Articles 6, 8, and 11 shall govern the time and method of payment
     from an Employee's Rollover Accounts.

     SECTION 4.6. SPECIAL RULES UNDER USERRA. Effective as of December 12, 1994,
notwithstanding any provision of this Plan to the contrary, contributions,
benefits and service credit with respect to qualified military service will be
provided in accordance with Code Section 414(u).

                                  * * * * * * *

                                       39
<PAGE>

                                  ARTICLE FIVE
                                  ------------

                                   ALLOCATIONS

     SECTION 5.1. ACCOUNTS. The Committee shall maintain or cause to be
maintained adequate records to disclose the interest in the Trust of each
Participant, Former Participant, and Beneficiary. Such records shall be in the
form of individual accounts, and credits and charges shall be made to such
accounts in the manner herein described. When appropriate, a Participant shall
have, as separate accounts, a Matching Employer Contribution Account, a
Discretionary Employer Contribution Account, a Rollover Account, a Savings
Account, a W & B Plan Rollover Account, an ESOP Transfer Account, and an ESOP
Rollover Account. The maintenance of separate accounts is only for accounting
purposes, and a segregation of the Trust Assets to each account shall not be
required. Each Account shall reflect its allocable share of income, loss,
appreciation, and depreciation of the Trust Assets. Distributions made from an
Account shall be charged to such Account as of the Valuation Date on which the
distribution is made.

     SECTION 5.2. ALLOCATION OF INCOME AND EXPENSE.

          (a) Except as otherwise provided in Section 7.3(a), income of the
     Trust Assets shall be allocated as of each Valuation Date to the Accounts
     that generated such income.

          (b) Except as otherwise provided by Sections 7.3(b) and 16.7, expenses
     paid from the Trust Assets and not reimbursed by an Employer shall be
     allocated as of each Valuation Date to the Accounts of Participants, Former
     Participants and Beneficiaries who had undistributed balances in their
     Accounts on such last preceding Valuation Date in proportion to the
     balances in such Accounts on such date, but after first reducing each such
     account balance by any distributions from the account since such last
     preceding Valuation Date.

          (c) Dividends Credited to ESOP Accounts. Upon instruction from the
     Committee, the Trustee shall distribute to each Participant with an ESOP
     Account, in cash, all or a portion of the dividends paid to the Plan with
     respect to Company Stock held by the Plan and allocated to ESOP Accounts,
     within ninety (90) days after the close of the Plan Year in which such
     dividends are paid. The dividends, if distributed in accordance with this
     Section, shall be paid out as if each Participant directly owned the
     numbers of shares of Company Stock allocated to the Participant's ESOP
     Accounts (including fractional shares so allocated), as of the Accounting
     Date corresponding with, or if none, next following the record date for
     such dividend declaration. Such dividend payments shall not be considered
     to be distributions under the Plan.

     SECTION 5.3. ALLOCATION OF SAVINGS CONTRIBUTIONS. Savings Contributions
elected by a Participant during any calendar month shall be credited and
allocated to his Savings Account no later than the last day of the following
calendar month.

                                       40
<PAGE>

     SECTION 5.4. ALLOCATION OF EMPLOYER CONTRIBUTIONS.

          (a) MATCHING EMPLOYER CONTRIBUTIONS. Each Participant who is a
     Participant during a payroll period is entitled to share in the Matching
     Employer Contribution for such payroll period. Subject to Section 5.6, the
     Committee shall instruct the Trustee to allocate the portion of the
     Matching Employer Contribution for each payroll period to the Matching
     Employer Contribution Account of each Participant or Former Participant for
     whom Savings Contributions were made during such payroll period pursuant to
     Section 4.2(a).

          (b) DISCRETIONARY EMPLOYER CONTRIBUTIONS. Each Participant who is
     employed on the last business day of the Plan Year is entitled to share in
     the allocation of Discretionary Employer Contributions, if any, for such
     Plan Year. The Committee shall allocate the Discretionary Employer
     Contributions, if any, to each eligible Participant's Discretionary
     Employer Contribution Account in the same ratio that each Participant's
     Annual Compensation for the Plan Year bears to the total Annual
     Compensation of all Participants for such Plan Year. Notwithstanding the
     preceding, a Former Participant who would have been a Participant on the
     last business day of the Plan Year but for his death, Disability, Early
     Retirement, or Retirement during the Plan Year shall be entitled to share
     in the allocation of the Discretionary Contributions, if any, for such Plan
     Year.

          (c) QUALIFIED NON-ELECTIVE CONTRIBUTIONS AND QUALIFIED MATCHING
     CONTRIBUTIONS. Each Participant who is a Non-Highly Compensated Employee
     and who is a Participant on the last business day of the Plan Year and each
     Former Participant who is a Non-Highly Compensated Employee and who would
     have been a Participant on the last business day of the Plan Year but for
     his death, Disability, Early Retirement, or Retirement during the Plan
     Year, is entitled to share in the allocation of Qualified Non-Elective
     Contributions and/or Qualified Matching Contributions, if any, for such
     Plan Year. Such contributions shall be allocated pursuant to the provisions
     of Section 4.2(b)(i).

          (d) INCENTIVE CONTRIBUTIONS. Each Participant who is entitled to
     receive an allocation of Incentive Contributions under the terms of the FFE
     Transportation Services, Inc. 1994 Incentive Bonus Plan (the "Incentive
     Plan") shall receive an allocation of such amounts under this Plan. The
     Committee shall allocate the Incentive Contributions, if any, to each
     eligible Participant's Savings Account in the manner provided by the terms
     of the Incentive Plan.

     SECTION 5.5. FORFEITURES. Amounts forfeited pursuant to Sections 5.6 or 6.3
shall be used to pay Plan expenses in the Plan Year in which they are forfeited.
To the extent such Forfeitures exceed Plan expenses in such Plan Year, they
shall be used to reduce the Matching Employer Contributions to the Plan under
Section 4.2(a) during the subsequent Plan Year, unless the Employer directs that
such Forfeitures are to be used to reduce the Matching Employer Contributions to
the Plan under Section 4.2(a) during the Plan Year in which they are forfeited.

                                       41
<PAGE>

     SECTION 5.6. MAXIMUM ADDITIONS.

          (a) DEFINED CONTRIBUTION PLAN LIMITS. The amount of Annual Additions
     that the Committee may allocate under this Plan on a Participant's behalf
     for a Limitation Year may not exceed the Maximum Permissible Amount. If the
     amount the Employer otherwise would contribute to the Participant's Account
     would cause the Annual Additions for the Limitation Year to exceed the
     Maximum Permissible Amount, the Employer will reduce the amount of its
     contribution so the Annual Additions for the Limitation Year will equal the
     Maximum Permissible Amount. If an allocation of Employer Contributions
     pursuant to Section 5.4 would result in an Excess Amount (other than an
     Excess Amount resulting from the circumstances described in Section 5.6(c))
     to the Participant's Account, the Committee will reallocate the Excess
     Amount to the remaining Participants who are eligible for an allocation of
     Employer Contributions for the Plan Year in which the Limitation Year ends.
     The Committee will make this reallocation on the basis of the allocation
     method under the Plan as if the Participant whose Individual Account
     otherwise would receive the Excess Amount is not eligible for an allocation
     of Employer Contributions.

          (b) ESTIMATION. Prior to the determination of the Participant's actual
     Compensation for a Limitation Year, the Committee may determine the Maximum
     Permissible Amount on the basis of the Participant's estimated Compensation
     defined in Section 5.6(e) for the Limitation Year. The Committee must make
     this determination on a reasonable and uniform basis for all Participants
     similarly situated. The Committee must reduce any Employer Contributions
     (including any allocation of Forfeitures) based on estimated Compensation
     by any Excess Amounts carried over from prior years. As soon as
     administratively feasible after the end of the Limitation Year, the
     Committee will determine the Maximum Permissible Amount for the Limitation
     Year based on the Participant's actual Compensation for the Limitation
     Year.

          (c) DISPOSITION OF EXCESS AMOUNT. If, pursuant to Section 5.6(b) or
     because of an allocation of Forfeitures, there is an Excess Amount
     attributable to a Participant for a Limitation Year, then the Committee
     will dispose of the Excess Amount as follows:

               (i) The Committee shall return any nondeductible Participant
          voluntary after tax contributions to the Participant to the extent
          that the return would reduce the Excess Amount.

               (ii) If, after the application of clause (i) an Excess Amount
          still exists, and the Plan covers the Participant at the end of the
          Limitation Year, then the Committee will use the Excess Amounts to
          reduce future Employer Contributions (including any allocation of
          Forfeitures) under the Plan for the next Limitation Year and for each
          succeeding Limitation Year, as is necessary, for the Participant. The
          Participant may elect to limit Compensation for allocation purposes to
          the extent necessary to reduce the allocation for the Limitation Year
          to the Maximum Permissible Amount and eliminate the Excess Amount.

                                       42
<PAGE>

               (iii) If, after the application of clause (i) an Excess Amount
          still exists and the Plan does not cover the Participant at the end of
          the Limitation Year, then the Committee shall hold the Excess Amount
          in a suspense account and use the Excess Amount to reduce Employer
          Contributions on behalf of remaining Participants and shall allocate
          and reallocate to the Individual Accounts of remaining Participants in
          succeeding Limitation Years to the extent permissible under the
          foregoing limitations, prior to any further Annual Additions to the
          Plan. If the Plan should be terminated or contributions should be
          completely discontinued, the funds in the suspense account will be
          allocated to the extent not prohibited by Code Section 415. Any
          suspense account shall not be adjusted for investment gains or losses
          of the Trust Fund.

               (iv) The Committee will not distribute any Excess Amount(s) to
          Participants or to Former Participants.

               (v) Notwithstanding the first sentence and the foregoing
          paragraphs (i), (ii), (iii), and (iv), the Committee may distribute
          Elective Deferrals (within the meaning of Code Section 402(g)(3)) or
          return voluntary or mandatory Employee Contributions, to the extent
          the distribution or return would reduce the excess amounts in the
          Participant's account.

          (d) MULTIPLE DEFINED CONTRIBUTION PLAN LIMITS. If the Employer
     maintains any other qualified defined contribution plan, the amount of the
     Annual Addition which may be allocated to a Participant's Individual
     Account in this Plan shall not exceed the Maximum Permissible Amount,
     reduced by the amount of Annual Additions to such Participant's accounts
     for the same Limitation Year in the other plan(s). The Excess Amount
     attributed to this Plan equals the product of:

               (i) the total Excess Amount allocated as of such date (including
          any amount the Committee would have allocated but for the limitations
          of Code Section 415), multiplied by

               (ii) the ratio of:

                    (A) the amount allocated to the Participant as of such date
               under this Plan, divided by

                    (B) the total amount allocated as of such date under all
               qualified defined contribution plans (determined without regard
               to the limitations of Code Section 415).

          (e) DEFINITIONS. For purposes of the limitations of Code Section 415
     set forth in this Section, the following definitions shall apply:

               (i) ANNUAL ADDITIONS means the sum of the following amounts
          allocated on behalf of a Participant for a Limitation Year:

                    (A) all Employer Contributions;

                                       43
<PAGE>

                    (B) all Forfeitures;

                    (C) all Employee Contributions;

                    (D) excess contributions described in Code Section 401(k)
               and excess aggregate contributions described in Code Section
               401(m), irrespective of whether the Plan distributes or forfeits
               such Excess Amounts, and excess deferrals described in Code
               Section 402(g), unless the excess deferrals are distributed no
               later than the first April 15 following the close of the
               Participant's taxable year;

                    (E) Excess Amounts reapplied to reduce Employer
               Contributions under this Section 5.6;

                    (F) amounts allocated after March 31, 1984 to an individual
               medical account, as defined in Code Section 415(l)(2), included
               as part of a pension or annuity plan maintained by the Employer;

                    (G) contributions paid or accrued after December 31, 1985,
               in taxable years ending after that date, which are attributable
               to post-retirement medical benefits allocated to the separate
               account of a Key Employee as defined in Code Section 419A(d)(3),
               under a welfare benefit fund, as described in Code Section
               419(e), maintained by the Employer; and

                    (H) allocations under a simplified employee pension plan.

               (ii) COMPENSATION means the total amount of salary, wages,
          commissions, bonuses and overtime, paid or otherwise includable in the
          gross income of a Participant during the Limitation Year plus,
          effective January 1, 1998, any amounts excluded from income pursuant
          to Code Sections 125 and 401(k), but excluding:

                    (A) Employer contributions to any deferred compensation plan
               (to the extent the contributions are not included in the
               Participant's gross income for the taxable year in which
               contributed) or simplified employee pension under Code Section
               408(k) (to the extent the contributions are excludable from the
               Participant's gross income) (effective January 1, 1998, other
               than any amounts excluded from income pursuant to Code Section
               401(k));

                    (B) distributions from any plan of deferred compensation,
               whether or not such amounts are includable in the gross income of
               the Employees when distributed;

                    (C) amounts realized from the exercise of any nonqualified
               stock option, or when restricted stock becomes freely
               transferable or is no longer subject to a substantial risk of
               forfeiture;

                                       44
<PAGE>

                    (D) amounts realized from the sale, exchange, or other
               disposition of stock acquired under a qualified stock option
               described in Part II, Subchapter D, Chapter 1 of the Code;

                    (E) premiums paid by the Employer for group term life
               insurance (to the extent the premiums are not includable in the
               Participant's gross income); contributions by the Employer to an
               annuity under Code Section 403(b) (to the extent not includable
               in the Participant's gross income); and any other amounts
               received under any Employer sponsored fringe benefit plan (to the
               extent not includable in the Participant's gross income);

                    (F) any contribution for medical benefits, within the
               meaning of Code Section 419A(f)(2), after separation from Service
               which is otherwise treated as an Annual Addition; and

                    (G) any amount otherwise treated as an Annual Addition under
               Code Section 415(l)(1).

               (iii) AVERAGE COMPENSATION means the average compensation during
          a Participant's highest three (3) consecutive Years of Service, which
          period is the three (3) consecutive calendar years (or the actual
          number of consecutive years of employment for those Employees who are
          employed for less than three (3) consecutive years with the Employer)
          during which the Participant had the greatest aggregate compensation
          from the Employer

               (iv) Notwithstanding the foregoing, in the case of a Participant
          (i) who is permanently and totally disabled (as provided in Code
          Section 415(c)(3)(C)), (ii) who is not a Highly Compensated Employee,
          and (iii) with respect to whom the Employer elects to have this
          subparagraph apply, the term Compensation shall mean the Compensation
          the Participant would have received for the Plan Year if the
          Participant had been paid at the rate of Compensation paid immediately
          before becoming permanently and totally disabled. This subparagraph
          (iv) shall apply only if contributions made with respect to amounts
          treated as Compensation under this subparagraph (iv) are
          nonforfeitable when made.

               (v) EMPLOYER means the Employer that adopts this Plan. All
          Related Employers shall be considered a single Employer for purposes
          of applying the limitations of this Section.

               (vi) EXCESS AMOUNT means the excess of the Participant's Annual
          Additions for the Limitation Year over the Maximum Permissible Amount,
          less administrative charges allocable to such Excess Amount.

               (vii) LIMITATION YEAR means the Limitation Year specified in the
          Plan or, if none is specified, the calendar year.

               (viii) MAXIMUM PERMISSIBLE AMOUNT means the lesser of:

                                       45
<PAGE>

                    (A) the Defined Contribution Dollar Limitation, or

                    (B) twenty-five percent (25%) of the Participant's
               Compensation, within the meaning of Code Section 415(c)(3)

               for a Limitation Year with respect to any Participant. For
               purposes of this subsection the term "Defined Contribution Dollar
               Limitation" means $30,000 or, if greater, twenty-five percent
               (25%) of the Defined Benefit Dollar Limitation set forth in Code
               Section 415(b)(1)(A) as in effect for the Limitation Year.

               (ix) PROJECTED ANNUAL BENEFIT means the benefit of the
          Participant payable annually in the form of a straight life annuity
          (with no ancillary benefits) under the terms of a defined benefit plan
          to which employees do not contribute and under which no rollover
          contributions are made, assuming that the Participant continues
          employment until Normal Retirement Age (or current age, if later),
          compensation continues at the same rate as in effect in the Limitation
          Year under consideration until the date of Normal Retirement Age, and
          all other relevant factors used to determine benefits under the
          defined benefit plan remain constant as of the current Limitation Year
          for all future Limitation Years.

     SECTION 5.7. NOTIFICATION TO PARTICIPANTS. At least once annually the
Committee shall advise each Participant or Former Participant of the then
composition and value of his Accounts.

                                  * * * * * * *

                                       46
<PAGE>

                                  ARTICLE SIX
                                  -----------

                                     VESTING

     SECTION 6.1. RETIREMENT, DEATH, OR DISABILITY. If a Participant ceases to
be an Employee due to the Participant's Retirement, Early Retirement, death, or
Disability, such Participant, Former Participant, or the Beneficiary, as the
case may be, shall be fully vested in and entitled to the total amount credited
to each of his Accounts.

     SECTION 6.2. SEPARATED FROM SERVICE If a Participant or Former Participant
is Separated from Service for any reason other than Retirement, Early
Retirement, death, or Disability, such Participant or Former Participant, or the
Beneficiary, as the case may be, shall be entitled to the sum of the following:

          (a) The total amount credited to the Participant's Savings Account,
     Rollover Account, and ESOP Rollover Account , if any; and

          (b) The Vested Percentage at the date he is Separated from Service, of
     the total amount credited to the Participant's Matching Employer
     Contribution Account, Discretionary Employer Contribution Account, W & B
     Plan Rollover Account, and ESOP Transfer Account, if any. The Vested
     Percentage shall be determined in accordance with the following schedule:

                                                                  Nonforfeitable
                      Years of Service                            Percentage

Less than 3 years                                                 0%

At least 3 but less than 4 years                                  20%

At least 4 but less than 5 years                                  40%

At least 5 but less than 6 years                                  60%

At least 6 but less than 7 years                                  80%

At least 7 or more years                                          100%

          (c) Notwithstanding the foregoing vesting schedule, for any Plan Year
     in which the Plan is a Top-Heavy Plan, the following vesting schedule shall
     apply:

                                                                  Nonforfeitable
                      Years of Service                            Percentage

Less than 2 years                                                 0%

At least 2 but less than 3 years                                  20%

At least 3 but less than 4 years                                  40%

At least 4 but less than 5 years                                  60%

At least 5 but less than 6 years                                  80%

At least 6 or more years                                          100%

                                       47
<PAGE>

          (d) If, in any subsequent Plan Year, the Plan ceases to be a Top-Heavy
     Plan, the vesting schedule in paragraph (c) shall continue to apply unless
     the Employer elects, in writing, to revert to the vesting schedule set
     forth in paragraph (b). Any reversion shall be treated as a plan amendment
     and shall be subject to the restrictions of Section 15.1 and this
     paragraph. No such amendment shall be effective unless, in the event it
     changes the Plan's applicable vesting schedule (determined in accordance
     with regulations under Code Section 411), each Participant's nonforfeitable
     percentage of his accounts (determined as of the later of the date such
     amendment is adopted or becomes effective) is not less than such percentage
     computed under this Section 6.2 without regard to such amendment and
     unless, in such event, each Participant having not less than 3 Years of
     Service, is permitted to elect (pursuant to regulations under Code Section
     411) to have his nonforfeitable percentage computed under the Plan without
     regard to such amendment.

          (e) If the Trustee pays any amount outstanding to the credit of a
     Participant in the Participant's Discretionary Employer Account, Matching
     Employer Account, or W & B Plan Rollover Account while the Participant is
     not fully vested in such account(s), other than a Cashout Distribution
     defined in Section 6.3(c), and prior to the date on which the Participant
     shall incur five (5) consecutive one year Breaks in Service, his or her
     vested and undistributed Discretionary Employer Account, Matching Employer
     Account, and W & B Plan Rollover Account shall be determined at any time
     prior to and including the date on which the Participant shall incur five
     (5) consecutive one year Breaks in Service under the following formula:

                           X = P(AB + (RxD)) - (RxD).

          For this formula, the variables represent the following factors:

          X is the value of the vested portion of the Participant's account;

          P is the Participant's Nonforfeitable percentage at the relevant time;

          AB is the account balance of the Participant's account at the relevant
          time;

          D is the amount of the distribution; and

          R is the ratio of the Participant's account balance at the relevant
          time to the Participant's account balance after the distribution.

          (f) Notwithstanding the foregoing, a Participant's Vested Percentage
     in his W & B Plan Rollover Account and ESOP Accounts, if any, shall never
     be less than his vested percentage in the assets transferred to such
     Account at the time such assets were transferred to the Plan from the W & B
     Refrigeration Service Co., Inc. Employees' Profit-Sharing Plan and Trust,
     the FFE Transportation Services ESOP, or the Conwell ESOP, respectively.

     SECTION 6.3. COMPUTATION OF YEARS OF SERVICE FOR VESTING.

                                       48
<PAGE>

          (a) GENERAL. For purposes of computing a Participant's or Former
     Participant's Vested Percentage of his Discretionary Employer Contribution
     Account, Matching Employer Contribution Account, and ESOP Transfer Account,
     each Participant or Former Participant shall be credited with all Years of
     Service to which he is entitled pursuant to Section 2.68, other than Years
     of Service not counted under Sections 6.3(b) and (c) below.

          (b) RE-EMPLOYMENT AFTER A BREAK IN SERVICE. In determining a
     Participant's Years of Service for vesting purposes upon a Participant's
     re-employment with an Employer after a Break in Service, the following
     rules shall apply:

               (i) If the Participant was not entitled to any Vested Percentage
          prior to his Break-in-Service, he shall be credited with pre-break
          Years of Service only if the number of consecutive years of
          Break-in-Service are less than five.

          If any Years of Service are not required to be taken into account by
          reason of the above sentence, such Years of Service shall not be taken
          into account in applying this paragraph (i) to a subsequent period of
          Break-in-Service.

               (ii) If the Participant was entitled to a Vested Percentage prior
          to his Break-in-Service, or if he meets the requirements of paragraph
          (i) above, then his pre-break Years of Service shall be taken into
          account in determining his Vested Percentage of his Discretionary
          Employer Contribution Account and his Matching Employer Contribution
          Account immediately upon his re-employment commencement date.

          (c) FORFEITURES. When a Participant has Separated from Service, his
     Matching Employer Contribution, Discretionary Employer Contribution, and
     ESOP Transfer Accounts shall be divided into two portions, one representing
     the vested portion, and the other representing the forfeiture portion, of
     such accounts. Such accounts shall continue to receive income allocations
     pursuant to Section 5.2 until distributed in full. A Participant shall
     forfeit the forfeiture portion of his Matching Employer Contribution,
     Discretionary Employer Contribution, and ESOP Transfer Accounts on the
     earlier of the date on which the Participant incurs five (5) consecutive
     one year Breaks-in-Service or the date on which the Participant receives a
     Cashout Distribution. A "Cashout Distribution" means a lump sum
     distribution pursuant to Article 11 that occurs concurrently with or at any
     time subsequent to the date on which the Participant separates from
     Service. For purposes of this Section, a Participant who separates from
     Service without a nonforfeitable percentage in the Participant's Matching
     Employer Contribution, Discretionary Employer Contribution, and ESOP
     Transfer Accounts shall be deemed to have received a distribution of such
     Accounts on the date of separation from Service, or if the Participant is
     entitled to an allocation of Matching Employer Contributions for the Plan
     Year in which he separates from Service, on the last day of that Plan Year.
     The amount forfeited under this Section shall remain in the Trust Fund and
     shall be allocated as provided in Section 5.5.

          (d) BENEFIT ACCRUALS AND REPAYMENTS:

                                       49
<PAGE>

               (i) Notwithstanding Subsection (b) above, for purposes of
          determining a Participant's Vested Percentage under the Plan, the Plan
          will disregard service performed by the Participant with respect to
          which he has received a distribution if the present value of his
          entire Vested Percentage of such distribution was not more than
          $5,000. This paragraph (i) shall apply, however, only if such
          distribution was made on termination of the Participant's
          participation in the Plan.

               (ii) For purposes of determining a Participant's Vested
          Percentage under the Plan, the Plan will not disregard service as
          provided in paragraph (d)(i) above if the Participant repays the full
          amount of the distribution described in such paragraph (d)(i). Upon
          such repayment, the Participant's account balance prior to the
          distribution will be restored (unadjusted by any gains or losses
          between the time of distribution and the time of repayment) and his
          Vested Percentage will be recomputed by taking into account service so
          disregarded. This paragraph (ii) shall apply, however, only in the
          case of a Participant who --

                    (A) resumes employment before the date on which he would
               have incurred five (5) consecutive Breaks-in-Service; and

                    (B) repays the full amount of such distribution before the
               date on which he would have incurred five (5) consecutive
               Breaks-in-Service.

          The Employer will make a special restoration contribution to the Plan
          in order to restore any account balances hereunder.

          For purposes of Plan Section 5.6 and Code Section 415(c), the
          repayment by the Participant and the restoration will not be treated
          as "annual additions."

     SECTION 6.4. DETERMINATION OF AMOUNT.

          (a) For purposes of Sections 6.1, 6.2 and 6.3, the amount credited to
     the Accounts of a Participant or Former Participant shall be determined as
     of the Valuation Date next preceding the date such Accounts are
     distributed, and the distribution from the Plan of such amount shall be
     made or shall commence as soon thereafter as practicable in the manner
     determined under Article 11.

          (b) If, on the Valuation Date referred to in Section 6.4(a), the
     amount credited to the Account in question does not include the allocation,
     if any, to which such Account is entitled under Article 5 for the months
     which include and/or follow such Valuation Date, then the particular
     Participant's or Former Participant's vested portion, determined under
     Section 6.1, 6.2 and 6.3, as appropriate, of such allocation shall be
     distributed in the manner provided under Section 11.1(d) as soon as
     practicable after such allocation is made.

                                  * * * * * * *

                                       50
<PAGE>

                                 ARTICLE SEVEN
                                 -------------

                           INVESTMENT OF TRUST ASSETS

     SECTION 7.1. APPOINTMENT OF TRUSTEE. The Board of Directors of the Company
shall determine the number of Trustees, shall appoint such Trustees, and may at
any time and from time to time increase or decrease the number of Trustees. The
Board of Directors of the Company may remove any Trustee at any time and appoint
a successor Trustee or Trustees or reduce the number of Trustees (but not to
less than one). The Trustee or Trustees shall have such rights, powers and
duties as shall from time to time be specified in or determined pursuant to the
Trust Agreement. The Trust Agreement shall form a part of the Plan, and the
Trust Assets shall be administered in accordance with the terms of the Plan and
the Trust Agreement.

     SECTION 7.2. INVESTMENT OF ACCOUNTS.

          (a) PARTICIPANT DIRECTION OF INVESTMENT. Except as provided in Section
     7.2(c)(i) (regarding the Restricted Company Stock Fund), the following
     Accounts shall be known as Participant-Directed Accounts and shall be
     invested and reinvested by the Trustee in accordance with Participant
     direction, as provided herein: Discretionary Employer Contribution
     Accounts, Matching Employer Contribution Accounts, Savings Accounts, and W
     & B Plan Rollover Accounts.

               (i) Each Participant, in his written application for
          participation or through such other means as may be authorized by the
          Plan Administrator, if any, shall direct the Committee and the Trustee
          as to which Investment Fund(s) he wishes to utilize and the percentage
          of his Participant-Directed Accounts he wishes to have invested in
          each fund. The Participant shall make a separate investment election
          for his Rollover Account, if any, and his W & B Plan Rollover Account,
          if any. The Participant's direction shall include the percentage of
          his Accounts to be invested in each such Investment Fund; provided,
          however, that all investments shall be made in whole percentages. Such
          election shall be expressed in terms of the percentage amount of the
          Accounts, other than amounts invested in the Restricted Company Stock
          Fund, to be allocated to each Investment Fund.

               (ii) A Participant may change his designation of the manner for
          investment of such Participant's Participant-Directed Accounts, other
          than amounts held in the Restricted Company Stock Fund, or current
          contributions made on behalf of or by the Participant, or both, to any
          other manner permitted hereunder. This change may be made in writing
          to the Committee or through such other means as may be authorized by
          the Plan Administrator, if any. A change shall be applicable as soon
          as administratively feasible following its delivery to the Committee.
          In order to comply with applicable federal or state securities laws,
          the Committee may establish such rules with respect to the change of
          investment designation by participants as it shall deem necessary or
          advisable to prevent possible violations of such laws.

                                       51
<PAGE>

               (iii) To the extent a Participant fails to direct the investment
          of all or any portion of his Participant-Directed Accounts, the
          Committee shall direct the Trustee to invest such Participant-Directed
          Accounts in one of the Investment Funds available for the Participants
          to choose among consisting of money market short-term investments with
          a high level of liquidity.

               (iv) The Plan Administrator may permit a Participant to make an
          election under this Section 7.2 through any electronic or telephonic
          means authorized by the Committee.

          (b) INVESTMENT FUNDS. The Plan Committee will select the "Investment
     Funds" available under the Plan in accordance with a separate written
     Investment Policy. The Committee shall select and maintain such Investment
     Funds in accordance with the Committee's written Investment Policy. Such
     Investment Funds shall be communicated to Participants in writing. All
     Participant-Directed Accounts shall be allocated by the Committee to the
     Investment Funds specified in the separate written Investment Policy.
     Dividends, interest and other distributions shall be reinvested in the same
     Investment Fund from which they are received.

          Except as provided in paragraph (c) and (d) below, the assets of each
     Investment Fund shall be invested exclusively in shares of the registered
     investment company designated by the Committee, provided that such shares
     constitute securities described in ERISA Section 401(b)(1). Amounts in any
     such Investment Fund in amounts estimated by the Trustee to be needed for
     cash withdrawals, or in amounts too small to be reasonably invested, or in
     amounts which the Trustee deems to be in the best interest of the
     Participants, may be retained by the Trustee in cash or invested
     temporarily.

          There shall be at least five Investment Funds for the Participants to
     choose between, not including the Unrestricted Company Stock Fund and the
     Restricted Company Stock Fund. The Committee may, from time to time and in
     its sole discretion, increase or decrease the number and type of the
     Investment Fund(s) available for the Participants to choose among;
     provided, however, that the Committee shall not decrease the number of
     Investment Funds to fewer than five.

          (c) COMPANY STOCK FUNDS. The Trustee shall maintain a Restricted
     Company Stock Fund and an Unrestricted Company Stock Fund (collectively,
     the "Company Stock Funds") under this Plan. The Company Stock Funds shall
     be invested solely in Company Stock. The Trustee is explicitly authorized
     to acquire and hold shares of Company Stock in the Company Stock Funds. Any
     and all investments, reinvestments, or purchases shall be made at prices
     not in excess of the fair market value of the Company Stock prevailing at
     the time of such purchase or investment.

               (i) RESTRICTED COMPANY STOCK FUND. All amounts invested in
          Company Stock that were subject to investment restrictions pursuant to
          the terms of the Prior Plan shall be invested and reinvested by the
          Trustee in the Restricted Company Stock Fund. Each Participant's
          investment in the Restricted Company Stock Fund shall be equal to the
          portion of his Participant-Directed Accounts that were invested in the
          Company Stock Fund under the Prior Plan. Participants shall have no
          right to direct investment of any amounts held in the Restricted
          Company Stock Fund.

                                       52
<PAGE>

               During each Diversification Period, the Trustee shall transfer a
          portion of each Participant's investment in the Restricted Company
          Stock Fund to the Unrestricted Company Stock Fund as follows:

                    (A) The transfer shall be made as of the first day of the
               calendar month immediately following the calendar month that
               includes the anniversary of a Participant's Employment
               Commencement Date.

                    (B) The amount transferred shall be equal to the
               Participant's investment in the Unrestricted Company Stock Fund
               times a fraction, the numerator of which shall be one and the
               denominator of which shall be equal to (i) for the
               Diversification Period beginning July 1, 1999, four, (ii) for the
               Diversification Period beginning July 1, 2000, three, (iii) for
               the Diversification Period beginning July 1, 2001, two, and (iv)
               for the Diversification Period beginning July 1, 2002, one.

               For purposes of this Section, the term "Diversification Period"
               shall mean the twelve month period beginning each July 1st and
               ending each June 30th.

               (ii) UNRESTRICTED COMPANY STOCK FUND. Any amounts invested in
          shares of Company Stock on or after the Effective Date, any amounts
          invested in Company Stock that were not subject to investment
          restrictions pursuant to the terms of the Prior Plan, and any amounts
          transferred from the Restricted Company Stock Fund, shall be invested
          and reinvested by the Trustee in the Unrestricted Company Stock Fund.
          Each Participant shall be permitted to direct the Trustee to cause his
          Participant-Directed Accounts to purchase or sell shares of Company
          Stock held in the Unrestricted Company Stock Fund at any time.

               Any transfer of funds within a Participant-Directed Account from
          the Unrestricted Company Stock Fund to any other Investment Fund, will
          require that the Company Stock allocated to such Account be sold for
          its then market value and the sales proceeds transferred to the other
          Investment Fund (which will remain allocated to that same Account).
          The Trustee may sell shares of Company Stock to private purchasers
          (including an Employer) or in the open market; provided, however, that
          a sale to a private purchaser shall be made for no less than the
          market price then prevailing. Any transfer of funds within a
          Participant-Directed Account from another Investment Fund to the
          Unrestricted Company Stock Fund will require that the transferred
          funds be used to purchase shares of Company Stock (such stock to be
          allocated to the same Account from which the fund transfer was made).

          (d) ESOP ACCOUNTS. The ESOP Accounts shall be invested and reinvested
     by the Trustee in accordance with Article 13.

     SECTION 7.3. INCOME AND EXPENSES.

                                       53
<PAGE>

          (a) Except as provided in Section 5.2, the dividends, capital gains
     distributions, and other earnings received on any share of Company Stock or
     an Investment Fund that is specifically credited to a Participant's or
     Former Participant's separate Account under the Plan shall be allocated to
     such separate Account and immediately reinvested, to the extent
     practicable, in additional shares of Company Stock or shares of such
     Investment Fund.

          (b) Except as otherwise provided in Sections 5.5 and 16.7, fees
     charged by the Trustee and other expenses of operating the Trust shall be
     paid by the Employers or, in the absence of such payments (which are not
     obligatory), out of the general Trust assets and charged to the separate
     Accounts of all Participants and Former Participants under the Plan in the
     ratio that the fair market value of each such Account bears to the total
     fair market value of all separate Accounts; provided, however, that such
     amounts shall be adjusted to reflect any revenue sharing payments received
     from an Investment Fund. However, notwithstanding the above, any brokerage
     fees, commissions, taxes and other costs incurred by the Trust (and not
     reimbursed by the Employers) with respect to the purchase, sale, or
     distribution of Company Stock pursuant to an inter-fund transfer in
     connection with an in-service withdrawal or a distribution made at the
     direction of a Participant, Former Participant, or Beneficiary pursuant to
     Section 10.1 or 11.1(a) or (b), shall be charged to and paid by such
     Participant's, Former Participant's, or Beneficiary's separate Accounts.

     SECTION 7.4. COMPANY STOCK.

          (a) ACQUISITION OF STOCK BY TRUSTEE. The Trustee shall acquire shares
     of Company Stock pursuant to Participants' elections under Section 7.2 from
     private sources (including an Employer) or the open market, at not more
     than the market price then prevailing. All shares of Company Stock shall be
     carried by the Trustee at the actual cost thereof, including taxes,
     brokerage fees and commissions, if any, incident to the purchase, if the
     shares of Company Stock were purchased, or shall be carried by the Trustee
     at their value at the time of contribution to the Plan, if contributed in
     kind to the Plan by the Employer, determined by the average of the closing
     prices of such stock for the twenty (20) consecutive trading days
     immediately preceding their contribution to the Plan.

          (b) STOCK RIGHTS, STOCK SPLITS, AND STOCK DIVIDENDS. No Participant,
     Former Participant or Beneficiary shall have any right of request,
     direction, or demand upon the Committee or the Trustee to exercise in his
     behalf rights or privileges to acquire, convert into, or exchange for
     Company Stock or other securities. The Trustee, in its sole discretion, may
     exercise or sell any such rights or privileges. The separate Accounts shall
     be appropriately credited if such rights are exercised or sold. Company
     Stock received by the Trustee by reason of a stock split, stock dividend or
     recapitalization shall be appropriately allocated to the separate Accounts
     of the affected Participant, Former Participant, or Beneficiary.

                                       54
<PAGE>

          (c) VOTING OF COMPANY STOCK. At each annual meeting and special
     meeting of the stockholders of the Company, the Committee shall direct the
     Trustee how to vote the shares of Company Stock held in
     Participant-Directed Accounts. Company Stock held in ESOP Accounts shall be
     voted in accordance with Section 13.6(c).

     SECTION 7.5. EXCLUSIVE BENEFIT. The Plan and the Trust are established and
shall be maintained for the exclusive benefit of the Participants, Former
Participants and their Beneficiaries. Subject to the exceptions expressly set
forth in the Plan or the Trust Agreement, no part of the Trust Assets may ever
revert to an Employer or be used for or diverted to purposes other than the
exclusive benefit of the Participants, Former Participants and Beneficiaries.

     SECTION 7.6. VALUATION. The value of each Account shall be determined as of
each Valuation Date, on the basis of the fair market value of the assets
allocated to each such Account, as appraised by the Trustee.

          (a) As of each Valuation Date, the Committee shall determine the fair
     market value of each Investment Fund being administered by the Trustee.
     With respect to each such Investment Fund, the Committee shall determine
     (a) the change in value between the current Valuation Date and the then
     last preceding Valuation Date, (b) the net gain or loss resulting from
     expenses paid (including fees and expenses, if any, which are to be charged
     to such Investment Fund) and (c) realized and unrealized gains and losses.
     Contributions and rollovers received by the Plan shall be credited to a
     Participant's Accounts as of the Valuation Date that such amounts are
     invested in an Investment Fund and shall not be considered in allocating
     gains and losses to the Participant's Accounts on such Valuation Date.

          The transfer of funds to or from an Investment Fund pursuant to
     Section 7.2 and 7.3 and payments, distributions and withdrawals from an
     Investment Fund to provide benefits under the Plan for Participants or
     Beneficiaries shall not be deemed to be gains, expenses or losses of an
     Investment Fund.

          As of each Valuation Date, the Committee shall allocate the net gain
     or loss of each Investment Fund on the Valuation Date to the Accounts of
     Participants participating in such Investment Fund on such Valuation Date.

          (b) The reasonable and equitable decision of the Committee as to the
     value of each Investment Fund, and of any Account as of each Valuation Date
     shall be conclusive and binding upon all persons having any interest,
     direct or indirect, in the Investment Funds or in any Account.

                                  * * * * * * *

                                       55
<PAGE>

                                 ARTICLE EIGHT
                                 -------------

                                   BENEFICIARY

     SECTION 8.1. DESIGNATION OF BENEFICIARY. Each Participant or Former
Participant may, from time to time, designate any person or persons (who may be
designated contingently or successively and who may be an entity or a natural
person), either individually or in a fiduciary capacity, the Beneficiary or
Beneficiaries to whom his Plan benefits are to be paid if he dies before receipt
of all such benefits. However, a married Participant or a married Former
Participant may not select a Beneficiary other than his Spouse unless the Spouse
consents to such selection in writing, and the Spouse's consent acknowledges the
effect of such selection and is witnessed by a Plan representative or a notary
public. Each Beneficiary designation shall be in the form prescribed by the
Committee and will be effective only when filed with the Committee during the
Participant's or Former Participant's lifetime. Each Beneficiary designation
filed with the Committee will cancel all Beneficiary designations previously
filed with the Committee.

     SECTION 8.2. NO BENEFICIARY. If any Participant or Former Participant fails
to designate a Beneficiary in the manner provided above, or if the Beneficiary
designated by a Participant, or Former Participant dies before him and the
Participant or Former Participant fails to designate a new Beneficiary, or if
the Beneficiary designated by a deceased Participant or Former Participant dies
before complete distribution of the deceased Participant's or Former
Participant's benefit, the Committee shall direct the Trustee to distribute such
Participant's or Former Participant's benefits (or the balance thereof) to one
or more of the following, as determined by the Committee in its sole discretion:

          (a) To the surviving spouse of such Participant or Former Participant;

          (b) To any one or more or all of the next of kin of such Participant
     or Former Participant, and in such proportions, as the Committee shall
     determine; or

          (c) To the estate of the last to die of such Participant or Former
     Participant and his Beneficiary or Beneficiaries; or

          (d) To such recipient as may be required by applicable law.

     SECTION 8.3. MANDATORY DISTRIBUTION OF DEATH BENEFITS. The Committee may
not direct the Trustee to distribute the Participant's Nonforfeitable Account
Balance to the Beneficiary or Designated Beneficiary, under a method of payment
which, as of the Required Beginning Date, does not satisfy the minimum
distribution requirements under Code Section 401(a)(9) and the applicable
Treasury regulations.

          (a) LIMITS ON DISTRIBUTION PERIODS.

               (i) If the Participant or Former Participant dies after
          distribution has commenced, the Trustee shall continue to distribute
          the remaining portion of the Participant's or Former Participant's
          Nonforfeitable Account Balance at least as rapidly as under the method
          of distribution used prior to the Participant's death.

                                       56
<PAGE>

               (ii) If the Participant or Former Participant dies before
          distribution commences, the Trustee shall complete distribution of the
          Participant's or Former Participant's Nonforfeitable Account Balance
          by December 31 of the calendar year containing the fifth (5th)
          anniversary of the Participant's or Former Participant's death, except
          to the extent that the Designated Beneficiary elects to receive
          distributions under paragraphs (A) or (B) below:

                    (A) If any portion of the Participant's or Former
               Participant's Nonforfeitable Account Balance is payable to a
               Designated Beneficiary, the Designated Beneficiary may elect
               distributions over the life or over a period certain not greater
               than the life expectancy of the Designated Beneficiary commencing
               on or before December 31 of the calendar year immediately
               following the calendar year in which the Participant or Former
               Participant died;

                    (B) If the Designated Beneficiary is the Participant's
               Surviving Spouse, the date distributions must begin under
               paragraph (A) above shall not be earlier than the later of: (1)
               December 31 of the calendar year immediately following the
               calendar year in which the Participant or Former Participant
               died; and (2) December 31 of the calendar year in which the
               Participant or Former Participant would have attained age seventy
               and one-half (70-1/2) years. If the Participant has not made an
               election pursuant to this Section by the time of death, the
               Designated Beneficiary must elect the method of distribution no
               later than the earlier of: (1) December 31 of the calendar year
               in which distributions must begin under this Section; or (2)
               December 31 of the calendar year which contains the fifth (5th)
               anniversary of the date of death of the Participant or Former
               Participant. If the Participant has no Designated Beneficiary, or
               if the Designated Beneficiary does not elect a method of
               distribution, distribution of the Nonforfeitable Account Balance
               of the Participant or Former Participant must be completed by
               December 31 of the calendar year containing the fifth (5th)
               anniversary of death.

                    (C) If the Surviving Spouse is the Beneficiary of any
               portion of a deceased Participant's or Former Participant's
               benefits under the Plan, the Surviving Spouse shall be permitted
               to direct that this distribution of benefits commence at a
               reasonable time following the death of the Participant or Former
               Participant under applicable Treasury regulations.

                    (D) If the Surviving Spouse dies after the Participant or
               Former Participant, but before payments to the Spouse begin, the
               preceding provisions of this Section, with the exception of
               paragraph (B), shall be applied as if the Surviving Spouse had
               been the Participant.

          (b) MINIMUM DISTRIBUTION AMOUNTS. If the Trustee will distribute a
     Participant's or Former Participant's Nonforfeitable Account Balance in
     accordance with the Designated Beneficiary's life expectancy, the minimum
     distribution for a calendar year equals the Participant's Nonforfeitable
     Account Balance as of the latest Valuation Date preceding the beginning of
     the calendar year divided by the Designated Beneficiary's life expectancy.

                                       57
<PAGE>

          For purposes of this Section, payments will be calculated by using the
     expected return multiples specified in Tables V and VI of Treasury
     Regulations Section 1.72-9. Except as the Surviving Spouse may otherwise
     elect in Section 8.3(d)(i) below, the life expectancy of a Surviving Spouse
     shall be recalculated annually; however, in the case of any other
     Designated Beneficiary, life expectancy will be calculated when the first
     payment commences without further recalculation. For purposes of this
     Section, any amount paid to a child of the Participant or Former
     Participant will be treated as if it had been paid to the Surviving Spouse,
     if the amount becomes payable to the Surviving Spouse when the child
     reaches the age of majority.

          (c) COMMENCEMENT OF BENEFITS.

               (i) GENERAL RULE. For the purposes of this Section, distribution
          of a Participant's or Former Participant's Nonforfeitable Account
          Balance is considered to begin on the Participant's or Former
          Participant's Required Beginning Date or, if Section 8.3(a)(ii)(D)
          applies, the date distribution is required to begin to the Surviving
          Spouse pursuant to Section 8.3(a)(ii)(A). If distribution in the form
          of an annuity irrevocably commences before the Required Beginning
          Date, the date distribution is considered to begin is the date
          distribution actually commences.

               (ii) REQUIRED BEGINNING DATE. A Participant's (or Former
          Participant's) "Required Beginning Date" shall be as follows:

                    (A) For a Participant who is a Five Percent Owner, the
               Required Beginning Date shall commence on the first day of April
               following the later of:

                         (1) the calendar year in which the Participant attains
                    age seventy and one-half (70-1/2) years; or

                         (2) the earlier of the calendar year with or within
                    which ends the Plan Year in which the Participant becomes a
                    Five Percent Owner, or the calendar year in which the
                    Participant retires.

                    (B) For a Participant who is not a Five Percent Owner, the
               Required Beginning Date is the first day of April of the calendar
               year immediately following the later of:

                         (1) the calendar year in which the Participant attains
                    age seventy and one-half (70-1/2); or

                         (2) the calendar year in which the Participant
                    terminates employment with the Employer.

                                       58
<PAGE>

     A Participant is treated as a "Five Percent Owner" for purposes of this
     Section if the Participant is a Five Percent Owner as defined in Section
     12.2(g)(iii) and Code Section 416(i) (determined under Code Section 416 but
     without regard to whether the Plan is Top-Heavy) at any time during the
     Plan Year ending with or within the calendar year in which the owner
     attains age sixty-six and one-half (66-1/2) years or any subsequent Plan
     Year. Once distributions have begun to a Five Percent Owner under this
     Section, they must continue to be distributed, even if the Participant
     ceases to be a Five Percent Owner in a subsequent year.

     (d) DEFINITIONS.

               (i) APPLICABLE LIFE EXPECTANCY means the life expectancy
          calculated using the attained age of the Participant (or the
          Designated Beneficiary) as of the Participant's (or the Designated
          Beneficiary's) birthday in the applicable calendar year reduced by one
          for each calendar year which has elapsed since the date life
          expectancy was first calculated. If the Designated Beneficiary is the
          Spouse of the Participant, such Spouse may make an irrevocable
          election to recalculate his or her life expectancy, prior to the
          Participant's Required Beginning Date. If life expectancy is being
          recalculated, the Applicable Life Expectancy shall be the life
          expectancy as recalculated. The applicable calendar year shall be the
          first Distribution Calendar Year and, if life expectancy is being
          recalculated, the succeeding calendar year.

               (ii) DESIGNATED BENEFICIARY means the individual who is
          designated as the Beneficiary under the Plan under Code Section
          401(a)(9) and the applicable Treasury regulations.

               (iii) DISTRIBUTION CALENDAR YEAR means a calendar year for which
          a minimum distribution is required. For distributions beginning before
          the Participant's death, the first Distribution Calendar Year is the
          calendar year immediately preceding the calendar year which contains
          the Participant's Required Beginning Date. For distributions beginning
          after the Participant's death, the first Distribution Calendar Year is
          the calendar year in which distributions are required to begin
          pursuant to this Section.

               (iv) PARTICIPANT'S NONFORFEITABLE ACCOUNT BALANCE means the
          Account Balance as of the last Valuation Date in the calendar year
          immediately preceding the Distribution Calendar Year (Valuation
          Calendar Year), increased by the amount of any Contributions or
          Forfeitures allocated to the Account Balance as of the dates in the
          Valuation Calendar Year after the Valuation Date and decreased by
          distributions made in the Valuation Calendar Year after the Valuation
          Date. If any portion of the minimum distribution for the first
          Distribution Calendar Year is made in the second Distribution Calendar
          Year on or before the Required Beginning Date, the amount of the
          minimum distribution made in the second Distribution Calendar Year
          shall be treated as if it had been made in the immediately preceding
          Distribution Calendar Year.

                                       59
<PAGE>

                                  ARTICLE NINE
                                  ------------

                                     NOTICES

     SECTION 9.1. NOTICE TO TRUSTEE. As soon as practicable after a Participant,
Former Participant or Beneficiary becomes entitled to benefits in accordance
with Article 6, the Committee shall give written notice to the Trustee, which
notice shall include the following information and directions:

          (a) The name and address of the Participant, Former Participant, or
     Beneficiary.

          (b) The percentage or amount to which the Participant, Former
     Participant, or Beneficiary is entitled under Article 6.

          (c) The time, manner and amount of payments to be made pursuant to
     Article 11.

     SECTION 9.2. SUBSEQUENT NOTICES. At any time and from time to time after
giving the notice provided for in Section 9.1, the Committee may modify such
original notice or any subsequent notice by means of a further written notice or
notices to the Trustee, but any action taken or payments made by the Trustee
pursuant to the original notice and prior to the receipt of a subsequent notice
shall not be affected by such subsequent notice.

     SECTION 9.3. COPY TO PARTICIPANT. A copy of each notice provided for in
Sections 9.1 and 9.2 shall be mailed by the Committee to the Participant or
Former Participant or to each Beneficiary involved, as the case may be, but if,
for any reason, such copy is not sent or received, that fact shall not affect
the validity of any notice to the Trustee nor the validity of any action taken
or payment made pursuant thereto.

     SECTION 9.4. RELIANCE UPON NOTICE. Upon receipt of any notice as provided
in this Article 9, the Trustee shall promptly take whatever action and make
whatever payments are called for therein.

                                  * * * * * * *

                                       60
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                                  ARTICLE TEN
                                  -----------

                IN-SERVICE WITHDRAWALS AND LOANS TO PARTICIPANTS

     SECTION 10.1. WITHDRAWALS FROM ACCOUNTS.

          (a) SAVINGS ACCOUNTS.

               (i) HARDSHIP DISTRIBUTIONS. Distribution of Savings Contributions
          (and any earnings credited to a Participant's Account as of the end of
          the last Plan Year ending before July 1, 1989), Incentive
          Contributions, Qualified Non-Elective Contributions, and Qualified
          Matching Contributions made pursuant to a Participant's Savings
          Contributions, including any shares of Company Stock held in the
          Restricted Company Stock Fund, may be made to a Participant in the
          event of hardship. For the purposes of this Section, a hardship
          distribution is defined pursuant to the safe harbor definition of
          Treasury Regulation Section 1.401(k)-1(d)(2)(iv) and means a
          distribution necessary to satisfy an immediate and heavy financial
          need of an Employee who lacks other available resources.

                    (A) A distribution will be considered to satisfy an
               immediate and heavy need of an Employee if the distribution is
               for:

                         (1) expenses incurred for or necessary to obtain
                    medical care, described in Code Section 213(d), of the
                    Employee, the Employee's spouse, children, or dependents;

                         (2) costs directly related to the purchase, excluding
                    mortgage payments, of a principal residence for the
                    Employee;

                         (3) payment of tuition and related educational fees for
                    the next twelve (12) months of post-secondary education for
                    the Employee, the Employee's Spouse, children or dependents;
                    or

                         (4) payment necessary to prevent the eviction of the
                    Employee from, or a foreclosure on the mortgage of, the
                    Employee's principal residence.

                    (B) A distribution will be considered necessary to satisfy
               an immediate and heavy financial need of an Employee who lacks
               other available resources only if:

                         (1) the Employee has obtained all distributions, other
                    than hardship distributions, and all nontaxable loans under
                    all plans maintained by the Employer; and

                         (2) the distribution is not in excess of the amount of
                    an immediate and heavy financial need, including amounts
                    necessary to pay any federal, state or local income taxes or
                    penalties reasonably anticipated to result from the
                    distribution.

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<PAGE>

                    (C) In addition to the conditions above:

                         (1) each plan maintained by the Employer or a legally
                    enforceable arrangement provides that the Savings
                    Contributions will be suspended for twelve (12) months after
                    the receipt of the hardship distribution; and

                         (2) each plan maintained by the Employer or a legally
                    enforceable arrangement prohibits the Employee from making
                    Elective Deferrals for the Employee's taxable year
                    immediately following the taxable year of the hardship
                    distribution in excess of the applicable limit under Code
                    Section 402(g) for such taxable year less the amount of such
                    Employee's Elective Deferrals for the taxable year of the
                    hardship distribution.

                         (3) any hardship withdrawal to a Participant made
                    pursuant to this Section shall be increased by an amount
                    equal to the lesser of:

                              (a) all federal, state, and local income taxes and
                         associated penalties (including, if applicable, the
                         additional income tax described in Code Section 72(t)
                         imposed with respect to such hardship withdrawal); or

                              (b) the amount, if any, in such Participant's
                         Savings Account in excess of such hardship withdrawal.

               (ii) UPON ATTAINMENT OF AGE 59-1/2. A Participant may elect to
          receive a lump-sum distribution of the amount in his Savings Account
          at any time after such Participant attains age fifty-nine and one-half
          (59-1/2); provided, however, that such distribution shall not include
          any shares of Company Stock held in the Restricted Company Stock Fund.

          (b) MATCHING EMPLOYER CONTRIBUTION ACCOUNTS AND DISCRETIONARY EMPLOYER
     CONTRIBUTION ACCOUNTS.

               (i) PRIOR TO ATTAINMENT OF AGE 59-1/2. A Participant may not
          receive a distribution from his Matching Employer Contribution Account
          or his Discretionary Employer Contribution Account prior to his
          attainment of age fifty-nine and one-half (59-1/2).

               (ii) AFTER ATTAINMENT OF AGE 59-1/2. A Participant may elect to
          receive a lump-sum distribution of the vested amount in his Matching
          Employer Contribution Account and/or his Discretionary Employer
          Contribution Account at any time after such Participant attains age
          fifty-nine and one-half (59-1/2); provided, however, that such
          distribution shall not include any shares of Company Stock held in the
          Restricted Company Stock Fund.

                                       62
<PAGE>

          (c) ROLLOVER ACCOUNTS. A Participant may receive an in-service
     distribution from his Rollover Account at any time. A Participant may not
     receive an in-service distribution from his W & B Plan Rollover Account.

          (d) ESOP ACCOUNTS.

               (i) HARDSHIP DISTRIBUTIONS. A Participant may not receive a
          hardship distribution from his ESOP Accounts.

               (ii) IN-SERVICE DISTRIBUTIONS. A Participant may not receive an
          in-service distribution from his ESOP Accounts.

          (e) SECTION 16 INSIDERS. Notwithstanding the preceding, if the
     Participant requesting a withdrawal from the Company Stock Funds is an
     executive officer, director or 10% shareholder of the Company (a "Section
     16 Insider"), then any such withdrawal from the Company Stock Funds shall
     be paid by a distribution in kind of Company Stock, and cash may be
     distributed only to the extent that the distribution is made pursuant to an
     election made at least six (6) months following the date of the most recent
     election, with respect to any employee benefit plan of the Company, that
     effected an opposite way "discretionary transaction," qualifying for
     exemption under the requirements for an exempt "discretionary transaction,"
     as that term is defined in Rule 16b-3, issued by the Securities and
     Exchange Commission under Section 16 of the Securities Exchange Act of
     1934. The Committee shall give such directions to the Trustee as shall be
     appropriate to effectuate the distribution in accordance with the terms
     hereof of the amount being withdrawn. Such withdrawals described in Section
     10.2(b) below shall be debited to the Participant's Savings Account, and
     the Committee shall charge the sum of such debits to the Company Stock
     Funds and/or other investment fund(s) within such Savings Account in such
     manner as the Participant designates in writing; provided, however, if the
     Participant fails to make such a written designation, the Committee shall
     charge the sum of such debits to the investment fund to be determined by
     the Committee.

     SECTION 10.2. LOANS TO PARTICIPANTS. The Committee may authorize a loan to
the Participants and to any Former Participant who is a "party-in-interest" (as
defined in ERISA Section 3(14)) who makes application therefor, of amounts
credited to the Participant's Accounts, including any shares of Company Stock
held in the Restricted Company Stock Fund. Provided, however, that no portion of
the Annuity-Restricted Account (as defined in Section 11.2) or the ESOP Accounts
shall be available for a loan. Loans shall not be available to any person who is
not a party-in-interest as defined in ERISA Section 3(14).

Each such loan shall be subject to the following provisions:

          (a) A Participant must apply for each loan either in writing on an
     application form provided by the Committee or through such other means as
     may be authorized by the Committee. As a condition to the making of the
     loan, the Participant shall agree to pay the loan set-up and annual loan
     administration fees associated with the extension of the loan from his
     Account (unless paid directly by the Participant).

                                       63
<PAGE>

          (b) The amount of any loan, when added to the outstanding balance of
     all other loans to the Participant or Former Participant under this Plan
     shall not exceed the lesser of:

               (i) $50,000, reduced by the excess (if any) of (i) the highest
          outstanding balance of loans to the Participant or Former Participant
          from the Plan and all related plans during the one year period ending
          on the day before the date the loan is made, over (ii) the outstanding
          balance of loans to the Participant or Former Participant from the
          Plan and all related plans on the date the loan is made; and

               (ii) 50% of the amount in which the Participant would have a
          vested interest in the event his Separation from Service was to occur
          on the date the loan is made.

         For purposes of this Section, a related plan is any "qualified employer
         plan", as defined in Code Section 72(p)(3), sponsored by the Employers
         or any related employer, determined according to Code Section
         72(p)(2)(C).

          (c) Each loan shall be evidenced by a promissory note payable to the
     order of the Plan. Each loan shall be adequately secured as determined by
     the Committee. A loan shall be considered adequately secured if the amount
     of the loan at the date the loan is granted does not exceed one-half of the
     amount in which the Participant would have a vested interest in the event
     of his Separation from Service.

          (d) Each loan shall bear an interest rate equal to the "prime lending
     rate" published in the Wall Street Journal plus one percent (1%) at the
     time such loan is requested.

          (e) Each such loan shall provide for the repayment of principal and
     accrued interest in substantially level amortized payments payable not less
     frequently than quarterly through payroll deduction payments.

          (f) Each loan shall extend for a stated period determined by agreement
     of the Participant and the Committee, not exceeding five years. The
     limitation in the preceding sentence shall not apply to any loan designated
     by the Committee as a home loan. For purposes of this Section 10.2, a "home
     loan" is a loan used to acquire any dwelling unit that within a reasonable
     time is to be used as the principal residence of the Participant. A home
     loan shall not exceed ten (10) years.

          (g) If a loan to a Participant is outstanding on the date a
     distribution is to be made from the Plan with respect to a portion of the
     Participant's Accounts represented by the loan, the balance of the loan, or
     a portion thereof equal to the amount to be distributed, if less, shall on
     such date become due and payable; provided that if the Participant is a
     party-in-interest (as defined in ERISA Section 3(14)), such loan shall not

                                       64
<PAGE>

     become due and payable if renegotiated on terms acceptable to the
     Committee. The portion of the loan due and payable shall be satisfied by
     offsetting such amount against the amount to be distributed to the
     Participant. Alternatively, the Committee may in its discretion direct that
     the portion of the Participant's Accounts equal to the outstanding loan
     balance be distributed in kind by distribution of the Participant's note.

          (h) If a loan to a Participant is outstanding at the time of the
     Participant's death, and if the Participant's executor or administrator
     does not repay the loan, the note shall be distributed in kind to the
     Participant's Beneficiary. Effective for all loans made after January 1,
     1999, a loan shall be accelerated and immediately due in full upon a
     Participant's termination of employment.

          (i) If a Participant fails to pay interest or principal on an
     outstanding loan when due, his Account from which the loan was made shall,
     at the direction of the Committee, be reduced by the unpaid amount if a
     withdrawal would be permitted from said Account pursuant to Article 6. The
     Participant shall be treated as having received such a distribution and
     shall receive credit under the promissory note for the delinquent payment
     accordingly. If the Committee does not take such action, the Committee
     shall take whatever steps (including legal action) it deems necessary to
     collect the unpaid amount.

          (j) In accordance with the foregoing standards and requirements, loans
     shall be available to all Participants on a reasonably equivalent basis. A
     Participant shall only be entitled to have two (2) loans in effect at the
     same time. Each loan must be in a minimum amount of $1,000.

          (k) All loans shall be governed by such rules and regulations as the
     Committee may adopt which rules and regulations are hereby incorporated by
     reference. The Committee shall cause to be furnished to any Participant
     receiving a loan any information required to be furnished pursuant to the
     Federal Truth in Lending Act, if applicable, or pursuant to any other
     applicable law.

          (l) The portion of a Participant's Accounts represented by the
     outstanding loan principal shall be segregated and shall not share in the
     income or losses of the Plan. In lieu of sharing in such income or losses,
     the Participant's Accounts shall be credited with all interest paid by the
     Participant on the loan. The Trustee may charge to the Participant's
     Accounts any expenses attributable to the loan.

          (m) The investment funds held for a Participant's Accounts shall be
     liquidated to provide cash equal to the loan principal on a pro rata basis.

          (n) Effective as of December 12, 1994, loan repayments will be
     suspended under this Plan, as permitted under Code Section 414(u)(4), on
     behalf of those Participants who are on an authorized leave of absence
     pursuant to qualified military service.

                                 * * * * * * *

                                       65
<PAGE>

                                 ARTICLE ELEVEN
                                 --------------

                               METHODS OF PAYMENT

     SECTION 11.1. PARTICIPANT ELECTION

          (a) TIMING OF DISTRIBUTIONS.

               (i) Subject to the provisions of this Article 11, upon the
          Retirement or Disability of a Participant, or the death of a
          Participant or Former Participant, distribution of amounts to which a
          Participant, Former Participant or Beneficiary became entitled
          pursuant to Section 6.1 of the Plan shall commence as soon as
          administratively practicable following the event which caused
          entitlement to a distribution, and shall be completed as soon as
          administratively practicable following the end of the Plan Year in
          which the Participant or Former Participant Retired, became Disabled
          or died.

               (ii) Subject to the provisions of this Article 11, upon the
          Separation from Service of a Participant, distribution of amounts to
          which a Participant becomes entitled pursuant to Sections 6.2 and
          6.3(c) of the Plan shall be completed as soon as administratively
          practicable following the event which caused entitlement to a
          distribution.

          (b) ESOP ACCOUNT DISTRIBUTIONS.

               (i) Notwithstanding the provisions of Section 11.1(a)(ii), if the
          Participant Separates from Service for any reason other than
          Retirement, Death or Disability and is not reemployed by the Employer
          at the end of the first Plan Year following the Plan Year of the
          Separation from Service, the Participant may elect to have
          distribution of the vested percentage of his ESOP Accounts made on or
          after the date that is one year after the close of the first Plan Year
          following the Plan Year in which the Participant Separated from
          Service by completing a distribution request form and submitting it to
          the Committee; in the absence of such an election, distribution of the
          vested percentage of the Participant's ESOP Accounts will begin during
          the sixty (60) day period following the end of the Plan Year in which
          the Participant reaches Normal Retirement Age. If the Participant is
          reemployed by the Employer by the end of the first Plan Year,
          distribution under the Plan will be governed by whichever part of this
          Article thereafter becomes applicable. The Committee shall combine the
          Nonforfeitable percentage of the ESOP Transfer Account of a
          Participant determined under Section 6.2 with the Participant's ESOP
          Rollover Account into one Account, and the Trustee shall make payments
          to the Participant pursuant to Article 11.

               (ii) Notwithstanding any contrary provision, unless other Plan
          distribution provisions require earlier distribution of the
          Participant's ESOP Accounts, if the Participant and, if applicable
          pursuant to Code Sections 401(a)(11) and 417, with the consent of the

                                       66
<PAGE>

          Participant's spouse, elects, the Committee shall direct the Trustee
          to commence distribution of the Participant's Account Balance
          attributable to Company Stock acquired after December 31, 1986 in the
          Participant's ESOP Accounts no later than one (1) year after the close
          of the Plan Year in which the Participant Separates from Service
          because of attainment of Normal Retirement Age, Disability, or death.
          This distribution requirement is subject to the form of distribution
          requirements of this Article 11.

               (iii) Notwithstanding any contrary provision, unless other Plan
          distribution provisions require earlier distribution of the
          Participant's ESOP Accounts, if the Participant and, if applicable
          pursuant to Code Sections 401(a)(11) and 417, with the consent of the
          Participant's spouse, elects, the Committee shall direct the Trustee
          to commence distribution of the Participant's Account Balance
          attributable to Company Stock acquired after December 31, 1986 in the
          Participant's ESOP Accounts no later than one (1) year after the close
          of the Plan Year which is the fifth (5th) Plan Year following the Plan
          Year in which the Participant Separates from Service for any reason
          other than attainment of Normal Retirement Age, death or disability.
          This distribution requirement is subject to the form of distribution
          requirements of this Article. If the Participant resumes employment
          with the Employer on or before the last day of the fifth (5th) Plan
          Year following the Plan Year of the Participant's Separation from
          Service, the distribution provisions of this paragraph will not apply
          until the Participant again may separate from Service for any reason
          other than attainment of Normal Retirement Age, death or disability.

          (c) FORM OF DISTRIBUTION.

               (i) PARTICIPANT-DIRECTED ACCOUNTS. Except as provided in Section
          11.2, distributions under this Plan shall be made in a lump sum. A
          Participant shall elect whether his lump sum distribution shall be
          made in cash or as a combination of Company Stock (and cash in lieu of
          fractional shares) from any Account balances invested in the Company
          Stock Funds and cash from any Account balances invested in the other
          Investment Fund(s).

               (ii) ESOP ACCOUNTS. Distributions from a Participant's ESOP
          Accounts shall be made in a lump sum and shall be in the form of whole
          shares of Company Stock. The value of any fractional shares shall be
          distributed in cash. If Company Stock is not readily tradable on an
          established market, the recipient shall receive a put option as
          described in Section 13.2. A Participant entitled to a distribution
          from his ESOP Accounts shall have the right to demand that all such
          distributions be made in Qualifying Company Stock or in cash for
          fractional shares.

          (d) An amount to which a Participant, Former Participant or
     Beneficiary is entitled pursuant to Section 6.4(b) shall be paid in cash to
     such Participant, Former Participant or Beneficiary as soon as
     administratively practicable after the determination of such amount or, if
     later, the date a payment is made to such Participant, Former Participant
     or Beneficiary under Section 11.1(a) or (b); provided, however, that if the
     total value of his vested interest in his Accounts is less than or equals
     $5,000 he shall be entitled to receive a distribution of the portion of
     such Accounts which was invested in Company Stock at the time the
     Participant became entitled thereto, in cash or shares of Company Stock,
     with the value of any fractional shares to be paid in cash.

                                       67
<PAGE>

          (e) Notwithstanding anything to the contrary herein contained, unless
     a Participant or Former Participant has attained age sixty-five (65), if
     the value of the vested interest in his Accounts exceeds $5,000, no
     distribution may be made to such Participant or Former Participant without
     his express written consent.

          (f) Notwithstanding anything to the contrary herein contained, a
     Participant's benefits will in all events be paid in a lump sum as soon as
     practicable following the end of the Plan Year in which such Participant
     terminates employment if the total value of his vested interest in all
     Accounts is less than or equals $5,000. Unless affirmatively elected
     otherwise, such distribution shall be made in cash and in whole shares of
     Company Stock for all ESOP Accounts and any other account balances invested
     in the Company Stock Funds.

     SECTION 11.2. JOINT AND SURVIVOR ANNUITY.

          (a) Notwithstanding any provision of the Plan to the contrary, if any
     portion of a Participant's Rollover Account, W & B Plan Rollover Account,
     or ESOP Rollover Account represents a transfer of assets, directly or
     indirectly, from a defined benefit plan, or from a defined contribution
     plan that is either subject to the funding standards of Code Section 412 or
     otherwise subject to the requirements of Code Section 401(a)(11)(A), such
     portion (referred to in this Article 11 as the "Annuity-Restricted
     Account") shall, if the Participant does not die before the Annuity
     Starting Date, be distributed in the form of a qualified joint and survivor
     annuity in the absence of a qualified waiver under Section 11.3, or except
     as otherwise provided in Section 6.3(c). For purposes of this paragraph,
     Annuity Starting Date means the first day of the first period for which an
     amount is payable as an annuity, or, in the case of the benefit not payable
     in the form of an annuity, the first day on which all events have occurred
     which entitled the Participant to such benefit. The qualified joint and
     survivor annuity shall be purchased with the total amount (as determined
     under Article 11) credited to the Participant's Annuity-Restricted Account
     subject to this Section 11.2.

          (b) Notwithstanding any provision of the Plan to the contrary, in the
     case of any Participant who dies before distribution of his benefits under
     the Plan has commenced, a qualified preretirement survivor annuity shall be
     payable from the Annuity-Restricted Account (as determined under Article
     11) to the Spouse of the Participant in the absence of a qualified waiver
     under Section 11.3, or except as otherwise provided in Section 6.3(c).

     SECTION 11.3. JOINT AND SURVIVOR ANNUITY REQUIREMENTS.

          (a) This Plan is a profit sharing plan and the provisions of this
     Section 11.3 apply only to a Participant described in Section 11.2 and this
     Section. The provisions of this Section 11.3 do not apply to any
     Participant in the Plan except:

                                       68
<PAGE>

               (i) a Participant described in Section 11.2;

               (ii) a Participant for whom the Plan is a direct or indirect
          transferee from a plan subject to the survivor annuity requirements of
          Code Sections 401(a)(11) and 417 and the Plan received the transfer
          after December 31, 1984, unless the transfer is an Elective Transfer;

               (iii) a Participant who elects a life annuity distribution (if
          the Plan is required to provide a life annuity distribution option);
          or

               (iv) a Participant whose benefits under a defined benefit plan
          maintained by the Employer are offset by benefits provided under this
          Plan.

         If the provisions of this Section apply to any Participant, the
         provisions of this Section shall apply to all vested benefits of the
         Participant, whether the Participant became vested in the benefit
         before or after death, which are payable under the Plan, including any
         proceeds from Contracts owned by the Plan.

          (b) QUALIFIED JOINT AND SURVIVOR ANNUITY. Unless an optional form of
     benefit is selected pursuant to a Qualified Election within the ninety (90)
     day period ending on the Annuity Starting Date, a married Participant's
     Nonforfeitable Account Balance will be paid in the normal form of a
     Qualified Joint and Survivor Annuity, defined in Section 11.3(d)(vi), and
     an unmarried Participant's Nonforfeitable Account Balance will be paid in
     the normal form of an immediate life annuity. The Participant may elect to
     have the annuity distributed upon attainment of the Earliest Retirement Age
     under the Plan. A Participant shall be considered vested even if the
     Participant is only vested in Employee Contributions. For purposes of
     satisfying the Qualified Joint and Survivor Annuity requirements, Account
     Balances shall mean benefits derived from both Employee and Employer
     Contributions.

          (c) QUALIFIED PRERETIREMENT SURVIVOR ANNUITY. Unless an optional form
     of benefit has been selected within the Election Period pursuant to a
     Qualified Election, if a Participant dies before the Annuity Starting Date,
     then the Participant's Nonforfeitable Account Balance shall be applied
     toward the purchase of a Qualified Preretirement Survivor Annuity, defined
     in Section 11.3(d)(vii). The Surviving Spouse may elect to commence payment
     of the Qualified Preretirement Survivor Annuity within a reasonable period
     after the Participant's death. For purposes of this Section 11.3(c), the
     amount of the Qualified Preretirement Survivor Annuity attributable to
     Employee Contributions shall not be an amount in excess of the ratio of
     Employee and Employer Contributions. In determining the value of the
     Qualified Preretirement Survivor Annuity, any portion of a Participant's
     Individual Account which is pledged as collateral to secure payment of a
     Plan Participant loan shall be included in the Nonforfeitable Account
     Balance.

          (d) DEFINITIONS.

               (i) ANNUITY STARTING DATE means the first day of the first period
          for which an amount is paid as an annuity or any other form.

                                       69
<PAGE>

               (ii) ELECTION PERIOD means the period that begins on the first
          day of the Plan Year in which the Participant attains age thirty-five
          (35) years and ends on the date of the Participant's death. If a
          Participant separates from Service prior to the first day of the Plan
          Year in which the Participant attains age thirty-five (35) years, for
          the Account Balance as of the date of separation, the Election Period
          shall begin on the date of separation. A Participant who will not yet
          attain age thirty-five (35) years as of the end of any current Plan
          Year may make a Special Qualified Election to waive the Qualified
          Preretirement Survivor Annuity for the period beginning on the date of
          the election and ending on the first day of the Plan Year in which the
          Participant will attain age thirty-five (35) years. The election shall
          not be valid unless the Participant receives a written explanation of
          the Qualified Preretirement Survivor Annuity in such terms as are
          comparable to the explanation required under Section 11.3(e)(i).
          Qualified Preretirement Survivor Annuity coverage will be
          automatically reinstated as of the first day of the Plan Year in which
          the Participant attains age thirty-five (35) years. Any new waiver on
          or after the date shall be subject to the full requirements of this
          Article.

               (iii) EARLIEST RETIREMENT AGE means the earliest date on which,
          under the Plan, the Participant could elect to receive retirement
          benefits.

               (iv) NONFORFEITABLE ACCOUNT BALANCE means the aggregate value of
          the Participant's Nonforfeitable Account Balance derived from Employer
          and Employee Contributions, including rollovers, whether vested before
          or upon death, including the proceeds of Contracts, if any, on the
          Participant's life. The provisions of this Article shall apply to a
          Participant who is vested in amounts attributable to Employer
          Contributions, Employee Contributions, or both, at the time of death
          or distribution.

               (v) QUALIFIED ELECTION means a waiver of a Qualified Joint and
          Survivor Annuity or a Qualified Preretirement Survivor Annuity. Any
          waiver of a Qualified Joint and Survivor Annuity or a Qualified
          Preretirement Survivor Annuity shall not be effective unless:

                    (A) the Participant's Spouse to whom the Survivor Annuity or
               Preretirement Survivor Annuity is payable consents in writing to
               the waiver election;

                    (B) the election designates a specific Beneficiary,
               including any class of Beneficiaries or any contingent
               Beneficiaries;

                    (C) the Spouse is the Participant's sole primary
               Beneficiary, the Spouse consents to the Participant's Beneficiary
               designation or consents to any change in the Participant's
               Beneficiary designation without any further spousal consent;

                    (D) the Spouse's consent acknowledges the effect of the
               election; and

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                    (E) the Spouse's consent is witnessed by a Plan
               representative or notary public.

                    (F) Additionally, a Participant's waiver of the Qualified
               Joint and Survivor Annuity shall not be effective unless the
               election designates a form of benefit payment and the Spouse
               consents to the form of payment designated by the Participant or
               consents to any change in that designated form of payment without
               any further spousal consent.

               Notwithstanding this consent requirement, if the Participant
               establishes to the satisfaction of a Plan representative that
               written consent may not be obtained because there is no Spouse,
               or the Spouse cannot be located, a waiver will be deemed a
               Qualified Election. If the Spouse is legally incompetent to give
               consent, the Spouse's legal guardian, even if the guardian is the
               Participant, may give consent. Also, if the Participant is
               legally separated or the Participant has been abandoned (within
               the meaning of local law) and the Participant has a court order
               to such effect, spousal consent is not required unless a
               Qualified Domestic Relations Order described in Code Section
               414(p) provides otherwise. Any consent obtained under this
               provision, or establishment that the consent of a Spouse may not
               be obtained, shall be effective only with respect to the Spouse
               who signs the consent, or in the event of a deemed Qualified
               Election, the designated spouse. A consent that permits
               designations by the Participant without any requirement of
               further consent by the Spouse must acknowledge that the Spouse
               has the right to limit consent to a specific Beneficiary, and a
               specific form of benefit where applicable, and that the Spouse
               voluntarily elects to relinquish either or both of the rights. A
               revocation of a prior waiver may be made by a Participant without
               the consent of the Spouse at any time before the commencement of
               benefits. The number of revocations shall not be limited. No
               consent obtained under this provision shall be valid unless the
               Participant has received notice as provided in Section 11.3(e).
               After the Participant's death, a Beneficiary may change the
               optional form of survivor benefit as permitted by the Plan.

               (vi) QUALIFIED JOINT AND SURVIVOR ANNUITY means, in the case of a
          married Participant who does not die before the Annuity Starting Date,
          an immediate annuity for the life of the Participant with a Survivor
          Annuity for the life of the Spouse which is equal to fifty percent
          (50%) of the amount of the annuity which is payable during the joint
          lives of the Participant and the Spouse and which is the amount of
          benefit which can be purchased with the Participant's Nonforfeitable
          Account Balance. In the case of an unmarried Participant who does not
          die before the Annuity Starting Date, the Qualified Joint and Survivor
          Annuity requirement means an annuity for the life of the Participant
          which is the amount of benefit which can be purchased with the
          Participant's Nonforfeitable Account Balance.

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<PAGE>

               (vii) QUALIFIED PRERETIREMENT SURVIVOR ANNUITY means an annuity
          for the life of the Participant's Spouse, the payments under which
          shall be equal to the amount of benefit which can be purchased with
          the Nonforfeitable Account Balance of the Participant. The
          Participant's Surviving Spouse will receive the same benefit that
          would be payable if the Participant had retired with an immediate
          Qualified Joint and Survivor Annuity on the day before the
          Participant's date of death.

               (viii) SPOUSE, SURVIVING SPOUSE means the Spouse or Surviving
          Spouse of the Participant, provided that a former spouse will be
          treated as the Spouse or Surviving Spouse and a current spouse will
          not be treated as the Spouse or Surviving Spouse to the extent
          provided under a Qualified Domestic Relations Order described in Code
          Section 414(p).

          (e) NOTICE REQUIREMENTS.

               (i) For a Qualified Joint and Survivor Annuity described in
          Section 11.3(d)(vi), the Administrator shall provide, no less than
          thirty (30) days and no more than ninety (90) days prior to the
          Annuity Starting Date, to each Participant a written explanation of:

                    (A) the terms and conditions of a Qualified Joint and
               Survivor Annuity;

                    (B) the Participant's right to make and the effect of an
               election to waive the Qualified Joint and Survivor Annuity form
               of benefit;

                    (C) the rights of a Participant's Spouse; and

                    (D) the right to make, and the effect of, a revocation of a
               previous election to waive the Qualified Joint and Survivor
               Annuity.

               (ii) For a Qualified Preretirement Survivor Annuity described in
          Section 11.3(d)(vii), the Administrator shall provide, within the
          applicable notice period for the Participant, to each Participant a
          written explanation of the Qualified Preretirement Survivor Annuity in
          such terms and in such manner comparable to the explanation provided
          for meeting the requirements of Section 11.3(e)(i) applicable to a
          Qualified Joint and Survivor Annuity.

               The applicable notice period for the waiver of the Qualified
          Preretirement Survivor Annuity is whichever of the following periods
          ends last:

                    (A) the period beginning with the first day of the Plan Year
               in which the Participant attains age thirty-two (32) years and
               ending with the close of the Plan Year preceding the Plan Year in
               which the Participant attains age thirty-five (35) years;

                    (B) a reasonable period ending after the individual becomes
               a Participant;

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<PAGE>

                    (C) a reasonable period ending after Section 11.3(e)(iii)
               ceases to apply to the Participant; or

                    (D) a reasonable period ending after this Article first
               applies to the Participant.

               Notwithstanding the foregoing, notice must be provided within a
               reasonable period ending after separation from Service in the
               case of a Participant who separates from Service before attaining
               age thirty-five (35) years.

               For purposes of applying the preceding paragraph, a reasonable
               period ending after the events described in (B), (C) and (D) is
               the end of the two (2) year period beginning one (1) year prior
               to the date the applicable event occurs and ending one (1) year
               after that date. In the case of a Participant who separates from
               Service before the Plan Year in which the Participant attains age
               thirty-five (35) years, notice shall be provided within the two
               (2) year period beginning one (1) year prior to separation and
               ending one (1) year after separation. If the Participant
               thereafter returns to employment with the Employer, the
               applicable period for the Participant shall be redetermined.

               If a Participant enters the Plan after the first day of the Plan
               Year in which the Participant attained age thirty-two (32) years,
               the Administrator shall provide notice no later than the close of
               the second Plan Year succeeding the entry of the Participant in
               the Plan.

               (iii) Notwithstanding the other requirements of this Section
          11.3(e), the respective notices prescribed by this Section shall be
          given to a Participant even if the Plan fully subsidizes the costs of
          a Qualified Joint and Survivor Annuity or Qualified Preretirement
          Survivor Annuity. For purposes of this Section 11.3(e), a plan fully
          subsidizes the costs of a benefit if under the plan the failure to
          waive the benefit by a Participant would not result in a decrease in
          any plan benefit with respect to the Participant and would not result
          in increased contributions from the Participant. Notwithstanding the
          foregoing, the Committee may provide the written explanation described
          above to the Participant after his benefit commencement date. The
          Participant (and his Spouse, if applicable) may waive the 30-day
          election period if the distribution of the elected form of benefit
          commences more than seven (7) days after the Committee provides the
          Participant (and his Spouse, if applicable) the written explanation.

     SECTION 11.4. NOTICE AND EXPLANATION TO PARTICIPANTS. The Committee shall
provide each Participant who has an Annuity-Restricted Account within a
reasonable period of time prior to the commencement of benefits under the Plan a
written explanation setting forth the provisions of Section 11.3.

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     SECTION 11.5. DIRECT ROLLOVER OPTIONAL FORM OF BENEFIT.

          (a) DIRECT ROLLOVER. Notwithstanding any provision of the Plan to the
     contrary that would otherwise limit a distributee's election under this
     Section, a distributee may elect, at the time and in the manner prescribed
     by the Plan Administrator, to have any portion of an eligible rollover
     distribution paid directly to an eligible retirement plan specified by the
     distributee in a direct rollover.

          (b) DEFINITIONS.

               (i) ELIGIBLE ROLLOVER DISTRIBUTION. An eligible rollover
          distribution is any distribution of all or any portion of the balance
          to the credit of the distributee, except that an eligible rollover
          distribution does not include: any distribution that is one of a
          series of substantially equal 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 Code Section 401(a)(9); and the
          portion of any distribution that is not includable 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 Code Section 408(a), an
          individual retirement annuity described in Code Section 408(b), an
          annuity plan described in Code Section 403(a), or a qualified trust
          described in Code Section 501(a), 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 Code Section 414(p), 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 the distributee.

     SECTION 11.6. ELECTION TO DEFER RECEIPT OF BENEFITS. Notwithstanding the
foregoing, a Participant who leaves the employment of the Employer before his or
her Normal Retirement Date or Early Retirement Date may elect to leave his or
her Nonforfeitable Account Balance under the management of the Trustee until
Normal Retirement Date or Early Retirement Date. The Trustee shall invest and
reinvest and shall credit and charge the Individual Account with its
proportionate share of gains and losses of the Trust Fund pursuant to Article 5
until the Nonforfeitable Account Balance is paid out to the Former Participant
under this Article. Any election made under this Section shall be irrevocable
and shall be made no later than fourteen (14) days before the electing
Participant becomes entitled to receive his or her Nonforfeitable Account
Balance in the Plan. Notwithstanding the foregoing, a Participant who has
elected to leave his or her Nonforfeitable Account Balance under the management
of the Trustee may later elect to have the Account Balance transferred to any
pension or profit sharing plan maintained by another Employer in which the
Participant has, at the time of the later election, become a Participant under
the transferee plan.

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     SECTION 11.7. ELECTION OF FORM OF PAYMENT OF BENEFITS.

          (a) The Participant, Former Participant, or Beneficiary shall elect
     the form or forms of payment of benefits permitted in Sections 11.1 and
     11.5 which the Committee and Trustee shall implement. Not earlier than
     ninety (90) days, but not later than thirty (30) days, before the
     Participant's Annuity Starting Date, the Committee must provide a benefit
     notice to a Participant who is eligible to make an election under this
     Section. The Participant's Annuity Starting Date means the first day of the
     first period for which an amount is paid as an annuity or any other form.
     The benefit notice must explain the optional forms of benefit in the Plan,
     including the material features and relative values of those options, and
     the Participant's right to defer distribution until he or she attains the
     later of Normal Retirement Age or age 62.

          (b) If a distribution is one to which Code Sections 401(a)(11) and 417
     do not apply, such distribution may commence less than thirty (30) days
     after the notice required under Treasury Regulations Section 1.411(a)-11(c)
     given, provided that:

               (i) the Plan Administrator clearly informs the Participant that
          he or she has a right to a period of at least thirty (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

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

          (c) If a Participant, Former Participant, or Beneficiary makes an
     election prescribed by this Section, the Committee will direct the Trustee
     to distribute the Participant's Nonforfeitable Account Balance pursuant to
     that election. Any election under this Section is subject to the mandatory
     distribution requirements of Sections 11.8 and 8.3 and the survivor annuity
     requirements of Sections 11.2 and 11.3, if applicable. The Participant,
     Former Participant or Beneficiary must make an election under this Section
     by filing an election form with the Committee at any time before the
     Trustee otherwise would commence to pay a Participant's Account Balance
     under the applicable requirements of Articles 6, 8 and 11.

     SECTION 11.8. LIMIT ON COMMENCEMENT OF DISTRIBUTION.

          (a) Unless both the Employer and the Participant or Former Participant
     agree otherwise, the payment of benefits to which a Participant, Former
     Participant or Beneficiary is entitled shall in no event commence later
     than the latest of the following dates:

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<PAGE>

               (i) the 60th day after the close of the Plan Year in which such
          Participant or Former Participant attains his Normal Retirement Date;

               (ii) the 60th day after the close of the Plan Year in which
          occurs the date 10 years after the date such Participant or Former
          Participant first commenced participation in the Plan; or

               (iii) the 60th day after the close of the Plan Year in which such
          Participant or Former Participant terminates his employment with all
          Employers.

          (b) If payment does not commence earlier under Section 11.7(a), the
     payment of benefits to which a Participant, Former Participant or
     Beneficiary is entitled will be distributed or commence to be distributed
     to him not later than his Required Beginning Date.

          (c) The Committee may not direct the Trustee to distribute the
     Participant's Nonforfeitable Account Balance, nor may the Participant elect
     to make the Trustee distribute the Nonforfeitable Account Balance, under a
     method of payment which, as of the Required Beginning Date, does not
     satisfy the minimum distribution requirements under Code Section 401(a)(9)
     and the applicable Treasury Regulations. All distributions required under
     this Article shall be determined and made under Code Section 401(a)(9) and
     applicable Treasury Regulations, including the minimum distribution
     incidental benefit requirements of Treasury Regulation Section
     1.401(a)(9)-2. A mandatory distribution at the Participant's Required
     Beginning Date will be in one lump sum unless the provisions of Section
     11.2 or Section 8.3 apply. As of the first Distribution Calendar Year,
     distributions may only be made in one of the optional forms of benefit
     permitted by Sections 11.1, 11.2, and 11.5 hereof.

          (d) Defined terms used in this Section 11.8 and not defined in this
     Article or in Article 2 are defined in Section 8.3(c)(ii) and (d).

     SECTION 11.9. MINORITY OR DISABILITY. During the minority or disability of
any person entitled to receive benefits hereunder, the Committee may direct the
Trustee to make payments thereof to the guardian or other legal representative
authorized under applicable law to receive property on behalf of such person. If
permitted under applicable law, the Committee may direct such payments to be
made directly to such person, to such person's spouse, to a relative of such
person or to any individual or institution having custody of such person. If
such applicable law does not permit payment of benefits to be made as provided
above in this Section 11.9, then such payments shall be made in such manner, at
such time, and to such person or entity as may be required or permitted under
such applicable law. Except as may otherwise be provided by applicable law: (i)
neither the Committee nor the Trustee shall be required to see to the
application of any payments made under this Section 11.9; and (ii) the receipt
of the payee shall be conclusive as to all interested parties.

     SECTION 11.10. UNCLAIMED BENEFIT. If at, after, or during the time when a
benefit hereunder is payable to any Participant, Former Participant or
Beneficiary, the Committee, upon request of the Trustee, or at its own instance,
mails by registered or certified mail to such Participant, Former Participant or

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<PAGE>

Beneficiary at his last known address, a written demand for his then address, or
for satisfactory evidence of his continued life, or both, and if such
Participant, Former Participant, or Beneficiary shall fail to furnish the same
to the Committee within two years from the mailing of such demand, then, unless
otherwise required by applicable law, the Committee may, in its sole discretion,
determine that such Participant, Former Participant or Beneficiary has forfeited
his right to such benefit and may declare such benefit, or any unpaid portion
thereof, terminated as if the death of the Participant, Former Participant or
Beneficiary (with no surviving Beneficiary) had occurred on the date of the last
payment made thereon or on the date such Participant, Former Participant or
Beneficiary first became entitled to receive benefit payments, whichever is
later. All such forfeitures shall be used to reduce future Employer
Contributions, shall at all times remain Trust Assets, and in no event shall
they escheat to any governmental unit under any escheat law. If such applicable
law does not permit this disposition of unclaimed benefits then such unclaimed
benefits shall be administered in such manner as may be required or permitted
under such applicable law.

                                  * * * * * * *

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                                 ARTICLE TWELVE
                                 --------------

                              TOP HEAVY PROVISIONS

     SECTION 12.1. APPLICATION. This Article shall apply for any Plan Year
beginning with the first Plan Year in which the Plan is determined to be
top-heavy.

     SECTION 12.2. TOP-HEAVY PLAN STATUS/SUPER TOP-HEAVY PLAN STATUS. This Plan
shall be a Top-Heavy Plan in any Plan Year in which, as of the Determination
Date, (a) the Present Value of Accrued Benefits of Key Employees, or (b) the sum
of the Aggregate Accounts of Key Employees of any plan of an Aggregation Group,
exceeds sixty percent (60%) of the Present Value of Accrued Benefits or
Aggregate Accounts of all Participants under this Plan and any plan of an
Aggregation Group.

     If any Participant is a Non-Key Employee for any Plan Year, but the
Participant was a Key Employee for any prior Plan Year, the Participant's
Aggregate Account balance shall not be taken into account in determining whether
this Plan is a Top-Heavy Plan (or whether any Aggregation Group which includes
this Plan is a Top-Heavy Group) as further defined in Code Section 416(g) and
the applicable Treasury regulations.

     This Plan shall be a Super Top-Heavy Plan for any Plan Year in which, as of
the Determination Date, (a) the Present Value of Accrued Benefits of Key
Employees, or (b) the sum of the Aggregate Accounts of Key Employees of any plan
of an Aggregation Group, exceeds ninety percent (90%) of the Present Value of
Accrued Benefits and the Aggregate Accounts of all Participants under this Plan
and any plan of an Aggregation Group.

     If any Participant is a Non-Key Employee for any Plan Year, but the
Participant was a Key Employee for any prior Plan Year, the Participant's
Aggregate Account balance shall not be taken into account in determining whether
this Plan is a Super Top-Heavy Plan (or whether any Aggregation Group which
includes this Plan is a Top-Heavy Group) as further defined in Code Section
416(g) and the applicable Treasury regulations.

     For purposes of determining Top-Heavy and Super Top-Heavy status, the
following definitions shall apply:

          (a) AGGREGATE ACCOUNT means, as of the Determination Date, the sum of:

               (i) the account balances of the Savings Account, Discretionary
          Employer Contribution Account, Matching Employer Contribution Account
          and ESOP Transfer Account as of the most recent Valuation Date
          occurring within a twelve (12) month period ending on the
          Determination Date;

               (ii) the contributions that would be allocated as of a date not
          later than the Determination Date, even though those amounts are not
          yet made or required to be made;

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<PAGE>

               (iii) any plan distributions made during the Determination Period
          (However, in the case of distributions made after the Valuation Date
          and prior to the Determination Date, such distributions are not
          included as distributions for Top-Heavy purposes to the extent that
          the distributions are already included in the Participant's Aggregate
          Account balance as of the Valuation Date.); and

               (iv) any Employee contributions, whether voluntary or mandatory
          (However, amounts attributable to Participant Deductible Voluntary
          Contributions shall not be considered to be a part of the
          Participant's Aggregate Account balance.).

               (v) Regarding unrelated rollovers and plan-to-plan transfers
          (those which are (A) initiated by the Employee and (B) made from a
          plan maintained by one employer to a plan maintained by another
          employer), if this Plan provides for rollovers or plan-to-plan
          transfers, an unrelated rollover or plan-to-plan transfer shall be
          considered as a distribution for purposes of this Section. If this
          Plan is the plan accepting an unrelated rollover or plan-to-plan
          transfer, an unrelated rollover or plan-to-plan transfer accepted
          after December 31, 1983 shall not be considered as part of the
          Participant's Aggregate Account balance. However, unrelated rollovers
          or plan-to-plan transfers accepted prior to January 1, 1984 shall be
          considered as part of the Participant's Aggregate Account balance.

               (vi) Regarding related rollovers and plan-to-plan transfers
          (those either (A) not initiated by the Employee or (B) made to a plan
          maintained by the same Employer), if this Plan provides for rollovers
          or plan-to-plan transfers, a related rollover or plan-to-plan transfer
          shall be considered as a distribution for purposes of this Section. If
          this Plan is the plan accepting a related rollover or plan-to-plan
          transfer, a related rollover or plan-to-plan transfer shall be
          considered as part of the Participant's Aggregate Account balance,
          irrespective of the date on which the related rollover or plan-to-plan
          transfer is accepted.

          (b) AGGREGATION GROUP means either a Required Aggregation Group or a
     Permissive Aggregation Group as hereinafter determined.

               (i) Required Aggregation Group means the group of plans composed
          of (A) each plan of the Employer in which a Key Employee is a
          Participant or participated at any time during the Determination
          Period, regardless of whether the plan has terminated; and (B) each
          other plan of the Employer which enables any plan in which a Key
          Employee participates to meet the requirements of Code Sections
          401(a)(4) or 410, which shall be aggregated.

               In the case of a Required Aggregation Group, each plan in the
          group will be considered a Top-Heavy Plan if the Required Aggregation
          Group is a Top-Heavy Group. No plan in the Required Aggregation Group
          will be considered a Top-Heavy Plan if the Required Aggregation Group
          is not a Top-Heavy Group.

               (ii) Permissive Aggregation Group means the Required Aggregation
          Group plus any other plan not required to be included in the Required
          Aggregation Group, provided the resulting group, taken as a whole,
          would continue to satisfy Code Sections 401(a)(4) and 410.

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<PAGE>

               In the case of a Permissive Aggregation Group, only a plan that
          is part of the Required Aggregation Group will be considered a
          Top-Heavy Plan if the Permissive Aggregation Group is a Top-Heavy
          Group. No plan in the Permissive Aggregation Group will be considered
          a Top-Heavy Plan if the Permissive Aggregation Group is not a
          Top-Heavy Group.

               (iii) Only those plans of the Employer in which the Determination
          Dates fall within the same calendar year shall be aggregated to
          determine whether the plans are Top-Heavy Plans.

          (c) DETERMINATION DATE means for any Plan Year (i) the last day of the
     preceding Plan Year, or (ii) in the case of the first Plan Year of the
     Plan, the last day of the first Plan Year.

          (d) DETERMINATION PERIOD means the five (5) year period ending on the
     Determination Date.

          (e) EMPLOYER means the Employer that adopts this Plan. Related
     Employers shall be considered a single Employer for purposes of applying
     the limitations of these top-heavy rules.

          (f) EXCLUDED EMPLOYEES means any Employee who has not performed any
     Service for the Employer during the five (5) year period ending on the
     Determination Date. Excluded Employees shall be excluded for purposes of a
     Top-Heavy determination.

          (g) KEY EMPLOYEE means any Employee or Former Employee, or Beneficiary
     of the Employee, who, for any Plan Year in the Determination Period is:

               (i) An officer of the Employer having Compensation from the
          Employer and any Related Employer greater than fifty percent (50%) of
          the amount in effect under Code Section 415(b)(1)(A);

               (ii) One of the ten (10) Employees having Compensation from the
          Employer and any Related Employer of more than the limitation in
          effect under Code Section 415(c)(1)(A) and owning (or considered as
          owning within the meaning of Code Section 318) the largest interests
          in the Employer;

               (iii) A Five Percent Owner of the Employer (Five Percent Owner
          means any person owning, or considered as owning within the meaning of
          Code Section 318, more than five percent (5%) of the outstanding stock
          of the Employer or stock possessing more than five percent (5%) of the
          total combined voting power of all stock of the Employer; or in the
          case of an unincorporated business, any person who owns more than five
          percent (5%) of the capital or profits interest in the Employer.); or

                                       80
<PAGE>

               (iv) A One Percent Owner of the Employer having Compensation from
          the Employer of more than $150,000 (One Percent Owner means any person
          having Compensation from the Employer and any Related Employer in
          excess of $150,000 and owning, or considered as owning within the
          meaning of Code Section 318, more than one percent (1%) of the
          outstanding stock of the Employer or stock possessing more than one
          percent (1%) of the total combined voting power of all stock of the
          Employer; or in the case of an unincorporated business, any person who
          owns more than one percent (1%) of the capital or profits interest in
          the Employer.).

               (v) Notwithstanding the foregoing, Key Employee shall have the
          meaning set forth in Code Section 416(i), as amended.

               (vi) For purposes of determining whether an Employee or Former
          Employee is an officer under this subsection (g), an officer of the
          Employer shall have the meaning set forth in the regulations under
          Code Section 416(i).

               (vii) For purposes of this Section, Compensation means
          Compensation determined under Section 2.30 for the definition of a
          Highly Compensated Employee.

               (viii) For purposes of determining ownership hereunder, employers
          that would otherwise be aggregated as Related Employers shall be
          treated as separate employers.

          (h) NON-KEY EMPLOYEE means any Employee or Former Employee, or
     Beneficiary of the Employee, who is not a Key Employee.

          (i) PRESENT VALUE OF ACCRUED BENEFIT. Solely for the purpose of
     determining if the Plan, or any other plan included in a Required
     Aggregation Group of which this Plan is a part, is a Top-Heavy Plan, the
     Accrued Benefit of a Non-Key Employee shall be determined under (i) the
     method, if any, that uniformly applies for accrual purposes under all plans
     maintained by the Related Employers, or (ii) if there is no uniform method,
     in accordance with the slowest accrual rate permitted under the fractional
     accrual method described in Code Section 411(b)(1)(C). To calculate the
     Present Value of Accrued Benefits from a defined benefit plan, the
     Committee will use the actuarial assumptions for interest and mortality
     only, prescribed by the defined benefit plan(s) to value benefits for
     Top-Heavy purposes. If an aggregated plan does not have a Valuation Date
     coinciding with the Determination Date, the Committee must value the
     Accrued Benefits in the aggregated plan as of the most recent Valuation
     Date falling within the twelve (12) month period ending on the
     Determination Date, except as Code Section 416 and applicable Treasury
     regulations require for the first and second plan year of a defined benefit
     plan. The Committee will determine whether a plan is Top-Heavy by referring
     to Determination Dates that fall within the same calendar year.

          (j) TOP-HEAVY GROUP means an Aggregation Group in which, as of the
     Determination Date, the sum of:

               (i) the Present Value of Accrued Benefits of Key Employees under
          all defined benefit plans included in the group; and

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<PAGE>

               (ii) the Aggregate Accounts of Key Employees under all defined
          contribution plans included in the group

               exceeds sixty percent (60%) of a similar sum determined for all
          Participants.

          (k) Valuation Date means the Determination Date defined above.

     SECTION 12.3. TOP-HEAVY MINIMUM ALLOCATION.

          (a) MINIMUM ALLOCATION. Notwithstanding the foregoing, for any Plan
     Year in which the Plan is determined to be Top-Heavy, the amount of
     Employer Non-Elective Contributions and Forfeitures allocated to the
     Individual Account of each Non-Key Employee shall be equal to the lesser of
     three percent (3%) of each Non-Key Employee's Compensation or the highest
     contribution rate for the Plan Year made on behalf of any Key Employee.
     However, if a defined benefit plan maintained by the Employer which
     benefits a Key Employee depends on this Plan to satisfy the
     nondiscrimination rules of Code Section 401(a)(4) or the coverage rules of
     Code Section 410 (or another plan benefiting the Key Employee so depends on
     the defined benefit plan), the top heavy minimum allocation is three
     percent (3%) of the Non-Key Employee's Compensation regardless of the
     contribution rate for the Key Employee.

          (b) COMPENSATION. For purposes of this Section, Compensation means
     Compensation defined in Section 2.12 except (i) Compensation does not
     include Elective Contributions, and (ii) any exclusions from Compensation
     (other than the exclusion of Elective Contributions and the exclusions
     described in clauses (i) through (v) of Section 2.12(a)) do not apply.
     Notwithstanding the definition of Compensation in Section 2.12, the period
     preceding a Participant's Entry Date shall be included in determining the
     minimum top-heavy allocation provided by this Section.

          (c) CONTRIBUTION RATE. For purposes of this Section, a Participant's
     contribution rate is the sum of Employer Contributions (not including
     Employer Contributions to Social Security) and Forfeitures allocated to the
     Participant's Account for the Plan Year divided by his or her Compensation
     for the entire Plan Year. To determine a Participant's contribution rate,
     the Committee must treat all qualified top-heavy defined contribution plans
     maintained by the Employer (or by any Related Employers described in
     Section 2.49) as a single plan. For purposes of this Section, the following
     rules apply:

               (i) Savings Contributions on behalf of Key Employees are taken
          into account in determining the minimum required contribution under
          Code Section 416(c)(2). However, Savings Contributions on behalf of
          Employees other than Key Employees may not be treated as Employer
          Contributions for the minimum contribution or benefit requirement of
          Code Section 416.

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               (ii) Matching Employer Contributions allocated to Key Employees
          are treated as Employer Contributions for determining the minimum
          contribution or benefit under Code Section 416. However, if a plan
          utilizes Matching Contributions allocated to Employees other than Key
          Employees as Employee Contributions or Elective Contributions to
          satisfy the minimum contribution requirement, the Matching
          Contributions are not treated as Matching Contributions for applying
          the requirements of Code Section 401(k) and 401(m).

               (iii) Qualified Non-Elective Contributions described in Code
          Section 401(m)(4)(C) may be treated as Employer Contributions for the
          minimum contribution or benefit requirement of Code Section 416.

          (d) PARTICIPANT ENTITLED TO TOP-HEAVY MINIMUM ALLOCATION. The minimum
     allocation under this Section shall be provided to each Non-Key Employee
     who is a Participant and is employed by the Employer on the last day of the
     Plan Year, whether or not the Participant has been credited with one
     thousand (1,000) Hours of Service for the Plan Year. The minimum allocation
     under this Section shall not be provided to any Participant who was not
     employed by the Employer on the last day of the Plan Year. The provisions
     of this Section shall not apply to any Participant to the extent the
     Participant is covered under any other plan or plans of the Employer under
     which the minimum allocation or benefit requirements under Code Section
     416(c)(1) or (c)(2) are met for the Participant.

          (e) COMPLIANCE. The Plan will satisfy the top-heavy minimum allocation
     under this Section. The Committee first will allocate the Employer
     Contributions (and Participant Forfeitures, if any) for the Plan Year
     pursuant to the allocation formula under Sections 5.4 and 5.6. The Employer
     then will contribute an additional amount for the Individual Account of any
     Participant entitled under this Section to a top-heavy minimum allocation
     and whose contribution rate for the Plan Year, under this Plan and any
     other plan aggregated under this Section, is less than the top-heavy
     minimum allocation. The additional amount is the amount necessary to
     increase the Participant's contribution rate to the top-heavy minimum
     allocation. The Committee will allocate the additional contribution to the
     Account of the Participant on whose behalf the Employer makes the
     contribution.

     SECTION 12.4. AMENDMENTS. If the Plan is determined to be top-heavy, the
vesting schedule in Section 6.2(c) shall continue to apply notwithstanding a
determination in a later Plan Year that the Plan is no longer top-heavy unless
the Company shall amend the Plan to provide otherwise. No such amendment shall
be effective unless, in the event it changes the Plan's applicable vesting
schedule (determined in accordance with regulations under Code Section 411),
each Participant's nonforfeitable percentage of his Accounts (determined as of
the later of the date such amendment is adopted or becomes effective) is not
less than such percentage computed under Section 6.2(c) without regard to such
amendment and unless, in such event, each Participant having not less than three
(3) Years of Service is permitted to elect (pursuant to regulations under Code
Section 411) to have his nonforfeitable percentage computed under the Plan
without regard to such amendment

                                  * * * * * * *

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                                ARTICLE THIRTEEN
                                ----------------

                          REPURCHASE OF COMPANY STOCK;
                      NONTERMINABLE PROTECTIONS AND RIGHTS

     SECTION 13.1. EMPLOYEE STOCK OWNERSHIP PLAN. The ESOP Accounts in the Plan
are specifically designated an "employee stock ownership plan" within the
meaning of Code Section 4975(e)(7), ERISA Section 407(d)(6), and applicable
regulations thereunder. This Article applies solely to the Company Stock held in
ESOP Accounts.

     SECTION 13.2. PUT OPTION. A share of Company Stock shall be subject to a
put option if it is not publicly traded, or if it is subject to a trading
limitation, when distributed. The Employer shall issue a put option to each
Participant or Former Participant receiving a distribution of Company Stock from
the Plan required under the conditions described in the foregoing sentence, in
accordance with the terms set forth in this Section:

          (a) EXERCISE OF OPTION. The put option shall be exercisable only by a
     Participant or Beneficiary; by a donee of the Participant or Beneficiary;
     or by a person, including an estate or its distributees, to whom such
     Company Stock has passed because of the death of the Participant.

          (b) RIGHTS UNDER PUT OPTION. The put option shall give to the eligible
     holder the right to put such shares to the Employer. Under no circumstances
     may it bind the Plan or Trust, but it may grant the Plan or Trust an option
     to assume the rights and obligations of the Employer at the time it is
     exercised; if it is known, at the time such stock is acquired, that Federal
     or state law will be violated if the Employer honors such put option, it
     must permit the stock subject thereto to be put, in a manner consistent
     with such law, to a third party (e.g., an affiliate or a shareholder of the
     Employer other than the Plan or the Trust) that has substantial net worth
     at the time such debt is incurred and whose net worth is reasonably
     expected to remain substantial.

          (c) PERIOD OF OPTION.

               (i) The put option must be exercisable at least during a sixty
          (60) day period following the date of distribution from the Trust to
          the Participant or Beneficiary and for an additional sixty (60) day
          period during the Plan Year immediately following the Plan Year in
          which the first option period ends;

               (ii) In the case of Company Stock that is publicly traded without
          limitation when distributed by the Trust but ceases to be so traded
          within the same Plan Year as the distribution, the Employer shall
          notify each holder of such stock in writing on or before the tenth day
          after such stock ceased to be so traded that for at least a sixty (60)
          day period during such Plan Year, and for an additional sixty (60) day
          period during the following Plan Year, such stock is subject to a put
          option. Such notice must inform such holders of the terms of such put
          option, which shall satisfy the requirements of this Section;

                                       84
<PAGE>

               (iii) The period during which it is exercisable shall not include
          any time when a distributee is unable to exercise it because the party
          bound by it is prohibited from honoring it by applicable Federal or
          state law;

               (iv) The put option shall be exercisable by the holder notifying
          the Employer in writing that it is being exercised; and

               (v) The price at which it is exercisable shall be the fair market
          value of the stock then prevailing, determined as of the most recent
          Accounting Date; provided, however, that such value shall be
          determined as of the date the put is honored if the holder of such put
          is a "disqualified person" (as defined under Section 4975 of the
          Code).

          (d) OPTION RIGHTS NOT AFFECTED BY AMENDMENT. The rights provided to
     Participants under this Article shall be non-terminable and no amendment to
     this Plan shall affect these rights except such amendments to this Article
     as may be required to assure the continuing qualification of the Plan under
     the Code.

     SECTION 13.3. PAYMENT OF PURCHASE PRICE. If a Participant or Former
Participant exercises a put option pursuant to Section 13.2, the purchaser may
make payment by delivery of a note with payments commencing not more than thirty
(30) days after the exercise of the put option. The payment obligation will be
satisfied by the delivery of said note, which must meet the following
requirements:

          (a) the note must bear a reasonable rate of interest determined at
     Closing;

          (b) the purchaser must provide adequate security for the note;

          (c) the note must provide for equal annual installments not to exceed
     five (5) years, with interest payable with each installment, the first
     installment due and payable thirty (30) days after the exercise of the Put
     Option;

          (d) the note must provide for acceleration upon thirty (30) days'
     default of the payment on interest or principal; and

          (e) the note must grant to the maker the right to prepay the note in
     whole or in part at any time or times without penalty; provided, however,
     the purchaser must not have the right to make any prepayment during the
     calendar year or fiscal year of the Participant (Beneficiary) in which
     Closing occurs.

          Payment under a put option may not be restricted by the provisions of
     a loan or any other arrangement, including the terms of the Company's
     articles of incorporation, unless so required by applicable state law.

     SECTION 13.4. NOTICE. A person has given notice under this Section when the
person deposits the notice in the United States mail, first class, postage
prepaid, addressed to the person entitled to the Notice at the address currently
listed for the person in the Committee records. Any person affected by this
Section has the obligation to inform the Committee of any change of address.

                                       85
<PAGE>

     SECTION 13.5. NONTERMINABLE PROTECTIONS AND RIGHTS. Except as provided in
this Article, no Company Stock may be subject to a put, call, or other option,
or buy-sell or similar arrangement when held by and when distributed from an
ESOP Account, whether or not the Plan then qualifies as an employee stock
ownership plan. The protections and rights granted in this Article and in
Section 11.1 pursuant to Code Section 409(o) attributable to stock acquired
after December 31, 1986, are nonterminable and shall continue to exist under the
terms of this Plan with regard to Company Stock that is held in an ESOP Account
or by any Participant or other person for whose benefit such protections and
rights have been created. Neither the failure of the Plan to qualify as an
employee stock ownership plan, nor an amendment of the Plan shall cause a
termination of such protections and rights.

     SECTION 13.6. INVESTMENT IN COMPANY STOCK.

          (a) TYPE OF COMPANY STOCK. The Trustee shall invest ESOP Accounts
     primarily in Qualifying Company Stock to the extent practicable and may
     invest one hundred percent (100%) of the ESOP Accounts in Company Stock.
     The Company Stock may be Treasury Stock which has been purchased by the
     Employer; stock which has been authorized, but never issued by the
     Employer; Company Stock traded on a public market; or Company Stock owned
     by shareholders of the Employer.

          (b) PURCHASE PRICE. For the purchase of Company Stock, from the Parent
     or any Employer or from a shareholder of the Parent or any Employer, the
     Trustee shall not pay more than fair market value as determined by the
     current market price of the Company Stock, if there is a market, and if
     there is not a market for the stock, then as determined by an independent
     appraisal. All valuations of Company Stock which is not readily tradable on
     an established securities market, with respect to activities carried on by
     the Plan, must be made by an independent appraiser meeting requirements
     similar to requirements of the Regulations prescribed under Code Section
     170A-1. For the purchase of Company Stock from a Disqualified Person, the
     value of the Company Stock must be determined as of the date of the
     transaction. For any other purchase, the value shall be based on a current
     valuation. Notwithstanding the preceding provisions of this Section, the
     Trustee may purchase Company Stock at a price lower than that determined in
     accordance with the preceding provisions of this Section 13.6(b) from any
     source whatsoever. If a public market is made for the Company Stock, the
     purchase price shall be the average of the closing prices on the OTC for
     the last three days for which such prices are quoted in the Wall Street
     Journal preceding the purchase.

          (c) VOTING RIGHTS.

               (i) Each Participant shall be entitled to direct the Trustee as
          to the manner in which voting rights with respect to shares of Company
          Stock allocated to such Participant's ESOP Accounts shall be
          exercised.

                                       86
<PAGE>

               (ii) In order to implement the voting rights granted in this
          Section, the Plan Administrator shall furnish the Trustee and
          Participants who have an ESOP Account with a notice or information
          statement which complies with both the law and the Plan Sponsor's
          charter and bylaws applicable to security holders in general.
          Allocated shares of Company Stock with respect to which timely voting
          instructions have not been received shall be voted by the Trustee on
          each matter in the same proportion as shares with respect to which
          such instructions have been received on such matter.

          (d) TENDER OFFER

               (i) Notwithstanding any other provisions of the Plan or Trust,
          the provisions of this Section shall govern the tendering of shares of
          Company Stock held in ESOP Accounts. Upon commencement of a tender
          offer for any securities held in ESOP Accounts that are Company Stock,
          the Plan Administrator shall notify each Participant of such tender
          offer, utilize its best efforts to timely distribute or cause to be
          distributed to the Participants such information as is distributed to
          shareholders of the Employer in connection with such tender offer, and
          shall provide a means by which the Participant can instruct the
          Trustee whether or not to tender the Company Stock allocated to such
          Participant's ESOP Accounts. The Plan Administrator shall provide the
          Trustee with a copy of any materials provided to Participants. Each
          Participant shall have the right to instruct the Trustee as to the
          manner in which the Trustee is to respond to the tender offer for any
          or all of the Company Stock allocated to such Participant's ESOP
          Accounts. The Trustee shall respond to the tender offer with respect
          to the Company Stock as instructed by the Participant. Allocated
          shares of Company Stock with respect to which timely tender
          instructions have not been received shall be tendered by the Trustee
          in the same proportion as shares with respect to which such
          instructions have been received.

               (ii) A Participant who has directed the Trustee to tender shares
          of Company Stock allocated to such Participant's ESOP Accounts may, at
          any time, prior to the tender offer withdrawal date, instruct the
          Trustee to withdraw, and the Trustee shall withdraw such shares of
          Company Stock from the tender offer prior to the withdrawal deadline.
          A Participant shall not be limited as to the number of instructions to
          tender or withdraw which he may give to the Trustee.

               (iii) The Trustee shall credit the proceeds, received in exchange
          for the tendered Company Stock allocated to the ESOP Account of each
          Participant who instructed the Trustee to so tender, to that
          Participant's respective ESOP Account. The Trustee shall exercise its
          best efforts to invest the proceeds from such tender, whether cash or
          securities, in conformity with the requirements of Code Section 4975.

          (e) SHAREHOLDER AGREEMENTS. The Trustee may enter into agreements with
     shareholders to purchase shares of Company Stock under which the Trustee is
     granted an option to purchase all or a portion of the shares of Company
     Stock owned by the shareholders on the death of the shareholder or
     shareholders. To provide for the funding of the purchase of shares of
     Company Stock, the Trustee may apply for and pay premiums on contracts of
     life insurance on the life of such shareholder for the benefit of the Trust
     Fund as a whole, provided, however, that the Trustee may not enter into any
     agreement which would obligate the Plan and Trust to purchase Company Stock
     from a particular shareholder at an indefinite time determined upon the
     happening of an event such as death of the shareholder.

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<PAGE>

     SECTION 13.7. PARTIAL DIVERSIFICATION OF INVESTMENT.

          (a) For purposes of this Section, the following definitions apply:

               (i) "Qualified Participant" means any Employee who has completed
          at least ten (10) years of participation under the Plan and has
          attained age fifty-five (55) years.

               (ii) "Qualified Election Period" means the six (6) Plan Year
          Period beginning with the Plan Year in which the Participant becomes a
          Qualified Participant.

               (iii) "Diversification Election Interval" means the span of
          ninety (90) days after the close of each Plan Year within a Qualified
          Participant's Qualified Election Period.

          (b) A Qualified Participant may elect within the Diversification
     Election Interval during his Qualified Election Period to direct the
     Trustee on the investment of: (a) not more than twenty-five percent (25%)
     of the Qualified Participant's ESOP Account Balance (excluding accumulated
     employee contributions) at the end of the Plan Year, reduced by amounts
     previously diversified, during the first five (5) years of his Qualified
     Election Period; and (b) not more than fifty percent (50%) of the Qualified
     Participant's ESOP Account Balance (excluding accumulated employee
     contributions) at the end of the Plan Year, reduced by amounts previously
     diversified, during the sixth (6th) year of his Qualified Election Period.

         The Trustee shall complete diversification of a Qualified Participant's
investment in accordance with a Qualified Participant's Election no later than
ninety (90) days after the close of the Diversification Election Interval. The
Trustee shall satisfy this requirement: (a) by distributing to the Participant
an amount equal to the amount for which the Participant elected diversification;
or (b) by substituting for the amount of the Company Stock for which the
Participant elected diversification an equivalent amount of participant-directed
investments in other Investment Funds offered in the Plan pursuant to Article
Seven.

                                  * * * * * * *

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<PAGE>

                                ARTICLE FOURTEEN
                                ----------------

                         ADOPTION BY OTHER ORGANIZATIONS

SECTION 14.1. PROCEDURE FOR ADOPTION. Any corporation or other organization with
employees, now in existence or hereafter formed or acquired, which is not
already an Employer under the Plan and which is otherwise legally eligible, may,
in the future, with the consent and approval of the Company and the Trustee by
resolution or decision of its own board or governing authority, adopt the Plan
and the Trust, for all or any classification of persons in its employment, and
thereby, from and after the effective date specified in such resolution or
decision, become an Employer. The adoption resolution or decision may contain
such specified changes and variations in the terms and provisions of the Plan or
the Trust Agreement as may be acceptable to the Company and the Trustee. The
adoption resolution or decision shall become, as to such adopting organization
and its Employees, a part of the Plan and the Trust Agreement. It shall not be
necessary for the adopting organization to sign or execute the Plan or the Trust
Agreement. The effective date of the Plan for any such adopting organization
shall be that stated in the resolution or decision of adoption, and from and
after such effective date such adopting organization shall assume all the
rights, obligations, and liabilities of an Employer under the Plan and the Trust
Agreement, and shall be included within the meaning of the term Employer. The
administrative powers and control of the Company, as provided in the Plan and
the Trust Agreement, including the right of amendment and of appointment and
removal of the Committee, the Trustee, and their successors, shall be the sole
right of the Company and shall not be diminished by reason of the participation
of any such adopting organization. Any participating Employer may withdraw from
the Plan and the Trust at any time without affecting other Employers not
withdrawing, by complying with the provisions of the Plan and the Trust
Agreement. Separate records shall be kept as to each Employer and its Employees.

                                  * * * * * * *

                                       89
<PAGE>

                                ARTICLE FIFTEEN
                                ---------------

                        AMENDMENT AND TERMINATION OF PLAN

     SECTION 15.1. AMENDMENT OF THE PLAN. The Company may, without the consent
of any other party, make from time to time any amendment or amendments to the
Plan which do not operate retroactively to reduce or divest the then vested
interest in any Discretionary Employer Contribution Account, Matching Employer
Contribution Account, W & B Plan Rollover Account, or ESOP Transfer Account or
to reduce or divest any benefit then payable hereunder. Each such amendment
shall be in writing, signed by a duly authorized officer of the Company and
shall become effective as of the date specified therein. In addition, no such
amendment shall (i) reduce the vested percentage of any Participant with respect
to Employer contributions made either before or after the effective date of the
amendment; (ii) eliminate or reduce an early retirement benefit or a
retirement-type subsidy or eliminate an optional form of benefit with respect to
benefits attributable to service before the amendment; or (iii) restrict the
availability of an "alternative form of benefit" to a certain select group or
classification of Participants or Beneficiaries which favor the "prohibited
group," or restrict or deny a Participant through the withholding of consent or
the exercise of discretion by some person or persons other than the Participant
(and, where relevant, his Spouse) of an alternative form of benefit. For
purposes of this Section 15.1, Plan provisions will be considered to favor the
prohibited group if the group of Employees to whom the benefit is available does
not satisfy either the 70% test of Code Section 410(b)(1)(A) or the
nondiscriminatory classification test of Code Section 410(b)(1)(B). For purposes
of this Section 15.1, an alternative form of benefit encompasses the different
forms of benefit payment available under the Plan which provide that (a) a
Participant's benefits under the Plan may be paid in more than one form, or (b)
payment of a particular form of benefits may commence at some time earlier or
later than the normal date for the commencement of such benefit.

     Whenever Participating Employers have elected to adopt this Plan, amendment
of this Plan by the Plan Sponsor shall be effective upon the written action of
the Plan Sponsor. Each Participating Employer shall be deemed to have authorized
irrevocably the Plan Sponsor or any person(s) duly authorized by resolution of
the Board of Directors of the Plan Sponsor, to amend and modify this Plan in any
manner it deems necessary or desirable, retroactively or prospectively, subject
to the provisions of this Article.

     SECTION 15.2. RIGHT TO TERMINATE. An Employer may at any time terminate the
Plan with respect to its Employees, pursuant to resolution or decision of the
Board of Directors or other governing authority of such terminating Employer.
Upon termination with respect to an Employer, the Committee shall direct the
Trustee to distribute the share of the Trust Assets allocable to the Employees
of such Employer, as provided in Section 15.4. If the Plan is terminated with
respect to fewer than all Employers, the Plan shall continue in effect for
Employees of the remaining Employers.

     SECTION 15.3. CONSOLIDATION OR MERGER. Upon an Employer's liquidation,
dissolution, bankruptcy, or insolvency, or upon its sale, consolidation or
merger to or with another organization that is not an employer hereunder, in
which such Employer is not the surviving company, the Plan will terminate
insofar as that Employer is concerned unless the successor to that Employer

                                       90
<PAGE>

assumes the duties and responsibilities of such Employer by adopting the Plan
and Trust, by combining the Plan and Trust with an existing plan and trust of
such successor with the consent and agreement of that Employer, or by the
establishment of a separate plan and trust to which the Trust Assets held on
behalf of the Employees of such Employer shall be transferred with the consent
and agreement of that Employer. If the successor to an Employer is itself an
Employer, such successor shall succeed to all the rights and duties under the
Plan and Trust of the Employers involved.

     SECTION 15.4. LIQUIDATION OF TRUST FUND UPON TERMINATION.

          (a) Upon a complete or partial termination of the Plan with respect to
     any Employer, the Discretionary Employer Contribution Accounts, Matching
     Employer Contribution Accounts, W & B Plan Rollover Accounts, and ESOP
     Transfer Accounts, if any, of the Participants, Former Participants and
     Beneficiaries affected thereby shall become fully vested and
     nonforfeitable, and, subject to the restrictions of Section 15.4(b) below,
     the proportionate interests of such Participants, Former Participants and
     Beneficiaries in the Trust Assets, as determined by the Committee, shall be
     distributed as soon as practicable after provision is made for the expenses
     of administration, termination and liquidation. Distributions due to
     termination of the Plan will be made in accordance with the methods of
     distribution provided for in the Plan.

          (b) However, notwithstanding anything to the contrary above, a
     Participant's Accounts shall not be distributed before the first to occur
     of the following events:

               (i) Retirement;

               (ii) Death;

               (iii) Disability;

               (iv) Separation from Service;

               (v) attainment of age 59-1/2;

               (vi) with respect to a Participant's Savings Account only,
          incurring of a hardship (as defined in Section 10.1);

               (vii) the termination of the Plan, provided that neither the
          Employer nor an Affiliated Employer maintains a successor plan;

               (viii) the sale, to an entity that is not an Affiliated Employer,
          of substantially all of the assets used by the Employer in the trade
          or business in which the Participant is employed; or

               (ix) the sale, to an entity that is not an Affiliated Employer,
          of an incorporated Affiliated Employer's interest in a subsidiary in
          which the Participant is employed.

                                       91
<PAGE>

For purposes of this Section 15.4(b), the term "Affiliated Employer" shall mean
the Employers and any corporation which is a member of a controlled group of
corporations (as defined in Code Section 414(b)) which includes an Employer; any
trade or business (whether or not incorporated) which is under common control
(as defined in Code Section 414(c)) with an 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 an Employer; and any other entity
required to be aggregated with an Employer pursuant to regulations under Code
Section 414(o).

     SECTION 15.5. PERMANENT DISCONTINUANCE OF CONTRIBUTIONS. Upon a permanent
discontinuance of contributions with respect to any Employer, the Discretionary
Employer Contribution Accounts, Matching Employer Contribution Accounts, W & B
Plan Rollover Accounts, and ESOP Transfer Accounts shall become fully vested and
nonforfeitable and, unless such Employer provides by appropriate resolution that
the Plan and Trust will continue for the purpose of holding, investing, and
distributing Trust Assets pursuant to other provisions of the Plan and Trust
Agreement, the proportionate interest of the Participants, Former Participants
and Beneficiaries of such Employer in the Trust Assets, as determined by the
Committee, shall be distributed (subject to the restrictions of Section 15.4(b))
as soon as practicable after provision is made for the expenses of
administration, termination and liquidation.

     SECTION 15.6. CONSOLIDATION OR MERGER OF PLAN. In the event that the Plan
is merged or consolidated with any other plan, or in the event that any assets
or liabilities of the Plan are transferred to any other plan, the benefit any
Participant, Former Participant or Beneficiary under the Plan would be entitled
to receive if such other plan were terminated immediately after such merger,
consolidation, or transfer shall be equal to or greater than the benefit such
Participant, Former Participant or Beneficiary would be entitled to receive if
the Plan terminated immediately before such merger, consolidation, or transfer.

                                  * * * * * * *

                                       92
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                                ARTICLE SIXTEEN
                                ---------------

                               GENERAL PROVISIONS

     SECTION 16.1. NON-GUARANTEE OF EMPLOYMENT. Nothing contained in the Plan or
Trust Agreement shall be construed as a contract of employment between any
person and an Employer, as a right of any person to be continued in the
employment of an Employer (or such entity), or as a limitation of the right of
an Employer (or such entity) to discharge any person, with or without cause.

     SECTION 16.2. MANNER OF PAYMENT. Subject to the provisions of Sections 11.7
and 11.8, wherever and whenever it is herein provided for payments or
distributions to be made, said payments or distributions shall be made directly
into the hands of the Participant, Former Participant, Beneficiary, or their
respective administrators, executors, or guardians, as the case may be. Deposit
to the credit of any such person in any bank or trust company selected by such
person shall be deemed to be payment into his hands.

     SECTION 16.3. NONALIENATION OF BENEFITS. Except as otherwise provided below
in this Section 16.3, interests of Participants, Former Participants and
Beneficiaries under the Plan and benefits payable under the Plan shall not be
subject in any manner to anticipation, alienation, sale, transfer, assignment,
pledge, encumbrance, charge, disposition, garnishment, execution, or levy of any
kind, either voluntary or involuntary, including any liability for alimony or
other payments for property settlement or support of a Spouse or former Spouse,
or for any other relative of the Participant, Former Participant or Beneficiary,
but excluding devolution by death or mental incompetency, prior to actually
being received by the person entitled to the benefits under the terms of the
Plan; any attempt to anticipate, alienate, sell, transfer, assign, pledge,
encumber, charge or otherwise dispose of any right to benefits payable hereunder
shall be void; the Trust Assets shall not in any manner be liable for, or
subject to, the debts, contracts, liabilities, engagements or torts of any
person entitled to benefits hereunder.

     Notwithstanding anything to the contrary above, however, if the Committee
determines that a domestic relations order is a "qualified domestic relations
order" as defined in Section 206(d)(3) of ERISA, benefits shall be payable in
accordance with the applicable requirements of any such order and in accordance
with the requirements of Section 206(d)(3) of ERISA. To the extent of any
conflict between the terms of any such order and the terms of ERISA Section
206(d)(3), the latter shall control in all respects. To the extent provided in
an order, an "alternate payee," as described in Code Section 414(p), may elect
to receive an immediate distribution of such payee's benefits from this Plan.
Such a distribution may be received from any Account, as applicable.

     Nothing contained in this Plan shall prevent the Trustee from complying
with a judgment or settlement entered into on or after August 3, 1997 which
requires the Trustee to reduce a Participant's benefits under the Plan by an
amount that the Participant is ordered or required to pay to the Plan if each of
the following criteria are satisfied:

          (a) the order or requirement must arise:

               (i) under a judgment or conviction for a crime involving the
          Plan;

                                       93
<PAGE>

               (ii) under a civil judgment (including a consent order or decree)
          entered by a court in an action brought in connection with an actual
          or alleged violation of Part 4 of Title I of ERISA; or

               (iii) under a settlement agreement with either the Secretary of
          Labor or the Pension Benefit Guaranty Corporation and the Participant
          in connection with an actual or alleged violation of Part 4 of title I
          of ERISA by a fiduciary or any other person.

          (b) The decree, judgment, order or settlement must expressly provide
     for the offset of all or part of the amount ordered or required to be paid
     to the Plan against the Participant's benefits under the Plan.

          (c) In addition, if the joint and survivor annuity requirements of
     Code Section 401(a)(11) apply with respect to distributions from the Plan
     to the Participant and the Participant has a spouse at the time at which
     the offset is to be made, then one of the following three conditions must
     be satisfied:

               (i) Such spouse has consented in writing to such offset and such
          consent is witnessed by a notary public or representative of the Plan
          (or it is established to the satisfaction of a Plan representative
          that such consent may not be obtained by reason of circumstances
          described in Code Section 417(a)(2)(B)), or an election to waive the
          right of the spouse to either a qualified joint and survivor annuity
          or a qualified preretirement survivor annuity is in effect in
          accordance with the requirements of Code Section 417(a);

               (ii) Such spouse is ordered or required in such judgment, order,
          decree, or settlement to pay an amount to the Plan in connection with
          a violation of part 4 of subtitle B of title I of ERISA; or

               (iii) In such judgment, order, decree, or settlement, such spouse
          retains the right to receive the survivor annuity under a qualified
          joint and survivor annuity provided pursuant to section
          401(a)(11)(A)(i) and under a qualified preretirement survivor annuity
          provided pursuant to Code Section 401(a)(11)(A)(ii), determined in
          accordance with Code Section 401(a)(13)(D).

     SECTION 16.4. TITLES FOR CONVENIENCE ONLY. Titles of the Articles, Sections
and Subsections hereof are for convenience only and shall not be considered in
construing the Plan.

     SECTION 16.5. GOVERNING LAW. Except as may otherwise be required by
applicable federal law, the Plan and each of its provisions shall be construed
and their validity determined by the laws of the State of Texas.

     SECTION 16.6. CONTRIBUTIONS CONTINGENT UPON APPROVAL. Any contribution to
the Trust Fund associated with this Plan is conditioned on initial qualification
of the Plan under Code Section 401(a) and of the exemption of the Trust created
under the Plan under Code Section 501(a). If the Commissioner of the Internal
Revenue Service, upon the Employer's request for initial approval of this Plan

                                       94
<PAGE>

and Trust, determines that the Plan is not qualified or the Trust is not exempt,
then the Trustee may return to each Employer, within one (1) year after the date
of final disposition of the request for initial approval, any contribution made
by the Employers, and any increment attributable to the contribution. The Plan
and Trust shall then terminate and all rights of Participants, Former
Participants and Beneficiaries with respect to such Employers' contributions
shall cease.

     SECTION 16.7. PAYMENT OF EXPENSES. Except as otherwise specifically
provided herein, all expenses incident to the administration, termination, or
protection of the Plan and Trust, including but not limited to, actuarial,
legal, accounting, and Trustee fees, may be paid by the Company, which may
require reimbursement from the other Employers for their pro rata shares, or if
not paid by the Company (which payment is not obligatory), shall be paid by the
Trustee from the Trust Assets, but no amount paid pursuant to Section 17.9 or
Subsection 16.9(d) shall be paid, directly or indirectly, from the Trust Assets.
Notwithstanding the preceding, the expenses incident to maintaining an Account
for a Former Participant shall be charged to such Former Participant's Account.

     SECTION 16.8. RIGHTS TO TRUST ASSETS. No Participant, Former Participant or
Beneficiary shall have any right to, or interest in, any Trust Assets upon
termination of his employment or otherwise, except as provided from time to time
under the Plan, and then only to the extent of the benefits payable to such
Participant, Former Participant or Beneficiary out of the Trust Assets. All
payments of benefits as provided for in the Plan shall be made solely out of the
Trust Assets and, except as may otherwise be provided by applicable law, neither
the boards of Directors of the Employers, the Employers, the Trustee, nor the
Committee shall be liable therefor in any manner.

     SECTION 16.9. DISCLAIMER OF LIABILITY. Except as otherwise provided herein
or under Sections 404 through 409 of ERISA (to the extent applicable):

          (a) Neither the Board of Directors of the Employers, the Employers,
     the Trustee, nor the Committee guarantees the Trust Assets or other Assets
     of the Plan in any manner against loss or depreciation, and they shall not
     be liable for any act or failure to act which is made in good faith
     pursuant to the provisions of the Plan and Trust Agreement.

          (b) The Board of Directors of the Employers and the Employers shall
     not be responsible for any act or failure to act of the Committee of the
     Trustee.

          (c) The Committee shall not be responsible for any act or failure to
     act of the Board of Directors of the Employers, the Employers, or the
     Trustee.

          (d) Each Employer shall indemnify each member of its Board of
     Directors against any liability or losses sustained by such member by
     reason of any act or failure to act relating to the Plan or Trust in his
     capacity as such member if such act or failure to act is in good faith and
     does not constitute willful misconduct. Such indemnification shall include
     attorney's fees and other costs and expenses reasonably incurred by such
     member in defense of any action brought against him by reason of any such
     act or failure to act.

                                       95
<PAGE>

     SECTION 16.10. PERSONS MAY SERVE IN MORE THAN ONE CAPACITY. A person may
serve both as a member or secretary of the Committee and as a Trustee hereunder.
A person serving as a member of the Board of Directors or as an officer of an
Employer may serve as a member or secretary of the Committee or as a Trustee, or
both, hereunder.

     SECTION 16.11. CONSTRUCTION. The masculine gender, where appearing in the
Plan, shall be deemed to include the feminine gender, unless the context clearly
indicates to the contrary. The words "herein," "hereof," "hereunder" and other
similar compounds of the word "here" shall mean and refer to the entire Plan,
not to any particular provision, section, or subsection, and words used in the
singular or the plural may be construed as though in the plural or singular
where they would so apply.

     SECTION 16.12. COUNTERPARTS. The Plan may be executed in any number of
counterparts, each of which shall be considered an original, and only one such
counterpart need be produced.

     SECTION 16.13. NO INVOLUNTARY RETIREMENT BECAUSE OF AGE. Notwithstanding
the provisions hereof defining Normal Retirement Date and Retirement, nor any
other provision hereof, nothing contained in the Plan or Trust Agreement shall
be construed to require or permit the involuntary retirement of any Employee
solely because of age.

     SECTION 16.14. MISTAKE OF FACT. Notwithstanding any contrary provision in
this Agreement, if a contribution is made by an Employer by a mistake of fact,
the contribution may be returned to the Employer within one (1) year after the
payment of the contribution. The amount of the mistaken contribution is equal to
the excess of (a) the amount contributed over (b) the amount that would have
been contributed had there not occurred a mistake of fact. Earnings attributable
to mistaken contributions may not be returned to the Employer, but losses
attributable thereto shall reduce the amount to be returned.

     SECTION 16.15. DISALLOWANCE OF DEDUCTION. Notwithstanding any contrary
provision in this Agreement, any contributions by an Employer to the Plan and
Trust are conditioned on the deductibility of the contribution by the Employer
under the Code. To the extent any deduction is disallowed, the Employer, within
one (1) year following a final determination of the disallowance, whether by
agreement with the Internal Revenue Service or by final decision in a court of
competent jurisdiction, may demand repayment of the disallowed contribution, and
the Trustee shall return the contribution within one (1) year following the
disallowance. Earnings attributable to excess contributions may not be returned
to the Employer, but losses attributable thereto shall reduce the amount to be
returned.

                                  * * * * * * *

                                       96
<PAGE>

                               ARTICLE SEVENTEEN
                               -----------------

                               PLAN ADMINISTRATION

     SECTION 17.1. COMMITTEE. The Plan shall be administered by the Savings Plan
Committee. The Committee shall consist of not less than three nor more then
seven members. Each member shall be appointed, and may at any time be removed,
by the Board of Directors of the Company, and the Board of Directors of the
Company shall designate the chairman of the Committee. Any vacancy on the
Committee resulting from resignation, death, removal by the Board of Directors
of the Company, or otherwise, shall be filled by the Board of Directors of the
Company. The chief executive officer of the Company may appoint a person to fill
any vacancy during the period prior to action by the Board of Directors filling
such vacancy. All usual and reasonable expenses of the Committee shall be paid
as provided in Section 16.7. The members of the Committee shall not receive
compensation from the Plan or the Trust with respect to their services in
administering the Plan.

     SECTION 17.2. CLAIMS PROCEDURE.

          (a) The Committee shall make all determinations as to the right of any
     person to a benefit. Any denial by the Committee of a claim for benefits
     under the Plan by a Participant, Former Participant or Beneficiary shall be
     stated in writing and delivered or mailed to the Participant, Former
     Participant or Beneficiary. Such notice of denial shall to the best of the
     Committee's ability, be written to be understood without legal or actuarial
     counsel or other specialized knowledge or advice, and shall:

               (i) set forth the reasons for such denial;

               (ii) specify the pertinent provisions of the Plan on which such
          denial is based;

               (iii) describe any additional material or information necessary
          for perfection of such claim and explain why such material or
          information is necessary; and

               (iv) explain the claims review procedure established by the
          Committee under the Plan.

          (b) In the case of any Participant, Former Participant or Beneficiary
     whose claim for benefits under the Plan has been denied, such Participant,
     Former Participant or Beneficiary, or his duly authorized representative,
     may:

               (i) request a review of such denial by written application mailed
          or delivered to the Committee by the 60th day after receipt of such
          denial; and

               (ii) within such reasonable times as may be prescribed in the
          claims review procedure established by the Committee,

                    (A) review pertinent documents; and

                                       97
<PAGE>

                    (B) submit issues and comments in writing.

                    (c) The Committee shall provide a full and fair review of
               any request submitted under Section 17.2(b). In connection with
               such review, the Committee may request an opinion from an
               Employer's counsel and shall be fully protected by the Company
               and such Employer from any liability resulting from good faith
               reliance on such opinion.

     SECTION 17.3. POWERS AND DUTIES OF THE COMMITTEE. The Committee shall have
such powers and duties as may be necessary to discharge its duties hereunder,
including, but not by way of limitation, the following powers and duties:

          (a) To administer the Plan;

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

          (c) To review the performance of the Trustee and to report thereon to
     the Board of Directors of the Company;

          (d) To prescribe and establish (i) procedures to be followed and forms
     to be used by Employees, Participants, Former Participants or Beneficiaries
     for commencing or resuming participation in the Plan and for applying for
     benefits from the Plan and (ii) such additional procedures and forms for
     reviewing denials of claims for benefits as the Committee deems advisable
     which are not inconsistent with the provisions of the Plan or applicable
     law, but if any procedure or form is prescribed by the Plan or by
     applicable law, such procedure or form shall be used for the purpose
     prescribed;

          (e) To receive from the Employers and from Employees, Participants,
     Former Participants and Beneficiaries such information as shall be
     necessary for the proper administration of the Plan;

          (f) To prepare and distribute, in such manner as required by
     applicable law, information explaining the Plan;

          (g) To prepare such reports with respect to the Plan as are required
     by applicable law and such other reports as are reasonable and appropriate
     and requested by the Employers;

          (h) To appoint or employ such agents or employees as it deems
     advisable, including legal counsel, accountants, and actuaries, as needed
     for the discharge of its duties;

          (i) To allocate in writing any of its rights, powers, or duties
     hereunder to a particular member or members of the Committee; in the event
     of any such allocation, the exercise of right or power, or the discharge of
     a duty has been allocated shall be deemed to be an act of the Committee;
     and

                                       98
<PAGE>

(j)      To designate persons who are not members of the Committee to exercise
         any of the foregoing powers, to carry out any of the foregoing duties,
         or to authorize benefit payments under Section 17.2.

     SECTION 17.4. LIMITATION ON POWERS. The Committee shall have no power to
add to, subtract from, or modify any of the terms of the Plan, or to waive or
fail to apply any requirements of eligibility for benefits under the Plan.

     SECTION 17.5. LIMITATION ON DUTIES. Except as elsewhere provided herein,
the Committee shall have no power to manage or responsibility for managing the
investing (including selection, acquiring, retaining, or disposing) of the Trust
Assets.

     SECTION 17.6. RULES AND DECISIONS. The Committee may adopt such rules as it
deems necessary, desirable, or appropriate. All rules and decisions of the
Committee shall be uniformly and consistently applied to all Employees,
Participants, Former Participants, and Beneficiaries in similar circumstances.
Any rule or decision which is not inconsistent with the provisions of the Plan
shall be conclusive and binding upon all persons affected by it, and, except as
otherwise provided by applicable law or herein, there shall be no appeal from
any decision by the Committee which is within its authority. When making a
determination or calculation, the Committee shall be entitled to rely upon
information furnished by an Employer, the legal counsel of an Employer, or an
accountant or actuary of the Plan. When making any decision hereunder, the
Committee may consult with any Participant, Former Participant, or Beneficiary
affected thereby and may, if appropriate, take such Participant's, Former
Participant's, or Beneficiary's preference into account, but the Committee shall
not be required to consult with or follow the preference of any Participant,
Former Participant, or Beneficiary in the making of any decision hereunder
unless it is expressly required to do so by other provisions hereof or by
applicable law.

     SECTION 17.7. COMMITTEE PROCEDURES. The Committee may act at a meeting or
in writing without a meeting. The Committee shall appoint a secretary, who may
or may not be a Committee member, and advise the Trustee of such action in
writing. The secretary shall keep a record of all meetings and forward all
necessary communications to the Employers or the Trustee. The Committee may
adopt such bylaws and regulations as it deems desirable for the conduct of its
affairs. All decisions of the Committee shall be made by the vote of a majority
of the total number of members at the time serving on the Committee including
actions in writing taken without a meeting.

     SECTION 17.8. LIABILITY OF COMMITTEE. Except as may otherwise be required
by applicable law, no member of the Committee shall be liable for any act or
omission of his own or of any agent or employee appointed or employed by the
Committee, unless such act or omission is the result of his own willful
misconduct or bad faith. The Company shall indemnify each such member against
any liability or loss sustained by him by reason of any act or failure to act in
his capacity as such member if such act or failure to act is in good faith and
does not constitute willful misconduct. Such indemnification shall include
attorney's fees and other costs and expenses reasonably incurred by such member
in defense of any action brought against him by reason of any such act or
failure to act.

                                       99
<PAGE>

     SECTION 17.9. BONDING. The secretary and members of the Committee and any
persons designated under Subsection 17.3(j) shall serve without bond except as
otherwise required by applicable law or by the Company. The premium on any bond
required of the secretary or members of the Committee shall be paid as provided
in Section 16.7.

     IN WITNESS WHEREOF, FROZEN FOOD EXPRESS INDUSTRIES, INC. has caused this
Plan to be executed by its duly appointed officers on this 24 day of March,
2000.

                                            FROZEN FOOD EXPRESS INDUSTRIES, INC.

                                            By:      /S/ STONEY M. STUBBS, JR.
                                                     -------------------------
                                                     Stoney M. Stubbs, Jr.
                                                     President

ATTEST:

/S/ LEONARD W. BARTHOLOMEW
    Leonard W. Bartholomew
    SecretaryEMPLOYMENT AGREEMENT

         This Employment Agreement (the "Agreement") is entered into as of June
7, 1999 between CLAIMSNET.COM INC., a Delaware corporation with a principal
place of business at 12801 North Central Expressway, Suite 1515, Dallas, Texas
75243, and Terry A. Lee ("Employee").

         In consideration for the mutual covenants and conditions set forth
herein, the parties hereby agree as follows:

         1. EMPLOYMENT. The Company hereby employs Employee in the capacity of
Executive Vice President. Employee accepts such employment and agrees to perform
such services as are customary to such office and shall from time to time be
assigned to him by the Chief Executive Officer.

         2. TERM. Subject to earlier termination as provided in Section 5, the
employment hereunder shall be for a period of two years, commencing on May 1,
1999 (the "Commencement Date") and ending on April 30, 2001. Employee's
employment will be on a full-time basis requiring the devotion of such amount of
his productive time as is necessary for the efficient operation of the business
of the Company.

         3. COMPENSATION AND BENEFITS.

                  3.1 SALARY. For the performance of Employee's duties
hereunder, the Company shall pay Employee an annual salary of $150,000 (less
required withholdings), payable no less frequently than twice monthly.

                  3.2 BONUS. Employee will be eligible to earn a cash
performance bonus in the amount of $15,000 (less required withholdings) per
quarter for Company achievement equal to 100% of the Company's quarterly
goals/objectives/benchmarks, payable within 15 days subsequent to release of the
Company's quarterly operating results. Employee will not earn a cash performance
bonus for Company achievement equal to or less than 90% of the Company's
quarterly goals/objectives/benchmarks. Employee will be eligible to earn a
pro-rated cash performance bonus for Company achievement between 90% and 100% of
the Company's quarterly goals/objectives/benchmarks. The bonus will be pro-rated
10% for every 1% achievement over 90% against the board approved business plan,
up to a 100% attainment level, as shown in the example below.

------------------ -----------------------------------------------------
   ATTAINMENT        QUARTERLY BONUS PAYMENT BASED ON $15,000 TARGET
------------------ -----------------------------------------------------
     <= 90%                             No Payment
------------------ -----------------------------------------------------
      91%                             $1,500 or 10%
------------------ -----------------------------------------------------
      95%                             $7,500 or 50%
------------------ -----------------------------------------------------
      100%                           $15,000 or 100%
------------------ -----------------------------------------------------
      105%                           $15,000 or 100%
------------------ -----------------------------------------------------

<PAGE>

                  3.3 DISCRETIONARY BONUS. At the discretion of the Board, cash
and/or equity bonus may be paid to Employee for performance deemed to merit
recognition for significant contribution to the Company business plan including
large contracts, alliances, strategic acquisitions and unforeseen positive
developments.

                  3.4 EQUITY COMPENSATION. The Employee has been previously
granted various stock and stock options which shall remain in full force and
effect, which are specifically listed as follows, giving effect to all stock
splits as of the date hereof.

                          3.4.1 STOCK GRANT. The Employee was previously granted
                  46,384 shares of common stock. In connection therewith, On or
                  about April 14, 1998, the Employee was loaned the amount of
                  $25,000 by the Company relating to the tax effect of 46,384
                  shares of common capital stock previously granted to the
                  Employee. The loan is evidenced by a promissory note in such
                  amount and will be secured by the common capital stock
                  granted.

                          3.4.2 PRIVATE OPTIONS. The Employee was previously
                  granted private options to purchase 109,189 shares of common
                  stock pursuant to the following provisions.

                                    a. The Company agrees to cause its
                          shareholders, Bo W. Lycke, Robert H. Brown and
                          American Medical Finance, Inc. to grant to the
                          Employee stock options for 109,189 shares of common
                          capital stock of the Company (the "Private Option")
                          (in addition to 46,384 shares currently owned by the
                          Employee), with the understanding that securities
                          counsel for the Company shall prepare a definitive
                          Stock Option Agreement with such terms and conditions
                          as they deem appropriate, but specifically to include
                          the following terms and conditions:

                                           i. The "Private Option Price" shall
                                   be $3.88 per share;

                                           ii. The Stock Option Agreement shall
                                   be structured so that Bo W. Lycke, Robert H.
                                   Brown and American Medical Finance, Inc. will
                                   grant the Private Option to the Employee to
                                   buy the shares of common capital stock for
                                   the Private Option Price and, if necessary,
                                   that the Company join in such Stock Option
                                   Agreement;

                                           iii. The Private Option shall be
                                   deemed 100% vested upon execution of the
                                   Stock Option Agreement;

                                           iv. The Private Option shall expire
                                   the earlier of 10 years from date of the
                                   Stock Option Agreement or 12 months from
                                   termination of employment by, or the Employee
                                   from, the Company; and

<PAGE>

                                           v. The common capital stock subject
                                   to the Private Option shall also be subject
                                   to normal restrictions as securities counsel
                                   to the Company shall dictate (which may
                                   necessitate a nominal initial consideration
                                   for grant of the options)

                           3.4.3 IPO OPTIONS. In connection with the Company's
                  initial public offering on April 6, 1999, the Employee was
                  granted the option to purchase 20,000 shares of common stock
                  under the 1997 Stock Option Plan at the price of $8.00 per
                  share.

                  3.5 BENEFITS. Employee shall be entitled to such medical,
disability, and life insurance coverage and such vacation, sick leave, and
holiday benefits, if any, as are made available to the Company's top executive
personnel, all in accordance with the Company's benefits program in effect from
time to time.

                  3.6 REIMBURSEMENT OF EXPENSES. Employee shall be entitled to
reimbursement for all reasonable expenses for travel, meals, and entertainment,
incurred by Employee in connection with and reasonably related to the
furtherance of the Company's business.

                  3.7 ANNUAL REVIEW. On each anniversary of the Commencement
Date, the Chief Executive Officer will review Employee's performance and
compensation hereunder (including salary, bonus, and stock options and/or other
equity incentives) and will approve an increase in such compensation of not less
than 5% annually, but will not have authority, as the result of such review, to
decrease any portion of such compensation without the written consent of
Employee.

         4. CHANGE OF CONTROL. In the event of a Change in Control of the
Company (as defined below), all options then granted to Employee which are
unvested at the date of the Change in Control will be immediately vested. In
addition, in the event of a termination of Employee's employment for any reason
(other than as set forth in Section 5.1(f)) following a Change of Control, the
Company will promptly pay Employee, in addition to the amounts required under
Section 5.2(a), a lump-sum severance amount payable immediately upon such
termination of employment, equal to one-half of his then current annual salary.
This payout shall be in lieu of any amount which may otherwise be due under
Section 5.2(b).

         As used herein, a "Change of Control" of the Company shall be deemed to
have occurred:

         (a) Upon the consummation, in one transaction or a series of related
transactions, of the sale or other transfer of voting power (including voting
power exercisable on a contingent or deferred basis as immediately exercisable
voting power) representing effective control of the Company to a person or group
of related persons who, on the date of this Agreement, is not affiliated (within
the meaning of the Securities Act of 1933) with the Company, whether such sale
or transfer results from a tender offer or otherwise; or

<PAGE>

         (b) Upon the consummation of a merger or consolidation in which the
Company is a constituent corporation and in which the Company's stockholders
immediately prior thereto will beneficially own, immediately thereafter,
securities of the Company or any surviving or new corporation resulting
therefrom having less than a majority of the voting power of the Company or any
such surviving or new corporation; or

         (c) Upon the consummation of a sale, lease, exchange, or other transfer
or disposition by the Company of all or substantially all its assets to any
person or group of related persons.

         5. TERMINATION.

                  5.1 TERMINATION EVENTS. The employment hereunder will
terminate upon the occurrence of any of the following events:

                  (a)   Employee dies;

                  (b) The Company, by written notice to Employee or his personal
representative, discharges Employee due to the inability to perform the duties
assigned to him hereunder for a continuous period exceeding 90 days by reason of
injury, physical or mental illness, or other disability, which condition has
been certified by a physician; provided, however, that prior to discharging
Employee due to such disability, the Company shall give a written statement of
findings to Employee or his personal representative setting forth specifically
the nature of the disability and the resulting performance failures, and
Employee shall have a period of ten (10) days thereafter to respond in writing
to the Company's findings;

                  (c) Employee is discharged by the Company for cause. As used
in this Agreement, the term "cause" shall mean:

                           (i) Employee's conviction of (or pleading guilty or
NO LO CONTENDERE to) a felony or misdemeanor involving dishonesty or moral
turpitude; or

                           (ii) (a) the willful and continued failure of
Employee to substantially perform his duties with the Company (other than any
such failure resulting from illness or disability) after a demand for
substantial performance is requested by the Company's Chief Executive Officer,
which specifically identifies the manner in which it is claimed Employee has not
substantially performed his duties, or (b) Employee is willingly engaged in
misconduct which has a direct and material adverse monetary effect on the
Company. For purposes of this subpart (ii) no act or failure to act on
Employee's part shall be considered "willful" unless done, or omitted to be
done, by Employee not in good faith and without reasonable belief that
Employee's actions were in the best interest of the Company. No termination
shall be effected for cause pursuant to this subpart (ii) unless Employee has
been provided with specific information as to the acts or omissions which form
the basis of the allegation of cause, and Employee has had an opportunity to be
heard, with counsel if he so desires, before the Board of Directors and such
Board determines in good faith that Employee was guilty of conduct constituting
"cause" as herein defined, specifying the particulars thereof in detail;

<PAGE>

                  (d) Employee is discharged by the Chief Executive Officer of
the Company without cause, which the Company may do at any time upon notice to
Employee;

                  (e) Employee voluntarily terminates his employment due to
either (i) a default by the Company in the performance of any of its obligations
hereunder, or (ii) an Adverse Change in Duties (as defined below), which default
or Adverse Change in Duties remains unremedied by the Company for a period of
ten (10) days following its receipt of written notice thereof from Employee; or

                  (f) Employee voluntarily terminates his employment for any
reason other than the Company's default or an Adverse Change in Duties, which
Employee may do at any time with at least 30 days advance written notice.

         As used herein, "Adverse Change in Duties" means an action or series of
actions taken by the Company, without Employee's prior written consent, which
results in:

                  (1) A change in Employee's reporting responsibilities, titles,
job responsibilities, or offices, which, in Employee's reasonable judgment,
results in a diminution of his status, control, or authority;

                  (2) The assignment to Employee of any positions, duties, or
responsibilities which, in Employee's reasonable judgment, are inconsistent with
Employee's positions, duties, and responsibilities or status with the Company;

                  (3) A requirement by the Company that Employee be based or
perform his duties anywhere other than (i) at the Company's corporate office
location on the date of this Agreement, or (ii) if the Company's corporate
office location is moved after the date of this Agreement, at a new location
that is no more than 60 miles from such prior location; or

                  (4) A failure by the Company (i) to continue in effect any
material benefit, whether or not qualified, or other compensation, bonus, or
incentive plan in effect on the date of this Agreement or subsequently adopted,
(ii) to continue Employee's participation in such benefits or plans at the same
level or to the same extent as on the Commencement Date or, with respect to
subsequently adopted benefits or plans, on the date of the initial
implementation thereof, or (iii) to provide for Employee's participation in any
newly adopted benefits or plans at a level commensurate, in Employee's
reasonable judgment, with that of other top executives of the Company.

         5.2 EFFECTS OF TERMINATION.

                  (a) Upon termination of Employee's employment hereunder for
any reason, the Company will promptly pay Employee all compensation owed to
Employee and unpaid through the date of termination (including, without
limitation, salary and employee expense reimbursements).

<PAGE>

                  (b) In addition (except in a situation where severance is due
pursuant to Section 4), if Employee's employment is terminated under Sections
5.1(a), (b), (d), or (e), the Company shall also pay Employee, immediately upon
such termination of employment, a lump-sum severance amount equal to his then
current annual salary.

                  (c) Upon termination of Employee's employment hereunder for
any reason, Employee agrees that for the one year period following the
Termination Event:

                           (i) Employee will not directly or indirectly, whether
for his own account or as an individual, employee, director, consultant, or
advisor, or in any other capacity whatsoever, provide services to any other
person, firm, corporation, or other business enterprise which is involved in
claims processing or other healthcare related matters unless he obtains the
prior written consent of the Chief Executive Officer.

                           (ii) Employee will not directly or indirectly
encourage or solicit, or attempt to encourage or solicit, any individual to
leave the Company's employ for any reason or interfere in any other manner with
the employment relationships at the time existing between the Company and its
current or prospective employees.

                           (iii) Employee will not induce or attempt to induce
any customer, supplier, distributor, licensee, or any other business relation of
the Company to cease doing business with the Company or in any way interfere
with the existing business relationship between any such customer, supplier,
distributor, licensee, or any other business relation and the Company.

         Employee acknowledges that monetary damages may not be sufficient to
compensate the Company for any economic loss which may be incurred by reason of
breach of the foregoing restrictive covenants. Accordingly, in the event of any
such breach, the Company shall, in addition to any remedies available to the
Company at law, be entitled to obtain equitable relief in the form of an
injunction precluding Employee from continuing to engage in such breach.

         If any restriction set forth in this paragraph is held to be
unreasonable, then Employee and the Company agree, and hereby submit, to the
reduction and limitation of such prohibition to such area or period as shall be
deemed reasonable.

         6. GENERAL PROVISIONS.

                  6.1 ASSIGNMENT. Neither party may assign or delegate any of
its rights or obligations under this Agreement without the prior written consent
of the other party, except that the Company may assign its rights and
obligations hereunder to a successor by merger or an assignee of all or
substantially all of the Company's assets.

                  6.2 TAXES. The Employee shall be fully responsible for all
personal tax liabilities related to all compensation components of this
Agreement, with the exception being the normal employer matching contributions
for Medicaid/Medicare and Social Security on the base salary of Employee.

<PAGE>

                  6.3 ENTIRE AGREEMENT. This Agreement contains the entire
agreement between the parties with respect to the subject matter hereof and
supersedes any and all prior agreements between the parties relating to such
subject matter.

                  6.4 MODIFICATIONS. This Agreement may be changed or modified
only by an agreement in writing signed by both parties hereto.

                  6.5 SUCCESSOR AND ASSIGNS. The provisions of this Agreement
shall inure to the benefit of, and be binding upon, the Company and its
successors and assigns and Employee and Employee's legal representatives, heirs,
legatees, distributees, assigns, and transferees by operation of law, whether or
not any such person shall have become a party to this Agreement and have agreed
in writing to join and be bound by the terms and conditions hereof.

                  6.6 GOVERNING LAW. This Agreement shall be governed by, and be
construed in accordance with, the laws of Delaware.

                  6.7 SEVERABILITY. If any provision of this Agreement is held
by a court of competent jurisdiction to be invalid, void, or unenforceable, the
remaining provisions shall nevertheless continue in full force and effect.

                  6.8 FURTHER ASSURANCES; COMMITTEES OF BOARD. The parties will
execute such further instruments and take such further actions as may be
reasonably necessary to carry out the intent of this Agreement. The term "Board
of Directors" shall include any committee of the Board.

                  6.9 NOTICES. Any notices or other communications required or
permitted hereunder shall be in writing and shall be deemed received by the
recipient when delivered personally or, if mailed, five (5) days after the date
of deposit in the United States mail, certified or registered, postage prepaid
and addressed, in the case of the Company, to 12801 North Central Expressway,
Suite 1515, Dallas, Texas 75243, and in the case of Employee, to 4417 Wordsworth
Drive, Plano, Texas 75093, or to such other address as either party may later
specify by at least ten (10) days advance written notice delivered to the other
party in accordance herewith.

                  6.10 NO WAIVER. The failure of either party to enforce any
provision of this Agreement shall not be construed as a waiver of that
provision, nor prevent that party from thereafter enforcing that provision or
any other provision of this Agreement.

                  6.11 LEGAL FEES AND EXPENSES. In the event of any disputes
under this Agreement, each party shall be responsible for their own legal fees
and expenses which it may incur in resolving such dispute.

<PAGE>

                  6.12 COUNTERPARTS. This Agreement may be executed in
counterparts, each of which shall be deemed to be an original, but all of which
together shall constitute one and the same instrument.

                  IN WITNESS WHEREOF, the Company and Employee have executed
this Agreement effective as of the date first above written.

                                                   CLAIMSNET.COM INC.

                                                   BY: /S/ Bo W. Lycke
                                                       -----------------------
                                                       BO W. LYCKE
                                                       CHIEF EXECUTIVE OFFICER

                                                   EMPLOYEE

                                                       /S/ Terry A. Lee
                                                       -------------------------
                                                       TERRY A. LEE
                                                       EXECUTIVE VICE PRESIDENT

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