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                       PETCO ANIMAL SUPPLIES 401(K) PLAN

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                            ADOPTION AGREEMENT # 009
               NONSTANDARDIZED CODE SECTION 401(k) PROFIT SHARING PLAN

The undersigned, PETCO ANIMAL SUPPLIES ("Employer"), by executing this
Adoption Agreement, elects to become a participating Employer in the THE
CHICAGO TRUST COMPANY Defined Contribution Master Plan (basic plan document #01)
by adopting the accompanying Plan and Trust in full as if the Employer were a
signatory to that Agreement. The Employer makes the following elections
granted under the provisions of the Master Plan.

                                   ARTICLE I
                                  DEFINITIONS

         1.02  TRUSTEE. The Trustee executing this Adoption Agreement is:
         (CHOOSE (a) OR (b))

[N/A]    (a)   A discretionary Trustee. See Section 10.03[A] of the Plan.

[X]      (b)   A nondiscretionary Trustee. See Section 10.03[B] of the Plan.
         [NOTE: THE EMPLOYER MAY NOT ELECT OPTION (b) IF A CUSTODIAN EXECUTES
         THE ADOPTION AGREEMENT.]

         1.03  PLAN. The name of the Plan as adopted by the Employer is PETCO
ANIMAL SUPPLIES 401(k) PLAN.

         1.07  EMPLOYEE. The following Employees are not eligible to participate
in the Plan: (CHOOSE (a) OR AT LEAST ONE OF (b) THROUGH (g))

[N/A]    (a)   No exclusions.

[X]      (b)   Collective bargaining employees (as defined in Section 1.07 of
         the Plan). [NOTE: IF THE EMPLOYER EXCLUDES UNION EMPLOYEES FROM THE
         PLAN, THE EMPLOYER MUST BE ABLE TO PROVIDE EVIDENCE THAT RETIREMENT
         BENEFITS WERE THE SUBJECT OF GOOD FAITH BARGAINING.]

[X]      (c)   Nonresident aliens who do not receive any earned income (as
         defined in Code Section 911(d)(2)) from the Employer which constitutes
         United States source income (as defined in Code Section 861(a)(3)).

[N/A]    (d)   Commission Salesmen.

[N/A]    (e)   Any Employee compensated on a salaried basis.

[N/A]    (f)   Any Employee compensated on an hourly basis.

[N/A]    (g) (SPECIFY) __.

LEASED EMPLOYEES. Any Leased Employee treated as an Employee under Section 1.31
of the Plan, is: (CHOOSE (h) OR (i))

[X]      (h)   Not eligible to participate in the Plan.

[N/A]    (i)   Eligible to participate in the Plan, unless excluded by reason
         of an exclusion classification elected under this Adoption Agreement
         Section 1.07.

                                       1
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RELATED EMPLOYERS. If any member of the Employer's related group (as defined
in Section 1.30 of the Plan) executes a Participation Agreement to this
Adoption Agreement, such member's Employees are eligible to participate in
this Plan, unless excluded by reason of an exclusion classification elected
under this Adoption Agreement Section 1.07. In addition: (CHOOSE (j) OR (k))

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

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

         1.12  COMPENSATION.

TREATMENT OF ELECTIVE CONTRIBUTIONS. (CHOOSE (a) OR (b))

[X]      (a)   "Compensation" includes elective contributions made by the
         Employer on the Employee's behalf.

[N/A]    (b)   "Compensation" does not include elective contributions.

MODIFICATIONS TO COMPENSATION DEFINITION. (CHOOSE (c) OR AT LEAST ONE OF (d)
TROUGH (j))

[N/A]    (c)   No modifications other than as elected under Options (a) or (b)

[N/A]    (d)   The Plan excludes Compensation in excess of $__.

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

[N/A]    (f)   The Plan excludes bonuses.

[N/A]    (g)   The Plan excludes overtime.

[N/A]    (h)   The Plan excludes Commissions.

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

[X]      (j) (SPECIFY) SECTION 3401(a) WAGES: COMPENSATION IS DEFINED AS WAGES
         WITHIN THE MEANING OF CODE SECTION 3401(a) FOR THE PURPOSES OF INCOME
         TAX WITHHOLDING AT THE SOURCE, BUT DETERMINED WITHOUT REGARD TO ANY
         RULES THAT LIMIT THE REMUNERATION INCLUDED IN WAGES BASED ON THE NATURE
         OR LOCATION OF THE EMPLOYMENT OR THE SERVICES PEFORMED (SUCH AS THE
         EXCEPTION FOR AGRICULTURAL LABOR IN CODE SECTION 3401(a)(2)) WAGES PAID
         WHILE A PARTICIPANT BUT EXCLUDING BONUSES, FRINGE BENEFITS, RELOCATION
         AND SEVERANCE PAY.

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

SPECIAL DEFINITION FOR MATCHING CONTRIBUTIONS. "Compensation" for purposes of
any matching contribution formula under Article III means: (CHOOSE (k) OR (l)
ONLY IF APPLICABLE)

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

[N/A]    (l)   (SPECIFY) __.

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SPECIAL DEFINITION FOR SALARY REDUCTION CONTRIBUTIONS. An Employee's salary
reduction agreement applies to his Compensation determined prior to the
reduction authorized by that salary reduction agreement, with the following
exceptions: (CHOOSE (m) OR AT LEAST ONE OF (n) OR (o), IF APPLICABLE)

[N/A]    (m)   No exceptions.

[N/A]    (n)   If the Employee makes elective contributions to another plan
         maintained by the Employer, the Advisory Committee will determine the
         amount of the Employee's salary reduction contribution for the
         withholding period: (CHOOSE (1) OR (2))

         [N/A] (1)    After the reduction for such period of elective
               contributions to the other plan(s).

         [N/A] (2)    Prior to the reduction for such period of elective
               contributions to the other plan(s).

[X]      (o)   (SPECIFY) COMPENSATION INCLUDES EACH AMOUNT AS PAID ON
         PAYROLL-BY-PAYROLL BASIS, SUBJECT TO THE SPECIFIC EXCLUSIONS ABOVE.

         1.17  PLAN YEAR/LIMITATION YEAR.

PLAN YEAR. Plan Year means: (CHOOSE (a) OR (b))

[X]      (a)   The 12 consecutive month period ending every DECEMBER 31.

[N/A]    (b)   (SPECIFY) __.

LIMITATION YEAR. The Limitation Year is: (CHOOSE (c) OR (d))

[X]        (c)  The Plan Year.

[n/a]      (d)  The 12 consecutive month period ending every __.

           1.18 EFFECTIVE DATE.

NEW PLAN. The "Effective Date" of the Plan is __.

RESTATED PLAN. The restated Effective Date is JANUARY 1, 1997.
This Plan is a substitution and amendment of an existing retirement plan(s)
originally established JANUARY 1, 1992. [NOTE: SEE THE EFFECTIVE DATE ADDENDUM.]

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

[X]      (a)   The actual method.

[N/A]    (b)   The __ equivalency method, except:

         [N/A] (1)    No exceptions.

         [N/A] (2)    The actual method applies for purposes of: (CHOOSE AT
               LEAST ONE)

               [N/A] (a)   Participation under Article II.

               [N/A] (b)   Vesting under Article V.

               [N/A] (c)   Accrual of benefits under Section 3.06.

[NOTE: ON THE BLANK LINE INSERT "DAILY," "WEEKLY", "SEMI-MONTHLY PAYROLL
PERIODS" OR "MONTHLY."]

         1.29  SERVICE FOR PREDECESSOR EMPLOYER. In addition to the predecessor
service the Plan must credit by reason of Section 1.29 of the Plan, the Plan
credits Service with the following predecessor employer(s): N/A. Service with
the designated predecessor employer(s) applies: (CHOOSE AT LEAST ONE OF (a) OR
(b); (c) IS AVAILABLE ONLY IN ADDITION TO (a) OR (b))

[N/A]    (a)   For purposes of participation under Article II.

[N/A]    (b)   For purposes of vesting under Article V.

[N/A]    (c)   Except the following Service: __.

[NOTE: IF THE PLAN DOES NOT CREDIT ANY PREDECESSOR SERVICE UNDER THIS
PROVISION, INSERT "N/A" IN THE FLRST BLANK LINE. THE EMPLOYER MAY ATTACH A
SCHEDULE TO THIS ADOPTION AGREEMENT, IN THE SAME FORMAT AS THIS SECTION 1.29,
DESIGNATING ADDITIONAL PREDECESSOR EMPLOYERS AND THE APPLICABLE SERVICE
CREDITING ELECTIONS.]

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

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

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

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

         [N/A] (2) Must satisfy the features and, if a defined benefit plan, the
               method of reduction described in an addendum to this Adoption
               Agreement, numbered 1.31.

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                                ARTICLE II
                           EMPLOYEE PARTICIPANTS

           2.01  ELIGIBILITY.

ELIGIBILITY CONDITIONS. To become a Participant in the Plan, an Employee must
satisfy the following eligibility conditions: (CHOOSE (a) OR (b) OR BOTH;
(c) IS OPTIONAL AS AN ADDITIONAL ELECTION)

[X]        (a)   Attainment of age 21  (SPECIFY AGE, NOT EXCEEDING 21).

[X]        (b)   Service requirement. (CHOOSE ONE OF (1) THROUGH (3))

           [X]   (1) One Year of Service.

           [N/A] (2)  __ months (not exceeding 12) following the Employee's
                 Employment Commencement Date.

           [N/A] (3)  One Hour of Service.

[N/A]      (c)   Special requirements for non-401(k) portion of plan. (MAKE
                 ELECTIONS UNDER (1) AND UNDER (2))

                 (1)   The requirements of this Option (c) apply to
                       participation in: (CHOOSE AT LEAST ONE OF (a) THROUGH
                       (c))

                 [N/A] (a) The allocation of Employer nonelective contributions
                       and Participant forfeitures.

                 [N/A] (b) The allocation of Employer matching contributions
                       (including forfeitures allocated as matching
                       contributions).

                 [N/A] (c) The allocation of Employer qualified nonelective
                       contributions.

                 (2)   For participation in the allocations described in (1),
                 the eligibility conditions are: (CHOOSE AT LEAST ONE OF (a)
                 THROUGH (d))

                 [N/A] (a) __ (one or two) Year(s) of Service, without an
                       intervening Break in Service (as described in Section
                       2.03(A) of the Plan) if the requirement is two Years of
                       Service.

                 [N/A] (b) __ months (not exceeding 24) following the Employee's
                       Employment Commencement Date.

                 [N/A] (c) One Hour of Service.

                 [N/A] (d) Attainment of age __ (SPECIFY AGE, NOT EXCEEDING 21).

PLAN ENTRY DATE. "Plan Entry Date" means the Effective Date and: (CHOOSE (d),
(e) OR (f))

[N/A]      (d)   Semi-annual Entry Dates. The first day of the Plan Year and the
           first day of the seventh month of the Plan Year.

[N/A]      (e)   The first day of the Plan Year.

[X]        (f)   (SPECIFY ENTRY DATES) MONTHLY; THE FIRST PAY PERIOD OF THE
           MONTH FOLLOWING THE MONTH THE PARTICIPANT SATISFIES THE ELIGIBILITY
           REQUIREMENTS AND EACH SUBSEQUENT PAYROLL PERIOD.

TIME OF PARTICIPATION. An Employee will become a Participant (and, if
applicable, will participate in the allocations described in Option (c)(1)),
unless excluded under Adoption Agreement Section 1.07, on the Plan Entry Date
(if employed on that date): (CHOOSE (g), (h) OR (i))

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[X]        (g)   immediately following or coinciding with

[N/A]      (h)   immediately preceding

[N/A]      (i)   nearest

the date the Employee completes the eligibility conditions described in Options
(a) and (b) (or in Option (c)(2) if applicable) of this Adoption Agreement
Section 2.01. [NOTE: THE EMPLOYER MUST COORDINATE THE SELECTION OF (g), (h) OR
(i) WITH THE "PLAN ENTRY DATE" SELECTION IN (d), (e) OR (f). UNLESS OTHERWISE
EXCLUDED UNDER SECTION 1.07, THE EMPLOYEE MUST BECOME A PARTICIPANT BY THE
EARLIER OF: (1) THE FIRST DAY OF THE PLAN YEAR BEGINNING AFTER THE DATE THE
EMPLOYEE COMPLETES THE AGE AND SERVICE REQUIREMENTS OF CODE SECTION 410(a); OR
(2) 6 MONTHS AFTER THE DATE THE EMPLOYEE COMPLETES THOSE REQUIREMENTS.]

DUAL ELIGIBILITY. The eligibility conditions of this Section 2.01 apply
to: (CHOOSE (j) OR (k))

[X]        (j)   All Employees of the Employer, except: (CHOOSE (1) OR (2))

           [X]   (1) No exceptions.

           [n/a] (2) Employees who are Participants in the Plan as of the
                 Effective Date.

[N/A]      (k)   Solely to an Employee employed by the Employer after __.
           If the Employee was employed by the Employer on or before the
           specified date, the Employee will become a Participant: (CHOOSE (1),
           (2) OR (3))

           [N/A] (1) On the latest of the Effective Date, his Employment
                 Commencement Date or the date he attains age __ (not to exceed
                 21).

           [N/A] (2) Under the eligibility conditions in effect under the Plan
                 prior to the restated Effective Date. If the restated Plan
                 required more than one Year of Service to participate, the
                 eligibility condition under this Option (2) for participation
                 in the Code Section 401(k) arrangement under this Plan is one
                 Year of Service for Plan Years beginning after December 31,
                 1988. [FOR RESTATED PLANS ONLY]

           [N/A] (3) (Specify) __.

           2.02  YEAR OF SERVICE - PARTICIPATION.

HOURS OF SERVICE. An Employee must complete: (CHOOSE (a) OR (b))

[X]        (a)  1,000 Hours of Service

[N/A]      (b)  __ Hours of Service

during an eligibility computation period to receive credit for a Year of
Service. [NOTE: THE HOURS OF SERVICE REQUIREMENT MAY NOT EXCEED 1,000.]

ELIGIBILITY COMPUTATION PERIOD. After the initial eligibility computation
period described in Section 2.02 of the Plan, the Plan measures the
eligibility computation period as: (CHOOSE (c) OR (d))

[N/A]      (c)  The 12 consecutive month period beginning with each
           anniversary of an Employee's Employment Commencement Date.

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

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

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

[N/A]      (b)  Applies to the Employer's Plan.

           2.06  ELECTION NOT TO PARTICIPATE. The Plan: (CHOOSE (a) OR (b))

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

[N/A]      (b)  Does permit an eligible Employee or a Participant to elect
           not to participate in accordance with Section 2.06 and with the
           following rules: (COMPLETE (1), (2), (3) AND (4))

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

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

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

                [N/A] (a) May not again elect not to participate for any
                      subsequent Plan Year.

                [N/A] (b) May again elect not to participate, but not earlier
                      than the __ Plan Year following the Plan Year in which the
                      re-election first was effective.

                (4)   (SPECIFY) __ [INSERT "N/A" IF NO OTHER RULES APPLY].

                                    ARTICLE III
                     EMPLOYER CONTRIBUTIONS AND FORFEITURES

           3.01  AMOUNT

PART I. [OPTIONS (a) THROUGH (g)] AMOUNT OF EMPLOYER'S CONTRIBUTION. The
Employer's annual contribution to the Trust will equal the total amount of
deferral contributions, matching contributions, qualified nonelective
contributions and nonelective contributions, as determined under this Section
3.01. (CHOOSE ANY COMBINATION OF (a), (b), (c) AND (d), OR CHOOSE (e))

[X]        (a)  DEFERRAL CONTRIBUTIONS (CODE SECTION 401(k) ARRANGEMENT).
           (CHOOSE (1) OR (2) OR BOTH)

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

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

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

[X]        (c)  DESIGNATED QUALIFIED NONELECTIVE CONTRIBUTIONS. The Employer, in
           its sole discretion, may contribute an amount which it designates as
           a qualified nonelective contribution.

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[X]        (d)  NONELECTIVE CONTRIBUTIONS. (CHOOSE ANY COMBINATION OF (1)
           THROUGH (4))

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

           [N/A] (2)  The amount (or additional amount) the Employer may
                 from time to time deem advisable, separately determined for
                 each of the following classifications of Participants:
                 (CHOOSE (a) OR (b))

                  [N/A] (a)  Nonhighly Compensated Employees and Highly
                         Compensated Employees.

                  [N/A] (b)  (SPECIFY CLASSIFICATIONS) __.

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

           [N/A] (3) __% of the Compensation of all Participants under the Plan,
                 determined for the Employer's taxable year for which it makes
                 the contribution. [NOTE: THE PERCENTAGE SELECTED MAY NOT EXCEED
                 15%.]

           [N/A] (4) __% of Net Profits but not more than $__.

[N/A]      (e)  FROZEN PLAN. This Plan is a frozen Plan effective __. The
           Employer will not contribute to the Plan with respect to any period
           following the stated date.

NET PROFITS. The Employer: (CHOOSE (f) OR (g))

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

[N/A]      (g)  Must have current or accumulated Net Profits exceeding $__ to
           make the following contributions: (CHOOSE AT LEAST ONE)

           [N/A] (1) Cash or deferred contributions described in Option (a)(2)).

           [N/A] (2) Matching contributions described in Option (b), except: __.

           [N/A] (3) Qualified nonelective contributions described in
                 Option (c).

           [N/A] (4) Nonelective contributions described in Option (d).

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

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

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PART II. (OPTIONS (h) THROUGH (j)] MATCHING CONTRIBUTION FORMULA. (NOTE: IF
THE EMPLOYER ELECTED OPTION (b), COMPLETE OPTIONS (h), (i) AND (j).]

[X]  (h)    AMOUNT OF MATCHING CONTRIBUTIONS. For each Plan Year, the Employer's
     matching contribution is: (CHOOSE ANY COMBINATION OF (1), (2), (3), (4) AND
     (5))

     [N/A]  (1)    An amount equal to __% of each Participant's eligible
            contributions for the Plan Year.

     [N/A]  (2)    An amount equal to __% of each Participant's first tier of
            eligible contributions for the Plan Year, plus the following
            matching percentage(s) for the following subsequent tiers of
            eligible contributions for the Plan Year: __.

     [X]    (3)    Discretionary formula.

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

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

     [N/A]  (4)    An amount equal to the following percentage of each
            Participant's eligible contributions for the Plan Year, based on the
            Participant's Years of Service:

<Table>
<Caption>
                Number of Years of Service              Matching Percentage
                --------------------------              -------------------
<S>                                                         <C>
                         ----                               ----
                         ----                               ----
                         ----                               ----
                         ----                               ----
</Table>

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

     [N/A]  (5)    A Participant's matching contributions may not: (CHOOSE (a)
            OR (b))

            [N/A]  (a)  Exceed __.

            [N/A]  (b)  Be less than __.

     RELATED EMPLOYERS. If two or more related employers (as defined in Section
     1.30) contribute to this Plan, the related employers may elect different
     matching contribution formulas by attaching to the Adoption Agreement a
     separately completed copy of this Part II. NOTE: SEPARATE MATCHING
     CONTRIBUTION FORMULAS CREATE SEPARATE CURRENT BENEFIT STRUCTURES THAT MUST
     SATISFY THE MINIMUM PARTICIPATION TEST OF CODE SECTION 401(a)(26).]

[X]  (i)    DEFINITION OF ELIGIBLE CONTRIBUTIONS. Subject to the requirements of
     Option (j), the term "eligible contributions" means: (CHOOSE ANY
     COMBINATION OF (1) THROUGH (3))

     [X]    (1)    Salary reduction contributions.

     [N/A]  (2)    Cash or deferred contributions (including any part of the
            Participant's proportionate share of the cash or deferred
            contribution which the Employer defers without the Participant's
            election).

                                       9

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     [N/A]  (3)    Participant mandatory contributions, as designated in
            Adoption Agreement Section 4.01. See Section 14.04 of the Plan.

[X]  (j)    AMOUNT OF ELIGIBLE CONTRIBUTIONS TAKEN INTO ACCOUNT. When
     determining a Participant's eligible contributions taken into account under
     the matching contributions formula(s), the following rules apply: (CHOOSE
     ANY COMBINATION OF (1) THROUGH (4))

     [N/A]  (1)    The Advisory Committee will take into account all eligible
            contributions credited for the Plan Year.

     [N/A]  (2)    The Advisory Committee will disregard eligible contributions
            exceeding __.

     [N/A]  (3)    The Advisory Committee will treat as the first tier of
            eligible contributions, an amount not exceeding: __.
            The subsequent tiers of eligible contributions are: __.

     [X]    (4)    (SPECIFY) AN AMOUNT DETERMINED IN ITS DISCRETION.

PART III. [OPTIONS (k) AND (l)]. SPECIAL RULES FOR CODE SECTION 401(k)
ARRANGEMENT. (CHOOSE (k) OR (l), OR BOTH, AS APPLICABLE)

[X]  (k)    SALARY REDUCTION AGREEMENTS. The following rules and restrictions
     apply to an Employee's salary reduction agreement: (MAKE A SELECTION UNDER
     (1), (2), (3) AND (4))

     (1)    Limitation on amount. The Employee's salary reduction
     contributions: (CHOOSE (a) OR AT LEAST ONE OF (b) OR (c))

     [N/A]  (a)    No maximum limitation other than as provided in the Plan.

     [X]    (b)    May not exceed 20% of Compensation for the Plan Year, subject
            to the annual additions limitation described in Part 2 of Article
            III and the 402(g) limitation described in Section 14.07 of the
            Plan.

     [N/A]  (c)    Based on percentages of Compensation must equal at least __.

     (2)    An Employee may revoke, on a prospective basis, a salary reduction
     agreement: (CHOOSE (a), (b), (c) OR (d))

     [N/A]  (a)    Once during any Plan Year but not later than __ of the Plan
            Year.

     [X]    (b)    As of any Plan Entry Date.

     [N/A]  (c)    As of the first day of any month.

     [N/A]  (d)    (SPECIFY, BUT MUST BE AT LEAST ONCE PER PLAN YEAR) __.

     (3)    An Employee who revokes his salary reduction agreement may file a
     new salary reduction agreement with an effective date: (CHOOSE (a), (b),
     (c) OR (d))

     [N/A]  (a)    No earlier than the first day of the next Plan Year.

     [N/A]  (b)    As of any subsequent Plan Entry Date.

     [N/A]  (c)    As of the first day of any month subsequent to the month in
            which he revoked an Agreement.

     [X]    (d)    (SPECIFY, BUT MUST BE AT LEAST ONCE PER PLAN YEAR FOLLOWING
            THE PLAN YEAR OF REVOCATION) ON THE NEXT OPEN ENROLLMENT PERIOD AS
            DEFINED BY EMPLOYER POLICY.

                                      10
<Page>

       (4)    A Participant may increase or may decrease, on a prospective
       basis, his salary reduction percentage or dollar amount: (CHOOSE (a),
       (b), (c) OR (d))

       [X]    (a)    As of the beginning of each payroll period.

       [N/A]  (b)    As of the first day of each month

       [N/A]  (c)    As of any Plan Entry Date.

       [X]    (d)    (SPECIFY, BUT MUST PERMIT AN INCREASE OR A DECREASE AT
              LEAST ONCE PER PLAN YEAR) HOWEVER, AN INCREASE FROM A "ZERO"
              PERCENTAGE CAN BE MADE ONLY AT THE NEXT PAYROLL ENROLLMENT PERIOD.

[N/A]  (1)    CASH OR DEFERRED CONTRIBUTIONS. For each Plan Year for which the
       Employer makes a designated cash or deferred contribution, a  Participant
       may elect to receive directly in cash not more than the following portion
       (or, if less, the 402(g) limitation described in Section 14.07 of the
       Plan) of his proportionate share of that cash or deferred contribution:
       (CHOOSE (1) OR (2))

       [N/A]  (1)    All or any portion.

       [N/A]  (2)    __%.

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

PART 1. [OPTIONS (a) THROUGH (d)]. SPECIAL ACCOUNTING ELECTIONS. (CHOOSE
WHICHEVER ELECTIONS ARE APPLICABLE TO THE EMPLOYER'S PLAN)

[X]    (a)    MATCHING CONTRIBUTIONS ACCOUNT. The Advisory Committee will
       allocate matching contributions to a Participant's: (CHOOSE (1) OR (2);
       (3) IS AVAILABLE ONLY IN ADDITION TO (1))

       [X]    (1)    Regular Matching Contributions Account.

       [X]    (2)    Qualified Matching Contributions Account.

       [X]    (3)    Except, matching contributions under Option(s) (1) OR (2)
              MAY BE DESIGNATED OR REDESIGNATED AS SUCH BY THE EMPLOYER TO THE
              EXTENT PERMITTED BY LAW, REGARDLESS OF WHETHER THE PLAN PROVIDES
              THAT SUCH MATCHING CONTRIBUTIONS UNDER THE RULE of Adoption
              Agreement Section 3.01 are allocable to the Qualified Matching
              Contributions Account.

[N/A]  (b)    SPECIAL ALLOCATION DATES FOR SALARY REDUCTION CONTRIBUTIONS. The
       Advisory Committee will allocate salary reduction contributions as of the
       Accounting Date and as of the following additional allocation dates: __.

[N/A]  (c)    SPECIAL ALLOCATION DATES FOR MATCHING CONTRIBUTIONS. The Advisory
       Committee will allocate matching contributions as of the Accounting Date
       and as of the following additional allocation dates: __.

[X]    (d)    DESIGNATED QUALIFIED NONELECTIVE CONTRIBUTIONS - DEFINITION OF
       PARTICIPANT. For purposes of allocating the designated qualified
       nonelective contribution, "Participant" means. (CHOOSE (1) OR (2))

       [N/A]  (1)    All Participants.

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

       [N/A]  (3)    (Specify) __.

                                      11

<Page>

PART II. METHOD OF ALLOCATION - NONELECTIVE CONTRIBUTION. Subject to any
restoration allocation required under Section 5.04, the Advisory Committee will
allocate and credit each annual nonelective contribution (and Participant
forfeitures treated as nonelective contributions) to the Employer Contributions
Account of each Participant who satisfies the conditions of Section 3.06, in
accordance with the allocation method selected under this Section 3.04. If the
Employer elects Option (e)(2), Option (g)(2) or Option (h), for the first 3% of
Compensation allocated to all Participants, "Compensation" does not include any
exclusions elected under Adoption Agreement Section 1.12 (other than the
exclusion of elective contributions), and the Advisory Committee must take into
account the Participant's Compensation for the entire Plan Year. (CHOOSE AN
ALLOCATION METHOD UNDER (e), (f), (g) OR (h), (i) IS MANDATORY IF THE EMPLOYER
ELECTS (f), (g) OR (h); (j) IS OPTIONAL IN ADDITION TO ANY OTHER ELECTION.)

[X]    (e)    NONINTEGRATED ALLOCATION FORMULA. (CHOOSE (1) OR (2))

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

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

[n/a]  (f)    TWO-TIERED INTEGRATED ALLOCATION FORMULA - MAXIMUM DISPARITY.
       First, the Advisory Committee will allocate the annual Employer
       nonelective contributions in the same ratio that each Participant's
       Compensation plus Excess Compensation for the Plan Year bears to the
       total Compensation plus Excess Compensation of all Participants for the
       Plan Year. The allocation under this paragraph, as a percentage of each
       Participant's Compensation plus Excess Compensation, must not exceed the
       applicable percentage (5.7%, 5.4% or 4.3%) listed under the Maximum
       Disparity Table following Option (i).

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

[N/A]  (g)    THREE-TIERED INTEGRATED ALLOCATION FORMULA. First, the Advisory
       Committee will allocate the annual Employer nonelective contributions in
       the same ratio that each Participant's Compensation for the Plan Year
       bears to the total Compensation of all Participants for the Plan Year.
       The allocation tinder this paragraph, as a percentage of each
       Participant's Compensation may not exceed the applicable percentage
       (5.7%, 5.4% or 4.3%) listed under the Maximum Disparity Table following
       Option (i). Solely for purposes of the allocation in this first
       paragraph, "Participant" means, in addition to a Participant who
       satisfies the requirements of Section 3.06 for the Plan Year. (CHOOSE (1)
       OR (2))

       [N/A]  (1)    No other Participant.

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

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

                                      12

<Page>

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

[N/A]  (h)    FOUR-TIERED INTEGRATED ALLOCATION FORMULA. First, the Advisory
       Committee will allocate the annual Employer nonelective contributions in
       the same ratio that each Participant's Compensation for the Plan Year
       bears to the total Compensation of all Participants for the Plan Year,
       but not exceeding 3% of each Participant's Compensation. Solely for
       purposes of this first tier allocation, a "Participant" means, in
       addition to any Participant who satisfies the requirements of Section
       3.06 for the Plan Year, any other Participant entitled to a top heavy
       minimum allocation under Section 3.04(B) of the Plan.

       As a second tier allocation, the Advisory Committee will allocate the
       nonelective contributions in the same ratio that each Participant's
       Excess Compensation for the Plan Year bears to the total Excess
       Compensation of all Participants for the Plan Year, but not exceeding 3%
       of each Participant's Excess Compensation.

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

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

[N/A]  (i)    EXCESS COMPENSATION. For purposes of Option (f), (g) or (h),
       "Excess Compensation" means Compensation in excess of the following
       Integration Level: (CHOOSE (1) OR (2))

       [N/A]  (1)    __% (not exceeding 100%) of the taxable wage base, as
              determined under Section 230 of the Social Security Act, in effect
              on the first day of the Plan Year: (CHOOSE ANY COMBINATION OF (a)
              AND (b) OR CHOOSE (c))

              [N/A]  (a)  Rounded to __ (but not exceeding the taxable wage
                     base).

              [N/A]  (b)  But not greater than $__.

              [N/A]  (c)  Without any further adjustment or limitation.

       [N/A]  (2)    $__ [NOTE: NOT EXCEEDING THE TAXABLE WAGE BASE FOR THE PLAN
              YEAR IN WHICH THIS ADOPTION AGREEMENT FIRST IS EFFECTIVE.]

                                      13
<Page>

MAXIMUM DISPARITY TABLE. For purposes of Options (f), (g) and (h), the
applicable percentage is:

<Table>
<Caption>
         Integration Level (as               Applicable Percentages for        Applicable Percentages
   percentage of taxable wage base)           Option (f) or Option (g)              for Option (h)
   --------------------------------          -------------------------         ----------------------
<S>                                          <C>                               <C>
100%                                                     5.7%                            2.7%
More than 80% but less than 100%                         5.4%                            2.4%
More than 20% (but not less than $10,001)
and not more than 80%                                    4.3%                            1.3%
20% (or $10,000, if greater) or less                     5.7%                            2.7%
</Table>

[N/A]    (j) ALLOCATION OFFSET. The Advisory Committee will reduce a
         Participant's allocation otherwise made under Part II of this Section
         3.04 by the Participant's allocation under the following qualified
         plan(s) maintained by the Employer:________________.

         The Advisory Committee will determine this allocation reduction:
         (CHOOSE (1) OR (2))

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

         [N/A](2) In accordance with the formula provided in an addendum to this
                  Adoption Agreement, numbered 3.04(j).

TOP HEAVY MINIMUM ALLOCATION - METHOD OF COMPLIANCE. If a Participant's
allocation under this Section 3.04 is less than the top heavy minimum allocation
to which he is entitled under Section 3.04(B): (CHOOSE (k) OR (l))

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

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

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

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

[N/A]    (m) Without regard to which contributing related group member employs
         the Participant.

[N/A]    (n) Only to the Participants directly employed by the contributing
         Employer. If a Participant receives Compensation from more than one
         contributing Employer, the Advisory Committee will determine the
         allocations

                                       14
<Page>

         under this Adoption Agreement Section 3.04 by prorating among the
         participating Employers the Participant's Compensation and, if
         applicable, the Participant's Integration Level under Option (i).

     3.05 FORFEITURE ALLOCATION. Subject to any restoration allocation required
under Sections 5.04 or 9.14, the Advisory Committee will allocate a Participant
forfeiture in accordance with Section 3.04: (CHOOSE (a) OR (b); (c) AND (d)
ARE OPTIONAL IN ADDITION TO (a) OR (b))

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

[N/A]    (b) To reduce the Employer matching contributions and nonelective
         contributions for the Plan Year: (CHOOSE (1) OR (2))

         [N/A]    (1) in which the forfeiture occurs.

         [N/A]    (2) immediately following the Plan Year in which the
                  forfeiture occurs.

[X]      (c) To the extent attributable to matching contributions: (CHOOSE (1),
         (2) OR (3))

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

         [N/A]    (2) First to reduce Employer matching contributions for the
                  Plan Year: (CHOOSE (a) OR (b))

                  [N/A]    (a) in which the forfeiture occurs,

                  [N/A]    (b) immediately following the Plan Year in which the
                           forfeiture occurs, then as elected in Options (a) or
                           (b).

         [N/A]    (3) As a discretionary matching contribution for the Plan Year
                  in which the forfeiture occurs, in lieu of the manner elected
                  under Options (a) or (b).

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

         [X]      (1) relate proportionately to forfeitures described in Option
                  (c) and to forfeitures described in Options (a) or (b).

         [N/A]    (2) relate first to forfeitures described in Option_________.

ALLOCATION OF FORFEITED EXCESS AGGREGATE CONTRIBUTIONS. The Advisory Committee
will allocate any forfeited excess aggregate contributions (as described in
Section 14.09): (CHOOSE (e), (f) OR (g))

[X]      (e) To reduce Employer matching contributions for the Plan Year:
         (CHOOSE (1) OR (2))

         [X]      (1) in which the forfeiture occurs.

         [N/A]    (2) immediately following the Plan Year in which the
                  forfeiture occurs.

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

                                       15
<Page>

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

     3.06 ACCRUAL OF BENEFIT.

COMPENSATION TAKEN INTO ACCOUNT. For the Plan Year in which the Employee first
becomes a Participant, the Advisory Committee will determine the allocation of
any cash or deferred contribution, designated qualified nonelective contribution
by taking into account: (CHOOSE (a) OR (b))

[X]      (a) The Employee's Compensation for the entire Plan Year.

[N/A]    (b) The Employee's Compensation for the portion of the Plan Year in
         which the Employee actually is a Participant in the Plan.

ACCRUAL REQUIREMENTS. Subject to the suspension of accrual requirements of
Section 3.06(E) of the Plan, to receive an allocation of cash or deferred
contributions, matching contributions, designated qualified nonelective
contributions, nonelective contributions and Participant forfeitures, if any,
for the Plan Year, a Participant must satisfy the conditions described in the
following elections: (CHOOSE (c), OR AT LEAST ONE OF (d) THROUGH (f))

[N/A]    (c) SAFE HARBOR RULE. If the Participant is employed by the Employer on
         the last day of the Plan Year, the Participant must complete at least
         one Hour of Service for that Plan Year. If the Participant is not
         employed by the Employer on the last day of the Plan Year, the
         Participant must complete at least 501 Hours of Service during the Plan
         Year.

[X]      (d) HOURS OF SERVICE CONDITION. The Participant must complete the
         following minimum number of Hours of Service during the Plan Year:
         (CHOOSE AT LEAST ONE OF (1) THROUGH (5))

         [X]      (1) 1,000 Hours of Service.

         [N/A]    (2) (SPECIFY, BUT THE NUMBER OF HOURS OF SERVICE MAY NOT
                  EXCEED 1,000)____________.

         [N/A]    (3) No Hour of Service requirement if the Participant
                  terminates employment during the Plan Year on account of:
                  (CHOOSE (a), (b) OR (c))

                  [N/A]    (a) Death.

                  [N/A]    (b) Disability.

                  [N/A]    (c) Attainment of Normal Retirement Age in the
                           current Plan Year or in a prior Plan Year.

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

         [X]      (5) No Hour of Service requirement for an allocation of the
                  following contributions: MATCHING CONTRIBUTIONS.

[X]      (e) EMPLOYMENT CONDITION. The Participant must be employed by the
         Employer on the last day of the Plan Year, irrespective of whether he
         satisfies any Hours of Service condition under Option (d), with the
         following exceptions: (CHOOSE (1) OR AT LEAST ONE OF (2) THROUGH (5))

         [X]      (1) No exceptions.

         [N/A]    (2) Termination of employment because of death.

                                       16
<Page>

         [N/A]    (3) Termination of employment because of disability.

         [N/A]    (4) Termination of employment following attainment of Normal
                  Retirement Age.

         [X]      (5) No employment condition for the following contributions:
                  MATCHING CONTRIBUTIONS.

[N/A]    (f) (SPECIFY OTHER CONDITIONS, IF APPLICABLE): ____.

SUSPENSION ACCRUAL REQUIREMENTS. The suspension of accrual requirements of
Section 3.06(E) of the Plan. (CHOOSE (g), (h) OR (i))

[N/A]    (g) Applies to the Employer's Plan.

[X]      (h) Does not apply to the Employer's Plan.

[N/A]    (i) Applies in modified form to the Employer's Plan, as described in an
         addendum to this Adoption Agreement, numbered Section 3.06(E).

SPECIAL ACCRUAL REQUIREMENTS FOR MATCHING CONTRIBUTIONS. If the Plan allocates
matching contributions on two or more allocation dates for a Plan Year, the
Advisory Committee, unless otherwise specified in Option (l), will apply any
Hours of Service condition by dividing the required Hours of Service on a
prorata basis to the allocation periods included in that Plan Year. Furthermore,
a Participant who satisfies the conditions described in this Adoption Agreement
Section 3.06 will receive an allocation of matching contributions (and
forfeitures treated as matching contributions) only if the Participant
satisfies the following additional condition(s): (CHOOSE (j) OR AT LEAST ONE OF
(k) OR (l))

[N/A]    (j)  No additional conditions.

[N/A]    (k) The Participant is not a Highly Compensated Employee for the
         Plan Year. This Option (k) applies to: (CHOOSE (1) OR (2))

         [N/A]    (1) All matching contributions.

         [N/A]    (2) Matching contributions described in Option(s) ______ of
                  Adoption Agreement Section 3.01.

[N/A]    (l) (SPECIFY) __.

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

[N/A]    (a) The product of:

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

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

[X]      (b) The total Excess Amount.

[N/A]    (c) None of the Excess Amount.

                                       17

<Page>

     3.18 DEFINED BENEFIT PLAN LIMITATION.

APPLICATION OF LIMITATION. The limitation under Section 3.18 of the Plan (CHOOSE
(a) OR (b))

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

[N/A]    (b) Applies to the Employer's Plan. To the extent necessary to satisfy
         the limitation under Section 3.18, the Employer will reduce: (CHOOSE
         (1) OR (2))

         [N/A]    (1) The Participant's projected annual benefit under the
                  defined benefit plan under which the Participant participates.

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

(NOTE: IF THE EMPLOYER SELECTS (a), THE REMAINING OPTIONS IN THIS SECTION 3.18
DO NOT APPLY TO THE EMPLOYER'S PLAN.

COORDINATION WITH TOP HEAVY MINIMUM ALLOCATION. The Advisory Committee will
apply the top heavy minimum allocation provisions of Section 3.04(B) of the Plan
with the following modifications: (CHOOSE (c) OR AT LEAST ONE OF (d) OR (e))

[N/A]    (c) No modifications.

[N/A]    (d) For Non-Key Employees participating only in this Plan, the top
         heavy minimum allocation is the minimum allocation described in
         Section 3.04(B) determined by substituting _% (not less than 4%) for
         "3%," except: (CHOOSE (1) OR (2))

         [N/A]    (1) No exceptions.

         [N/A]    (2) Plan Years in which the top heavy ratio exceeds 90%.

[N/A]    (e) For Non-Key Employees also participating in the defined benefit
         plan, the top heavy minimum is: (CHOOSE (1) OR (2))

         [N/A]    (1) 5% of Compensation (as determined under Section 3.04(B) of
                  the Plan) irrespective of the contribution rate of any Key
                  Employee, except: (CHOOSE (i) or (ii))

                  [N/A]    (a) No exceptions.

                  [N/A]    (b) Substituting "7 1/2%" for "5%" if the top heavy
                           ratio does not exceed 90%.

         [N/A]    (2) 0%. [NOTE: THE EMPLOYER MAY NOT SELECT THIS OPTION (2)
                  UNLESS THE DEFINED BENEFIT PLAN SATISFIES THE TOP HEAVY
                  MINIMUM BENEFIT REQUIREMENTS OF CODE SECTION 416 FOR THESE
                  NON-KEY EMPLOYEES.]

ACTUARIAL ASSUMPTIONS FOR TOP HEAVY CALCULATION. To determine the top heavy
ratio, the Advisory Committee will use the following interest rate and
mortality assumptions to value accrued benefits under a defined benefit
plan: __.

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

                                       18
<Page>

                                   ARTICLE IV
                           PARTICIPANT CONTRIBUTIONS

     4.01 PARTICIPANT NONDEDUCTIBLE CONTRIBUTIONS. The Plan: (CHOOSE (a) OR (b),
(c) IS AVAILABLE ONLY WITH (b))

[X]      (a) Does not permit Participant nondeductible contributions.

[N/A]    (b) Permits Participant nondeductible contributions, pursuant to
         Section 14.04 of the Plan.

[N/A]    (c) The following portion of the Participant's nondeductible
         contributions for the Plan Year are mandatory contributions under
         Option (i)(3) of Adoption Agreement Section 3.01: (Choose (1) OR (2))

         [N/A]    (1) The amount which is not less than: _.

         [N/A]    (2) The amount which is not greater than: _.

ALLOCATION DATES. The Advisory Committee will allocate nondeductible
contributions for each Plan Year as of the Accounting Date and the following
additional allocation dates: (CHOOSE (d) OR (e))

[N/A]    (d) No other allocation dates.

[N/A]    (e) (SPECIFY) _.

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

     4.05 PARTICIPANT CONTRIBUTION - WITHDRAWAL/DISTRIBUTION. Subject to the
restrictions of Article VI, the following distribution options apply to a
Participant's Mandatory Contributions Account, if any, prior to his Separation
from Service: (CHOOSE (a) OR AT LEAST ONE OF (b) THROUGH (d))

[N/A]    (A) No distribution options prior to Separation from Service.

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

[N/A]    (c) Until he retires, the Participant has a continuing election to
         receive all or any portion of his Mandatory Contributions Account if:
         (CHOOSE (1) OR AT LEAST ONE OF (2) THROUGH (4))

         [N/A]    (1) No conditions.

         [N/A]    (2) The mandatory contributions have accumulated for at least
                  ___ Plan Years since the Plan Year for which contributed.

         [N/A]    (3) The Participant suspends making nondeductible
                  contributions for a period of _ months.

         [N/A]    (4) (SPECIFY) _.

[N/A]    (d) (SPECIFY) _.

                                       19
<Page>

                                    ARTICLE V
                  TERMINATION OF SERVICE - PARTICIPANT VESTING

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

[X]      (a) 65 [STATE AGE, BUT MAY NOT EXCEED AGE 65]

[N/A]    (b) The later of the date the Participant attains _ years of age or
         the _ anniversary of the first day of the Plan Year in which the
         Participant commenced participation in the Plan. (THE AGE SELECTED MAY
         NOT EXCEED AGE 65 AND THE ANNIVERSARY SELECTED MAY NOT EXCEED THE 5TH.]

     5.02 PARTICIPANT DEATH OR DISABILITY. The 100% vesting rule under Section
5.02 of the Plan: (CHOOSE (a) OR CHOOSE ONE OR BOTH OF (b) AND (c))

[N/A]    (a) Does not apply.

[X]      (b) Applies to death.

[X]      (c) Applies to disability.

         5.03     VESTING SCHEDULE.

DEFERRAL CONTRIBUTIONS ACCOUNT/QUALIFIED MATCHING CONTRIBUTIONS
ACCOUNT/QUALIFIED NONELECTIVE CONTRIBUTIONS ACCOUNT/MANDATORY CONTRIBUTIONS
ACCOUNT. A Participant has a 100% Nonforfeitable interest at all times in his
Deferral Contributions Account, his Qualified Matching Contributions Account,
his Qualified Nonelective Contributions Account and in his Mandatory
Contributions Account.

REGULAR MATCHING CONTRIBUTIONS ACCOUNT/EMPLOYER CONTRIBUTIONS ACCOUNT. With
respect to a Participant's Regular Matching Contributions Account and Employer
Contributions Account, the Employer elects the following vesting schedule:
(CHOOSE (a) OR (b); (c) AND (d) ARE AVAILABLE ONLY AS ADDITIONAL OPTIONS)

[N/A]    (a) Immediate vesting. 100% Nonforfeitable at all times. [Note: THE
         EMPLOYER MUST ELECT OPTION (a) IF THE ELIGIBILITY CONDITIONS UNDER
         ADOPTION AGREEMENT SECTION 2.01 (c) REQUIRE 2 YEARS OF SERVICE OR MORE
         THAN 12 MONTHS OF EMPLOYMENT.]

[X]      (b) Graduated Vesting Schedules.

<Table>
<Caption>
              TOP HEAVY SCHEDULE                NON TOP HEAVY SCHEDULE
                  (MANDATORY)                            (OPTIONAL)

Years of            Nonforfeitable       Years of        Nonforfeitable
Service               Percentage         Service            Percentage
<S>                 <C>                  <C>                 <C>
Less than 1               0%             Less than 1            0%
     1                   20%              1                    20%
     2                   40%              2                    40%
     3                   60%              3                    60%
     4                   80%              4                    80%
     5                  100%              5                   100%
 6 or more              100%              6                   100%
                                      7 or more               100%
</Table>

                                       20
<Page>

[N/A]    (c) Special vesting election for Regular Matching Contributions
         Account. In lieu of the election under Options (a) or (b), the Employer
         elects the following vesting schedule for a Participant's Regular
         Matching Contributions Account: (CHOOSE (1) OR (2))

         [N/A]    (1) 100% Nonforfeitable at all times.

         [N/A]    (2) In accordance with the vesting schedule described in the
                  addendum to this Adoption Agreement, numbered 5.03(c). [NOTE:
                  IF THE EMPLOYER ELECTS THIS OPTION (c)(2), THE ADDENDUM MUST
                  DESIGNATE THE APPLICABLE VESTING SCHEDULE(S) USING THE SAME
                  FORMAT AS USED IN OPTION (b).]

[NOTE: UNDER OPTIONS (b) AND (c)(2), THE EMPLOYER MUST COMPLETE A TOP HEAVY
SCHEDULE WHICH SATISFIES CODE Section 416. THE EMPLOYER, AT ITS OPTION, MAY
COMPLETE A NON TOP HEAVY SCHEDULE. THE NON TOP HEAVY SCHEDULE MUST SATISFY
CODE SECTION 411(a)(2). ALSO SEE SECTION 7.05 OF THE PLAN.]

(d)      The Top Heavy Schedule under Option (b) (and, if applicable, under
         Option (c)(2)) APPLIES: (CHOOSE (1) OR (2))

         (X]      (1) Only in a Plan Year for which the Plan is top heavy.

         [N/A]    (2) In the Plan Year for which the Plan first is top heavy and
                  then in all subsequent Plan Years. [NOTE: THE EMPLOYER MAY NOT
                  ELECT OPTION (d) UNLESS IT HAS COMPLETED A NON TOP HEAVY
                  SCHEDULE.]

MINIMUM VESTING. (CHOOSE (e) OR (f))

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

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

LIFE INSURANCE INVESTMENTS. The Participant's Accrued Benefit attributable to
insurance contracts purchased on his behalf under Article XI is: (CHOOSE (g) OR
(h))

[N/A]    (g) Subject to the vesting election under Options (a), (b) or (c).

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

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

[N/A]    (a) Does not apply.

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

                                       21

<Page>

     5.06 YEAR OF SERVICE - VESTING.

VESTING COMPUTATION PERIOD. The Plan measures a Year of Service on the basis
of the following 12 consecutive month periods: (CHOOSE (a) OR (b))

[X]      (a) Plan Years.

[N/A]    (b) Employment Years. An Employment Year is the 12 consecutive month
         period measured from the Employee's Employment Commencement Date and
         each successive 12 consecutive month period measured from each
         anniversary of that Employment Commencement Date.

HOURS OF SERVICE. The minimum number of Hours of Service an Employee must
complete during a vesting computation period to receive credit for a Year of
Service is: (CHOOSE (c) OR (d))

[X]      (c) 1,000 Hours of Service.

[N/A]    (d) ___ Hours of Service. [NOTE: THE HOURS OF SERVICE REQUIREMENT MAY
         NOT EXCEED 1,000.]

     5.08 INCLUDED YEARS OF SERVICE - VESTING. The Employer specifically
excludes the following Years of Service: (CHOOSE (a) OR AT LEAST ONE OF (b)
THROUGH (e))

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

[N/A]    (b) Any Year of Service before the Participant attained the age of _.
         [NOTE: THE AGE SELECTED MAY NOT EXCEED AGE 18.]

[N/A]    (c) Any Year of Service during the period the Employer did not maintain
         this Plan or a predecessor plan.

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

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

                                   ARTICLE VI
                     TIME AND METHOD OF PAYMENTS OF BENEFITS

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

                                       22
<Page>

     6.01 TIME OF PAYMENT OF ACCRUED BENEFIT.

DISTRIBUTION DATE. A distribution date under the Plan means any day the
Trustee and all major stock exchanges are open for business ("a valuation
date"). [NOTE: THE EMPLOYER MUST SPECIFY THE APPROPRIATE DATE(S). THE SPECIFIED
DISTRIBUTION DATES PRIMARILY ESTABLISH ANNUITY STARTING DATES AND THE NOTICE AND
CONSENT PERIODS PRESCRIBED BY THE PLAN. THE PLAN ALLOWS THE TRUSTEE AN
ADMINISTRATIVELY PRACTICABLE PERIOD OF TIME TO MAKE THE ACTUAL DISTRIBUTION
RELATING TO A PARTICULAR DISTRIBUTION DATE.]

NONFORFEITABLE ACCRUED BENEFIT NOT EXCEEDING $3,500. Subject to the limitations
of Section 6.01(A)(1), the distribution date for distribution of a
Nonforfeitable Accrued Benefit not exceeding $3,500 is: (CHOOSE (a), (b), (c)
(d) OR (e))

[N/A]    (a) ___ of the ___ Plan Year beginning after the Participant's
         Separation from Service.

[X]      (b) any valuation date following the Participant's Separation from
         Service.

[N/A]    (c) ___ of the Plan Year after the Participant incurs ___ Break(s)
         in Service (as defined in Article V).

[N/A]    (d) ___ following the Participant's attainment of Normal Retirement
         Age, but not earlier than _ days following his Separation from Service.

[N/A]    (e) (SPECIFY) ___.

NONFORFEITABLE ACCRUED BENEFIT EXCEEDS $3,500. See the elections under Section
6.03.

DISABILITY. The distribution date, subject to Section 6.01(A)(3), is:
(CHOOSE (f), (g) OR (h))

[N/A]    (f) ___ after the Participant terminates employment because of
         disability.

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

[N/A]    (h) (SPECIFY) ___.

HARDSHIP. (CHOOSE (i) OR (j))

[X]      (i) The Plan does not permit a hardship distribution to a Participant
         who has separated from service.

[N/A]    (j) The Plan permits a hardship distribution to a Participant who has
         separated from Service in accordance with the hardship distribution
         policy stated in: (CHOOSE (1), (2) OR (3))

         [N/A]    (1) Section 6.01(A)(4) of the Plan.

         [N/A]    (2) Section 14.11 of the Plan.

         [N/A]    (3) The addendum to this Adoption Agreement, numbered Section
                  6.01.

                                       23
<Page>

DEFAULT ON A LOAN. If a Participant or Beneficiary defaults on a loan made
pursuant to a loan policy adopted by the Advisory Committee pursuant to Section
9.04, the Plan: (CHOOSE (k), (l) OR (m))

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

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

[X]      (m) (SPECIFY) A default is treated under Option (1) or (2) to the
         extent permitted by law

     6.02 METHOD OF PAYMENT OF ACCRUED BENEFIT. The Advisory Committee will
apply Section 6.02 of the Plan with the following modifications: (CHOOSE (a) OR
AT LEAST ONE OF (b), (c), (d) AND (e))

[N/A]    (a) No modifications.

[N/A]    (b) Except as required under Section 6.01 of the Plan, a lump sum
         distribution is not available: ___.

[X]      (c) An installment distribution: (CHOOSE (1) OF AT LEAST ONE OF (2) OR
         (3))

         [X]      (1) Is not available under the Plan.

         [N/A]    (2) May not exceed the lesser of ___ years or the maximum
                  period permitted under Section 6.02.

         [N/A]    (3) (SPECIFY) ___.

[N/A]      (d) The Plan permits the following annuity options:

     Any Participant who elects a life annuity option is subject to the
requirements of Sections 6.04(A), (B), (C) and (D) of the Plan. See Section
6.04(E). [NOTE: THE EMPLOYER MAY SPECIFY ADDITIONAL ANNUITY OPTIONS IN AN
ADDENDUM TO THIS ADOPTION AGREEMENT, NUMBERED 6.02(d).]

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

     6.03 BENEFIT PAYMENT ELECTIONS.

PARTICIPANT ELECTIONS AFTER SEPARATION FROM SERVICE. A Participant who is
eligible to make distribution elections under Section 6.03 of the Plan may elect
to commence distribution of his Nonforfeitable Accrued Benefit: (CHOOSE AT LEAST
ONE OF (a) THROUGH (c))

[N/A]    (a) As of any distribution date, but not earlier than ___ of the ___
         Plan Year beginning after the Participant's Separation from Service.

[X]      (b) As of the following date(s): (CHOOSE AT LEAST ONE OF OPTIONS (1)
         THROUGH (6))

                                       24
<Page>

         [N/A]    (1) Any distribution date after the close of the Plan Year
                  in which the Participant attains Normal Retirement Age.

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

         [N/A]    (3) Any distribution date in the ___ Plan Year(s) beginning
                  after his Separation from Service.

         [N/A]    (4) Any distribution date in the Plan Year after the
                  Participant incurs ___ Break(s) in Service (as defined in
                  Article V).

         [N/A]    (5) Any distribution date following attainment of age ___ and
                  completion of at least ___ Years of Service (as defined in
                  Article V).

         [N/A]    (6) (SPECIFY) ___.

[N/A]    (c) (SPECIFY) ___.

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

PARTICIPANT ELECTIONS PRIOR TO SEPARATION FROM SERVICE - REGULAR MATCHING
CONTRIBUTIONS ACCOUNT AND EMPLOYER CONTRIBUTIONS ACCOUNT. Subject to the
restrictions of Article VI, the following distribution options apply to a
Participant's Regular Matching Contributions Account and Employer Contributions
Account prior to his Separation from Service. (CHOOSE (d) OR AT LEAST ONE OF (e)
THROUGH (h))

[N/A]    (d) No distribution options prior to Separation from Service.

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

         [N/A]    (1) Normal Retirement Age.

         [X]      (2) 59 1/2 years of age and is at least 0% vested in these
                  Accounts. [NOTE: IF THE PERCENTAGE IS LESS THAN 100%, SEE THE
                  SPECIAL VESTING FORMULA IN SECTION 5.03.

[N/A]    (f) After a Participant has participated in the Plan for a period of
         not less than ___ years and he is 100% vested in these Accounts, until
         he retires, the Participant has a continuing election to receive all or
         any portion of the Accounts. [NOTE: THE NUMBER IN THE BLANK SPACE MAY
         NOT BE LESS THAN 5.]

[N/A]    (g) HARDSHIP. A Participant may elect a hardship distribution prior to
         his Separation from Service in accordance with the hardship
         distribution policy: (CHOOSE (1), (2) OR (3); (4) IS AVAILABLE ONLY AS
         AN ADDITIONAL OPTION)

         [N/A]    (1) Under Section 6.01(A)(4) of the Plan.

         [N/A]    (2) Under Section 14.11 of the Plan.

         [N/A]    (3) Provided in the addendum to this Adoption Agreement,
                  numbered Section 6.03.

         [N/A]    (4) In no event may a Participant receive a hardship
                  distribution before he is at least ___% vested in these
                  Accounts. [NOTE: IF THE PERCENTAGE IN THE BLANK IS LESS THAN
                  100%, SEE THE SPECIAL VESTING FORMULA IN SECTION 5.03.]

[N/A]    (h) (SPECIFY) ___.

                                       25

<Page>

[NOTE: THE EMPLOYER MAY USE AN ADDENDUM, NUMBERED 6.03, TO PROVIDE ADDITIONAL
LANGUAGE AUTHORIZED BY OPTIONS (b)(6), (c), (g)(3) OR (h) OF THIS ADOPTION
AGREEMENT SECTION 6.03.]

PARTICIPANT ELECTIONS PRIOR TO SEPARATION FROM SERVICE - DEFERRAL CONTRIBUTIONS
ACCOUNT, QUALIFIED MATCHING CONTRIBUTIONS ACCOUNT AND QUALIFIED NONELECTIVE
CONTRIBUTIONS ACCOUNT. Subject to the restrictions of Article VI, the following
distribution options apply to a Participant's Deferral Contributions Account,
Qualified Matching Contributions Account and Qualified Nonelective Contributions
Account prior to his Separation from Service. (CHOOSE (i) OR AT LEAST ONE OF (j)
THROUGH (l))

[N/A]    (i) No distribution options prior to Separation from Service.

[X]      (j) Until he retires, the Participant has a continuing election to
         receive all or any portion of these Accounts after he attains: (CHOOSE
         (1) OR (2))

         [N/A]    (1) The later of Normal Retirement Age or age 59 1/2.

         [X]      (2) Age 59 1/2 (at least 59 1/2).

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

[N/A]    (l) (SPECIFY)__. [NOTE: OPTION (l) MAY NOT PERMIT IN SERVICE
         DISTRIBUTIONS PRIOR TO AGE 59 1/2 (OTHER THAN HARDSHIP) AND MAY NOT
         MODIFY THE HARDSHIP POLICY DESCRIBED IN SECTION 14.11.]

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

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

[N/A]    (n) As if he has a Separation from Service. After March 31, 1988, a
         distribution authorized solely by reason of this Option (n) must
         constitute a lump sum distribution, determined in a manner consistent
         with Code Section 401(k)(10) and the applicable Treasury regulations.

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

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

[N/A]    (b) Apply to all Participants.

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

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

                                       26
<Page>

[X]      (a) 0 % per annum. [NOTE: THE PERCENTAGE MAY EQUAL 0%.]

[N/A]    (b) The 90 day Treasury bill rate in effect at the beginning of the
         current valuation period.

[N/A]    (c)(SPECIFY)__.

     9.11 ALLOCATION AND DISTRIBUTION OF NET INCOME GAINS OR LOSS. Pursuant
to Section 14.12, to determine the allocation of net income, gain or loss:
(COMPLETE ONLY THOSE ITEMS, IF ANY, WHICH ARE APPLICABLE TO THE EMPLOYER'S
PLAN)

[X]      (a) For salary reduction contributions, the Advisory Committee will:
         (CHOOSE (1), (2), (3), (4) OR (5))

         [N/A]    (1) Apply Section 9.11 without modification.

         [X]      (2) Use the segregated account approach described in Section
                  14.12.

         [N/A]    (3) Use the weighted average method described in Section
                  14.12, based on a _ weighting period.

         [N/A]    (4) Treat as part of the relevant Account at the beginning of
                  the valuation period _% of the salary reduction contributions:
                  (CHOOSE (a) OR (b))

                  [N/A]    (a) made during that valuation period.

                  [N/A]    (b) made by the following specified time: __.

         [N/A]    (5) Apply the allocation method described in the addendum to
                  this Adoption Agreement numbered 9.11(a).

[X]      (b) For matching contributions, the Advisory Committee will: (CHOOSE
         (1), (2) (3) OR (4))

         [N/A]    (1) Apply Section 9.11 without modification.

         [N/A]    (2) Use the weighted average method described in Section
                  14.12, based on a __ weighting period.

         [N/A]    (3) Treat as part of the relevant Account at the beginning of
                  the valuation period __% of the matching contributions
                  allocated during the valuation period.

         [X]      (4) Apply the allocation method described in the addendum to
                  this Adoption Agreement numbered 9.11(b).

[X]      (c) For Participant nondeductible contributions, the Advisory
         Committee will: (CHOOSE (1), (2), (3) OR (4))

         [N/A]    (1) Apply Section 9.11 without modification.

         [X]      (2) Use the segregated account approach described in Section
                  14.12.

         [N/A]    (3) Use the weighted average method described in Section
                  14.12, based on a __ weighting period.

         [N/A]    (4) Treat as part of the relevant Account at the beginning of
                  the valuation period __% of the Participant nondeductible
                  contributions: (CHOOSE (a) OR (b))

                  [N/A]    (a) made during that valuation period.

                  [N/A]    (b) made by the following specified time: __.

                                       27
<Page>

         [N/A]    (5) Apply the allocation method described in the addendum to
                  this Adoption Agreement numbered 9.11(c).

                                    ARTICLE X
                    TRUSTEE AND CUSTODIAN, POWERS AND DUTIES

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

[N/A]    (a) May not exceed 10% of Plan assets.

[X]      (b) May not exceed 0 % of Plan assets. [NOTE: THE PERCENTAGE MAY NOT
         EXCEED 100%.]

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

[N/A]    (a) No other mandatory valuation dates.

[X]      (B) (SPECIFY) Any day that the Trustee and all major stock markets are
         open for business.

                                       28
<Page>

                             EFFECTIVE DATE ADDENDUM
                              (RESTATED PLANS ONLY)

     The Employer must complete this addendum only if the restated Effective
Date specified in Adoption Agreement Section 1.18 is different than the restated
effective date for at least one of the provisions listed in this addendum. In
lieu of the restated Effective Date in Adoption Agreement Section 1.18, the
following special effective dates apply: (CHOOSE WHICHEVER ELECTIONS APPLY)

[N/A]    (a) COMPENSATION DEFINITION. The Compensation definition of Section
         1.12 (other than the $200,000 limitation) is effective for Plan Years
         beginning after __. [NOTE: MAY NOT BE EFFECTIVE LATER THAN THE FIRST
         DAY OF THE FIRST PLAN YEAR BEGINNING AFTER THE EMPLOYER EXECUTES THIS
         ADOPTION AGREEMENT TO RESTATE THE PLAN FOR THE TAX REFORM ACT OF 1986,
         IF APPLICABLE.]

[N/A]    (b) ELIGIBILITY CONDITIONS. The eligibility conditions specified in
         Adoption Agreement Section 2.01 are effective for Plan Years beginning
         after __.

[N/A]    (c) SUSPENSION OF YEARS OF SERVICE. The suspension of Years of Service
         rule elected under Adoption Agreement Section 2.03 is effective for
         Plan Years beginning after __.

[N/A]    (d) CONTRIBUTION/ALLOCATION FORMULA. The contribution formula elected
         under Adoption Agreement Section 3.01 and the method of allocation
         elected under Adoption Agreement Section 3.04 is effective for Plan
         Years beginning after __.

[N/A]    (e) ACCRUAL REQUIREMENTS. The accrual requirements of Section 3.06 are
         effective for Plan Years beginning after __.

[N/A]    (f) EMPLOYMENT CONDITION. The employment condition of Section 3.06 is
         effective for Plan Years beginning after __.

[N/A]    (g) ELIMINATION OF NET PROFITS. The requirement for the Employer not to
         have net profits to contribute to this Plan is effective for Plan Years
         beginning after _. [NOTE: THE DATE SPECIFIED MAY NOT BE EARLIER THAN
         DECEMBER 31, 1985.]

[N/A]    (h) VESTING SCHEDULE. The vesting schedule elected under Adoption
         Agreement Section 5.03 is effective for Plan Years beginning after __.

[X]      (i) ALLOCATION OF EARNINGS. The special allocation provisions elected
         under Adoption Agreement Section 9.11 are effective for Plan Years
         beginning after effective as of the first day implemented by the
         Trustee.

[X]      (j) (SPECIFY) Annuity forms of benefit are first available as of
         September 1, 1998, and are eliminated effective July 1, 2001. The
         addendum regarding Early Retirement Age is effective as of the dates
         therein stated. The maximum rate of deferral is 20% effective 1/1/2001.

     For Plan Years prior to the special Effective Date, the terms of the Plan
prior to its restatement under this Adoption Agreement will control for purposes
of the designated provisions. A special Effective Date may not result in the
delay of a Plan provision beyond the permissible Effective Date under any
applicable law requirements.

                                       29

<Page>

                    ADDENDUM TO ADOPTION AGREEMENT 9.11(b)

     Use the segregated account approach described in Section 14.12.

<Page>

                                 EXECUTION PAGE

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

                            Name and EIN of Employer:
                            Petco Animal Supplies
                            95-2650552

                            Signed: /s/ [ILLEGIBLE]
                                    ____________________________

                            Name(s) of Trustee:
                            The Chicago Trust Company

                            Signed: ____________________________

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

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

MASTER PLAN SPONSOR. The Master Plan Sponsor identified on the first page of the
basic plan document will notify all adopting employers of any amendment of this
Master Plan or of any abandonment or discontinuance by the Master Plan Sponsor
of its maintenance of this Master Plan. For inquiries regarding the adoption of
the Master Plan, the Master Plan Sponsor's intended meaning of any plan
provisions or the effect of the opinion letter issued to the Master Plan
Sponsor, please contact the Master Plan Sponsor at the following address and
telephone number: The Chicago Trust Company 312-223-5200.

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

                                       30
<Page>

[PETCO LOGO]

--------------------------------------------------------------------------------
                       "SUMMARY OF MATERIAL MODIFICATION"
                                     TO THE
                        PETCO ANIMAL SUPPLIES 401(K) PLAN
                                 (July 31, 2001)
--------------------------------------------------------------------------------

     The Petco Animal Supplies 401(k) Plan ("Plan") has been amended to require
that all distributions from the Plan be paid out as a cash lump sum. The Plan
will no longer offer annuity payouts. This amendment will go into effect on
November 1, 2001. If you have any questions please call Laura Horn, Benefits
Administrator at (888) 583-6044, ext. 3171.<Page>

                          AMENDMENT AND RESTATEMENT TO
                   1994 STOCK OPTION AND RESTRICTED STOCK PLAN
                         FOR EXECUTIVE AND KEY EMPLOYEES
                                       OF
                           PETCO ANIMAL SUPPLIES, INC.
                  (amended and restated as of October 2, 2000)

                 PETCO Animal Supplies, Inc., a corporation organized under
the laws of the State of Delaware (the "Company"), hereby amends and restates
this 1994 Stock Option and Restricted Stock Plan for Executive and Key
Employees of PETCO Animal Supplies, Inc., as amended and restated (this
"Plan"), effective as of October 2, 2000.

                 This Plan was adopted by the Board (as defined) on January
11, 1994 and approved by the Company's stockholders on February 24, 1994.

                 PETCO Animal Supplies, Inc. has entered into the Agreement
and Plan of Merger, dated as of May 17, 2000, by and between PETCO Animal
Supplies, Inc. and BD Recapitalization Corp. ("MergerSub"), as amended (the
"Merger Agreement"), pursuant to which MergerSub shall merge with and into
the Company, with the Company being the surviving corporation (the "Merger"),
effective at the Effective Time (as defined in the Merger Agreement). The
Effective Time occurred on October 2, 2000.

                 Pursuant to the terms of the Merger Agreement, certain
options (the "Roll-Over Options") to purchase shares of the Company's common
stock, par value $.0001 per share, that were granted under the Plan shall
remain outstanding and shall be converted into options to purchase shares of
the Company's common stock, par value $.001 per share ("Common Stock"),
effective at the Effective Time. The Roll-Over Options, as converted, shall
be subject to the terms and conditions of this Plan, as amended and restated
herein.

                 Also, commencing at the Effective Time, this Plan, as
amended and restated, shall provide that, in addition to the 27,615.64 shares
of Common Stock to be issued upon exercise of the Roll-Over Options,
31,952.36 shares of Common Stock shall be available for issuance under this
Plan.

                 The purposes of this Plan, as amended and restated, are as
follows:

                 (1) To further the growth, development and financial success
of the Company by providing additional incentives to certain of its executive
and other key Employees who have been or will be given responsibility for the
management or administration of the Company's business affairs, by assisting
them to become owners of the Company's Common Stock and thus to benefit
directly from its growth, development and financial success.

                 (2) To enable the Company to obtain and retain the services
of the type of professional, technical and managerial employees considered
essential to the long-range success of the Company by providing and offering
them an opportunity to become owners of

<Page>

the Company's Common Stock under restricted stock and options, including
options that are intended to qualify as "incentive stock options" under
Section 422 of the Code.

                                   ARTICLE I

                                   DEFINITIONS

                 Whenever the following terms are used in this Plan, they
shall have the meaning specified below unless the context clearly indicates
to the contrary. The masculine pronoun shall include the feminine and neuter
and the singular shall include the plural, where the context so indicates.

SECTION 1.1      -  ADDITIONAL OPTION

                 "Additional Option" shall mean an Option granted to an
Optionee to purchase a number of shares of Common Stock equal to the number
of shares of Common Stock tendered or relinquished by the Optionee in payment
of the exercise price upon exercise of an Option and/or the number of shares
of Common Stock tendered or relinquished in payment of the amount to be
withheld under applicable federal, state and local income tax laws in
connection with the exercise of an Option as described in Article XI.

SECTION 1.2      - ADDITIONAL OPTION FEATURE

                 "Additional Option Feature" shall mean a feature of an
Option that provides for the automatic grant of an Additional Option in
accordance with the provisions described in Article XI.

SECTION 1.3      -  BOARD

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

SECTION 1.4      - CODE

                 "Code" shall mean the Internal Revenue Code of 1986, as
amended.

SECTION 1.5      - COMMITTEE

                 "Committee" shall mean the Committee of the Board
administering this Plan, appointed as provided in Section 9.1.

SECTION 1.6      - COMPANY

                 "Company" shall mean PETCO Animal Supplies, Inc., a Delaware
corporation. In addition, "Company" shall mean any corporation assuming, or
issuing new employee stock options in substitution for, Incentive Stock
Options, outstanding under the Plan, in a transaction to which Section 424(a)
of the Code applies.

                                       2

<Page>

SECTION 1.7      - Consultant

                 "Consultant" shall mean any consultant or adviser (other
than an Employee) if:

                 (a) the consultant or advisor renders bona fide services to
the Company;

                 (b) the services rendered by the consultant or adviser are
not in connection with the offer or sale of securities in a capital-raising
transaction and do not directly or indirectly promote or maintain a market
for the Company's securities; and

                 (c) the consultant or advisor is a natural person who has
contracted directly with the Company to render such services.

SECTION 1.8      - DIRECTOR

                 "Director" shall mean a member of the Board.

SECTION 1.9      - EMPLOYEE

                 "Employee" shall mean any employee (as defined in accordance
with the regulations and revenue rulings then applicable under Section
3401(c) of the Code) of the Company, or of any corporation which is then a
Parent Corporation or a Subsidiary, whether such employee is so employed at
the time this Plan is adopted or becomes so employed subsequent to the
adoption of this Plan.

SECTION 1.10     - EXCHANGE ACT

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

SECTION 1.11     - FAIR MARKET VALUE

                 "Fair Market Value" of a share of Common Stock as of a given
date shall be as defined in Section 4.2.

SECTION 1.12     - INCENTIVE STOCK OPTION

                 "Incentive Stock Option" shall mean an Option which
qualifies under Section 422 of the Code and which is designated as an
Incentive Stock Option by the Committee.

SECTION 1.13     - NON-QUALIFIED OPTION

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

SECTION 1.14     - OFFICER

                 "Officer" shall mean an officer of the Company, as defined
in Rule 16a-1(f) under the Exchange Act, as such Rule may be amended in the
future.

                                      3

<Page>

SECTION 1.15     - OPTION

                 "Option" shall mean an option to purchase Common Stock of
the Company, granted under the Plan. "Options" includes both Incentive Stock
Options and Non-Qualified Options.

SECTION 1.16     - OPTIONEE

                 "Optionee" shall mean an Employee or Consultant to whom an
option is or was granted under the Plan.

SECTION 1.17     - PARENT CORPORATION

                 "Parent Corporation" shall mean any corporation in an
unbroken chain of corporations ending with the Company if each of the
corporations other than the Company then owns stock possessing 50% or more of
the total combined voting power of all classes of stock in one of the other
corporations in such chain.

SECTION 1.18     - PLAN

                 "Plan" shall mean this 1994 Stock Option and Restricted
Stock Plan for Executive and Key Employees of PETCO Animal Supplies, Inc., as
amended from time to time.

SECTION 1.19     - RESTRICTED STOCK

                 "Restricted Stock" shall mean shares of the Company's Common
Stock issued pursuant to Article VII of the Plan.

SECTION 1.20     - RESTRICTED STOCKHOLDER

                 "Restricted Stockholder" shall mean an Employee to whom
Restricted Stock has been issued under the Plan.

SECTION 1.21     - RULE 16b-3

                 "Rule 16b-3" shall mean that certain Rule 16b-3 under the
Exchange Act, as such Rule may be amended in the future.

SECTION 1.22     - SECRETARY

                 "Secretary" shall mean the Secretary of the Company.

SECTION 1.23     - SECURITIES ACT

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

                                      4

<Page>

SECTION 1.24     - STOCK APPRECIATION RIGHTS

                 "Stock Appreciation Rights" shall mean a stock appreciation
right granted under the Plan.

SECTION 1.25     - SUBSIDIARY

                 "Subsidiary" shall mean any corporation in an unbroken chain
of corporations beginning with the Company if each of the corporations other
than the last corporation in the unbroken chain then owns stock possessing
50% or more of the total combined voting power of all classes of stock in one
of the other corporations in such chain.

SECTION 1.26     - TERMINATION OF CONSULTANCY

                 "Termination of Consultancy" shall mean, as to a Consultant,
the time when the consultancy relationship between the Consultant and the
Company, a Parent Corporation or a Subsidiary is terminated for any reason,
with or without cause, including, but not by way of limitation, a termination
by expiration or non-renewal of contractual agreement, resignation,
discharge, death or retirement. The Committee, in its absolute discretion,
shall determine the effect of all other matters and questions relating to
Termination of Consultancy.

SECTION 1.27     - TERMINATION OF EMPLOYMENT

                 "Termination of Employment" shall mean, as to an Optionee,
the holder of a Stock Appreciation Right or a Restricted Stockholder, the
time when the employee-employer relationship between the Employee and the
Company, a Parent Corporation or a Subsidiary is terminated for any reason,
with or without cause, including, but not by way of limitation, a termination
by resignation, discharge, death or retirement, but excluding terminations
where there is a simultaneous reemployment by the Company, a Parent
Corporation or a Subsidiary. The Committee, in its absolute discretion, shall
determine the effect of all other matters and questions relating to
Termination of Employment, including, but not by way of limitation, the
question of whether a Termination of Employment resulted from a discharge for
good cause, and all questions of whether particular leaves of absence
constitute Terminations of Employment; provided, however, that, with respect
to Incentive Stock Options, a leave of absence shall constitute a Termination
of Employment if, and to the extent that, such leave of absence interrupts
employment for the purposes of Section 422(a)(2) of the Code and the then
applicable regulations and revenue rulings under said Section.

                                  ARTICLE II

                             SHARES SUBJECT TO PLAN

SECTION 2.1      - SHARES SUBJECT TO PLAN

                 The shares of stock subject to Options, Stock Appreciation
Rights and Restricted Stock awards under this Plan shall be the Company's
Common Stock, par value $.001 per share ("Common Stock"), subject to Section
2.2. The aggregate number of shares of Common Stock which may be issued upon
exercise of or under Options, Stock Appreciation Rights and

                                     5

<Page>

Restricted Stock awards shall not exceed the sum of: (a) 31,952.36 additional
shares, and (b) the 27,615.64 shares issuable upon the exercise of the
Roll-Over Options.

                 If any Option, Stock Appreciation Right or Restricted Stock
award expires or is canceled without having been fully exercised or vested,
the number of shares of Common Stock subject to such Option, Stock
Appreciation Right or Restricted Stock award, but as to which such Option,
Stock Appreciation Right or Restricted Stock award was not exercised or
vested prior to its expiration or cancellation may again be issued hereunder
as additional shares, subject to the limitations of this Section 2.1. With
the consent of the Committee, in its sole discretion, Shares of Common Stock
which are delivered by the holder or withheld by the Company upon the
exercise of any Option, Stock Appreciation Right or Restricted Stock award
under the Plan, in payment of the exercise price thereof or tax withholding
thereon, may again be optioned, granted or awarded hereunder, subject to the
limitations of this Section 2.1. Notwithstanding the provisions of this
Section 2.2, no shares of Common Stock may again be issued if such action
would cause an Incentive Stock Option to fail to qualify as an "incentive
stock option" under Section 422 of the Code.

                 Notwithstanding the foregoing, if the offer or sale of
shares of Common Stock under the Plan is subject to Section 260.140.45 of
Title 10 of the California Code of Regulations (or other applicable law
limiting the offers or sales of shares of Common Stock under the Plan), the
aggregate number of shares of Common Stock issuable upon the exercise of all
outstanding Options, Stock Appreciation Rights and Restricted Stock awards
(together with options and similar awards outstanding under any other stock
option plan of the Company) and the total number of shares provided for under
any stock bonus or similar plan of the Company shall not exceed thirty
percent (30%) (or such other higher percentage limitation as may be approved
by the stockholders of the Company pursuant to Section 260.140.45) of the
then outstanding shares of Common Stock, as calculated in accordance with the
conditions and exclusions of Section 260.140.45 (or such other limitation
under applicable law).

SECTION 2.2      - CHANGES IN COMPANY'S SHARES

                 In the event that the outstanding shares of Common Stock of
the Company are hereafter changed into or exchanged for a different number or
kind of shares or other securities of the Company, or of another corporation,
by reason of reorganization, merger, consolidation, recapitalization,
reclassification, stock split-up, stock dividend or combination of shares,
appropriate adjustments shall be made by the Committee in the number and kind
of shares for the purchase of which Options may be granted and in the number
and kind of shares of Restricted Stock that may be issued, including
adjustments of the limitations in Section 2.1 on the maximum number and kind
of shares which may be issued on exercise of Options or as Restricted Stock.

                                       6

<Page>

                                  ARTICLE III

                               GRANTING OF OPTIONS

SECTION 3.1      - ELIGIBILITY

                 Any executive or other key Employee or Consultant of the
Company or of any corporation which is then a Parent Corporation or a
Subsidiary shall be eligible to be granted Options, except as provided in
Section 3.2. However, no option shall be granted to any Employee who owns
(within the meaning of Section 424(d) of the Code) stock possessing more than
10% of the total combined voting power of all classes of stock of the
Company, any Parent Corporation or any Subsidiary.

SECTION 3.2      - QUALIFICATION OF INCENTIVE STOCK OPTIONS

                 No Incentive Stock Option shall be granted unless such
Option, when granted, qualifies as an "incentive stock option" under Section
422 of the Code.

SECTION 3.3      - GRANTING OF OPTIONS

                   (a) The Committee shall from time to time, in its absolute
discretion:

                       (i) Determine which Employees are executive or other
         key Employees and Consultants and select from among the executive or
         other key Employees and Consultants (including those to whom Options
         and/or Stock Appreciation Rights have been previously granted and/or
         Restricted Stock has previously been issued under the Plan) such of
         them as in its opinion should be granted Options; and

                       (ii) Determine the number of shares to be subject to such
         Options granted to such selected executive or other key Employees, and
         determine whether such Options are to be Incentive Stock Options or
         Non-Qualified Options; and

                       (iii) Determine the terms and conditions of such Options,
         consistent with the Plan.

                   (b) Upon the selection of an executive or other key
Employee to be granted an Option, the Committee shall instruct the Secretary
to issue such Option and may impose such conditions on the grant of such
Option as it deems appropriate. Without limiting the generality of the
preceding sentence, the Committee may, in its absolute discretion and on such
terms as it deems appropriate, require as a condition on the grant of an
Option to an Employee that the Employee surrender for cancellation some or
all of the unexercised Options which have been previously granted to him. An
Option the grant of which is conditioned upon such surrender may have an
option price lower (or higher) than the option price of the surrendered
Option, may cover the same (or a lesser or greater) number of shares as the
surrendered Option, may contain such other terms as the Committee deems
appropriate and shall be exercisable in accordance with its terms, without
regard to the number of shares, price, option period or any other term or
condition of the surrendered Option. Without limiting the generality of the

                                      7

<Page>

preceding sentence, the Committee may, in its absolute discretion and on such
terms as it deems appropriate, require as a condition on the issuance of
Restricted Stock to an Employee that the Employee surrender for cancellation
some or all of the Restricted Stock that has been previously granted to him.

                                    ARTICLE IV

                           ARTICLE IV TERMS OF OPTIONS

SECTION 4.1      - OPTION AGREEMENT

                 Each Option shall be evidenced by a written Stock Option
Agreement, which shall be executed by the Optionee and an authorized Officer
of the Company and which shall contain such terms and conditions as the
Committee shall determine, consistent with the Plan. Stock Option Agreements
evidencing Incentive Stock Options shall contain such terms and conditions as
may be necessary to qualify such Options as "incentive stock options" under
Section 422 of the Code.

SECTION 4.2      - OPTION PRICE

                   (a) The price of the shares subject to each Option shall
be set by the Committee; provided, however, that the price per share shall be
not less than 100% of the Fair Market Value of such shares on the date such
Option is granted.

                   (b) For purposes of the Plan, the Fair Market Value of a
share of the Company's Common Stock ("Fair Market Value") as of a given date
shall be determined as follows: (i) if the Common Stock is then quoted on the
Nasdaq National Market, its last reported sale price on the Nasdaq National
Market or, if no such reported sale takes place on such date, the average of
the closing bid and asked prices; (ii) if the Common Stock is publicly traded
and is then listed on a national securities exchange but is not quoted on the
Nasdaq National Market, the last reported sale price or, if no such reported
sale takes place on such date, the average of the closing bid and asked
prices on the principal national securities exchange on which the Common
Stock is listed or admitted to trading; (iii) if such Common Stock is
publicly traded but is not quoted on the Nasdaq National Market nor listed or
admitted to trading on a national securities exchange, the average of the
closing bid and asked prices on such date, as reported in the Western Edition
of THE WALL STREET JOURNAL, for the over-the-counter market; or (iv) if none
of the foregoing is applicable, by the Board in good faith.

SECTION 4.3      - COMMENCEMENT OF EXERCISABILITY

                   (a) Except as the Committee may otherwise provide, no
Option may be exercised in whole or in part during the first six months after
such Option is granted.

                   (b) Subject to the provisions of Sections 4.3(a), 4.3(c),
and 10.3, Options shall become exercisable at such times and in such
installments (which may be cumulative) as the Committee shall provide in the
terms of each individual Option; provided, however, that by a resolution
adopted after an Option is granted the Committee may, on such terms and
conditions as it may determine to be appropriate and subject to Sections
4.3(a), 4.3(c), and

                                      8

<Page>

10.3, accelerate the time at which such Option or any portion thereof may be
exercised; PROVIDED, HOWEVER, that, to the extent required by Section
25102(o) of the California Corporations Code and the regulations thereunder,
except with regard to Options granted to officers of the Company or any
Parent Corporation or Subsidiary or Consultants, in no event shall an Option
granted hereunder become vested and exercisable at a rate of less than twenty
percent (20%) per year over five (5) years from the date the Option is
granted, subject to the continued employment of the holder with the Company
or the Parent Corporation or the Subsidiaries or other reasonable conditions
established by the Committee.

                   (c) No portion of an Option which is unexercisable at the
later to occur of (i) Termination of Employment, or (ii) Termination of
Consultancy, shall thereafter become exercisable.

                   (d) To the extent that the aggregate fair market value of
stock with respect to which "incentive stock options" (within the meaning of
Section 422 of the Code, but without regard to Section 422(d) of the Code)
are exercisable for the first time by an Optionee during any calendar year
(under the Plan and all other incentive stock option plans of the Company,
any Subsidiary and any Parent Corporation) exceeds $100,000, such options
shall be taxed as Non-Qualified Options. The rule set forth in the preceding
sentence shall be applied by taking options into account in the order in
which they were granted. For purposes of this Section 4.3(d), the Fair Market
Value of stock shall be determined as of the time that the option with
respect to such stock is granted.

SECTION 4.4      - EXPIRATION OF OPTIONS

                   (a) No Option may be exercised to any extent by anyone
after the first to occur of the following events:

                       (i) The expiration of ten years from the date the
         Option was granted; or

                       (ii) Except in the case of any Optionee who is disabled
         (within the meaning of Section 22(e)(3) of the Code), the expiration of
         three months from the date of the later to occur of (A) the Optionee's
         Termination of Employment for any reason, or (B) the Optionee's
         Termination of Consultancy for any reason, other than such Optionee's
         death unless the Optionee dies within said three-month period; or

                       (iii) In the case of an Optionee who is disabled (within
         the meaning of Section 22(e)(3) of the Code), the expiration of one
         year from the later to occur of (A) the date of the Optionee's
         Termination of Employment for any reason, or (B) the date of Optionee's
         Termination of Consultancy for any reason, other than such Optionee's
         death unless the Optionee dies within said one-year period; or

                       (iv) The expiration of one year from the date of the
         Optionee's death.

                   (b) Subject to the provisions of Section 4.4(a), the
Committee shall provide, in the terms of each individual Option, when such
Option expires and becomes unexercisable;

                                      9

<Page>

and (without limiting the generality of the foregoing) the Committee may
provide in the terms of individual Options that said Options expire
immediately upon a Termination of Employment or a Termination of Consultancy
for any reason; PROVIDED, HOWEVER, that, to the extent required by Section
25102(o) of the California Corporations Code and Section 260.140.41 of Title
10 of the California Code of Regulations (or other applicable law), an Option
may be exercised in the event of Termination of Consultancy or Termination of
Employment (other than for cause as defined by applicable law, the Option
Agreement or a contract of employment with the holder), to the extent that
such Option is exercisable on the date of such Termination: (i) for a period
of at least six months (or such longer period as is required by applicable
law) from the date of such Termination if such Termination was caused by
death or disability, and (ii) for a period of at least 30 days (or such
longer period as is required by applicable law) from the date of such
Termination if such Termination was caused by reason other than the death or
disability of the holder.

SECTION 4.5      - NO RIGHT TO EMPLOYMENT

                 Nothing in this Plan or in any Stock Option Agreement
hereunder shall confer upon any Optionee any right to continue in the employ
or service of the Company, any Parent Corporation or any Subsidiary or shall
interfere with or restrict in any way the rights of the Company, its Parent
Corporations and its Subsidiaries, which are hereby expressly reserved, to
discharge any Optionee at any time for any reason whatsoever, with or without
cause.

SECTION 4.6      - ADJUSTMENTS IN OUTSTANDING OPTIONS

                 In the event that the outstanding shares of the stock
subject to Options are changed into or exchanged for a different number or
kind of shares of the Company or other securities of the Company by reason of
merger, consolidation, recapitalization, reclassification, stock split-up,
reverse stock split, stock dividend or combination of shares, the Committee
shall make an appropriate and equitable adjustment in the number and kind of
shares as to which all outstanding Options, or portions thereof then
unexercised, shall be exercisable, to the end that after such event the
Optionee's proportionate interest shall be maintained as before the
occurrence of such event. Such adjustment in an outstanding Option shall be
made without change in the total price applicable to the Option or the
unexercised portion of the Option (except for any change in the aggregate
price resulting from rounding-off of share quantities or prices) and with any
necessary corresponding adjustment in Option price per share; provided,
however, that, in the case of Incentive Stock Options, each such adjustment
shall be made in such manner as not to constitute a "modification" within the
meaning of Section 424(h)(3) of the Code. Any such adjustment made by the
Committee shall be final and binding upon all Optionees, the Company and all
other interested persons.

SECTION 4.7      - MERGER, CONSOLIDATION, ACQUISITION, LIQUIDATION OR
                   DISSOLUTION

                 Notwithstanding the provisions of Section 4.6, in its
absolute discretion, and on such terms and conditions as it deems
appropriate, the Committee may provide by the terms of any Option that such
Option cannot be exercised after the merger or consolidation of the Company
with or into another corporation, the acquisition by another corporation or
person of all or substantially all of the Company's assets or 80% or more of
the Company's then

                                      10

<Page>

outstanding voting stock or the liquidation or dissolution of the Company;
and if the Committee so provides, it may, in its absolute discretion and on
such terms and conditions as it deems appropriate, also provide, either by
the terms of such Option or by a resolution adopted prior to the occurrence
of such merger, consolidation, acquisition, liquidation or dissolution, that,
for some period of time prior to such event, such Option shall be exercisable
as to all shares covered thereby, notwithstanding anything to the contrary in
Section 4.3(a), Section 4.3(b) and/or any installment provisions of such
Option.

                                    ARTICLE V

                               EXERCISE OF OPTIONS

SECTION 5.1      - PERSON ELIGIBLE TO EXERCISE

                 During the lifetime of the Optionee, only the Optionee may
exercise an Option (or any portion thereof). After the death of the Optionee,
any exercisable portion of an Option may, prior to the time when such portion
becomes unexercisable under the Plan or the applicable Stock Option
Agreement, be exercised by his personal representative or by any person
empowered to do so under the deceased Optionee's will or under the then
applicable laws of descent and distribution.

SECTION 5.2      - PARTIAL EXERCISE

                 At any time and from time to time prior to the time when any
exercisable Option or exercisable portion thereof becomes unexercisable under
the Plan or the applicable Stock Option Agreement, such Option or portion
thereof may be exercised in whole or in part; provided, however, that the
Company shall not be required to issue fractional shares and the Committee
may, by the terms of the Option, require any partial exercise to be with
respect to a specified minimum number of shares.

SECTION 5.3      - MANNER OF EXERCISE

                 An exercisable Option, or any exercisable portion thereof,
may be exercised solely by delivery to the Secretary or his office of all of
the following prior to the time when such Option or such portion becomes
unexercisable under the Plan or the applicable Stock Option Agreement:

                   (a) Notice in writing signed by the Optionee or other
person then entitled to exercise such Option or portion, stating that such
Option or portion is exercised, such notice complying with all applicable
rules established by the Committee; and

                   (b) (i) Full payment (in cash or by check) for the shares
with respect to which such Option or portion is thereby exercised; or

                       (ii) With the consent of the Committee, in its
         absolute discretion, (A) shares of the Company's Common Stock owned by
         the Optionee duly endorsed for transfer to the Company, or (B) shares
         of the Company's Common Stock issuable to the Optionee upon exercise of
         the Option, with a Fair Market Value (as determined under

                                      11

<Page>

         Section 4.2(b)) on the date of Option exercise equal to the aggregate
         Option price of the shares with respect to which such Option or portion
         is thereby exercised; or

                       (iii) With the consent of the Committee, in its
         absolute discretion, a full recourse promissory note bearing interest
         (at no less than such rate as shall then preclude the imputation of
         interest under the Code or any successor provision) and payable upon
         such terms as may be prescribed by the Committee. The Committee may
         also prescribe the form of such note and the security to be given for
         such note. No Option may, however, be exercised by delivery of a
         promissory note or by a loan from the Company when or where such loan
         or other extension of credit is prohibited by law; or

                       (iv) With the consent of the Committee, in its absolute
         discretion, any combination of the consideration provided in the
         foregoing subsections (i), (ii) and (iii); and

                   (c) The payment to the Company (or other employer
corporation) of all amounts which it is required to withhold under federal,
state or local law in connection with the exercise of the Option; with the
consent of the Committee, in its absolute discretion,

                       (i) shares of the Company's Common Stock owned by the
         Optionee duly endorsed for transfer, or

                       (ii) shares of the Company's Common Stock issuable to the
         Optionee upon exercise of the Option, valued at Fair Market Value (as
         determined under Section 4.2(b)) as of the date of Option exercise, may
         be used to make all or part of such payment;

                   (d) Such representations and documents as the Committee,
in its absolute discretion, deems necessary or advisable to effect compliance
with all applicable provisions of the Securities Act and any other federal or
state securities laws or regulations. The Committee may, in its absolute
discretion, also take whatever additional actions it deems appropriate to
effect such compliance including, without limitation, placing legends on
share certificates and issuing stop-transfer orders to transfer agents and
registrars; and

                   (e) In the event that the Option or portion thereof shall
be exercised pursuant to Section 5.1 by any person or persons other than the
Optionee, appropriate proof of the right of such person or persons to
exercise the Option or portion thereof.

                                      12

<Page>

SECTION 5.4      - CONDITIONS TO ISSUANCE OF STOCK CERTIFICATES

                 The shares of stock issuable and deliverable upon the
exercise of an Option, or any portion thereof, may be either previously
authorized but unissued shares or issued shares which have then been
reacquired by the Company. The Company shall not be required to issue or
deliver any certificate or certificates for shares of stock purchased upon
the exercise of any Option or portion thereof prior to fulfillment of the
conditions of Section 5.3 and all of the following conditions:

                 (a) The completion of any registration or other
qualification of such shares under any state or federal law or under the
rulings or regulations of the Securities and Exchange Commission or any other
governmental regulatory body, which the Committee shall, in its absolute
discretion, deem necessary or advisable; and

                 (b) The obtaining of any approval or other clearance from
any state or federal governmental agency which the Committee shall, in its
absolute discretion, determine to be necessary or advisable; and

                 (c) The payment to the Company (or other employer
corporation) of all amounts which it is required to withhold under federal,
state or local law in connection with the exercise of the Option; and

                 (d) The lapse of such reasonable period of time following
the exercise of the Option as the Committee may establish from time to time
for reasons of administrative convenience.

SECTION 5.5      - RIGHTS AS STOCKHOLDERS

                 The holders of Options shall not be, nor have any of the
rights or privileges of, stockholders of the Company in respect of any shares
purchasable upon the exercise of any part of an Option unless and until
certificates representing such shares have been issued by the Company to such
holders.

SECTION 5.6      - TRANSFER RESTRICTIONS

                 Unless otherwise approved in writing by the Committee, no
shares acquired upon exercise of any Option by any Officer may be sold,
assigned, pledged, encumbered or otherwise transferred until at least six
months have elapsed from (but excluding) the date that such Option was
granted. The Committee, in its absolute discretion, may impose such other
restrictions on the transferability of the shares purchasable upon the
exercise of an Option as it deems appropriate. Any such other restriction
shall be set forth in the respective Stock Option Agreement and may be
referred to on the certificates evidencing such shares. The Committee may
require the Employee to give the Company prompt notice of any disposition of
shares of stock, acquired by exercise of an Incentive Stock Option, within
two years from the date of granting such Option or one year after the
transfer of such shares to such Employee. The Committee may direct that the
certificates evidencing shares acquired by exercise of an Incentive Stock
Option refer to such requirement to give prompt notice of disposition.

                                      13

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SECTION 5.7      - ADDITIONAL LIMITATIONS ON EXERCISE OF OPTIONS

                 Holders may be required to comply with any timing or other
restrictions with respect to the settlement or exercise of an Option,
including a window-period limitation, as may be imposed in the discretion of
the Committee.

                                  ARTICLE VI

                            STOCK APPRECIATION RIGHTS

SECTION 6.1      - GRANT OF STOCK APPRECIATION RIGHTS

                 A Stock Appreciation Right may be granted by the Committee
to any Employee who receives a grant of an Option under the Plan. A Stock
Appreciation Right may be granted in connection and simultaneously with the
grant of an Option or with respect to a previously granted Option. A Stock
Appreciation Right shall be subject to such terms and conditions not
inconsistent with the Plan as the Committee shall impose, including the
following:

                 (a) A Stock Appreciation Right shall be related to a
particular Option and shall be exercisable only to the extent the related
Option is exercisable.

                 (b) A Stock Appreciation Right shall be granted to the
Optionee to the maximum extent of 100% of the number of shares subject to the
simultaneously or previously granted Option.

                 (c) A Stock Appreciation Right shall entitle the Optionee
(or other person entitled to exercise the Option pursuant to Section 5.1) to
surrender unexercised a portion of the Option to which the Stock Appreciation
Right relates to the Company and to receive from the Company in exchange
therefor an amount, payable in shares of the Company's Common Stock (valued
pursuant to Section 4.2(b)), or, in the discretion of the Committee, in cash,
determined by multiplying the lesser of (i) the difference obtained by
subtracting the Option exercise price per share of the Company's Common Stock
subject to the related Option from the Fair Market Value (as determined under
Section 4.2(b)) of a share of the Company's Common Stock on the date of
exercise of the Stock Appreciation Right or (ii) two times the Option
exercise price per share of the Company's Common Stock subject to the related
Option, by the number of shares of the Company's Common Stock subject to the
related Option with respect to which the Stock Appreciation Right shall have
been exercised.

SECTION 6.2      - EXERCISE OF STOCK APPRECIATION RIGHTS

                 Except in the case of death or disability (within the
meaning of Section 22(e)(3) of the Code) of the Optionee, no Stock
Appreciation Right shall be exercisable during the first six months after a
Stock Appreciation Right is granted with respect to an outstanding Option.

                                      14

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                                 ARTICLE VII

                          ISSUANCE OF RESTRICTED STOCK

SECTION 7.1      - ELIGIBILITY

                 Any executive or other key Employee of the Company or of any
corporation which is then a Parent Corporation or a Subsidiary, shall be
eligible to be issued Restricted Stock.

SECTION 7.2      - ISSUANCE OF RESTRICTED STOCK

                   (a) The Committee shall from time to time, in its absolute
discretion:

                       (i) Determine which Employees are executive or key
         Employees and select from among the executive or key Employees
         (including those to whom Options and/or Stock Appreciation Rights
         have been previously granted and/or Restricted Stock has been
         previously issued) such of them as in its opinion should be issued
         Restricted Stock; and

                       (ii) Determine the number of shares of Restricted Stock
         to be issued to such selected executive or key Employees; and

                       (iii) Determine the terms and conditions applicable to
         such Restricted Stock, consistent with the Plan.

                   (b) Shares issued as Restricted Stock may be either
previously authorized but unissued shares or issued shares that have been
reacquired by the Company. Legal consideration, but no other cash payment,
shall be required for each issuance of Restricted Stock.

                   (c) Upon the selection of an executive or key Employee to
be issued Restricted Stock, the Committee shall instruct the Secretary to
issue such Restricted Stock and may impose such conditions on the issuance of
such Restricted Stock as it deems appropriate.

                                  ARTICLE VIII

                            TERMS OF RESTRICTED STOCK

SECTION 8.1      - RESTRICTED STOCK AGREEMENT

                 Restricted Stock shall be issued only pursuant to a written
Restricted Stock Agreement, which shall be executed by the Restricted
Stockholder and an authorized Officer of the Company and which shall contain
such terms and conditions as the Committee shall determine, consistent with
the Plan.

SECTION 8.2      - NO RIGHT TO EMPLOYMENT

                 Nothing in this Plan or in any Restricted Stock Agreement
hereunder shall confer upon any Restricted Stockholder any right to continue
in the employ or service of the

                                      15

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Company, any Parent Corporation or any Subsidiary or shall interfere with or
restrict in any way the rights of the Company, its Parent Corporations and
its Subsidiaries, which are hereby expressly reserved, to terminate or
discharge any Restricted Stockholder at any time for any reason whatsoever,
with or without cause.

                 To the extent required by Section 25102(o) of the California
Corporations Code and the Regulations thereunder, the price of the shares
subject to each Restricted Stock award shall be not less than 85% of the Fair
Market Value of such shares on the date such Restricted Stock award is
granted.

SECTION 8.3      - RIGHTS AS RESTRICTED STOCKHOLDERS

                 Upon delivery of the shares of Restricted Stock to the
escrow holder pursuant to Section 8.7, the Restricted Stockholder shall have
all the rights of a stockholder with respect to said shares, subject to the
restrictions in his Restricted Stock Agreement, including the right to vote
the shares and to receive all dividends or other distributions paid or made
with respect to the shares.

SECTION 8.4      - RESTRICTIONS

                 All shares of Restricted Stock issued under this Plan
(including any shares received by Restricted Stockholders as a result of
stock dividends, stock splits or any other forms of recapitalization) shall
be subject to such restrictions as the Committee shall provide in the terms
of each individual Restricted Stock Agreement; provided, however, that by a
resolution adopted after the Restricted Stock is issued, the Committee may,
on such terms and conditions as it may determine to be appropriate and
subject to Section 10.3, remove any or all of the restrictions imposed by the
terms of the Restricted Stock Agreement. All restrictions imposed pursuant to
this Section 8.4 shall expire within ten years of the date of issuance.
Restricted Stock may not be sold or encumbered until all restrictions are
terminated or expire.

SECTION 8.5      - FORFEITURE OF RESTRICTED STOCK

                 The Committee shall provide in the terms of each individual
Restricted Stock Agreement that the Restricted Stock then subject to
restrictions under the Restricted Stock Agreement be forfeited by the
Restricted Stockholder back to the Company immediately upon the later to
occur of: (a) a Termination of Employment for any reason, or (b) a
Termination of Consultancy for any reason; provided, however, that provision
may be made that no such forfeiture shall occur in the event of a Termination
of Employment or Termination of Consultancy because of the Employee's normal
retirement, death, total disability or early retirement with the consent of
the Board.

SECTION 8.6      - MERGER, CONSOLIDATION, ACQUISITION, LIQUIDATION OR
                   DISSOLUTION

                 Upon the merger or consolidation of the Company with or into
another corporation, the acquisition by another corporation or person of all
or substantially all of the Company's assets or 80% or more of the Company's
then outstanding voting stock or the liquidation of the Company, the
Committee may determine, at its sole discretion, that the

                                      16

<Page>

restrictions imposed under the Restricted Stock Agreement upon some or all
shares of Restricted Stock shall immediately expire and/or that some or all
of such shares shall cease to be subject to forfeiture under Section 8.5.

SECTION 8.7      - ESCROW

                 The Secretary or such other escrow holder as the Committee
may appoint shall retain physical custody of the certificates representing
Restricted Stock until all of the restrictions imposed under the Restricted
Stock Agreement expire or shall have been removed; provided, however, that in
no event shall any Restricted Stockholder retain physical custody of any
certificates representing Restricted Stock issued to him.

SECTION 8.8      - LEGEND

                 In order to enforce the restrictions imposed upon shares of
Restricted Stock hereunder, the Committee shall cause a legend or legends to
be placed on certificates representing all shares of Restricted Stock that
are still subject to restrictions under Restricted Stock Agreements, which
legend or legends shall make appropriate reference to the conditions imposed
thereby.

                                   ARTICLE IX

                                 ADMINISTRATION

SECTION 9.1      - COMMITTEE

                 The Committee shall consist of the Board, or such committee
or subcommittee of the Board as is designated by the Board. In the event that
the Board designates such a committee or subcommittee as the Committee,
appointment of Committee members shall be effective upon acceptance of
appointment, Committee members may resign at any time by delivering written
notice to the Board and vacancies in the Committee shall be filled by the
Board.

SECTION 9.2      - DUTIES AND POWERS OF COMMITTEE

                 It shall be the duty of the Committee to conduct the general
administration of the Plan in accordance with its provisions. The Committee
shall have the power to interpret the terms of the Plan, the Options, the
Stock Appreciation Rights and the Restricted Stock and to adopt such rules
for the administration, interpretation and application of the Plan as are
consistent therewith and to interpret, amend or revoke any such rules. Any
such interpretations and rules in regard to Incentive Stock Options shall be
consistent with the basic purpose of the Plan to grant "incentive stock
options" within the meaning of Section 422 of the Code.

                                      17

<Page>

SECTION 9.3      - MAJORITY RULE

                 The Committee shall act by a majority of its members in
office. The Committee may act either by vote at a meeting or by a memorandum
or other written instrument signed by a majority of the Committee.

SECTION 9.4      - COMPENSATION; PROFESSIONAL ASSISTANCE; GOOD FAITH ACTIONS

                 Members of the Committee shall receive such compensation for
their services as members as may be determined by the Board. All expenses and
liabilities incurred by members of the Committee in connection with the
administration of the Plan shall be borne by the Company. The Committee may
employ attorneys, consultants, accountants, appraisers, brokers or other
persons. The Committee, the Company and its Officers and Directors shall be
entitled to rely upon the advice, opinions or valuations of any such persons.
All actions taken and all interpretations and determinations made by the
Committee in good faith shall be final and binding upon all Optionees, all
Restricted Stockholders, the Company and all other interested persons. No
member of the Committee shall be personally liable for any action,
determination or interpretation made in good faith with respect to the Plan,
the Options, the Stock Appreciation Rights or the Restricted Stock and all
members of the Committee shall be fully protected by the Company in respect
to any such action, determination or interpretation.

                                   ARTICLE X

                                OTHER PROVISIONS

SECTION 10.1     - OPTIONS, STOCK APPRECIATION RIGHTS AND RESTRICTED STOCK NOT
                   TRANSFERABLE

                 No Option, Stock Appreciation Right, Restricted Stock or
interest or right therein or part thereof shall be liable for the debts,
contracts or engagements of the Optionee, the holder of the Stock
Appreciation Right, the Restricted Stockholder or his successors in interest
or shall be subject to disposition by transfer, alienation, anticipation,
pledge, encumbrance, assignment or any other means whether such disposition
be voluntary or involuntary or by operation of law by judgment, levy,
attachment, garnishment or any other legal or equitable proceedings
(including bankruptcy), and any attempted disposition thereof shall be null
and void and of no effect; provided, however, that nothing in this Section
10.1 shall, to the extent required by Section 25102(o) of the California
Corporation Code and Section 260.140.41 of Title 10 of the California Code of
Regulations (or other applicable law), prevent transfers by will or by the
applicable laws of descent and distribution, by instrument to an inter vivos
or testamentary trust in which the options are to be passed to beneficiaries
upon the death of the trustor (settlor), or by gift to "immediate family" as
that term is defined in 17 C.F.R. 240.16a-1(e).

SECTION 10.2     - AMENDMENT, SUSPENSION OR TERMINATION OF THE PLAN

                 The Plan, including without limitation any agreement,
instrument or document executed pursuant to the Plan, may be wholly or
partially amended or otherwise modified, suspended or terminated at any time
or from time to time by the Committee. However, without approval of the
Company's stockholders given within 12 months before or after the action by

                                     18

<Page>

the Committee, no action of the Committee may increase any limit imposed in
Section 2.1 on the maximum number of shares which may be issued on exercise
of Options or Stock Appreciation Rights or as Restricted Stock, materially
modify the eligibility requirements of Section 3.1, reduce the minimum Option
price requirements of Section 4.2(a) or extend the limit imposed in this
Section 10.2 on the period during which Options or Stock Appreciation Rights
may be granted or Restricted Shares may be issued. Neither the amendment,
suspension nor termination of the Plan shall, without the consent of the
holder of the Option or Stock Appreciation Rights or the Restricted
Stockholder, impair any rights or obligations under any Option or Stock
Appreciation Rights theretofore granted or under any Restricted Stock
theretofore issued, as the case may be. No Option or Stock Appreciation
Rights may be granted and no Restricted Stock may be issued, during any
period of suspension nor after termination of the Plan, and in no event may
any Option or Stock Appreciation Rights be granted or may any Restricted
Stock be issued, under this Plan after January 11, 2004.

SECTION 10.3     - APPROVAL OF PLAN BY STOCKHOLDERS

                 This Plan was approved by the Company's stockholders on
February 24, 1994.

SECTION 10.4     - EFFECT OF PLAN UPON OTHER OPTION AND COMPENSATION PLANS

                 The adoption of this Plan shall not affect any other
compensation or incentive plans in effect for the Company, any Parent
Corporation or any Subsidiary. Nothing in this Plan shall be construed to
limit the right of the Company, any Parent Corporation or any Subsidiary (a)
to establish any other forms of incentives or compensation for employees of
the Company, any Parent Corporation or any Subsidiary or (b) to grant or
assume options or stock appreciation rights or to issue restricted stock
otherwise than under this Plan in connection with any proper corporate
purpose, including, but not by way of limitation, the grant or assumption of
options or stock appreciation rights or the issuance of restricted stock in
connection with the acquisition by purchase, lease, merger, consolidation or
otherwise, of the business, stock or assets of any corporation, firm or
association.

SECTION 10.5     - TITLES

                 Titles are provided herein for convenience only and are not
to serve as a basis for interpretation or construction of the Plan.

SECTION 10.6     - CONFORMITY TO SECURITIES LAWS

                 The Plan is intended to conform to the extent necessary with
all applicable provisions of any applicable state securities laws, the
Securities Act and the Exchange Act and any and all regulations and rules
promulgated by the Securities and Exchange Commission thereunder, including
without limitation Rule 16b-3. Notwithstanding anything herein to the
contrary, the Plan shall be administered, and Options and Stock Appreciation
Rights shall be granted and may be exercised and Restricted Stock may be
issued, only in such a manner as to conform to such laws, rules and
regulations. To the extent permitted by applicable law, the Plan, Options and
Stock Appreciation Rights granted and Restricted Stock issued hereunder

                                     19

<Page>

shall be deemed amended to the extent necessary to conform to such laws,
rules and regulations.

SECTION 10.7     - INFORMATION TO HOLDERS AND PURCHASERS.

                 To the extent required by Section 25102(o) of the California
Corporation Code and Section 260.140.46 of Title 10 of the California Code of
Regulations (or other applicable law), the Company shall provide to each
holder of an Option and to each person who acquires shares of Common Stock
pursuant to the Plan, not less frequently than annually during the period
such person holds an Option, and, in the case of a holder or other person who
acquires shares of Common Stock pursuant to the Plan, during the period such
holder or person owns such shares, copies of the Company's annual financial
statements. Notwithstanding the preceding sentence, the Company shall not be
required to provide such statements to Employees and Consultants whose duties
in connection with the Company assure their access to equivalent information.

SECTION 10.8     - REPURCHASE PROVISIONS.

                 The Committee in its discretion may provide that the Company
may repurchase shares of Common Stock acquired upon exercise of an Option or
purchase of Common Stock under a Restricted Stock award upon a holder's
Termination of Consultancy or Termination of Employment; PROVIDED, HOWEVER,
that any such repurchase right shall be set forth in the applicable Option
Agreement or in another agreement entered into pursuant to such Option
Agreement or Restricted Stock award agreement; and, PROVIDED, FURTHER, that,
to the extent required by Section 25102(o) of the California Corporation Code
and Section 260.140.41 or 260.140.42 of Title 10 of the California Code of
Regulations (or other applicable law), any such repurchase of shares of
Common Stock from a person who is not an officer of the Company or any
Subsidiary or a Consultant shall be upon the following terms: (a) if the
repurchase option gives the Company the right to repurchase the shares upon
Termination of Employment at not less than the Fair Market Value of the
shares to be purchased on the date of Termination of Employment, then (i) the
right to repurchase shall be exercised for cash or cancellation of purchase
money indebtedness for the shares within ninety (90) days of Termination of
Employment (or in the case of shares issued upon exercise of Options after
such date of termination, within ninety (90) days after the date of the
exercise) or such longer period as may be agreed to by the Administrator and
the person and (ii) the right shall terminate when the shares of Common Stock
become publicly traded; and (b) if the repurchase right gives the Company the
right to repurchase the shares upon Termination of Employment at the original
purchase price for such shares, then (i) the right to repurchase at the
original purchase price shall lapse at the rate of at least twenty percent
(20%) of the shares per year over five (5) years from the date the Option or
Restricted Stock award is granted (without respect to the date the Option or
Restricted Stock award was exercised or became exercisable) and (ii) the
right to repurchase shall be exercised for cash or cancellation of purchase
money indebtedness for the shares within ninety (90) days of Termination of
Employment (or, in the case of shares issued upon exercise of Options after
such date of Termination of Employment, within ninety (90) days after the
date of the exercise) or such longer period as may be agreed to by the
Committee and the person.

                                      20

<Page>

SECTION 10.9     - INVESTMENT INTENT.

                 The Company may require a holder or other person purchasing
shares of Common Stock, as a condition of exercising or acquiring Common
Stock under any Option, to give written assurances satisfactory to the
Company as to the Holder's or other person's knowledge and experience in
financial and business matters and/or to employ a representative reasonably
satisfactory to the Company who is knowledgeable and experienced in financial
and business matters and that such holder or person is capable of evaluating,
alone or together with the representative, the merits and risks of exercising
the Option; and to give written assurances satisfactory to the Company
stating that the person is acquiring the stock subject to the Option for such
holder or person's own account and not with any present intention of selling
or otherwise distributing the Common Stock. The foregoing requirements, and
any assurances given pursuant to such requirements, shall be inoperative if
the issuance of the shares upon the exercise or acquisition of Common Stock
under the applicable Option has been registered under a then currently
effective registration statement under the Securities Act, or as to any
particular requirement, a determination is made by counsel for the Company
that such requirement need not be met in the circumstances under the then
applicable securities laws. The Company may, upon advice of counsel to the
Company, place legends on stock certificates issued under the Plan as such
counsel deems necessary or appropriate in order to comply with applicable
securities laws, including, but not limited to, legends restricting the
transfer of the stock.

                                  ARTICLE XI
                               ADDITIONAL OPTIONS

SECTION 11.1     - Additional Options

                   (a) Subject to the limitations of Section 2.1, the
Committee may, in its absolute discretion, at or after the date of grant of
an Option, grant Additional Options. Additional Options may be granted with
respect to any outstanding Option.

                   (b) If, with the consent of the Committee pursuant to
Section 5.3(b)(ii), an Optionee exercises an Option that has an Additional
Option Feature by tendering or relinquishing shares of Common Stock and/or
when shares of Common Stock are tendered or relinquished in payment for the
amount to be withheld under applicable federal, state and local income tax
laws (at withholding rates not to exceed the Optionee's applicable marginal
tax rates) in connection with the exercise of an Option, the Optionee shall
automatically be granted an Additional Option. The Additional Option shall be
subject to the following provisions:

                       (i) The Additional Option shall cover the number of
         shares of Common Stock equal to the sum of (A) the number of shares of
         Common Stock tendered or relinquished as consideration upon the
         exercise of the Option to which such Additional Option Feature relates,
         and (B) the number of shares of Common Stock tendered or relinquished
         in payment of the amount to be withheld under applicable federal, state
         and local income tax laws in connection with the exercise of the Option
         to which such Additional Option Feature relates;

                                     21

<Page>

                       (ii) The Additional Option may, in the Committee's
         absolute discretion, have an Additional Option Feature;

                       (iii) The Additional Option exercise price shall be 100%
         of the Fair Market Value per share (as determined under Section 4.2(b))
         on the date the Employee tenders or relinquishes shares of Common Stock
         to exercise the Option that has the Additional Option Feature and/or
         tenders or relinquishes shares of Common Stock in payment of income tax
         withholding on the exercise of an Option that has the Additional Option
         Feature; and

                       (iv) The Additional Option shall have the same
         termination date and other termination provisions as the underlying
         Option that had the Additional Option Feature.

                                      * * *

                 I hereby certify that the foregoing amendment to the Plan
was duly adopted by the Board of Directors of PETCO Animal Supplies, Inc. on
October 23, 2000.

                 Executed this 15th day of February, 2001.

                                        /s/ JAMES M. MYERS
                                      ----------------------------------------
                                      James M. Myers
                                      Secretary

                                      * * *

                 I hereby certify that the foregoing Plan was duly approved
by the stockholders of PETCO Animal Supplies, Inc. on February 15, 2001.

                 Executed this 15th day of February, 2001.

                                        /s/ JAMES M. MYERS
                                      ----------------------------------------
                                      James M. Myers
                                      Secretary

                                      22

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