Document:

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                                                                   EXHIBIT 10.09

                              DIAMOND OF CALIFORNIA
                            MANAGEMENT PENSION PLAN

                          EFFECTIVE DATE: AUGUST 1,2000
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                                TABLE OF CONTENTS

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ARTICLE I       DEFINITIONS .............................................      1
1.1          "Accrued Benefit" ..........................................      1
1.2          "Actuarial Equivalent" .....................................      2
1.3          "Administrator" ............................................      2
1.4          "Annuity Starting Date" ....................................      2
1.5          "Applicable Interest Rate" .................................      2
1.6          "Applicable Mortality Table" ...............................      2
1.7          "Average Compensation" .....................................      3
1.8          "Beneficiary" ..............................................      3
1.9          "Code" .....................................................      3
1.10         "Committee" ................................................      3
1.11         "Company" ..................................................      3
1.12         "Compensation" .............................................      3
1.13         "Covered Compensation" .....................................      3
1.14         "Credited Service" .........................................      4
1.15         "Disability" ...............................................      4
1.16         "Early Retirement" .........................................      4
1.17         "Early Retirement Age" .....................................      4
1.18         "Early Retirement Benefit" .................................      4
1.19         "Early Retirement Date" ....................................      4
1.20         "Effective Date" ...........................................      4
1.21         "Eligible Employee" ........................................      4
1.22         "Eligible Spouse" ..........................................      5
1.23         "Employee" .................................................      5
1.24         "Employer" .................................................      5
1.25         "Enrolled Actuary" .........................................      6
1.26         "Entry Date" ...............................................      6
1.27         "ERISA" ....................................................      6
1.28         "401(k) Plan" ..............................................      6
1.29         "Hour of Service" ..........................................      6
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                                TABLE OF CONTENTS
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1.30         "Normal Form" ..............................................      7
1.31         "Normal Retirement" ........................................      7
1.32         "Normal Retirement Age" ....................................      7
1.33         "Normal Retirement Benefit" ................................      8
1.34         "Normal Retirement Date" ...................................      8
1.35         "One-Year Break in Service" ................................      8
1.36         "Participant" ..............................................      8
1.37         "Plan" .....................................................      8
1.38         "Plan Year" ................................................      8
1.39         "Prior Plan" ...............................................      8
1.40         "Service" ..................................................      8
1.41         "Severance from Service Date" ..............................      9
1.42         "Social Security Retirement Age" ...........................      9
1.43         "Social Security Taxable Wage Base" ........................      9
1.44         "Spousal Consent" ..........................................      9
1.45         "Trust" ....................................................      9
1.46         "Trustee" ..................................................      9
1.47         "Year of Service" ..........................................      9
ARTICLE II      ELIGIBILITY AND PARTICIPATION ...........................     10
2.1          Participation ..............................................     10
2.2          Suspended Participation ....................................     11
2.3          Reemployment ...............................................     11
2.4          Certain Former Employees of Sun Growers of California ......     13
ARTICLE III     EMPLOYER FUNDING AND BENEFITS ...........................     13
3.1          Employer Contributions .....................................     13
3.2          Waiver of Employer Contributions ...........................     14
3.3          Annual Valuation ...........................................     14
3.4          Normal Retirement Benefit ..................................     14
3.5          Maximum Benefit for any Participant ........................     15
3.6          Early Retirement Benefit ...................................     15

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                                TABLE OF CONTENTS
                                   (continued)

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3.7          Delayed Retirement Benefit .................................     16
3.8          Death Benefit ..............................................     16
3.9          Disability Retirement Benefit ..............................     16
3.10         Eligible Spouse's Survivor Benefits ........................     17
3.11         Automatic Forms of Payment .................................     18
3.12         Deferred Vested Benefit ....................................     19
3.13         Optional Forms of Benefit ..................................     19
3.14         Time of Distribution .......................................     21
3.15         Direct Rollover of Eligible Rollover Distributions .........     24
3.16         Qualified Domestic Relations Orders ........................     25
ARTICLE IV      LIMITATIONS ON BENEFITS .................................     25
4.1          Limitation on Benefits .....................................     25
4.2          Annual Benefit .............................................     26
4.3          Adjusted Dollar Limitation for Benefits Commencing At
               Social Security Retirement Age, After Social Security
               Retirement Age or Before Age 62 ..........................     26
4.4          Compensation ...............................................     27
4.5          Affiliated Company .........................................     27
ARTICLE V       VESTING OF EMPLOYER FUNDED BENEFITS .....................     27
5.1          Vesting ....................................................     27
5.2          Termination of Employment ..................................     28
5.3          Rehired Participants .......................................     28
5.4          Termination of Non-Vested Participants .....................     28
ARTICLE VI      LOANS TO PARTICIPANTS ...................................     29
ARTICLE VII     BENEFICIARIES ...........................................     29
7.1          Designation ................................................     29
7.2          Absence of Valid Designation of Beneficiaries ..............     29
ARTICLE VIII    PARTICIPANT'S CONTRIBUTIONS AND SPECIAL ACCOUNTS ........     29
ARTICLE IX      ESTABLISHMENT OF TRUST ..................................     30
9.1          Trust Agreement ............................................     30
9.2          Trust Agreement Part of Plan ...............................     30
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                                TABLE OF CONTENTS
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ARTICLE X       PLAN FIDUCIARIES AND ADMINISTRATION .....................     30
10.1         Named Fiduciaries ..........................................     30
10.2         Fiduciary Standard .........................................     30
10.3         Multiple Duties and Advisors ...............................     31
10.4         Allocation and Delegation of Fiduciary Duties ..............     31
10.5         Indemnification ............................................     31
10.6         Costs and Expenses .........................................     31
10.7         Authority to Amend and Terminate ...........................     32
10.8         The Committee ..............................................     32
10.9         Plan Administration ........................................     32
10.10        Claims Procedures ..........................................     33
10.11        Agent for Legal Process ....................................     35
ARTICLE XI      AMENDMENT AND TERMINATION ...............................     35
11.1         Amendment ..................................................     35
11.2         Termination or Complete Discontinuance of Contributions ....     35
11.3         Nonreversion ...............................................     35
11.4         Limitation on Benefits .....................................     37
ARTICLE XII     MISCELLANEOUS ...........................................     38
12.1         Limitation of Rights; Employment Relationship ..............     38
12.2         Transfer of Assets of Employer; Transfer of Assets of Plan .     38
12.3         Spendthrift Provision ......................................     38
12.4         Applicable Law; Severability ...............................     39
12.5         Incorporation of Trust Agreement Provisions ................     39
12.6         Nonliability ...............................................     39
12.7         Missing Persons ............................................     39
ARTICLE XIII    TOP HEAVY PLAN PROVISIONS ...............................     40
13.1         Definitions ................................................     40
13.2         Too Heavy Plan .............................................     41
13.3         Restrictions ...............................................     41
ARTICLE XIV     EXECUTION ...............................................     43
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                              DIAMOND OF CALIFORNIA

                             MANAGEMENT PENSION PLAN

                                  INTRODUCTION

Before August 1, 2000, Diamond of California (the "Company") was one of the
participating companies in the Sun-Diamond Growers of California Defined Benefit
Pension Plan (the "Prior Plan"), which was first effective August 1, 1984.

Effective August 1, 2000, the Company established this Plan, the Diamond of
California Management Pension Plan (the "Plan") and the assets and liabilities,
as determined by Code Section 414(1), attributable to employees of the Company
were transferred from the Prior Plan to the Plan's Trust.

The Plan includes the applicable provisions of the Internal Revenue Code, as
amended by the General Agreement on Tariffs and Trade, the Uniformed Services
Employment and Reemployment Rights Act of 1994, the Small Business Job
Protection Act of 1996, the Taxpayer Relief Act of 1997, and the Economic Growth
and Tax Relief Reconciliation Act of 2001.

                              STATEMENT AND PURPOSE

The Plan and Trust are intended to meet the requirements for qualification under
Section 40l(a) and exemption from tax under Section 501(a) of the Internal
Revenue Code of 1986, as amended (the "Code").

Notwithstanding any provision of the Plan to the contrary, nothing in this
restatement shall be construed to reduce a Participant's accrued benefit in
violation of Code Section 411(d)(6) except as permitted by law.

                                    ARTICLE I

                                   DEFINITIONS

1.1  "Accrued Benefit" shall mean the Participant's Normal Retirement Benefit
     which he has earned as of a determination date. The Accrued Benefit shall
     be subject to the minimum benefit requirements of Section 3.4(d) and
     13.3(b). The Accrued Benefit of a Participant who incurs a Severance from
     Service Date after reaching his Normal Retirement Age or his Early
     Retirement Age shall be determined in accordance with Section 1.l(a),
     below. The Accrued Benefit of all other Participants shall be determined in
     accordance with Section 1.l(b), below:

     (a)  A Participant's Accrued Benefit shall be that portion of the Normal
          Retirement Benefit accrued under the Plan's benefit formula and based
          on years of Credited Service through the determination date.
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     (b)  For purposes of determining the Participant's Normal Retirement
          Benefit, it shall be assumed that years of Credited Service shall
          continue to the Participant's Normal Retirement Date. A Participant's
          Accrued Benefit shall be determined as follows: The Participant's
          Normal Retirement Benefit shall be multiplied by a fraction, not to
          exceed one (1), the numerator of which is the actual Credited Service
          completed through the determination date and the denominator of which
          is the Credited Service the Participant would have completed if the
          Participant had continued Service until his Normal Retirement Date.

     (c)  In no event shall a Participant's Accrued Benefit be less than his
          Accrued Benefit determined as of July 31, 2000, as determined under
          the terms of the Prior Plan in effect as of that date.

1.2  "Actuarial Equivalent" shall meat a benefit, payable in a different form
     and/or at a different time than a Participant's Accrued Benefit, which
     shall be an amount that is equal in value to the Participant's Accrued
     Benefit by using assumptions determined by an Enrolled Actuary.

     (a)  The pre-retirement assumptions to be used for this purpose are:
          Interest at 8% per annum with mortality based on the UP-1984
          (Uninsured Pensioners-Unisex).

     (b)  The post-retirement assumptions to be used for this purpose are:
          Interest at 8% per annum with mortality based on the UP-1984
          (Uninsured Pensioner Unisex).

     (c)  In determining whether this Plan is a Top-Heavy Plan as of a
          "determination date," the same assumptions as stated above shall be
          based to calculate the value of each Participant's Accrued Benefit as
          of such "determination date."

1.3  "Administrator" shall mean the Plan Administrator as specified in Article X

1.4  "Annuity Starting Date" shall mean the first day of the first period for
     which an amount is payable as an annuity or, in the case of a benefit not
     payable in the form of an annuity, the date as of which a benefit is paid.
     In the case of a deferred annuity, the Annuity Starting Date shall be the
     date on which the annuity payments are scheduled to commence. If a
     Disability Retirement benefit ceases for any of the reasons enumerated in
     Section 3.9, the payment of any Disability Retirement benefit is to be
     disregarded in determining the Annuity Starting Date, including for
     purposes of determining if the surviving Eligible Spouse is entitled to a
     Pre-Retirement Survivor Annuity.

1.5  "Applicable Interest Rate" shall mean for any lump sum distribution the
     annual interest rate on 30-year Treasury securities as described in Code
     Section 417(e)(3), in effect for the second month preceding the first day
     of the month in which the Annuity Starting Date occurs (resulting in a one
     month stability period).

1.6  "Applicable Mortality Table" shall mean the "applicable mortality table"
     described in Code Section 417(e)(3).

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1.7  "Average Compensation" shall mean the average of the monthly Compensation
     for the Participant's 60 complete consecutive months, selected from the
     last 120 months, which produce the highest such average. The period of
     service over which Compensation shall be considered when determining a
     Participant's Average Compensation shall begin with the date the
     Participant first performs an Hour of Service for the Employer and end with
     his most recent date of termination. In the event the period of employment
     is fewer than 60 months, such lesser period of service shall be used to
     determine Average Compensation.

1.8  "Beneficiary" shall mean the person or persons (natural or otherwise)
     designated by or for a Participant, entitled under this Plan to receive
     benefits after the death of a Participant.

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

1.10 "Committee" shall mean the administrative committee appointed and acting in
     accordance with Article X of this Plan.

1.11 "Company" shall mean the Diamond Walnut Growers, Inc. (AKA Diamond of
     California), a California corporation.

1.12 "Compensation" shall mean:

     (a)  All compensation for a Plan Year paid in cash by the Employer for
          personal services, as reportable on the Employee's Federal Income Tax
          Withholding Statement (Form W-2), and elective deferrals with respect
          to employment with the Employer: (1) under a qualified cash or
          deferred arrangement described in Code Section 401(k); (2) to a plan
          qualified under Code Section 125; (3) to a tax sheltered annuity
          described in Code Section 403(b); or (4) to a plan qualified under
          Code Section 402(h). Compensation shall exclude any amount in excess
          of $200,000 ($170,000 for the Plan Years ending July 31, 2001, and
          July 31, 2002, or 12-month periods used in determining Average
          Compensation ending in 2001 and 2002), as adjusted after December 31,
          2002, for increases in the cost of living pursuant to Code Sections
          401(a)(17) and 415(d).

     (b)  Compensation shall also not include severance pay not paid for
          personal services, the value of noncash fringe benefits, such as, but
          not limited to, the value of group life insurance or the use of
          Company cars, which are included in the Participant's gross income,
          and contributions to this Plan or any other pension, profit sharing or
          other employee welfare benefit plan to which the Employer contributes
          directly or indirectly.

1.13 "Covered Compensation" shall mean for any Plan Year, the average (without
     indexing) of the Social Security Taxable Wage Base in effect for each
     calendar year during the thirty-five (35) year period ending with the last
     day of the calendar year in which the Participant attains (or will attain)
     Social Security Retirement Age. In determining a Participant's Covered
     Compensation for a Plan Year, the Social Security Taxable Wage Base for the
     current Plan Year and any subsequent Plan Year shall be assumed to be the
     same as in effect for the Plan Year for which the determination is being
     made. A

                                        3
<PAGE>
     Participant's Covered Compensation for any Plan Year after the thirty-five
     (35) year period is the Participant's Covered Compensation for the Plan
     Year in which the Participant attained Social Security Retirement Age. A
     Participant's Covered Compensation for a Plan Year before the thirty-five
     (35) year period is the Social Security Taxable Wage Base in effect as of
     the beginning of the Plan Year. A Participant's Covered Compensation shall
     be automatically adjusted for each Plan Year in accordance with these
     rules.

1.14 "Credited Service" shall mean all Years of Service while the Employee is an
     Eligible Employee. Notwithstanding the foregoing, Credited Service prior to
     August 1, 2000, shall be determined in accordance with the Prior Plan.

1.15 "Disability" shall mean a physical or mental condition that entitles a
     Participant to benefits under either the Company's long term disability
     plan or to benefits under Social Security Disability Insurance.

1.16 "Early Retirement" shall mean retirement on or after a Participant's Early
     Retirement Age.

1.17 "Early Retirement Age" shall mean the later of:

     (a)  Age fifty (50), or

     (b)  The date the Participant completes ten (10) Years of Service.

1.18 "Early Retirement Benefit" shall mean a monthly benefit in the Normal Form
     as determined pursuant to Article III of this Plan.

1.19 "Early Retirement Date" shall mean a date prior to the Participant's Normal
     Retirement Date, which is the first day of any month coinciding with or
     following a Participant's termination of employment and after satisfaction
     of the requirements for entitlement to an Early Retirement Benefit.

1.20 "Effective Date" shall mean August 1, 2000, except to the extent a
     different effective date is required pursuant to a statute or Treasury
     Regulations, or is stated in the Plan document.

1.21 "Eligible Employee" shall mean any Employee, except the following persons:

     (a)  A temporary W-2 Employee who at the time of hire the Company does not
          expect to work more than six months;

     (b)  A person whose Compensation and conditions of employment are subject
          to determination by collective bargaining, provided that retirement
          entitlements have been a subject of good faith bargaining between the
          Employer and the person's lawful representative or bargaining agent;

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     (c)  A person who is a nonresident alien and who receives no earned income(
          within the meaning of Code Section 911(d)) from an Employer, such
          earned income constituting income from sources within the United
          States (within the meaning of Code Section 861(a)(3)); and

     (d)  A person performing services under a written agreement between the
          Company and a leasing organization.

1.22 "Eligible Spouse" shall mean that spouse to whom a Participant is married
     on either the Annuity Starting Date or the date of his death, whichever
     occurs earlier. To the extent provided under a "qualified domestic
     relations order" as described in Code Section 414(q), the term Eligible
     Spouse shall mean a former spouse in addition to or in place of the
     Participant's current spouse.

1.23 "Employee" shall mean:

     (a)  a person currently employed by the Employer, any portion of whose
          income is subject to withholding of income tax and/or for whom Social
          Security or railroad retirement contributions are made by the
          Employer, as well as any other person qualifying as a common law
          employee of the Employer.

     (b)  "Employee" shall also include leased employees within the meaning of
          Code Section 414(n)(2). Notwithstanding the foregoing, if such leased
          employees constitute less than twenty percent (20%) of the Employer's
          non-highly compensated workforce within the meaning of Code Section
          414(n)(1)(C)(ii), the tern "Employee" shall not include those leased
          employees covered by a plan described in Code Section 414(n)(5).

     (c)  Notwithstanding the foregoing, "Employee" shall exclude any individual
          retained by the Employer or an affiliated Employer to perform services
          for such Employer (for either a definite or indefinite duration) and
          whom the Employer characterizes as a fee-for-service worker or
          independent contractor or in a similar capacity (rather than in the
          capacity of a common law employee). This exclusion shall apply
          regardless of such individual's status under common law, including,
          without limitation, any such individual who is or has been determined
          by a third party, including, a government agency or board or court or
          arbitrator, to be an employee of the Employer or an affiliated
          Employer for any purpose, including, without limitation, for purposes
          of any employee benefit plan of the Employer or an affiliated Employer
          (including this Plan) or for purposes of federal, state or local tax
          withholding, employment tax or employment law.

1.24 "Employer" shall mean the Company and any corporation or trade or business
     which is or was a member of a controlled group of corporations, a group of
     businesses under common control or an affiliated service group (within the
     meaning of Code Section 414(b), (c) and (m), respectively) of which an
     Employer adopting the Plan is a member, but only for such period as the
     corporation or trade or business and the adopting Employer are or were
     considered members of the group.

                                        5
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1.25 "Enrolled Actuary" shall mean a person enrolled by the Joint Board for the
     Enrollment of Actuaries under ERISA who has been engaged by the
     Administrator to prepare valuations, establish appropriate assumptions, and
     complete all required actuarial reports.

1.26 "Entry Date" shall mean the date upon which an Eligible Employee becomes a
     Participant, which shall be the Effective Date and each subsequent August
     1st and February 1st.

1.27 "ERISA" shall mean the Employee Retirement Income Security Act of 1974, as
     amended.

1.28 "401(k) Plan" means the Diamond of California 401(k) Plan, which is a
     profit sharing plan under Code Section 401 (a) that includes a "cash or
     deferred arrangement" under Code Section 40l(k), which is maintained by the
     Company.

1.29 "Hour of Service" shall mean each hour for which an Employee is:

     (a)  Directly or indirectly paid or entitled to payment by the Employer for
          the performance of duties;

     (b)  Directly or indirectly paid or entitled to payment by the Employer on
          account of a period of time during which no duties were performed
          (irrespective of whether the employment relationship has terminated)
          due to vacation, holiday, illness, incapacity (including disability),
          layoff, jury duty, military duty, or leave of absence authorized by
          the Employer. However, no more than 501 Hours of Service shall be
          credited under this Section 1.29(b) on account of any single
          continuous period during which the Employee performs no duties
          (whether or not such period occurs in a single computation period).
          Payments made or due under a plan maintained by the Employer solely to
          comply with applicable workers' compensation, unemployment
          compensation, or disability insurance law, or to reimburse an Employee
          for medical or medically-related expenses shall not be considered as
          payments by the Employer for purposes of this subsection;

     (c)  Absent from work by reason of the pregnancy of the Employee, the birth
          of a child of the Employee, the placement of a child with the Employee
          in connection with the adoption of the child by the Employee, or the
          care of such child by the Employee for a period immediately following
          birth or placement. No more than 501 Hours of Service shall be
          credited under this Section 1.30(c) by reason of any one pregnancy or
          placement. Hours of Service credited under this Section 1.29(c) shall
          be credited solely for purposes of determining whether a One-Year
          Break in Service has occurred in a computation period. All Hours of
          Service credited under this Section 1.29(c) shall be credited only in
          the computation period in which the absence from work begins if any of
          such Hours of Service are required in that computation period to avoid
          a One-Year Break in Service. If none of the Hours of Service credited
          under this subsection (c) are required to avoid a One-Year Break in
          Service in the computation period in which the absence begins, then
          the Hours of Service will be credited to the next computation period.
          An

                                        6
<PAGE>
          Employee will be credited with 8 Hours of Service for each day of
          absence covered by this subsection. Credit shall be given pursuant to
          this Section 1.29(c) only after the Employee furnishes to the
          Administrator such timely information as the Administrator may
          reasonably require to establish that the absence is for a reason
          described in this subsection; or

     (d)  Either awarded back pay or for which the Employer agrees to pay such
          back pay, irrespective of mitigation of damages. An Hour of Service
          received under this Section 1.29(d) shall be credited to that
          computation period for which the award was granted. The same Hours of
          Service shall not be credited both under either Sections 1.29(a) or
          (b), as the case may be, and under this Section 1.29(d). Hours of
          Service for which back pay is awarded or agreed to with respect to
          periods described in Section 1.29(b) shall be subject to the
          limitations set forth in that subsection.

     Hours of Service shall be credited to the applicable computation period in
     accordance with Department of Labor Regulation Section 2530.200b-2(b) and
     (c).

     For purposes of determining an Employee's eligibility to participate in the
     Plan and vesting of benefits, an Hour of Service shall also include an Hour
     of Service with a company heretofore or hereafter merged or consolidated or
     otherwise absorbed by an Employer, or all or a substantial part of the
     assets or business of which have been or shall be acquired by an Employer
     (hereinafter, "Predecessor Company"): (i) if the Employer continues to
     maintain an employee benefit plan of such Predecessor Company hereinafter
     "Predecessor Plan"; or (ii) if, and to the extent, such employment with the
     Predecessor Company is required to be treated as employment with the
     Employer under regulations prescribed by the Secretary of the Treasury; or
     (iii) if, and to the extent, approved by the Board of Directors of the
     Employer in its sole discretion effected on a nondiscriminatory basis as to
     all persons similarly situated. For purposes of determining a Participant's
     Retirement Income benefit, Hours of Service may also include Hours of
     Service with a Predecessor Company to the extent approved by the Board of
     Directors in its sole discretion, effected on a nondiscriminatory basis as
     to all persons similarly situated.

1.30 "Normal Form" shall mean a monthly annuity guaranteed payable for 120
     monthly payments and continued thereafter for the life of the Participant.

1.31 "Normal Retirement" shall mean retirement on or after the Participant's
     Normal Retirement Age. In the case of a Participant who continues in the
     employ of the Employer after reaching such Normal Retirement Age, "Normal
     Retirement" shall mean retirement on the delayed retirement date, which is
     the date of the Participant's actual termination of employment. When such
     Participant actually retires, he shall then be entitled to a delayed
     retirement benefit in accordance with Article III.

1.32 "Normal Retirement Age" shall mean the later of:

     (a)  Age sixty (60), or

     (b)  Five (5) Years of Service.

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<PAGE>
1.33 "Normal Retirement Benefit" shall mean a monthly benefit payable in the
     Normal Form as determined pursuant to Article III of this Plan.

1.34 "Normal Retirement Date" shall mean the first day of the month coinciding
     with or next following a Participant's attainment of Normal Retirement Age.

1.35 "One-Year Break in Service" shall mean, with respect to any Employee, a
     period of twelve (12) consecutive months beginning on the Employee's
     Severance from Service Date or any anniversary thereof, and ending on the
     next anniversary of such date, provided the Employee does not perform an
     Hour of Service during that period. However, an Employee who is absent from
     work by reason of the Employee's pregnancy, the birth of a child of the
     Employee, the placement of a child with the Employee in connection with the
     adoption of the child by the Employee, or the care of such child by the
     Employee for a period immediately following birth or placement shall not be
     considered to have incurred a One-Year Break in Service during: (a) the
     one-year period commencing on the Severance from Service Date, if the
     Employee Severs from Service other than by quit or discharge; or (b) the
     two-year period commencing on the Severance from Service Date if the
     Employee Severs from Service by quit or discharge. The preceding sentence
     shall apply only if the Employee furnishes to the Administrator such timely
     information as the Administrator may reasonably require to establish that
     the absence is for a reason described in that sentence. For purposes of
     this Section, the Severance from Service Date is the second anniversary of
     the first date of such absence in the case of absence due to birth or
     placement of a child or a period immediately following such birth or
     placement.

1.36 "Participant" shall mean any Eligible Employee who has become a participant
     of this Plan, in accordance with Article II of this Plan.

1.37 "Plan" shall mean the Diamond of California Management Pension Plan, as set
     forth herein, and any amendments hereto.

1.38 "Plan Year" shall mean the twelve-month period beginning each August 1st.
     The Plan Year shall be the limitation year for purposes of Code Section
     415.

1.39 "Prior Plan" shall mean Sun-Diamond Growers of California Defined Benefit
     Pension, as in effect before August 1, 2000.

1.40 "Service" shall mean that period of time beginning on the date an Employee
     is first credited with an Hour of Service with an Employer and ending on
     the Employee's Severance from Service Date. In addition, if an Employee
     severs from service with an Employer and is reemployed within twelve (12)
     consecutive months of the date he is first absent from work, his Service
     shall also include all days between his termination of employment and his
     subsequent reemployment. An Employee's Service shall be determined without
     regard to whether he is a Participant or an Eligible Employee during his
     period of employment with an Employer. An Employee's Service shall be
     expressed in years and portions of years (counting a partial month as a
     complete month). Service

                                        8
<PAGE>
     shall also include any periods which constitute Service under the Prior
     Plan as in effect as of July 31, 2000.

1.41 "Severance from Service Date" shall mean the date an Employee severs from
     Service with an Employer, and shall be the earliest of the date the
     Employee quits, retires, is discharged, or dies, or the first anniversary
     of the first date he is absent from work for any reason. Notwithstanding
     the foregoing, an Employee will not be deemed to have severed from Service
     during a period of approved leave of absence as provided by Section 2.4,
     except as provided therein.

1.42 "Social Security Retirement Age" shall mean age sixty-five (65) for
     individuals born on or before January 1, 1938, and shall mean the age at
     which unreduced old-age insurance benefits commence under the Social
     Security Amendments of 1983 for persons born after that date.

1.43 "Social Security Taxable Wage Base" shall mean the contribution and benefit
     limit in effect under Code Section 3121(a)(1).

1.44 "Spousal Consent" shall mean an Eligible Spouse's written consent which
     acknowledges the effect of the Participant's election and is witnessed by a
     Plan representative or a notary public. The Spousal Consent shall specify
     the nonspouse Beneficiary, if any and, in the case of a Participant's
     election to waive a qualified joint and survivor annuity, the alternate
     form of distribution elected.

     Spousal Consent shall be irrevocable unless the Participant changes his
     Beneficiary designation or revokes his election to waive the qualified
     joint and survivor annuity. Upon such event, the prior Spousal Consent
     shall be deemed to be revoked. Notwithstanding the foregoing, Spousal
     Consent is not required if the Participant establishes to the satisfaction
     of a Plan representative that such written consent may not be obtained
     because there is no Eligible Spouse or that tile Eligible Spouse cannot be
     located. In addition, no Spousal Consent is necessary if the Participant
     has been legally separated or abandoned within the meaning of local law and
     the Participant provides the Plan representative with a court order to that
     effect, so long as such court order does not conflict with a qualified
     domestic relations order that satisfies the requirements of Code Section
     414(p). If the Eligible Spouse is legally incompetent to consent, the
     Eligible Spouse's legal guardian may consent on her behalf, even if the
     legal guardian is the Participant. If the Eligible Spouse has consented to
     the designation of a trust as the Participant's Beneficiary, Spousal
     Consent is not required for the designation of or change in trust
     beneficiaries.

1.45 "Trust" shall mean the trust established pursuant to Article IX of this
     Plan.

1.46 "Trustee" shall mean the trustee or trustees of the Trust established
     pursuant to this Plan.

1.47 "Year of Service" shall mean:

     (a)  12 months of Service, irrespective of whether such Service is
          completed within a consecutive twelve (12) month period. Years of
          Service shall be computed as

                                        9
<PAGE>
          complete years and fractional parts of a year (counting a partial
          month as a complete month). Notwithstanding the foregoing, Years of
          Service prior to July 31, 2000 shall be determined in accordance with
          the Prior Plan.

     (b)  Provided a Participant's Accrued Benefit became the obligation of the
          Company under this Plan on August 1, 2000 as a result of the spin-off
          from the Prior Plan, this paragraph (b) shall apply. For purposes of
          determining Years of Service for an Eligible Employee who formerly
          worked for the Robert L. Berner Company, was working for Robert L.
          Berner on May 1,1982, and who became an employee of the Sun Land Mixed
          Nut Division of Sun Diamond Growers, Years of Service shall include
          employment with the Robert L. Berner Company; provided, however, that
          in determining past service credits applicable to such Berner employee
          no qualifying Year of Service may be counted for purposes of past
          service credit under the provisions of both the Berner Profit Sharing
          Plan and the Sun Diamond Growers of California Retirement Income Plan.

                                   ARTICLE II

                          ELIGIBILITY AND PARTICIPATION

2.1  Participation.

     An Eligible Employee shall become a Participant of the Plan in accordance
     with the following requirements; provided, however, that an Eligible
     Employee who was a Participant of the Plan prior to August 1, 2000, shall
     continue to be a Participant of the Plan under the terms and conditions set
     forth herein:

     (a)  Service Requirement

          (1)  Each Eligible Employee who has completed 1,000 Hours of Service
               in a "computation period" shall become a Participant of the Plan
               as of the Entry Date next following the end of such "computation
               period". For purposes of this subsection, "computation period"
               means a 12-consecutive month period beginning on the date an
               Employee first completes an Hour of Service. However, if such
               Employee fails to complete at least 1,000 Hours of Service during
               this initial 12-consecutive month period, the "computation" year
               becomes the Plan Year commencing with the Plan Year in which such
               initial period ends.

          (2)  An Eligible Employee who satisfies the service requirements of
               Section 2.1(a)(1) but who is not an Eligible Employee on the
               Entry Date shall become a Participant of the Plan on the next
               Entry Date immediately upon becoming an Eligible Employee.

     (b)  Participation

                                       10
<PAGE>
          Participation in the Plan continues until a Participant terminates by
          Early Retirement, Normal Retirement, by delayed retirement, by reason
          of Disability, or by death, or severs from Service with the Employer
          and has a one-year Break in Service. An Employee whose participation
          in the Plan has ceased but who has not received all benefits under the
          Plan shall be a "former Participant." He shall become a Participant
          again on the date he again becomes an Eligible Employee.

     (c)  Leaves of Absence

          (1)  A Participant's employment shall not be deemed to have terminated
               while he is a member of the Armed Forces of the United States,
               provided that he returns to the employment of the Employer within
               ninety (90) days (or such longer period as may be prescribed by
               law) from the date he first became entitled to his discharge.
               Participants who do not return to the employ of the Employer
               within sixty (60) days following the end of the leave of absence,
               or within the required time in case of service with the Armed
               Forces, shall be deemed to have terminated their employment as of
               the date when their leaves of absence began, unless such failure
               to return was the result of Early Retirement, Normal Retirement,
               delayed retirement, Disability or death.

          (2)  Notwithstanding any other provision of this Plan to the contrary,
               benefits and service credit with respect to qualified military
               service will be provided in accordance with Code Section 414(u).
               This Section 2.1(c)(2) shall apply to all veterans who return to
               work on or after December 12, 1994.

2.2  Suspended Participation.

     A Participant who ceases to be an Eligible Employee, but who has not
     separated from the service of the Employer, shall become a suspended
     Participant. During the period of suspension, no amounts which are based on
     his Compensation from and after the date of suspension shall be used to
     determine Employer contributions hereunder. However, the Participant shall
     continue to vest in his Accrued Benefit, and he shall be entitled to
     benefits in accordance with the other provisions of the Plan while he is a
     suspended Participant.

2.3  Reemployment.

     (a)  Reemployment Before Annuity Starting Date. If a Participant is
          reemployed by an Employer before his Annuity Starting Date, payment of
          his vested Accrued Benefit shall not commence prior to his Severance
          of Service Date following his reemployment date.

     (b)  Reemployment Before Normal Retirement Date. If a Participant is
          reemployed by an Employer after his Annuity Starting Date but before
          his Normal Retirement Date, payment of retirement benefits shall cease
          of as the Participant's reemployment date. Upon the Participant's
          subsequent Severance from Service

                                       11
<PAGE>
          Date, the Participant's Accrued Benefit shall be determined taking
          into account all Credited Service and Compensation, and adjusting the
          benefit for the value of annuity benefit payments previously made. The
          form of benefit with respect to benefits earned prior to reemployment
          shall not change. The form of payment for benefits earned after
          reemployment shall be determined under the provisions of Section 3.11.

     (c)  Reemployment after Normal Retirement Date. If a Participant is
          reemployed by an Employer after his Annuity Starting Date and his
          Normal Retirement Date and during his reemployment completes at least
          40 Hours of Service in a calendar month (or is credited with at least
          one Hour of Service on 8 or more days during a calendar month),
          payment of retirement benefits shall cease of as the Participant's
          reemployment date. Payment of benefits shall resume no later than the
          first day of the third month after the month in which the Participant
          ceases to be so employed. The Plan Administrator shall notify the
          Participant by personal delivery or first class mail during the first
          calendar month in which retirement benefits are not paid that the
          Participant's retirement benefits are suspended. The notice shall
          explain why benefits are suspended, refer to these provisions of the
          Plan, include a copy of these provisions of the Plan, and include a
          statement to the effect that applicable Department of Labor
          regulations can be found in Section 2530.203-3 of the Code of Federal
          Regulations. The notice shall also inform the Participant that the
          claims procedure (described in Article X) may be used to request a
          review of the suspension. In the case of annuity benefits, upon the
          Participant's subsequent Severance from Service Date, the
          Participant's benefit shall be the greater of (1) his previous
          retirement benefit actuarially increased to take into account the
          period of suspension, based on the actuarial assumptions of Section
          1.2, or (2) his Accrued Benefit recomputed taking into account all of
          his Credited Service and Compensation without actuarial adjustment for
          delayed commencement. The Participant's delayed retirement benefit
          shall he adjusted to reflect the form of benefit elected. However, the
          form of the benefit, as in effect before the Participant's
          reemployment date, shall not change.

     (d)  Continued Employment after Attaining Normal Retirement Age. If a
          Participant continues service after attaining Normal Retirement Age,
          benefits shall not commence until the Participant retires. His delayed
          retirement benefit shall be determined in accordance with Section 3.7.

     (e)  Reemployment After Receiving a Lump Sum Payment. If a Participant, who
          received a lump sum payment following his Severance from Service Date,
          is subsequently reemployed by an Employer, on his subsequent Annuity
          Starting Date, his Accrued Benefit shall be determined as follows:

          (1)  The Participant's Accrued Benefit payable at Normal Retirement
               Age shall be calculated, on the basis of the terms of the Plan as
               in effect at the time of the Participant's subsequent Severance
               from Service Date, based upon the Participant's total years of
               Credited Service (including Service

                                       12
<PAGE>
               before and after his reemployment date) and without regard to his
               previous lump sum payment.

          (2)  The Accrued Benefit payable at Normal Retirement Age calculated
               pursuant to Section 2.3(e)(1) above shall be reduced by the
               Accrued Benefit payable at Normal Retirement Age previously paid
               as a lump sum.

          (3)  The remaining Accrued Benefit, after being reduced according to
               Section 2.3(e)(2) above, shall be actuarially adjusted to reflect
               the form of payment selected by the Participant in accordance
               with Section 3.11.

     (f)  Offset Rules. Retirement income benefit payments shall be seduced by
          any payments previously made by the Plan for those calendar months
          when a Participant is reemployed after his Annuity Starting Date
          during which he is credited with at least 40 Hours of Service (or
          credited with at least one Hour of Service on 8 days or more days
          during a calendar month). However, such reduction shall not exceed in
          any one month 25% of the total retirement income benefit payment which
          would have been due for that month but for the offset.

     (g)  Verification. The Participant shall notify the Committee of any
          employment with an Employer after his Annuity Starting Date.
          Furthermore, from time to time, but not more frequently than annually,
          the Committee may request that a Participant certify, in writing, that
          he is not so employed or provide the Committee with information
          sufficient for it to establish that the Participant is not employed by
          an Employer for at least 40 Hours of Service (or at least 8 days)
          during a calendar month. The Committee shall advise the Participant
          that the requirement to provide such certification or information
          shall be a condition precedent to receiving future retirement income
          benefits.

2.4  Certain Former Employees of Sun Growers of California. The individuals
     listed below were employees of Sun Growers of California on August 1, 2000,
     whose employment was transferred to Diamond Walnut Growers, Inc. during the
     period beginning August 1, 2000 and ending December 31, 2000. The assets
     and liabilities of the Prior Plan attributable to these individuals were
     spun off and transferred to the Plan effective as of August 1, 2000.

                                        Hedlund, Jim
                                        Hunt, Richard
                                        Luke, Donna
                                        Vallerand, Marty

                                  ARTICLE III

                          EMPLOYER FUNDING AND BENEFITS

3.1  Employer Contributions.

                                       13
<PAGE>
     The Employer shall contribute all amounts needed to provide the benefits
     under this Plan. The amount of Employer contribution shall be based on the
     recommendation of the Enrolled Actuary using such methods and assumptions
     as he may deem advisable and consistent with the minimum funding standards
     of ERISA. Any actuarial gains from forfeitures shall be used to reduce
     Employer contributions.

3.2  Waiver of Employer Contributions.

     Notwithstanding anything herein to the contrary, contributions by an
     Employer may be waived in whole or in part in any Plan Year during which a
     substantial business hardship has been sustained, as determined in writing
     by the Secretary of the Treasury pursuant to Code Section 412(d).

3.3  Annual Valuation.

     Within sixty (60) days after the end of each Plan Year and within sixty
     (60) days after the removal or resignation of the Trustee, the Trustee
     shall determine the fair market value of the Trust Fund as of the close of
     the Plan Year (or the close of the shorter period ending with such
     resignation or removal), using procedures in accordance with generally
     accepted accounting principles.

3.4  Normal Retirement Benefit.

     (a)  Subject to the provisions of this Section 3.4, each Participant, upon
          attainment of his Normal Retirement Age, shall be entitled to receive
          a Normal Retirement Benefit equal to one-twelfth (1/12) of the greater
          of the sum of (1) and (2), or the sum of (3) and (4):

          (1)  1.6% of such Participant's Average Compensation multiplied by the
               number of years of Credited Service.

          (2)  0.3% (or less if required by law) of such Participant's Excess
               Compensation multiplied by the number of years of Credited
               Service not to exceed thirty-five (35) years.

          (3)  2.25% of such Participant's Average Compensation multiplied by
               the number of years of Credited Service not to exceed fifteen
               (15) years.

          (4)  0.3% (or less if required by law) of such Participant's Excess
               Compensation multiplied by the number of years of Credited
               Service not to exceed fifteen (15) years.

     (b)  For purposes of this Section 3.4, "Excess Compensation" shall mean the
          amount by which a Participant's Average Compensation exceeds the
          Participant's Covered Compensation.

     (c)  Notwithstanding anything to the contrary contained in this Plan, if
          the Employer also maintains another plan which is integrated with
          Social Security, the benefits

                                       14
<PAGE>
          set forth in this Section 3.4 will be subject to any restrictions or
          limitations imposed by applicable Treasury Regulations.

     (d)  Employee Contributions. Notwithstanding any provisions of this Article
          III to the contrary, a Participant shall be entitled to the greater of
          (i) a single life annuity payable at Normal Retirement Age (determined
          using the Applicable Interest Rate in effect as of the determination
          date) equal to the "Participant's Contribution Account" accumulated
          with interest in accordance with Code Section 411(c)(2)(B) (or (1) or
          (2) below depending upon the plan in which the Employee was a
          Participant on July 31, 1984 if greater), or (ii) his Accrued Benefit
          payable at Normal Retirement Age, converted to a single life annuity.
          A Participant's Contribution Account shall at all times he 100% vested
          and nonforfeitable.

          (1)  For Participants covered by the Sun-Diamond Growers of California
               Retirement Income Plan, Participant's Contribution Account means
               the Participant's Contribution Account, if any, maintained for
               and credited to each participant in such Prior Plan on either
               July 1, 1974 (if Participant was a former Diamond Walnut
               employee) or December 3 1, 1974 (if Participant was a former
               Sunsweet Growers employee) and credited with interest from that
               date. Amounts shall be compounded annually and credited with
               interest at the rate of:

               (A)  2 1/2% per year for period July 1, 1974 to January 1, 1975;

               (B)  3% per year for period January 1, 1975 to July 1, 1976:

               (C)  5% per year for period beginning July 1, 1976 increased to
                    such other rate of interest as the Secretary of the Treasury
                    may require under regulations issued under ERISA Section
                    204(c)(2)(D) until the month coinciding with (or immediately
                    preceding if none coincides with) the date the Participant's
                    benefits are to commence under this Plan.

          (2)  For Participants formerly covered under the Berner Profit Sharing
               Plan, Participant Contribution Account means the Participant's
               account maintained for and credited to each Participant in such
               prior plan on May 1, 1982, and thereafter credited with interest
               compounded at an annual rate of 8% per year until the month
               coinciding with (or immediately preceding if none coincides with)
               the date the Participant's benefits are to commence under this
               Plan.

3.5  Maximum Benefit for any Participant.

     The amount of a Participant's Normal Retirement Benefit shall be subject to
     the limitations of Code Section 415 as described under Article IV of this
     Plan.

3.6  Early Retirement Benefit.

                                       15
<PAGE>
     Each Participant, upon Early Retirement, shall be entitled to receive an
     Early Retirement Benefit which shall be equal to his Accrued Benefit
     reduced by 1/3% for each month his Early Retirement Date precedes his
     Normal Retirement Date. Said benefit shall commence as of the Participant's
     Early Retirement Date.

3.7  Delayed Retirement Benefit.

     At a delayed retirement date, a Participant shall be entitled to receive a
     Delayed Retirement Benefit which shall be equal to the greater of:

     (a)  The Normal Retirement Benefit the Participant would have received at
          his Normal Retirement Date increased by 1/2% for each month the
          Participant's Delayed Retirement Date follows his Normal Retirement
          Date; or

     (b)  The Normal Retirement Benefit based on years of Credited Service and
          Average Compensation through the Participant's delayed retirement
          date.

3.8  Death Benefit.

     (a)  Death Before Retirement. In the event of the death of a Participant
          prior to the Participant's Annuity Starting Date, the Participant's
          Beneficiary who is his surviving Eligible Spouse shall be entitled to
          receive a death benefit in accordance with Section 3.10. If the
          Participant does not have an Eligible Spouse on his date of death, no
          death benefits are payable other than a return of the Participant's
          Contribution Account, as determined in accordance with Section 3.4(d),
          and payable as a single lump sum payment, calculated as of the Annuity
          Starting Date to the Participant's Beneficiary.

     (b)  Death After Retirement. Death benefits after a Participant's Annuity
          Starting Date, if any, will he payable according to the provisions of
          the form of payment which has been elected. If the Participant has a
          Participant's Contribution Account, the Participant's Beneficiary is
          entitled to the excess, if any, payable as a single lump sum payment
          of the Participant's Contribution Account accumulated with interest in
          accordance with Code Section 411(c)(2)(B), or Section 3.4 (d)(l) or
          (2) if greater, determined as of the Participant's date of death over
          the retirement benefits payable during the Participant's lifetime (and
          Beneficiary's lifetime as the case may be).

3.9  Disability Retirement Benefit.

     (a)  In the event of the Disability of an active Participant before
          reaching Normal Retirement Age, the Participant may elect to receive a
          Disability Retirement Benefit even if the Participant is not vested in
          his Accrued Benefit derived from Employer Contributions. The
          Disability Retirement Benefit shall be determined in accordance with
          the Normal Retirement Benefit provisions of Section 3.4. The
          Disability Retirement Benefit shall commence on the disabled
          Participant's Normal Retirement Date. Credited Service shall be based
          on the assumption that the disabled Participant continues to work for
          an Employer until his Normal

                                       16
<PAGE>
          Retirement Date. Average Compensation and Covered Compensation shall
          be based on the disabled Participant's actual Average Compensation and
          Covered Compensation determined at the time he became disabled.

     (b)  In lieu of a Disability benefit payable on the Participant's Normal
          Retirement Date, a disabled Participant who has attained age 50 with
          at least 10 Years of Service as of his Annuity Starting Date may elect
          to receive, commencing on the first day of any month prior to his
          Normal Retirement Date, an early Disability Retirement Benefit
          calculated in accordance with Section 3.6, assuming that Credited
          Service is imputed to the Annuity Starting Date, and Average
          Compensation and Covered Compensation are determined at the time the
          Participant became disabled.

     (c)  The Participant's Disability shall be considered to have ended and the
          Participant's eligibility for a Disability Retirement Benefit shall
          cease, if, prior to the Participant's Normal Retirement Age, the
          Participant:

          (1)  Becomes ineligible for Social Security Disability Insurance
               benefits;

          (2)  Returns to the employ of the Employer;

          (3)  Recovers sufficiently, in the opinion of the Committee, to be
               able to engage in regular employment and such Participant refuses
               an offer of employment by the Employer. The opinion of the
               Committee shall be based upon a medical examination of the
               Participant performed by a physician or clinic appointed by the
               Committee; or

          (4)  Refuses to undergo any medical examination requested by the
               Committee, provided that a medical examination shall not be
               required more frequently than twice in any calendar year.

     If the Participant's Disability Retirement Benefit ceases for reasons
     enumerated in this Section 3.9(c), such Participant shall not be prevented
     from qualifying for an entitlement under another provision of the Plan
     based on Credited Service and Compensation earned prior to such
     Participant's Disability.

3.10 Eligible Spouse's Survivor Benefits.

     (a)  If a Participant dies on or after becoming vested in his Accrued
          Benefit and before his Annuity Starting Date, the Participant's
          surviving Eligible Spouse, if any, shall receive a Qualified
          Pre-Retirement Survivor Annuity. A Qualified Pre Retirement Survivor
          Annuity is a monthly benefit:

          (1)  payable for the lifetime of the surviving Eligible Spouse,

          (2)  beginning on the date which would have been the Participant's
               earliest Early Retirement Date or the first day of the month
               following death, if later, and

                                       17
<PAGE>
          (3)  equal to the monthly benefit that would have been payable to the
               spouse, if the Participant had:

               (A)  incurred a Severance from Service Date on the date of death
                    (if he died while an Employee),

               (B)  survived to his earliest Early Retirement Date (if he died
                    prior to such date),

               (C)  retired with an immediate 50% qualified joint and survivor
                    annuity with his Eligible Spouse as Beneficiary, and

               (D)  died on the following day

     (b)  Notwithstanding the foregoing, if the present value of the Qualified
          Pre-Retirement Survivor Annuity calculated in accordance with Section
          3.13(d) is greater than $5,000, payment shall not commence without the
          surviving Eligible Spouse's consent prior to the date the Participant
          would have attained Normal Retirement Age.

     (c)  Notwithstanding Section 3.10(b), a surviving Eligible Spouse can elect
          to commence benefits after the Participant's date of death but before
          the Participant's earliest Early Retirement Date. The monthly benefit
          shall be adjusted, in accordance with Section 1.2, to reflect the
          earlier commencement date.

     (d)  A surviving Eligible Spouse of a Participant who dies on or after
          August 1,2000 may elect to receive the present value of the Qualified
          Pre-Retirement Survivor Annuity in the form of a lump sum distribution
          described in Section 3.13(e).

     (e)  Guaranteed Return of Employee Contributions and Interest. If the
          Participant has a Participant's Contribution Account, as described in
          Section 3.4(d), the Participant's surviving Eligible Spouse is
          entitled to the greater of (A) the Qualified Pre-Retirement Survivor
          Annuity, as described in Section 3.10(a), or (B) a single life annuity
          based on the Participant's Contribution Account, as described in
          Section 3.4(d).

3.11 Automatic Forms of Payment.

     (a)  Married Participants. A Participant who has an Eligible Spouse on the
          Annuity Starting Date will automatically receive his benefit in the
          form of a 50% joint and survivor annuity, with his Eligible Spouse as
          Beneficiary unless the Participant elects an optional form of payment
          in accordance with the procedures set forth in subsection (c) below.

     (b)  Unmarried Participants. A Participant who does not have an Eligible
          Spouse on the Annuity Starting Date will automatically receive his
          Accrued Benefit, payable

                                       18
<PAGE>
          as a single life annuity unless the Participant elects an optional
          form of benefit in accordance with the procedures set forth in
          subsection (c) below.

     (c)  Waiver of Automatic Form of Payment. Notwithstanding the foregoing, a
          Participant may elect to waive the automatic form of payment (with
          Spousal Consent, if applicable) and receive an optional form of
          distribution as set forth in Section 3.13. Such waiver must he made
          within the ninety (90) day period ending on the Participant's Annuity
          Starting Date with respect to such benefit. A Participant may
          subsequently revoke an election to waive an automatic form of payment
          and elect again to waive the automatic form of payment at any time and
          any number of times prior to such Annuity Starting Date. All such
          elections and revocations shall be in writing. Any election to waive
          an automatic form of payment (1) must specify the optional form of
          distribution elected, (2) must be accompanied by the designation of a
          specific nonspouse Beneficiary (including any class of Beneficiaries
          or any contingent Beneficiaries) who will receive the benefit upon the
          Participant's death, if applicable, and (3) must be accompanied by a
          Spousal Consent, as provided under Section 1.44.

3.12 Deferred Vested Benefit.

     (a)  A Participant who ceases to be an Employee for reasons other than
          death, Disability or retirement shall be entitled to a Deferred Vested
          Benefit, commencing on his Normal Retirement Date, which shall be
          equal to his Accrued Benefit determined at his Severance from Service
          Date multiplied by his vested percentage determined pursuant to
          Article V.

     (b)  A Participant eligible for a Deferred Vested Benefit who ceases to be
          an Employee after satisfying the service requirement for an Early
          Retirement Benefit but before satisfying the age requirement for an
          Early Retirement Benefit shall be entitled upon satisfaction of the
          age requirement to elect to commence to receive his Deferred Vested
          Benefit as an Early Retirement Benefit payable in either the automatic
          form of payment pursuant to Section 3.11, or an optional form of
          payment pursuant to Section 3.13. The amount paid pursuant to this
          Section 3.12(b) shall be reduced in accordance with Section 3.6, and
          actuarially adjusted to reflect the form of benefit payable.

     (c)  A Participant eligible for a Deferred Vested Benefit who ceases to be
          an Employee before satisfying the age and service requirements for an
          Early Retirement Benefit shall be entitled to elect to commence to
          receive his Deferred Vested Benefit payable in the automatic form of
          payment, or a single lump sum payment before his earliest Early
          Retirement Date. The annuity amount paid pursuant to this Section
          3.12(c) shall be reduced in accordance with Section 1.2 to reflect the
          Annuity Starting Date and the form of benefit payable.

3.13 Optional Forms of Benefit.

                                       19
<PAGE>
     (a)  Except as provided in Section 3.11, a Participant may elect to receive
          his retirement benefits in any form described in Section 3.13(b)
          below, or a lump sum distribution described in Section 3.13(e) below.

     (b)  A Participant may elect in writing, within a reasonable period of time
          prior to his retirement date, to be paid in accordance with any one of
          the following optional forms of benefit, which are the Actuarial
          Equivalent of the Participant's Normal Form.

          (1)  Straight Life Annuity: A monthly benefit payable for the lifetime
               of the Participant, without death benefits.

          (2)  Life Annuity with Periods Certain of 60 Months or 120 Months: A
               monthly benefit payable for the lifetime of the Participant and,
               if the death of the Participant occurs prior to the end of the
               period certain, the balance of the remaining period certain
               payments to his Beneficiary.

          (3)  Survivorship Life Annuity: A monthly benefit payable for the
               lifetime of the Participant and, upon his death, a percentage
               (50%, 66-2/3%, 75%, or 100%) of such monthly benefit payable for
               the lifetime of his Beneficiary if the Beneficiary survives the
               Participant.

          (4)  Life Annuity with Social Security Adjustment for the Lifetime of
               the Participant, Without Death Benefits: The amount of each
               monthly payment will be an adjustment of the straight life
               annuity option under Section 3.13(b)(1) above so that the
               payments before and after age 65, when combined with Social
               Security benefits at age 65, will provide, as nearly as
               practical, a uniform series of payments during the Participant's
               lifetime. This optional form is available only if the
               Participant's retirement date is prior to age 65. This option
               form is not available if a practical, uniform series of monthly
               payments cannot be determined.

     (c)  If the Participant's Eligible Spouse is not the designated
          Beneficiary, the method of distributions elected must comply with
          Treasury Regulation Section 1.401(a)(9)-2.

     (d)  Mandatory Cashouts. Notwithstanding anything to the contrary in this
          Article III, if a Participant ceases to be an Employee for any reason
          and the present value of his vested Accrued Benefit or Qualified
          Pre-Retirement Survivor Annuity is equal to or less than $5,000 on the
          Annuity Starting Date (including a vested Accrued Benefit of $0), the
          Committee shall pay as soon as practicable to the Participant (or his
          Beneficiary, as the case may be) the present value of his vested
          Accrued Benefit in a single lump-sum payment. No distribution may be
          made under the preceding sentence after the Participant's Annuity
          Starting Date unless the Participant and his Eligible Spouse consent
          thereto in a manner which is comparable to the Spousal Consent
          requirements in Section 1.44. For purposes of calculating lump sum
          payments in order to determine if the Accrued Benefit can

                                       20
<PAGE>
          be paid without the Participant's consent, the present value shall be
          determined using (1) the Applicable Interest Rate and the Applicable
          Mortality Table or (2) the actuarial assumptions of Section 1.2(a),
          whichever produces the greater lump sum payment. If a Participant
          satisfies the requirements for Early Retirement Age as of his Annuity
          Starting Date, the lump sum payment will be based on his Accrued
          Benefit payable as of his Normal Retirement reduced in accordance with
          Section 3.6.

     (e)  Voluntary Lump Sum Distribution. A Participant who ceases to be an
          Employee and who is vested in his Accrued Benefit, can elect (with
          Spousal Consent if the Participant has an Eligible Spouse as of the
          Annuity Starting Date) either (1) a single lump sum payment or (2) the
          automatic form of payment based on his marital status on his Annuity
          Starting Date. For purposes of determining the lump sum payment, the
          present value of the Participant's vested Accrued Benefit shall be
          determined using the Applicable Interest Rate and the Applicable
          Mortality Table. If a Participant satisfies the requirements for Early
          Retirement Age as of his Annuity Starting Date, the lump sum payment
          will be based on his Accrued Benefit payable as of his Normal
          Retirement reduced pursuant to Section 3.6.

          Notwithstanding the foregoing, if an Eligible Employee is first
          credited with an Hour of Service on or after August 1, 2000, the
          Voluntary Lump Sum Distribution and the immediate annuity shall not be
          available to him.

     (f)  Notwithstanding the foregoing subsection, a Participant who was
          participating in the Prior Plan on July 31, 1989, shall be entitled to
          a lump sum benefit using the following procedure, if greater than that
          calculated in Section 3.13(d) and (e) above. The lump sum under this
          subsection (f) shall be equal to the benefit accrued on July 31, 1989
          multiplied by a lump sum factor, determined by using the average of
          male and female Pension Benefit Guaranty Corporation factors based on
          rates in effect for plans terminating at the time of a distribution.

     (g)  If any monthly annuity benefit payable under the Plan is $20 or less,
          the Plan may make benefit payments in less frequent intervals of one
          (I) year or less.

3.14 Time of Distribution.

     (a)  The Committee must provide the Participant with a "general notice of
          distribution" no less than thirty (30) and no more than ninety (90)
          days before the Participant's Annuity Starting Date. Notwithstanding
          the foregoing, the "general notice of distribution" may be provided
          after the Participant's Annuity Starting Date provided distribution of
          the Participant's vested Accrued Benefit does not commence until at
          least 30 days after such notice is provided. A Participant may waive
          the 30 day requirement if (1) the Participant has been notified in
          writing that he has at least 30 days to consider whether to waive the
          50% qualified joint and survivor annuity (with Spousal Consent), (2)
          the Participant is permitted to revoke any affirmative distribution
          election at least until the Annuity Starting Date or if later at any
          time prior to the expiration of the 7-day period that begins

                                       21
<PAGE>
          after the notice is provided and (3) distribution of the Participant's
          vested Accrued Benefit commences more than 7 days after the notice is
          provided. Such notice must be in writing and must set forth the
          following information: (i) an explanation of the eligibility
          requirements for, the material features of, and the relative values of
          the alternate forms of benefits available under Section 3.12 and
          Section 3.14, and (ii) the Participant's right to defer receipt of a
          Plan distribution under Sections 3.15(c) and (d). This general notice
          also shall include (i) the terns and conditions of a 50% qualified
          joint arid survivor annuity; (ii) the Participant's right to make, and
          the effect of, an election to waive the 50% qualified joint and
          survivor annuity; (iii) the rights of the Participant's Eligible
          Spouse; and (iv) the right to make, and the effect of, a revocation of
          an election to waive a 50% qualified joint and survivor annuity. Such
          notice shall be given to the Participant in person, by mailing, by
          posting, or by placing it in an Employer publication which is
          distributed in such a manner as to be reasonably available to such
          Participant. If the notice is to be posted, it shall be posted at the
          location within the Participant's principal place of employment which
          is customarily used for employer notices to employees with regard to
          labor management relation matters. Notice under this Section 3.14 is
          not required if the present value of the Participant's vested Accrued
          Benefit is less than or equal to $5,000.

     (b)  Upon receipt of the general notice of distribution, a Participant may
          consent in writing to receive a distribution of his vested Accrued
          Benefit to be distributed at the time and in the manner set forth in
          this Article III. The Participant's consent to receive such
          distribution prior to the later of age 62 or Normal Retirement Age
          must be accompanied by the written consent of the Participant's
          Eligible Spouse, if married, which is comparable to the Spousal
          Consent requirements in Section 1.44, unless the distribution is to be
          made in the form of a qualified joint and survivor annuity with the
          Participant's Eligible Spouse as Beneficiary.

     (c)  To the extent not inconsistent with Section 3.14(d) below, in the
          event that the Participant does not elect in writing to defer receipt
          of his Accrued Benefit, payment of a Participant's Accrued Benefit
          shall begin not later than the 60th day after the latest of the close
          of the Plan Year in which:

          (1)  The Participant attains Normal Retirement Age;

          (2)  Occurs the tenth (10th) anniversary of the date in which the
               Participant entered the Plan; or

          (3)  The Participant terminates employment with the Employer

     (d)  In the event that the Participant has terminated employment and the
          Participant (and the Eligible Spouse, if applicable) neither consents
          to receive a Plan distribution nor elects to defer receipt of a Plan
          distribution, the present value of the Participant's vested Accrued
          Benefit shall he distributed on the Participant's Normal Retirement
          Date as a single life annuity if the Participant is unmarried on the
          Annuity Starting Date, or in the form of a 50% qualified joint and
          survivor

                                       22
<PAGE>
          annuity with the Participant's Eligible Spouse as Beneficiary, but in
          no event before the date the Participant attains the later of age 62
          or Normal Retirement Age, if the present value of such vested Accrued
          Benefit exceeds $5,000. For purposes of this Section 3.14(d), the
          determination whether the present value of the Participant's vested
          Accrued Benefit is equal to or less than $5,000 shall be determined in
          a manner specified in Section 3.13(d). The Committee may distribute a
          benefit in the Normal Form if the Participant is unmarried on the
          Annuity Starting Date or in the form of a 50% qualified joint and
          survivor annuity with the Participant's Eligible Spouse as Beneficiary
          to the Participant without his prior consent if such distribution is
          necessary to comply with Code Section 415 or 411(b).

     (e)  Notwithstanding anything to the contrary, distribution of a
          Participant's vested Accrued Benefit shall commence by the April 1
          following the year (1) during which the Participant who is a 5% owner
          (as defined in Code Section 416(i)(1)(B)(i)) attains age 70%, or (2)
          in which the Participant who is not a 5% owner incurs a Severance from
          Service Date or reaches age 70%, whichever is later. Distributions
          must be made in accordance with the regulations under Code Section
          401(a)(9), including Section 1.401 (a)(9)-2. If a Participant
          continues employment after age 70 1/2, his Accrued Benefit determined
          as of the April 1 following the year the Participant attains age 70
          1/2 shall be actuarially increased (at a rate of 6% per year) to
          reflect the delay in payment from the April 1 following the year he
          attained age 70 1/2 until his Severance from Service Date. This
          actuarially increased benefit shall be offset by the Participant's
          continued accruals. In no event shall the Participant's Delayed
          Retirement Benefit be less than the amount determined by this
          subsection (e).

     (f)  If the amount of the payment required by subsection (e) above cannot
          he ascertained by the date payment is to commence, or if it is not
          possible to make such payment because of the Committee's inability to
          locate the Participant after making reasonable efforts to do so, a
          payment retroactive to the required commencement date shall be made no
          later than sixty (60) days after the date the amount of such payment
          can be ascertained or the Participant is located.

     (g)  If the Beneficiary is the Participant's surviving Eligible Spouse,
          unless the Eligible Spouse consents to the distribution, the Eligible
          Spouse shall not receive a Plan distribution before the date the
          Participant attained or would have attained Normal Retirement Age if
          the present value of the Participant's vested Accrued Benefit exceeds
          $5,000 at the time of distribution. For purposes of this Section
          3.14(g), the determination whether the present value of-the
          Participant's vested Accrued Benefit is equal to or less than $5,000
          shall be determined in a manner specified in Section 3.13(d). An
          Eligible Spouse of a Participant who dies on or after August 1, 2000
          may elect an earlier Annuity Starting Date.

     (h)  Notwithstanding any Plan provision to the contrary, all Plan
          distributions shall comply with the requirements of Code Section
          401(a)(9) and the regulations thereunder, including Code Section
          1.401(a)(9)-2.

                                       23
<PAGE>
3.15 Direct Rollover of Eligible Rollover Distributions.

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

     (b)  Definitions.

          (1)  Eligible rollover distribution: An eligible rollover distribution
               is any distribution of all or any portion of the balance to the
               credit of the distributee, except that an eligible rollover
               distribution does not include: any distribution that is one of a
               series of substantially equal periodic payments (not less
               frequently than annually) made for the life (or life expectancy)
               of the distributee or the joint lives (or joint life
               expectancies) of the distributee and the distributee's designated
               Beneficiary, or for a specified period of ten years or more; any
               distribution to the extent such distribution is required under
               Code Section 401(a)(9); effective January 1, 2000, any hardship
               distribution of elective contributions, as described in Code
               Section 401(k)(2)(B)(i)(IV); and the portion of any distribution
               that is not includible in gross income (determined without regard
               to the exclusion for net unrealized appreciation with respect to
               employer securities).

          (2)  Eligible retirement plan: An eligible retirement plan is an
               individual retirement account described in Code Section 408(a),
               an individual retirement annuity described in Code Section
               408(b), an annuity plan described in Code Section 403(a), a
               qualified trust described in Code Section 401(a), and effective
               for transfers on or after the first day of the Plan Year
               beginning on or after January 1, 2002, an annuity described in
               Code Section 403(b), and an eligible deferred compensation plan
               described in Code Section 457(b) that accepts the distributee's
               eligible rollover distribution. However, effective for transfers
               before the first day of the Plan Year beginning on or after
               January 1,2002, in the case of an eligible rollover distribution
               to the surviving spouse, an eligible retirement plan is an
               individual retirement account or individual retirement annuity.

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

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

                                       24
<PAGE>
3.16 Qualified Domestic Relations Orders.

     The Committee shall adopt uniform and nondiscriminatory administrative
     procedures which comply with Code Section 414(p) and any accompanying
     regulations to determine the qualified status of domestic relations orders
     and to determine benefit payments under Qualified Domestic Relations
     Orders. The Committee will comply with provisions of an order it determines
     to be a Qualified Domestic Relations Order. Once the Plan administrator has
     received a domestic relations order, no benefit payments or distributions
     may be processed until the payment terms under the Qualified Domestic
     Relations Order are resolved. If provided by the Qualified Domestic
     Relations Order, the alternate payee can elect to receive her portion of
     the Participant's Accrued Benefit in the form of a single lump sum
     distribution, pursuant to Section 3.13(e). Distribution shall not be made
     before the earliest retirement age on which the Participant could receive
     his Accrued Benefit. For purposes of this Section, "earliest retirement
     age" means the earlier of:

     (a)  the date on which the Participant is entitled to a benefit payment
          under the Plan, or

     (b)  the later of:

          (1)  the date the Participant attains age 50, or

          (2)  the earliest date on which the Participant could begin receiving
               benefits tinder the Plan if the Participant terminated
               employment.

     For purposes of this Section, a "Qualified Domestic Relations Order" means
     a domestic relations order which the Plan administrator has determined
     satisfies the requirements of Code Section 414(p).

                                   ARTICLE IV

                             LIMITATIONS ON BENEFITS

4.1  Limitation on Benefits.

     Notwithstanding any other provision of the Plan to the contrary, a
     Participant's Annual Benefit shall not exceed the applicable limitations
     set forth in Code Section 415 at any time during any Plan Year. If a
     Participant's Annual Benefit would exceed the foregoing limitation, the
     Participant's Annual Benefit shall be reduced by reducing the components
     thereof, as necessary, in the order in which they are listed in Section
     4.2. A Participant's Annual Benefit shall in no event be reduced below the
     amount allowed under the special grandfather and transition rules set forth
     in the Tax Equity and Fiscal Responsibility Act of 1982 and the Tax Reform
     Act of 1986. The amendments to tile Code Section 415 limitations described
     in the Retirement Protection Act of 1994, as amended by the Small Business
     Job Protection Act of 1996 and the Taxpayer Relief Act of 1997
     (collectively, the "GUST Amendments"), shall be effective as of August 1,
     1995, but shall not be

                                       25
<PAGE>
     applied to limit any Participant's Annual Benefit that is first payable
     prior to August 1,2000. The Code Section 415 limitations as amended by the
     GUST Amendments shall be applied to the full amount of any Participant's
     Annual Benefit that is first payable on or after August 1, 2000, subject to
     the Code Section 415 grandfather rule described in method 2 of Q&A-14 in
     Internal Revenue Service Revenue Ruling 98-1.

4.2  Annual Benefit.

     For purposes of this Article IV only, a Participant's "Annual Benefit"
     shall be equal to the sum of the following:

     (a)  The annual retirement benefit to which the Participant is entitled
          under this Plan; and

     (b)  The aggregate annual retirement benefits (if any) to which the
          Participant is entitled under all other qualified defined benefit
          plans maintained by any Affiliated Company, as defined in Section 4.5.

     If an Annual Benefit (or any portion thereof) is payable in any form other
     than a single-life annuity or a qualified joint and survivor annuity (as
     defined in Code Section 417(b) and the regulations thereunder) then such
     Annual Benefit or such portion) shall, for purposes of this Article IV, be
     converted into a single life annuity which is its Actuarial Equivalent.

4.3  Adjusted Dollar Limitation for Benefits Commencing At Social Security
     Retirement Age, After Social Security Retirement Age or Before Age 62.

     (a)  At Social Security Retirement Age. The dollar limitation described in
          Code Section 415(b)(l)(A) that is applicable at a Participant's
          "Social Security Retirement Age" shall be adjusted annually for
          increases in the cost of living pursuant to Code Section 415(d).

     (b)  After Social Security Retirement Age. If a Participant's Annual
          Benefit commences after the Participant's Social Security Retirement
          Age, the dollar limitation described in Code Section 415(b)(l)(A) (as
          adjusted annually for increases in the cost of living pursuant to Code
          Section 415(d)) for the particular Plan Year shall be increased to an
          actuarially equivalent annual amount using interest of 5% per year and
          the Applicable Mortality Table for both pre-benefit and post-benefit
          commencement mortality. Effective for limitation years ending on or
          after January 1, 2002, "Age 65" shall be substituted for "Social
          Security Age" wherever it appears in this subsection (b).

     (c)  Before Age 62. If a Participant's Annual Benefit commences prior to
          age 62, the dollar limitation at age 62 determined pursuant to Code
          Section 415(b)(2)(C) shall be further reduced to the lesser of the
          actuarially equivalent annual amount determined as of such earlier
          commencement date using the factors described in (1) or (2) below:

                                       26
<PAGE>
          (1)  The factors used under the applicable plans for the particular
               Participant to determine the amount of the reduction for early
               commencement of the Participant's Annual Benefit.

          (2)  Interest of 5% per year, and the Applicable Mortality Table for
               both pre-benefit and post-benefit commencement mortality.

4.4  Compensation.

     For purposes of applying the limitations of Code Section 415 to the Plan
     and the other qualified defined benefit plans maintained by any Affiliated
     Company, "compensation" shall mean the total wages and other compensation
     paid to an Employee by the Employer during the Plan Year, as reported as
     taxable income on the Employee's Wage and Tax Statement (Form W-2),
     including the amount of any elective contributions made on his behalf for
     the Plan Year to a 401(k) plan sponsored by an Employer and any amounts
     excludable from his taxable income under a "cafeteria plan" pursuant to
     Code Section 125.

4.5  Affiliated Company.

     For purposes of this Article IV, the term "Affiliated Company" shall mean
     the controlled group of corporations (within the meaning of Code Section
     1563(a), determined without regard to Code Sections 1563(a)(4) and
     1563(e)(3)(C)) of which the Company is a member, except that the phrase
     "more than 50 percent" shall be substituted for the phrase "at least 80
     percent" wherever the latter phrase occurs in Code Section 1563(a).

                                   ARTICLE V

                       VESTING OF EMPLOYER FUNDED BENEFITS

5.1  Vesting.

     (a)  A Participant shall have a nonforfeitable interest in his Accrued
          Benefit derived from Employee contributions and interest. A
          Participant's total Accrued Benefit derived from Employer
          contributions shall be vested if he is an Employee when he attains
          Normal Retirement Age, or dies.

     (b)  Except as provided m Sections 5.l(a), (c), and Section 13.3(a) a
          Participant's Accrued Benefit derived from Employer contributions
          shall vest in accordance with the following schedule:

<TABLE>
<CAPTION>
                     Vested
Years of Service   Percentage
----------------   ----------
<S>                <C>
Less than 5             0%
5 or more             100%
</TABLE>

                                       27
<PAGE>
     (c)  If the Plan's vesting schedule is amended and if a Participant who has
          completed three (3) Years of Service at any time and at least one (1)
          Hour of Service on or after the first day of the first Plan Year
          beginning after December 31, 1988 elects, within a reasonable period
          of time, in accordance with Code Section 411(a)(10), to have his
          Accrued Benefit derived from Employer contributions vest under the
          terms of the vesting schedule in effect before the amendment, then,
          notwithstanding the provisions of the vesting schedules above, his
          Accrued Benefit shall vest in accordance with the prior schedule.

     (d)  In determining the Years of Service under the Plan for purposes of
          determining a Participant's vested percentage under Sections 5.1(b)
          and Section 13.3(a), all of a Participant's Years of Service with the
          Employer shall be taken into account, except as provided below.

          (1)  If, at the time of a One-Year Break in Service, a Participant
               does not have any vested right under Sections 5.1(a), (b) and
               (c), Years of Service before such One-Year Break in Service shall
               not thereafter be taken into account if the number of consecutive
               One-Year Breaks in Service equals or exceeds either five (5) or
               the aggregate number of Years of Service before such Breaks in
               Service, whichever is greater;

          (2)  The aggregate number of Years of Service before such Breaks in
               Service shall be deemed not to include any Years of Service not
               required to be taken into account hereunder by reason of any
               prior application of this subsection. Participants who were also
               participants of the Prior Plan shall be governed by the Break in
               Service rules of this Plan or the Prior Plan, whichever is more
               favorable.

     (e)  Amounts vested pursuant to this Section shall not be subject to
          divestment for cause.

5.2  Termination of Employment.

     Upon termination of employment, a Participant shall be entitled to receive
     a benefit equal to the product of his Accrued Benefit multiplied by his
     vested percentage as determined hereunder. This amount shall be subject to
     distribution in accordance with the provisions of Article III

5.3  Rehired Participants.

     Notwithstanding anything to the contrary contained in this Article V, a
     Participant's Accrued Benefit shall take into account any distribution he
     has previously received, as described in Article II.

5.4  Termination of Non-Vested Participants.

     A terminated Participant who has a zero percent (0%) vested percentage
     shall not be entitled to any benefits under the Plan, other than a return
     of his Participant's

                                       28
<PAGE>
     Contribution Account, but shall be deemed to have received a distribution
     of $0 upon termination.

                                   ARTICLE VI

                              LOANS TO PARTICIPANTS

     No loans shall be made under this Plan to Participants from the assets of
     the Trust.

                                   ARTICLE VII

                                  BENEFICIARIES

7.1  Designation.

     Subject to the qualified pre-retirement survivor annuity and qualified
     joint and survivor annuity requirements set forth in Article III, a
     Participant shall have the right to designate, on forms provided by the
     Employer, a Beneficiary or Beneficiaries to receive the benefits herein
     provided in the event of his death and to revoke such designation or to
     substitute another Beneficiary or Beneficiaries at any time.

7.2  Absence of Valid Designation of Beneficiaries.

     If, upon the death of a Participant, former Participant or Beneficiary,
     there is no valid designation of Beneficiary on file with the Employer, the
     following shall be designated by the Committee as the Beneficiary or
     Beneficiaries, in order of priority:

     (a)  The surviving spouse;

     (b)  Surviving children, including adopted children, in equal shares;

     (c)  The Participant's estate.

     The determination of the Committee as to which persons, if any, qualify
     within the categories listed above shall be final and conclusive upon all
     persons.

                                  ARTICLE VIII

                PARTICIPANT'S CONTRIBUTIONS AND SPECIAL ACCOUNTS

Individual Participants may not make contributions to this Plan. All
contributions must be made by the Employer. Before August 1, 1984, some
Participants were required to contribute to the Prior Plan.

                                       29
<PAGE>
                                   ARTICLE IX

                             ESTABLISHMENT OF TRUST

9.1  Trust Agreement.

     Contributions made by the Employer pursuant to Article III hereof, and all
     other assets of this Plan shall be held in trust under a Trust agreement.
     The Employer shall enter into a Trust agreement with the Trustee for the
     administration of the Trust which shall contain the assets of the Plan. The
     Trustee shall not be responsible for the administration of this Plan but
     only for the Trust established pursuant to this Plan.

9.2  Trust Agreement Part of Plan.

     The Trust agreement shall be deemed to be a part of this Plan, and any
     rights or benefits accruing to any person under this Plan shall be subject
     to all of the relevant terms and provisions of the Trust agreement,
     including any amendments. In addition to the powers of the Trustee set
     forth in the Trust agreement, the Trustee shall have any powers, express or
     implied, granted to it under the Plan. In the event of any conflict between
     the provisions of the Trust agreement and the provisions of the Plan, the
     provisions of the Plan shall control, except for the duties and
     responsibilities of the Trustee, in which case the Trust agreement shall
     control.

                                   ARTICLE X

                       PLAN FIDUCIARIES AND ADMINISTRATION

10.1 Named Fiduciaries.

     The authority to control and manage the operation and administration of the
     Plan is vested in the named fiduciaries specified herein. Each named
     fiduciary shall be responsible solely for the tasks allocated to it. No
     fiduciary shall have any liability for a breach of fiduciary responsibility
     of another fiduciary with respect to the Plan and Trust, unless it
     participates knowingly in the breach, has actual knowledge of the breach
     and fails to take reasonable remedial action to remedy said breach, or,
     through its negligence in performing its own specific fiduciary
     responsibilities, which give rise to its status as a fiduciary, it has
     caused another fiduciary to commit a breach of fiduciary responsibility.

10.2 Fiduciary Standard.

     Each named fiduciary and every other fiduciary under the Plan shall
     discharge its duties with respect to the Plan solely in the interests of
     the Participants and Beneficiaries and;

     (a)  For the exclusive purpose of providing benefits to Participants and
          their Beneficiaries and defraying reasonable expenses of administering
          the Plan;

                                       30
<PAGE>
     (b)  With the care, skill, prudence and diligence, under the circumstances
          then prevailing, that a prudent man acting in a like capacity and
          familiar with such matters would use in the conduct of an enterprise
          of a like character and with like aims;

     (c)  In accordance with the documents and instruments governing the Plan,
          insofar as these are consistent with the provisions of Title I of
          ERISA.

10.3 Multiple Duties and Advisors.

     Any person or group of persons may serve in more than one fiduciary
     capacity with respect to the Plan. A named fiduciary, or a fiduciary
     designated by a named fiduciary in accordance with the terms of the Plan,
     may employ one or more persons to render advice with regard to any
     responsibilities such fiduciary has under the Plan.

10.4 Allocation and Delegation of Fiduciary Duties.

     Each named fiduciary may allocate its fiduciary duties among its members or
     may delegate its responsibilities to persons who are not named fiduciaries
     with respect to the specific responsibility delegated. Any such allocation
     or delegation shall he in writing and shall be made a permanent part of the
     records of the named fiduciary. Such allocation or delegation shall be
     reviewed periodically by the named fiduciary and shall be terminable upon
     such notice as the named fiduciary, in its sole discretion, deems
     reasonable and prudent under the circumstances. An action by the Board
     of-Directors of the Company or the Committee allocating or delegating its
     named fiduciary responsibilities shall be evidenced by a duly adopted
     resolution of the Committee or of the Board of Directors of the Company.

10.5 Indemnification.

     Any Employer shall indemnify and hold harmless the named fiduciaries and
     any officers or Employees of the Employer to which fiduciary
     responsibilities have been delegated, from and against any and all
     liabilities, claims, demands, costs and expenses, including attorneys'
     fees, which may arise out of an alleged breach in the performance of their
     fiduciary duties under the Plan and under ERISA, other than such
     liabilities, claims, demands, costs and expenses as may result from the
     gross negligence or willful misconduct of such persons. The Company shall
     have the right, but not the obligation, to conduct the defense of such
     persons in any proceeding to which this Section applies. An Employer may
     satisfy its obligation under this Section, in whole or in part, through the
     purchase of a policy or policies of insurance; however, no insurer shall
     have any rights against the Employer arising out of this Section.

10.6 Costs and Expenses.

     The costs and expenses of the named fiduciaries shall be paid from the
     Plan's assets to the extent not paid by the Company. The Company may charge
     to an Employer such expenses advanced by it on behalf of the Employer.

                                       31
<PAGE>
10.7 Authority to Amend and Terminate.

     Subject to Article XI, the Board of Directors of the Company is the named
     fiduciary responsible for the amendment and termination of the Plan and
     Trust. In addition, the Board of Directors of the Company shall appoint and
     replace the members of the Committee as required.

10.8 The Committee.

     (a)  The Committee is the named fiduciary with the power and the duty to:
          (1) interpret tile terms of the Plan; (2) formulate rules and
          regulations necessary to administer the Plan in accordance with its
          terms, including the delegation outside the Company of any of the
          administrative duties described in Section 10.9 below; (3) finally
          review claims under the claims review procedure; (4) establish and
          execute the funding policy of the Plan; (5) establish and modify an
          investment policy (subject to approval by the Board of Directors of
          Company), invest Plan assets and/or name one or more investment
          managers to invest Plan assets; and (6) annually review the funding
          policy and method.

     (b)  The Committee shall consist of at least two (2) but not more than five
          (5) persons and shall have as its officers a chairman who shall be a
          member of the Committee, a secretary who may be, but need not be, a
          member, and such other officers as may be appointed by the Board of
          Directors of the Company. The members of the Committee and its
          officers shall be appointed by and hold office at the pleasure of the
          Board of Directors of the Company and shall serve as such without
          compensation.

     (c)  The Committee shall keep minutes of its meetings and proceedings.
          Every decision made or action taken by a majority of the members then
          in office shall constitute a decision or action of the Committee, and
          shall be final, conclusive and binding upon all persons affected. A
          Committee decision or action, under or in connection with the Plan,
          may be made or taken either at a meeting held pursuant to its rules,
          at which a majority of the members then in office are present and vote
          in favor thereof, or without a meeting if approved and evidenced by a
          writing signed by a majority of the members then in office. No
          Committee member shall vote on any question relating solely to
          himself.

10.9 Plan Administration.

     The Company shall be the Plan Administrator for purposes of ERISA Section
     3(16) and Code Section 414(g). In addition, the Administrator shall have
     the power and the duty to perform the following administrative functions
     according to the policies, interpretations, rules, practices and procedures
     established by the Board of Directors of the Company or the Committee in
     accordance with the respective areas of named fiduciary responsibilities:

     (a)  Apply Plan rules determining eligibility for participation or
          benefits;

                                       32
<PAGE>
     (b)  Calculate service and compensation credits for benefits;

     (c)  Prepare employee communications material;

     (d)  Maintain Participants' service and employment records,

     (e)  Prepare reports required by government agencies;

     (f)  Calculate benefits and, if necessary, purchase annuity contracts which
          satisfy the requirements of Code Sections 401(a)(11) and 417;

     (g)  Orient new Participants and advise Participants regarding their rights
          and options under the Plan;

     (h)  Collect contributions and apply contributions as provided in the Plan;

     (i)  Prepare reports concerning Participants' benefits;

     (j)  Process claims; and

     (k)  Make recommendations to the Board of Directors of the Company or the
          Committee on Plan administration.

10.10 Claims Procedures.

     (a)  Filing of Claim. A Participant or Beneficiary who believes he is
          entitled to a benefit which he has not received may file a claim in
          writing with his Employer. The Employer may require a claimant to
          submit additional information, if necessary to process the claim. The
          Company or its delegate shall review the claim and render its decision
          within ninety (90) days from the date the claim is filed (or the
          requested additional information is submitted, if later), unless
          special circumstances require an extension of time for processing the
          claim. If such an extension is required, written notice of the
          extension shall be furnished the claimant within the initial ninety
          (90) day period. The notice shall indicate the special circumstances
          requiring the extension and the date by which the Company expects to
          reach a decision on the claim. In no event shall the extension exceed
          a period of ninety (90) days from the end of the initial period.

     (b)  Notice of Claim Denied. If the Company denies a claim, in whole or in
          part, it shall provide the claimant with written notice of the denial
          within the period specified in Section 10.10(a). The notice shall be
          written in language calculated to be understood by the claimant, and
          shall include the following information:

          (1)  The specific reason for such denial;

          (2)  Specific reference to pertinent Plan provisions upon which the
               denial is based;

                                       33
<PAGE>
          (3)  A description of any additional material or information which may
               be needed to clarify or perfect the request, and an explanation
               of why such information is required; and

          (4)  An explanation of the Plan's review procedure with respect to the
               denial of benefits

     (c)  Review Procedure. Any claimant whose claim has been denied, in whole
          or in part, shall follow those review procedures as set forth herein.

          (1)  A claimant whose claim has been denied, in whole or in part, may
               request a full and fair review of the claim by the Committee by
               making written request therefor within sixty (60) days of receipt
               of the notification of denial. The Committee, for good cause
               shown, may extend the period during which the request may be
               filed. The claimant shall be permitted to examine all documents
               pertinent to the claim and shall be permitted to submit issues
               and comments regarding the claim to the Committee in writing.

          (2)  The Committee shall render its decision within sixty (60) days
               after receipt of the application for review, unless special
               circumstances (such as the need to hold a hearing) require an
               extension of time for processing, in which case the decision
               shall be rendered as soon as possible but not later than one
               hundred and twenty (120) days after receipt of a request for
               review. If an extension of time is necessary, written notice
               shall be furnished the claimant before the extension period
               commences.

          (3)  The Committee shall decide whether a hearing shall be held on the
               claim. If so, it shall notify the claimant in writing of the time
               and place for the hearing. Unless the claimant agrees to a
               shorter period, the hearing shall be scheduled at least fourteen
               (14) days after the date of the notice of hearing. The claimant
               and/or his authorized representative may appear at any such
               hearing.

          (4)  The Committee shall send its decision on review to the claimant
               in writing within the time specified in this section. If the
               claim is denied, in whole or in part, the decision shall specify
               the reasons for the denial in a manner calculated to be
               understood by the claimant, referring to the specific Plan
               provisions on which the decision is based. The Committee shall
               not be restricted in its review to those provisions of the Plan
               cited in the original denial of the claim.

          (5)  If the Committee does not furnish its decision on review within
               the time specified in this Section 10.10(c), the claim shall be
               deemed denied on review.

                                       34
<PAGE>
10.11 Agent for Legal Process.

     The Plan Administrator shall be the Plan's agent for service of legal
     process.

                                   ARTICLE XI

                           AMENDMENT AND TERNIINATION

11.1 Amendment.

     To provide for contingencies which may require or make advisable the
     clarification, modification or amendment of this Plan, the Board of
     Directors of the Company delegates to the Committee the right to amend this
     Plan, at any time and from time to time, in whole or in part, by adopting
     such amendment in writing. Such power to amend includes the right, without
     limitation, to make retroactive amendments referred to in Code Section
     401(b). However, such right to amend the Plan shall be subject to Section
     11.3. Further, no amendment of the Plan shall (a) alter, change or modify
     the duties, powers or liabilities of the Trustee or an Investment Manager
     appointed pursuant to the Trust Agreement without its written consent; (b)
     permit any assets of the Trust to be used to pay premiums or contributions
     of the Employer under any other plan maintained by the Employer for the
     benefit of its employees; or (c) result in increasing any Employer's
     contribution to the Plan, unless approved by resolution of the Board of
     Directors of the Company.

11.2 Termination or Complete Discontinuance of Contributions.

     Although the Employer has established the Plan with the bona fide intention
     and expectation that it will be able to make contributions indefinitely,
     nevertheless the Employer is not and shall not be under any obligation or
     liability whatsoever to continue its contributions or to maintain the Plan
     for any given length of time. An Employer may, in its sole and absolute
     discretion, discontinue such contributions or terminate the Plan with
     respect to its Employees, in accordance with the provisions of the Plan, at
     any time with no liability whatsoever for such discontinuance or
     termination. If the Plan is terminated or partially terminated, or if
     contributions of an Employer are completely discontinued, the rights of all
     affected Participants in their Accrued Benefits shall thereupon become
     nonforfeitabfe, notwithstanding any other provisions of the Plan. However,
     the Trust shall continue until all benefits have been distributed in
     accordance with the Plan.

11.3 Nonreversion.

     (a)  Except as provided in this Section 11.3(a), the assets of the Plan
          shall never inure to the benefit of an Employer; such assets shall be
          held for the exclusive purpose of providing benefits to Participants
          and their Beneficiaries and for defraying the reasonable
          administrative expenses of the Plan.

                                       35
<PAGE>
          (1)  If an Employer contribution is made by virtue of a mistake of
               fact, this Section 11.3 shall not prohibit the return of such
               contribution to the Employer within one (1) year after the
               payment of the contribution.

          (2)  If an Employer contribution is conditioned upon initial
               qualification of the Plan under Code Section 401 (a), or any
               successor provision thereto, and if the Plan does not so qualify,
               then this Section 11.3 shall not prohibit the return of such
               contribution to the Employer within one (1) year after the date
               of denial of qualification of the Plan, provided that the
               application for determination is made by the time prescribed by
               law for filing the Employer's return for the taxable year in
               which the Plan was adopted, or such later date as the Secretary
               of the Treasury may prescribe.

          (3)  If an Employer contribution is conditioned upon deductibility of
               the contribution under Code Section 404, or any successor
               provision thereto, then to the extent such contribution is
               disallowed, this Section 11.3 shall not prohibit the return to
               the Employer of such contribution (to the extent disallowed)
               within one (1) year after such disallowance of the deduction.

          (4)  If the Plan does not constitute a qualified plan for any Plan
               Year, this Section 11.3 shall not prohibit the return of any
               Employer contribution made with respect to any year in which
               qualified status is denied provided such amount is returned
               within one (1) year after the date of denial of qualification of
               the Plan.

          (5)  In the case of the termination of the Plan, any residual assets
               of the Plan shall be distributed to the Employer at the direction
               of the Administrator (or at the direction of a trustee appointed
               upon the application of the Pension Benefit Guaranty Corporation)
               if all liabilities of the Plan to Participants and their
               Beneficiaries have been satisfied and the distribution does not
               contravene any provision of law. The certificate of an Enrolled
               Actuary engaged by the Committee pursuant to ERISA stating that
               there are residual assets of the Plan remaining in the Trust Fund
               after all liabilities of the Plan to Participants and their
               Beneficiaries have been satisfied shall be conclusive evidence of
               this fact; but in its discretion, the Trustee may require other
               and additional evidence of the existence and amount of residual
               assets. Notwithstanding the foregoing, the Employer may elect to
               reallocate the residual assets to those Employees who are
               Participants as of the date of termination of the Plan, such
               allocation to be made in a nondiscriminatory manner. Said
               election shall be in writing and shall be made prior to receipt
               of a determination by the Internal Revenue Service of the Plan's
               qualified status resulting from the termination.

     (b)  The Company shall have no right to modify or amend the Plan
          retroactively in such a manner so as to reduce the benefits of any
          Participant, former Participant or Beneficiary of either, accrued
          under the Plan by reason of contributions made

                                       36
<PAGE>
          by an Employer prior to the modification or amendment, except to the
          extent that such reduction is permitted by ERISA.

11.4 Limitation on Benefits.

     (a)  Plan Termination. In the event of a termination of the Plan, the
          benefit of any highly compensated employee, as defined under Code
          Section 414(q) ("Highly Compensated Employee"), whether an active or
          former Highly Compensated Employee, is limited to a benefit that is
          nondiscriminatory under Code Section 401(a)(4).

     (b)  Limitation on Benefits. The benefits distributed to any of the
          twenty-five (25) Highly Compensated Employees who have the greatest
          Compensation from the Employer in the current or any prior Plan Yeas
          are restricted such that the annual payments are no greater than an
          amount equal to the payment that would be made on behalf of the
          Employee under a single life annuity that is the Actuarial Equivalent
          of the Employee's Accrued Benefit under the Plan (other than a Social
          Security supplement) and the amount of the payments that the Employee
          is entitled to receive under a Social Security supplement, if any.

          Section 11.4(b) above shall not apply if:

          (1)  after payment to or on behalf of an Employee of benefits payable,
               as determined without the application of the limitations
               described in the preceding subsection, the value of Plan assets
               equals or exceeds one hundred and ten percent (110%) of the value
               of current liabilities, as defined in Code Section 412(e)(7), or

          (2)  the value of the benefits payable to or on behalf of the
               Employee, as determined without the application of the
               limitations described in the preceding paragraph, is less than 1%
               of the value of current liabilities before distribution, or

          (3)  the value of the benefits payable to or on behalf of the
               Employee, as determined without the application of the
               limitations described in the preceding subsection, does not
               exceed the amount described in Code Section 411(a)(11)(A), or

          (4)  the Plan requires adequate security to guarantee any repayment of
               benefits under the circumstances and upon the terms described in
               Rev. Rul. 92-76, 1992-38 I.R.B. 5.

                                       37
<PAGE>
                                   ARTICLE XII

                                  MISCELLANEOUS

12.1 Limitation of Rights; Employment Relationship.

     Neither the establishment of the Plan and the Trust, nor any modifications
     thereof, nor the creation of any fund or account, nor the payment of any
     benefits, shall be construed as giving to any Participant or other person
     any legal or equitable right against the Employer or the Trustee except as
     provided herein; and in no event shall the terms of employment of any
     Employee or Participant, express or implied, be modified or in any way be
     affected hereby.

12.2 Transfer of Assets of Employer; Transfer of Assets of Plan.

     (a)  If the Employer merges or consolidates with or into a corporation, or
          if substantially all of the assets of the Employer are transferred to
          another business, the Plan hereby created shall terminate on the
          effective date of such merger, consolidation or transfer. However, if
          the surviving corporation resulting from such merger or consolidation,
          or the business to which the Employer's assets have been transferred,
          adopts this Plan, it shall continue and such corporation or business
          shall succeed to all rights, powers and duties of the Employer
          hereunder. The employment of any Employee who continues in the employ
          of such successor corporation or business shall not be deemed to have
          been terminated for any purpose hereunder.

     (b)  In no event shall this Plan be merged or consolidated with any other
          plan, nor shall there be any transfer of assets or liabilities from
          this Plan to any other plan, unless immediately after such merger,
          consolidation or transfer, each Participant's benefits, if such other
          plan were then to terminate, are at least equal to or greater than the
          benefits to which the Participant would have been entitled, had this
          Plan been terminated immediately before such merger, consolidation, or
          transfer.

12.3 Spendthrift Provision.

     Neither the Employer nor the Trustee shall recognize any transfer,
mortgage, pledge, hypothecation, order, or assignment by any Participant or
Beneficiary of all or part of his interest hereunder, except a transfer pursuant
to a "qualified domestic relations order" within the meaning of Code Section
414(p) or Section 303(d) of the Retirement Equity Act of 1984. Such interest
shall not otherwise be subject in any manner to transfer by operation of law.
Such interest shall be exempt from the claims of creditors or other claimants
from all orders, decrees, levies, garnishments and/or executions and other legal
or equitable processes or proceedings against such Participant or Beneficiary to
the fullest extent permitted by law. Notwithstanding the foregoing, the
provisions of this Section 12.3 shall not apply to any offset of a Participant's
benefits provided under the Plan against amount that the Participant is ordered
or required to pay to the Plan for certain judgments and settlements as
described in Code Section 401(a)(13)(C), subject to the spousal consent
requirements described therein.

                                       38
<PAGE>
12.4 Applicable Law; Severability.

     The Plan hereby created shall be construed, administered and governed in
     all respects in accordance with ERISA and the laws of the State of
     California; provided, however, that if any provision of this Plan is
     susceptible of more than one interpretation, such interpretation shall be
     given thereto as is consistent with the Plan being a qualified employees'
     pension plan under the provisions for qualification set forth in the Code.
     If any provision of this Plan shall be held by a court of competent
     jurisdiction to be invalid or unenforceable, the remaining provisions shall
     continue in full force and effect.

12.5 Incorporation of Trust Agreement Provisions.

     The relevant provisions of the Trust Agreement regarding: (a) the exclusive
     benefit of Employees and their Beneficiaries, (b) amendment, (c)
     termination, (d) other employers, (e) California law, (f) headings, gender
     and number, and (g) nonalienation are hereby incorporated into this Plan
     and are equally applicable to the Plan and to the Trust, which Plan and
     Trust together shall constitute the entire Plan as defined in the Code.

12.6 Nonliability.

     Any payment to any Participant, or to his legal representative or
     Beneficiary, in accordance with the provisions of the Plan, shall to the
     extent thereof be in full satisfaction of all claims hereunder against the
     Trustee, the Committee and the Employer, any of whom may require such
     Participant, legal representative or Beneficiary, as a condition precedent
     to such payment, to execute a receipt therefor in such form as shall be
     determined by the Trustee, the Committee or the Employer, as the case may
     be. The Employer does not guarantee the Trust, the Participants, former
     Participants or their Beneficiaries against loss of or depreciation in
     value of any right or benefit that any of them may acquire under the terms
     of this agreement. All benefits payable hereunder shall be paid or provided
     for solely from the Trust, and the Employer docs not assume any liability
     or responsibility therefor.

12.7 Missing Persons.

     In the case of any benefit payable to a person under this Plan, if the
     Committee is unable to locate the person within six (6) months from the
     date a certified letter was mailed to stick person notifying him of the
     benefit, the Committee shall direct the Trustee to maintain the Participant
     as an inactive Participant. The Committee shall continue to maintain this
     Participant in inactive status until: (a) the person entitled to the
     benefit makes application therefor; or (b) the benefit reverts by escheat
     to the state, whichever occurs first.

                                       39
<PAGE>
                                  ARTICLE XIII

                            TOP HEAVY PLAN PROVISIONS

This Article sets forth certain definitions and rules which automatically become
effective if the Plan becomes Top Heavy under Code Section 416.

13.1 Definitions. The following defined terms apply only to this Article:

     (a)  "Aggregation Group" means the Required, or if applicable, Permissive
          Aggregation Group.

     (b)  "Annual Compensation" means an Employee's Compensation. Annual
          Compensation shall not include, however, Compensation in any Plan year
          in excess of the dollar limit prescribed in Code Section 410(a)(17)
          for the calendar year in which the Plan Year begins (as adjusted
          pursuant to Code Sections 401(a)(17) and 415(d)).

     (c)  "Determination Date" means the date for determining Key Employee
          status and for performing Top Heavy tests. The Determination Date is
          the last day of the preceding Plan Year or in the case of the first
          year in which a Plan is in effect, the last day of the first Plan
          Year. For an Aggregation Group, the determination of Top Heavy status
          is made by aggregating the results of Determination Dates which fall
          within the same calendar year.

     (d)  "Employee" means any individual currently or formerly included on the
          payroll of the Employer as a common-law employee and whose
          compensation is (or was) subject to federal income tax withholding.

     (e)  "Key Employee" means certain Participants (who are officers and
          shareholders of the Company) and Beneficiaries described in Code
          Section 416(i)(l) or (5).

     (f)  "Non-Key Employee" means an Employee who is not a Key Employee and
          includes the Beneficiary of a Non-Key Employee.

     (g)  "Permissive Aggregation Group" means all plans in the Required
          Aggregation Group and any other qualified plans maintained by the
          Employer or by any member of the Controlled Group of which the
          Employer is a member, but only if such group of plans would satisfy,
          in the aggregate, the requirements of Code Sections 401(a)(4) and
          410(b). The Plan administrator shall determine which plans shall be
          taken into account in determining the Permissive Aggregation Group.

     (h)  "Required Aggregation Group" means each qualified plan of the Employer
          and any member of the Controlled Croup (as defined by Code Section
          1563) of which the Employer is a member, in which at least one Key
          Employee participates (in the Plan Year containing the Determination
          Date or in any of the four preceding Plan Years), and any other
          qualified plan of the Employer or any member of such

                                       40
<PAGE>
          Controlled Group which enables a Plan in which a Key Employee
          participates to meet the requirements of Code Section 401(a)(4) or
          410(b).

     (i)  "Valuation Date" is the date used to compute costs for minimum
          funding. The Valuation Date will be used to value the liabilities and
          assets of the Plan.

13.2 Top Heavy Plan.

     (a)  The Plan or Aggregation Group is "Top Heavy" with respect to any Plan
          Year if, on the Determination Date applicable to such Plan Year, the
          present value of Accrued Benefits of Key Employees exceeds 60% of the
          present value of Accrued Benefits for all Employees who have performed
          any service for the Employer during the one-year period (or five-year
          period for Plan Years beginning before January 1, 2002) ending on the
          Determination Date. This test is subject to all the requirements and
          exceptions found in Code Section 415(g) and Treasury Regulations
          1.416-1. Former Key Employees shall be excluded from the calculation
          to determine whether a Plan or Aggregation Group is Top Heavy. In
          determining Top Heavy status, the following rules shall apply:

          (1)  The same actuarial assumptions must be used for all plans in the
               Aggregation Group. Actuarial equivalence will be based on the
               actuarial assumptions of the defined benefit plan that has the
               largest number of participants.

          (2)  The accrued benefit used for purposes of testing for Top heavy
               status will reflect the Normal Form of benefit payable at Normal
               Retirement Age unless there is a non-proportional subsidy for
               early retirement or some benefit options. Non-proportional
               subsidies will be taken into account to the extent and in the
               manner prescribed by Treasury Regulations Section 1.416-1, T-26
               and T-27.

     (b)  The Plan shall not be Top Heavy if the Plan Administrator elects to
          treat the Plan as part of a Permissive Aggregation Group, and the
          Permissive Aggregation Group is determined not to be Top Heavy using
          the criteria of the "60% Test" described in subsection (a) above.

13.3 Restrictions.

     (a)  Vesting. For any Plan Year in which any plan in the Aggregation Group
          is Top Heavy, each active Participant who is a Non-Key Employee shall
          have a nonforfeitable interest in his Accrued Benefit derived from
          Employer contributions not less than that provided under the following
          schedule:

<TABLE>
<CAPTION>
    Completed
Years of Service   Vested Percentage
----------------   -----------------
<S>                <C>
Less than 3                 0%
3 or more                 100%
</TABLE>

                                       41
<PAGE>
          "Accrued Benefit," for purposes of this subsection (a), shall include
          that portion of Accrued Benefits which the Participant earned during
          all prior Plan Years, whether or not the Plan was a Top Heavy plan
          during such prior Plan Years. Except to the extent inconsistent with
          these provisions, the minimum vesting standards under Code Section
          411, including Code Section 411(a)(10) (regarding changes in the
          vesting schedule), are applicable.

     (b)  Minimum Benefits. With respect to any Plan Year during which the Plan
          is a Top Heavy plan, the Accrued Benefit of a Participant who is a
          Non-Key Employee shall be not less than 2% of such Participant's
          average Annual Compensation times Years of Service (not to exceed ten
          such years). For purposes of this subjection (b), the following rules
          apply:

          (1)  Years of Service shall be the Participant's years of Credited
               Service, except that the following years shall be disregarded:

               (A)  any year which includes the last day of a Plan Year during
                    which the Plan was not a Top Heavy plan, and

               (B)  any year ending within a Plan Year beginning before 1984.

          (2)  Average Annual Compensation shall be the Participant's average
               Annual Compensation from the Employer during the period of five
               consecutive years (or actual years, if less than five) which
               produces the highest average. Only Annual Compensation for Plan
               Years beginning on or after December 31, 1983, for which the Plan
               is determined to be Top Heavy, will be considered.

          (3)  Accrued Benefit shall be an annual benefit payable in the form of
               a single life annuity (with no ancillary benefits) beginning at a
               Participant's Normal Retirement Date.

          (4)  A Non-Key Employee who is a Participant is eligible to receive
               this minimum benefit if he completes 1,000 Hours of Service
               during the Plan Year, regardless of the Participant's level of
               compensation or whether he is employed on the Determination Date.

          (5)  If an Employee is a Participant in both a defined benefit plan
               and a defined contribution plan maintained by the Employer, and
               the plans are Top Heavy, the minimum benefits and minimum
               contribution requirements will be satisfied by having the defined
               benefit plan provide the minimum benefit set out above which will
               be offset by the benefits provided under the defined contribution
               plan.

                                       42
<PAGE>
                                   ARTICLE XIV

                                    EXECUTION

To record the amendment and restatement of the Diamond of California Management
Pension Plan to read as herein the Company has caused its authorized officer to
execute this document this 26th day of July, 2001.

                                        DIAMOND OF CALIFORNIA

                                        By: /s/ Michael P. Riley
                                            ------------------------------------
                                        As Its V.P. & CFO
                                               ---------------------------------

                                       43<PAGE>

                                                                   EXHIBIT 10.10

                           DIAMOND WALNUT PENSION PLAN

                   RESTATEMENT EFFECTIVE AS OF AUGUST 1, 2001

                   Original Effective Date: September 15, 1992

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                 PAGE
<S>                                                                                              <C>
ARTICLE I        DEFINITIONS................................................................       1

       1.1    Accrued Benefit...............................................................       1

       1.2    Actuarial Equivalent..........................................................       1

       1.3    Administrator.................................................................       1

       1.4    Affiliate.....................................................................       1

       1.5    Annuity Starting Date.........................................................       2

       1.6    Applicable Interest Rate......................................................       2

       1.7    Applicable Mortality Table....................................................       2

       1.8    Beneficiary...................................................................       2

       1.9    Board of Directors............................................................       2

       1.10   Code..........................................................................       3

       1.11   Committee.....................................................................       3

       1.12   Company.......................................................................       3

       1.13   Compensation..................................................................       3

       1.14   Credited Service..............................................................       3

       1.15   Death Benefit.................................................................       3

       1.16   Delayed Retirement............................................................       3

       1.17   Delayed Retirement Age........................................................       3

       1.18   Delayed Retirement Benefit....................................................       4

       1.19   Delayed Retirement Date.......................................................       4

       1.20   Disability....................................................................       4

       1.21   Early Retirement..............................................................       4

       1.22   Early Retirement Age..........................................................       4

       1.23   Early Retirement Benefit......................................................       4

       1.24   Early Retirement Date.........................................................       4

       1.25   Effective Date................................................................       4

       1.26   Eligible Employee.............................................................       4

       1.27   Eligible Spouse...............................................................       6

       1.28   Employee......................................................................       6
</TABLE>

                                      -i-

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                                TABLE OF CONTENTS
                                  (continued)

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       1.29   Employer......................................................................       6

       1.30   Enrolled Actuary..............................................................       7

       1.31   Entry Date....................................................................       7

       1.32   ERISA.........................................................................       7

       1.33   ERISA Section 203(a)(3)(B) Service............................................       7

       1.34   Hour of Service...............................................................       7

       1.35   Normal Form...................................................................       8

       1.36   Normal Retirement.............................................................       9

       1.37   Normal Retirement Age.........................................................       9

       1.38   Normal Retirement Benefit.....................................................       9

       1.39   Normal Retirement Date........................................................       9

       1.40   One-Year Break in Service.....................................................       9

       1.41   Participant...................................................................      10

       1.42   Plan..........................................................................      10

       1.43   Plan Year.....................................................................      10

       1.44   Qualified Joint and Survivor Annuity..........................................      10

       1.45   Spousal Consent...............................................................      11

       1.46   Trust.........................................................................      11

       1.47   Trustee.......................................................................      11

       1.48   Year of Service...............................................................      11

ARTICLE II       ELIGIBILITY AND PARTICIPATION..............................................      12

       2.1    Participation.................................................................      12

       2.2    Suspended Participation.......................................................      13

       2.3    Inactive Participation........................................................      13

       2.4    Reemployment after Retirement.................................................      13

ARTICLE III      EMPLOYER FUNDING AND BENEFITS..............................................      16

       3.1    Employer Contributions........................................................      16

       3.2    Waiver of Employer Contributions..............................................      16

       3.3    Annual Valuation..............................................................      16
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       3.4    Normal Retirement Benefit.....................................................      16

       3.5    Minimum Benefit Requirements..................................................      17

       3.6    Maximum Benefit for any Participant...........................................      17

       3.7    Early Retirement Benefit......................................................      17

       3.8    Delayed Retirement Benefit....................................................      18

       3.9    Death Benefit.................................................................      18

       3.10   Disability Retirement Benefit.................................................      20

       3.11   Automatic Forms of Payment....................................................      21

       3.12   Deferred Vested Benefit.......................................................      21

       3.13   Optional Forms of Payment.....................................................      22

       3.14   Direct Rollover of Eligible Rollover Distributions............................      23

       3.15   Time of Distribution..........................................................      24

       3.16   Qualified Domestic Relations Orders...........................................      27

ARTICLE IV       LIMITATIONS ON BENEFITS....................................................      28

       4.1    Limitation on Benefits........................................................      28

       4.2    Annual Benefit................................................................      28

       4.3    Adjusted Dollar Limitation for Benefits Commencing At Social Security
              Retirement Age, After Social Security Retirement Age or Before Age 62.........      28

       4.4    Compensation..................................................................      29

       4.5    Affiliate.....................................................................      29

ARTICLE V        VESTING OF EMPLOYER FUNDED BENEFITS........................................      31

       5.1    Vesting.......................................................................      31

       5.2    Termination of Employment.....................................................      32

       5.3    Rehired Participants..........................................................      32

       5.4    Termination of Non-Vested Participants........................................      32

ARTICLE VI       LOANS TO PARTICIPANTS......................................................      33

ARTICLE VII      BENEFICIARIES..............................................................      34

       7.1    Designation...................................................................      34

       7.2    Absence of Valid Designation of Beneficiaries.................................      34
</TABLE>

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ARTICLE VIII     BENEFICIARIES..............................................................      35

ARTICLE IX       ESTABLISHMENT OF TRUST.....................................................      36

       9.1    Trust Agreement...............................................................      36

       9.2    Trust Agreement Part of Plan..................................................      36

ARTICLE X        PLAN FIDUCIARIES AND ADMINISTRATION........................................      37

       10.1   Named Fiduciaries.............................................................      37

       10.2   Fiduciary Standard............................................................      37

       10.3   Multiple Duties and Advisors..................................................      37

       10.4   Allocation and Delegation of Fiduciary Duties.................................      37

       10.5   Indemnification...............................................................      38

       10.6   Costs and Expenses............................................................      38

       10.7   Authority to Amend and Terminate..............................................      38

       10.8   The Committee.................................................................      38

       10.9   Administration................................................................      39

       10.10  Claims Procedures.............................................................      40

       10.11  Agent for Legal Process.......................................................      41

ARTICLE XI       AMENDMENT AND TERMINATION..................................................      42

       11.1   Amendment.....................................................................      42

       11.2   Termination or Complete Discontinuance of Contributions.......................      42

       11.3   Nonreversion..................................................................      42

       11.4   Limitation on Benefits........................................................      43

ARTICLE XII      MISCELLANEOUS..............................................................      45

       12.1   Limitation of Rights; Employment Relationship.................................      45

       12.2   Transfer of Assets of Employer; Transfer of Assets of Plan....................      45

       12.3   Spendthrift Provision.........................................................      45

       12.4   Applicable Law; Severability..................................................      46

       12.5   Incorporation of Trust Agreement Provisions...................................      46

       12.6   Nonliability..................................................................      46

       12.7   Missing Persons...............................................................      46
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ARTICLE XIII     TOP HEAVY PLAN PROVISIONS..................................................      47

       13.1   Definitions...................................................................      47

       13.2   Top Heavy Plan................................................................      48

       13.3   Restrictions..................................................................      48

ARTICLE XIV      EXECUTION..................................................................      51
</TABLE>

                                       -v-

<PAGE>

                           DIAMOND WALNUT PENSION PLAN

                                  INTRODUCTION

Diamond Walnut Growers, Inc. (the "Company") established the Diamond Walnut
Pension Plan (the "Plan") and Trust Agreement effective September 15, 1992 to
provide retirement entitlements for the exclusive benefit of its Eligible
Employees and their Beneficiaries in accordance with the terms of the Plan.

Effective August 1, 2001, the Company hereby amends and restates the Plan in its
entirety. The Plan, as amended and restated effective as of August 1, 2001,
includes the applicable provisions of the Code, as amended by the General
Agreement on Tariffs and Trade, the Uniformed Services Employment and
Reemployment Rights Act of 1994, the Small Business Job Protection Act of 1996,
the Taxpayer Relief Act of 1997, the Internal Revenue Service Restructuring and
Reform Act of 1998, the Community Renewal Tax Relief Act of 2000, and the
Economic Growth and Tax Relief Reconciliation Act of 2001 ("EGTRRA"). The EGTRRA
provisions are intended as good faith compliance with the requirements of EGTRRA
and the guidance issued thereunder. Except as otherwise provided, the EGTRRA
provisions are effective August 1, 2002.

                              STATEMENT AND PURPOSE

The Plan and Trust are intended to meet the requirements for qualification under
Section 401(a) and exemption from tax under Section 501(a) of the Internal
Revenue Code of 1986, as amended (the "Code").

Except as otherwise stated, the provisions of the Plan as amended and restated
shall not apply to the benefits payable to or on account of an Employee who
retired or whose employment with an Employer terminated prior to August 1, 2001.
The rights and benefits of such an Employee shall he determined under the Plan
as in effect when the Employee retired or terminated employment.

Notwithstanding any provision of the Plan to the contrary, nothing in this
restatement shall be construed to reduce a Participant's accrued benefit in
violation of Code Section 411(d)(6) except as permitted by law.

<PAGE>

                                   ARTICLE I

                                   DEFINITIONS

1.1   Accrued Benefit

      means the Participant's Normal Retirement Benefit that he has earned as of
      a determination date. The Accrued Benefit shall be subject to the minimum
      benefit requirements of Section 13.3(b). A Participant's Accrued Benefit
      shall be that portion of the Normal Retirement Benefit accrued under
      Section 14 based on Years of Credited Service through the determination
      date.

1.2   Actuarial Equivalent

      means a benefit, payable in a different form and/or at a different time
      than a Participant's Accrued Benefit, which shall be an amount that is
      equal in value to the Participant's Accrued Benefit by using assumptions
      determined by an Enrolled Actuary.

      (a)   Pre-Retirement, Post-Retirement and Top Heavy Determinations. The
            assumptions to be used for these purposes are:

            (1)   Interest Assumption: Eight percent (8%) per annum.

            (2)   Mortality Assumption: The mortality assumption shall be based
                  on the UP-1984 mortality table (Uninsured Pensioners-Unisex).

      (b)   Amendment of Actuarial Assumptions. Unless otherwise permitted by
            the Code and the regulations thereunder, if the definition of
            "Actuarial Equivalent" is amended, the value of a Participant's
            Accrued Benefit on or after the date of such amendment shall be the
            greater of:

            (1)   the Actuarial Equivalent of the Participant's total Accrued
                  Benefit computed in accordance with the new definition, or

            (2)   the Actuarial Equivalent of the Participant's Accrued Benefit
                  determined as of the later of (A) the effective date of such
                  amendment and (B) the date such amendment was adopted, and
                  computed in accordance with the old definition.

1.3   Administrator

      means the Plan Administrator as specified in Article X.

1.4   Affiliate

      means any corporation which is a member of a controlled group of
      corporations (within the meaning of Code Section 414(b)) of which an
      Employer is also a

                                      -1-

<PAGE>

      member, or any trade or business (whether or not incorporated) which is
      under common control with the Employer within the meaning of Code Section
      414(c).

1.5   Annuity Starting Date

      means the first day of the first period for which an amount is payable as
      an annuity or, in the case of a benefit not payable in the form of an
      annuity, the date as of which such benefit is paid. In the case of a
      deferred annuity, the Annuity Starting Date shall be the date on which the
      annuity payments are scheduled to commence.

1.6   Applicable Interest Rate

      Means:

      (a)   For the period beginning August 1, 2000 until the date this August
            1, 2001 restatement is executed, either (i) the interest rate or
            rates which would be used, as of the first day of the Plan Year that
            contains the Annuity Starting Date, by the Pension Benefit Guaranty
            Corporation for purposes of determining the present value of the
            Participant's benefits under the Plan, if the Plan had terminated on
            such date with insufficient assets to provide benefits guaranteed by
            the Pension Benefit Guaranty Corporation on that date, or (ii) the
            average annual interest rate on 30-year Treasury securities as
            described in Code Section 417(e)(3) (or its successor rate), for the
            SECOND month preceding the first day of the Plan Year in which the
            Annuity Starting Date occurs, whichever results in the greater lump
            sum value.

      (b)   Effective for any lump sum distribution payable on or after the date
            this August 1, 2001 restatement is executed, the average annual
            interest rate on 30-year Treasury securities as described in Code
            Section 417(e)(3) (or its successor rate), for the SECOND month
            preceding the first day of the Plan Year in which the Annuity
            Starting Date occurs.

1.7   Applicable Mortality Table

      means the "applicable mortality table" described in Code Section
      417(e)(3).

1.8   Beneficiary

      means the person or persons (natural or otherwise) designated by or for a
      Participant, entitled under this Plan to receive benefits after the death
      of a Participant.

1.9   Board of Directors

      means the Board of Directors of the Company.

                                      -2-

<PAGE>

1.10  Code

      means Internal Revenue Code of 1986, as amended from time to time

1.11  Committee

      means the administrative committee appointed and acting in accordance with
      Article X.

1.12  Company

      means Diamond Walnut Growers, Inc., a California corporation.

1.13  Compensation

      means all compensation for a Plan Year paid in cash by the Employer for
      personal services, as reportable as taxable income on the Employee's
      Federal Income Tax Withholding Statement (Form W-2), and elective
      deferrals with respect to employment with the Employer: (1) under a
      qualified cash or deferred arrangement described in Code Section 401(k);
      (2) to a plan qualified under Code Section 125; (3) to a tax sheltered
      annuity described in Code Section 403(b); (4) to a plan qualified under
      Code Section 402(h), and (5) effective August 1, 2001, under a qualified
      transportation fringe benefit program in accordance with Code Section
      132(f)(4). Compensation shall exclude any amount in excess of $200,000, as
      adjusted after December 31, 2002, for increases in the cost of living
      pursuant to Code Sections 401(a)(17) and 415(d). Effective August 1, 1997,
      the family aggregation rules of Code Section 414(q) (as in effect as of
      the last day of the Plan Year beginning before August 1, 1997) shall no
      longer apply.

1.14  Credited Service

      means all Years of Service with the Employer while a Participant (unless
      otherwise specified in the Plan).

1.15  Death Benefit

      means a benefit payable in the event of the death of a Participant prior
      to such Participant's Normal Retirement Age or termination of employment.

1.16  Delayed Retirement

      means retirement after a Participant's Normal Retirement Age.

1.17  Delayed Retirement Age

      means the Participant's Age at the time of his Delayed Retirement.

                                      -3-

<PAGE>

1.18  Delayed Retirement Benefit

      means a monthly benefit payable in the Normal Form as determined pursuant
      to Article III.

1.19  Delayed Retirement Date

      means the first day of any month after a Participant's Normal Retirement
      Date on which a Participant elects to retire.

1.20  Disability

      means the physical or mental inability of a Participant to engage in any
      substantial gainful employment, as evidenced by his receipt of disability
      benefits under the Social Security Act.

1.21  Early Retirement

      means retirement on or after a Participant's Early Retirement Age.

1.22  Early Retirement Age

      means the later of:

      (a)   Age fifty-five (55), or

      (b)   The age of the Participant upon completion of ten (10) Years of
            Service.

1.23  Early Retirement Benefit

      means a monthly benefit in the Automatic Form of Payment as determined
      pursuant to Article III.

1.24  Early Retirement Date

      means a date prior to the Participant's Normal Retirement Date, which is
      the first day of any month coinciding with or following a Participant's
      termination of employment with the Employer or all Affiliates and after
      satisfaction of the requirements for entitlement to an Early Retirement
      Benefit.

1.25  Effective Date

      means August 1, 2001, except to the extent a different effective date is
      required pursuant to a statute or Treasury Regulations, or is stated in
      the Plan document.

1.26  Eligible Employee

      (1)   With respect to any period before the effective date of:

                                      -4-

<PAGE>

            (A)   the first collective bargaining agreement that becomes
                  effective after August 1, 1998, or

            (B)   the first set of terms and conditions of employment (that the
                  Employer implements after determining that an impasse has
                  occurred after good-faith bargaining with the Employee's
                  collective bargaining representative) (hereafter a set of
                  "Terms and Conditions") that becomes effective after August 1,
                  1998,

            whichever occurs earlier, the term "Eligible Employee" means an
            employee who was hired in one of the positions that the Employer has
            classified as a benefited position.

      (2)   With respect to any period thereafter, "Eligible Employee" means any
            Employee who, by specific reference to this Plan, is required to be
            covered by this Plan according to the terms of a collective
            bargaining agreement or a set of Terms and Conditions.

      In all events and at all times, the following persons are not eligible to
      participate in the Plan:

      (a)   A salaried Employee;

      (b)   A person whose compensation and conditions of employment are subject
            to determination by collective bargaining, if retirement
            entitlements have been a subject of good-faith bargaining between
            the Employer and the person's collective bargaining representative,
            unless either the collective bargaining agreement or the terms and
            conditions of employment (that the Employer has implemented after
            determining that an impasse has occurred after good-faith bargaining
            with the person's collective bargaining representative), by a
            specific reference to the plan, provides that such person is
            eligible to participate in the Plan;

      (c)   A person who is a nonresident alien and who receives no earned
            income [within the meaning of Code Section 911(d)] from an Employer,
            such earned income constituting income from sources within the
            United States [within the meaning of Code Section 861(a)(3)]; or

      (d)   A person performing services under a written agreement between an
            Employer and a leasing organization, any individual whom the
            Employer classifies as a contract employee, an independent
            contractor, or an employee of a contractor or an independent
            contractor.

      These individuals or groups of individuals whom the employer designates as
      covered under the Plan or as excluded from coverage under this Plan are
      based on the Employer's classification, even if the Internal Revenue
      Service or any other board, agency, arbitrator, or court determines that
      the Employer's classification

                                      -5-

<PAGE>

      was incorrect or reclassifies an individual or group for employment tax
      purposes or for any other purpose.

1.27  Eligible Spouse

      means the spouse to whom a Participant is married and has been married for
      at least one (1) year on either the Annuity Starting Date or the date of
      his death, whichever occurs earlier. To the extent provided under a
      "qualified domestic relations order" as described in Code Section 414(p),
      the term Eligible Spouse shall mean a former spouse in addition to or in
      place of the Participant's current spouse. In addition, if a Participant
      married less than one (1) year before the Annuity Starting Date, his
      spouse shall be considered his Eligible Spouse and his vested Accrued
      Benefit shall be paid as a Qualified Joint and Survivor Annuity, unless he
      waives the Automatic Form of Payment with Spousal Consent. Unless provided
      otherwise by a qualified domestic relations order, if the Participant dies
      or divorces after his Annuity Starting Date but before the one-year
      anniversary of the date of his marriage, the Plan shall treat the
      Participant as unmarried and the survivor benefit portion of the Qualified
      Joint and Survivor Annuity benefit will be permanently forfeited.

1.28  Employee

      means:

      (a)   a person currently employed by an Employer or Affiliate, any portion
            of whose income is subject to withholding of income tax and/or for
            whom Social Security or railroad retirement contributions are made
            by the Employer.

      (b)   Notwithstanding the foregoing, "Employee" shall exclude any
            individual retained by an Employer or Affiliate to perform services
            for such Employer or Affiliate (for either a definite or indefinite
            duration) and whom the Employer or Affiliate characterizes as a
            fee-for-service worker or independent contractor or in a similar
            capacity (rather than in the capacity of a common law employee).
            This exclusion shall apply regardless of such individual's status
            under common law, including, without limitation, any such individual
            who is or has been determined by a third party, including, a
            government agency or board or court or arbitrator, to be an employee
            of the Employer or Affiliate for any purpose, including, without
            limitation, for purposes of any employee benefit plan of the
            Employer or an Affiliate (including this Plan), or for purposes of
            federal, state or local tax withholding, employment tax or
            employment law.

1.29  Employer

      means the Company and any other Affiliate which has adopted the Plan with
      the approval of the Board.

                                      -6-

<PAGE>

1.30  Enrolled Actuary

      means a person enrolled by the Joint Board for the Enrollment of Actuaries
      under ERISA who has been engaged by the Administrator to prepare
      valuations, establish appropriate assumptions, and complete all required
      actuarial reports.

1.31  Entry Date

      means the date upon which an Eligible Employee becomes a Participant of
      the Plan, which shall be the first day of each month.

1.32  ERISA

      means the Employee Retirement Income Security Act of 1974, as amended.

1.33  ERISA Section 203(a)(3)(B) Service

      means, as defined under Department of Labor Regulation 29 CFR Section
      2530.203-3, a calendar month in which the Participant completes 40 or more
      Hours of Service for an Employer or Affiliate.

1.34  Hour of Service

      means each hour for which an Employee is:

      (a)   Directly or indirectly paid or entitled to payment by an Employer or
            Affiliate for the performance of duties;

      (b)   Directly or indirectly paid or entitled to payment by an Employer or
            Affiliate on account of a period of time during which no duties were
            performed (irrespective of whether the employment relationship has
            terminated) due to vacation, holiday, illness, incapacity (including
            disability), layoff, jury duty, military duty, or leave of absence
            authorized by an Employer or Affiliate. However, no more than 501
            Hours of Service shall be credited under this Section 1.34(b) on
            account of any single continuous period during which the Employee
            performs no duties (whether or not such period occurs in a single
            computation period). Payments made or due under a plan maintained by
            an Employer or Affiliate solely to comply with applicable workers'
            compensation, unemployment compensation, or disability insurance
            law, or to reimburse an Employee for medical or medically-related
            expenses shall not be considered as payments by an Employer or
            Affiliate for purposes of this subsection;

      (c)   Absent from work by reason of the pregnancy of the Employee, the
            birth of a child of the Employee, the placement of a child with the
            Employee in connection with the adoption of the child by the
            Employee, or the care of such child by the Employee for a period
            immediately following birth or

                                      -7-

<PAGE>

            placement. No more than 501 Hours of Service shall be credited under
            this Section 1.34(c) by reason of any one pregnancy or placement.
            Hours of Service credited under this Section 1.34(c) shall be
            credited solely for purposes of determining whether a One-Year Break
            in Service has occurred in a computation period. All Hours of
            Service credited under this Section 1.34(c) shall be credited only
            in the computation period in which the absence from work begins if
            any of such Hours of Service are required in that computation period
            to avoid a One-Year Break in Service. If none of the Hours of
            Service credited under this subsection (c) are required to avoid a
            One-Year Break in Service in the computation period in which the
            absence begins, then the Hours of Service will be credited to the
            next computation period. An Employee will be credited with 8 Hours
            of Service for each day of absence covered by this subsection.
            Credit shall be given pursuant to this Section 1.34(c) only after
            the Employee furnishes to the Administrator such timely information
            as the Administrator may reasonably require to establish that the
            absence is for a reason described in this subsection; or

      (d)   Either awarded back pay or for which an Employer or Affiliate agrees
            to pay such back pay, irrespective of mitigation of damages. An Hour
            of Service received under this Section 1.34(d) shall be credited to
            that computation period for which the award was granted. The same
            Hours of Service shall not be credited both under either Sections
            1.34(a) or (b), as the case may be, and under this Section 1.34(d).
            Hours of Service for which hack pay is awarded or agreed to with
            respect to periods described in Section 1.34(b) shall be subject to
            the limitations set forth in that subsection.

      Hours of Service shall be credited to the applicable computation period in
      accordance with Department of Labor Regulation Section 2530.200b-2(b) and
      (c).

      For purposes of Section 1.34(b) and (d) and for purposes of Section
      1.34(a) in the case of an Employee for whom records of hours are not
      required by applicable law to be kept, an Employee shall be credited with
      10 Hours of Service for each day for which he would have been required to
      be credited with an Hour of Service. Hours of Service shall be credited to
      the applicable computation period in accordance with Department of Labor
      Regulation Section 2530.200b-2(b) and (c).

1.35  Normal Form

      means an annuity payable monthly for the life of the Participant with four
      years certain. The first monthly payment shall be made as of the first day
      of the month coincident with or next following the Participant's Normal
      Retirement Date with the last payment as of the later of (1) the first day
      of the month in which the Participant's death occurs; or (2) four years
      from the Annuity Starting Date.

                                      -8-

<PAGE>

1.36  Normal Retirement

      means retirement on or after the Participant's Normal Retirement Age. In
      the case of a Participant who continues in the employ of an Employer or
      Affiliate after reaching such Normal Retirement Age, "Normal Retirement"
      means retirement on the Delayed Retirement Date, which is the date of the
      Participant's actual termination of employment. When such Participant
      actually retires, he shall then be entitled to a Delayed Retirement
      Benefit. Notwithstanding the foregoing, if a Participant continues
      employment after his Normal Retirement Age but not in "ERISA Section
      203(a)(3)(B) Service," payment shall commence to the Participant as if the
      Participant had terminated employment as of his Normal Retirement Age and
      benefits will continue to accrue under the Plan.

1.37  Normal Retirement Age

      means the later of:

      (a)   Age sixty-two (62), or

      (b)   The Participant's age on the fifth anniversary of his Entry Date.

1.38  Normal Retirement Benefit

      means a monthly benefit payable in the Normal Form as determined pursuant
      to Article III.

1.39  Normal Retirement Date

      means the first day of the month coinciding with or next following a
      Participant's attainment of Normal Retirement Age.

1.40  One-Year Break in Service

      means, with respect to any Employee:

      (a)   a computation period during which the Employee is credited with 500
            or fewer Hours of Service. The Plan Year shall be the computation
            period.

      (b)   For purposes of determining whether a Break in Service has occurred,
            if an Employee begins a maternity/paternity absence, described in
            Code Section 411(a)(6)(E)(i), or any unpaid leave covered under the
            Family and Medical Leave Act of 1993, the computation of his Hours
            of Service shall include the Hours of Service that would have been
            credited if he had not been so absent. An Employee shall be credited
            for such Hours of Service (up to a maximum of 501 Hours of Service)
            in the Plan Year in which such absence begins (if such crediting
            will prevent him from incurring a Break in Service in such Plan
            Year) or in the next following Plan Year. For purposes of this
            Section 1.40(b), a "maternity/paternity absence"

                                      -9-
<PAGE>

            means an Employee's absence (1) by reason of the (A) pregnancy of an
            Employee, (B) birth of a child of an Employee or (C) placement of a
            child with an Employee in connection with the adoption of such child
            by such Employee, or (2) for purposes of caring for a child
            described in clause (1) for a period beginning immediately following
            such birth or placement.

1.41  Participant

      means any Eligible Employee who has become a participant of this Plan, in
      accordance with Article II.

1.42  Plan

      means the Diamond Walnut Pension Plan, as set forth herein, and any
      amendments hereto.

1.43  Plan Year

      means the twelve-month period ending each July 31st. The Plan Year shall
      be the limitation year for purposes of Code Section 415.

1.44  Qualified Joint and Survivor Annuity

      means:

      (a)   In the case of a Participant who does not have an Eligible Spouse,
            an immediate annuity, reduced in accordance with Section 3.7 and
            3.13 (if applicable), payable in the form of a single life annuity
            with a four year period certain; or,

      (b)   In the case of a Participant who has an Eligible Spouse, an
            immediate annuity, reduced in accordance with Sections 3.7 and 3.13
            (if applicable) and adjusted further in accordance with Section 3.15
            to be equivalent to the Accrued Benefit payable in the Normal Form,
            payable for the Participant's life with a survivor annuity for the
            Eligible Spouse's life equal to fifty percent (50%) of the amount
            payable during the joint lives of the Participant and his Eligible
            Spouse.

      (c)   Notwithstanding the above, if a more valuable benefit (within the
            meaning of Treasury Regulation 1.401(a)-20, Q&A 16) is payable at
            the same time as the benefit described above and if such benefit is
            a qualified joint and survivor annuity (within the meaning of Code
            Section 417(b)), the more valuable benefit shall be the Qualified
            Joint and Survivor Annuity. If such benefit is not a qualified joint
            and survivor benefit (within the meaning of Code Section 417(b)),
            the Qualified Joint and Survivor Annuity shall be the automatic
            survivor annuity described above, increased to the extent necessary
            to make the benefit equally valuable.

                                      -10-
<PAGE>

1.45  Spousal Consent

      means:

      (a)   An Eligible Spouse's written consent which acknowledges the effect
            of the Participant's election and is witnessed by a Plan
            representative or a notary public. The Spousal Consent shall specify
            the nonspouse Beneficiary, if any and, in the case of a
            Participant's election to waive a Qualified Joint and Survivor
            Annuity, the optional form of distribution elected.

      (b)   Spousal Consent shall be irrevocable unless the Participant changes
            his Beneficiary designation or revokes his election to waive the
            Qualified Joint and Survivor Annuity. Upon such event, the prior
            Spousal Consent shall be deemed to be revoked.

      (c)   Notwithstanding the foregoing, Spousal Consent is not required if
            the Participant establishes to the satisfaction of a Plan
            representative that such written consent may not be obtained
            because:

            (1)   There is no Eligible Spouse or that the Eligible Spouse cannot
                  be located.

            (2)   In addition, no Spousal Consent is necessary if the
                  Participant has been legally separated or abandoned within the
                  meaning of local law and the Participant provides the Plan
                  representative with a court order to that effect, so long as
                  such court order does not conflict with a qualified domestic
                  relations order that satisfies the requirements of Code
                  Section 414(p).

      If the Eligible Spouse is legally incompetent to consent, the Eligible
      Spouse's legal guardian may consent on her behalf, even if the legal
      guardian is the Participant. If the Eligible Spouse has consented to the
      designation of a trust as the Participant's Beneficiary, Spousal Consent
      is not required for the designation of or change in trust beneficiaries.

1.46  Trust

      means the trust established pursuant to Article IX.

1.47  Trustee

      means the trustee or trustees of the Trust established pursuant to Article
      IX.

1.48  Year of Service

      means a Plan Year during which an Employee is credited with not less than
      1,000 Hours of Service with the Employer or an Affiliate.

                                      -11-
<PAGE>

                                   ARTICLE II

                          ELIGIBILITY AND PARTICIPATION

2.1   Participation

      An Eligible Employee shall become a Participant of the Plan in accordance
      with the following requirements; provided, however, that an Eligible
      Employee who was a Participant of the Plan prior to August 1, 2001, shall
      continue to be a Participant of the Plan under the terms and conditions
      set forth herein.

      (a)   Service Requirement

            (1)   For Each Eligible Employee First Credited with an Hour of
                  Service with an Employer or Affiliate on or After the
                  Execution Date of this August 1, 2001 Restatement. Each
                  Eligible Employee who has completed 180 days of service
                  (consecutive or non-consecutive) shall become a Participant as
                  of the Entry Date coincident with or next following the date
                  he completes that service.

            (2)   For Each Eligible Employee First Credited with an Hour of
                  Service with an Employer or Affiliate Before the Execution
                  Date of this August 1, 2001 Restatement. Each Eligible
                  Employee who has completed 120 days of service (consecutive or
                  non-consecutive) shall become a Participant as of the Entry
                  Date coincident with or next following the date he completes
                  that service.

            (3)   No Minimum Number of Hours Required. For purposes of
                  subsections (a)(1) and (a)(2) above, an Eligible Employee need
                  not complete any specified number of Hours of Service to
                  receive credit for the specified number of days.

            (4)   Day of Service. A "DAY OF SERVICE" means a calendar day during
                  which the Employee was employed by the Employer, whether or
                  not the Employee performed an Hour of Service on that date and
                  whether or not the Employee was an Eligible Employee.

            (5)   Change in Status. An Employee who satisfies the service
                  requirement of subsection (a)(1) or (a)(2) but who is not an
                  Eligible Employee on the Entry Date shall become a Participant
                  immediately on the date he becomes an Eligible Employee.

      (b)   Participation. Participation in the Plan continues until a
            Participant terminates by Early, Normal or Delayed Retirement, or by
            reason of Disability or death, or terminates employment with an
            Employer or Affiliate. An Employee whose participation in the Plan
            has ceased but who has not received all benefits under the Plan
            shall be a "former

                                      -12-
<PAGE>

            Participant." He shall become a Participant again on the date he
            again becomes an Eligible Employee.

      (c)   Leaves of Absence. A Participant's employment is not considered
            terminated for purposes of the Plan while he is on leave of absence
            with the consent of an Employer or Affiliate, provided that he
            returns to the employ of an Employer or Affiliate at the expiration
            of such leave. Leaves of absence means leaves granted by an Employer
            or Affiliates, in accordance with written rules uniformly applied to
            all Employees. A Participant's employment shall not be deemed to
            have terminated while he is a member of the Armed Forces of the
            United States, provided that he returns to the employment of an
            Employer or Affiliate within ninety (90) days (or such longer period
            as may be prescribed by law) from the date he first became entitled
            to his discharge. Participants who do not return to the employ of an
            Employer or Affiliate within sixty (60) days following the end of
            the leave of absence, or within the required time in case of service
            with the Armed Forces, shall be deemed to have terminated their
            employment as of the date when their leaves of absence began, unless
            such failure to return was the result of Early Retirement, Normal
            Retirement, Delayed Retirement, Disability or death.

      (d)   USERRA - Effective December 12, 1994. Notwithstanding any other
            provision of this Plan to the contrary, benefits and service credit
            with respect to qualified military service will be provided in
            accordance with Code Section 414(u).

2.2   Suspended Participation

      A Participant who ceases to be an Eligible Employee, but who has not
      terminated from employment an Employer or Affiliate, shall become a
      suspended Participant. The Participant shall continue to vest in his
      Accrued Benefit, and he shall be entitled to benefits in accordance with
      the other provisions of the Plan while he is a suspended Participant.

2.3   Inactive Participation.

      A Participant who has fewer than 1,000 Hours of Service in any Plan Year
      but who has not terminated employment with an Employer or Affiliate shall
      be an inactive Participant for such Plan Year. During such period, the
      Participant shall not accrue a benefit under the Plan or earn a Year of
      Service for purposes of vesting in his Accrued Benefit.

2.4   Reemployment after Retirement.

      (a)   If a Participant is reemployed by an Employer or Affiliate in "ERISA
            Section 203(a)(3)(B) Service" after his Annuity Starting Date, the
            Participant's payments will be suspended and benefits will continue
            to accrue as described in Section 3.4. Benefit payments will
            recommence as

                                      -13-
<PAGE>

            of the Participant's subsequent retirement date and will be
            determined as provided in Article III.

            (1)   Reemployment Prior to Payment or Commencement. If a
                  Participant is reemployed by an Employer or Affiliate before
                  payment of his retirement income benefit has commenced,
                  payment of such benefit shall not commence prior to the
                  termination of his employment following reemployment.

            (2)   Reemployment Before Normal Retirement Date. If a Participant
                  is reemployed by an Employer or Affiliate after his Annuity
                  Starting Date but before his Normal Retirement Date, payment
                  of retirement benefits shall cease as of the Participant's
                  reemployment date. Upon the Participant's subsequent
                  termination of employment, the Participant's Accrued Benefit
                  shall be determined taking into account all Years of Credited
                  Service and adjusting the benefit for the value of annuity
                  benefit payments previously made.

            (3)   Reemployment after Normal Retirement Date. If a Participant is
                  reemployed in ERISA Section 203(a)(3)(B) Service by an
                  Employer or Affiliate after his Annuity Starting Date and his
                  Normal Retirement Date, payment of retirement benefits shall
                  cease of as the Participant's reemployment date. Payment of
                  benefits shall resume no later than the first day of the third
                  month after the month in which the Participant ceases to be so
                  employed. In the case of annuity benefits, upon the
                  Participant's subsequent termination of employment, the
                  Participant's benefit shall be the greater of (A) his previous
                  retirement benefit actuarially increased to take into account
                  the period of suspension, based on the actuarial assumptions
                  of Section 1.2, or (B) his Accrued Benefit recomputed taking
                  into account all of his Years of Credited Service without
                  actuarial adjustment for postponed commencement and reduced
                  for payments made prior to Normal Retirement Date, if any. The
                  Participant's retirement benefit shall be adjusted to reflect
                  the form of benefit elected. However, the form of the benefit,
                  as in effect before the Participant's reemployment date, shall
                  not change.

            (4)   Reemployment After Receiving a Lump Sum Payment. If a former
                  Participant who received a lump sum payment is subsequently
                  reemployed by an Employer or Affiliate, then on his subsequent
                  Annuity Starting Date, his retirement income benefit shall be
                  determined as follows:

                  (i)   The amount of the Participant's Accrued Benefit payable
                        at Normal Retirement Age and calculated in the Automatic

                                      -14-
<PAGE>

                        Form, shall be determined on the basis of the terms of
                        the Plan as in effect at the time of the Participant's
                        subsequent termination of employment, based upon his
                        total Years of Credited Service (including service
                        before and after reemployment) and without regard to his
                        previous lump sum payment;

                  (ii)  The Accrued Benefit payable at Normal Retirement Age
                        calculated pursuant to subsection (A) above shall be
                        reduced by the Accrued Benefit payable at Normal
                        Retirement Age previously paid as a lump sum.

                  (iii) The remaining Accrued Benefit, after being reduced by
                        subsection (B) above shall be actuarially adjusted to
                        reflect the form of payment elected by the former
                        Participant in accordance with Section 3.11 and 3.13.

                                      -15-
<PAGE>

                                   ARTICLE III

                          EMPLOYER FUNDING AND BENEFITS

3.1   Employer Contributions.

      The Employer shall contribute all amounts needed to provide the benefits
      under this Plan. The amount of Employer contribution shall be based on the
      recommendation of the Enrolled Actuary using such methods and assumptions
      as he may deem advisable and consistent with the minimum funding standards
      of ERISA. Any actuarial gains from forfeitures shall be used to reduce
      Employer contributions. Any contribution to the Plan, including any
      contribution made to satisfy the quarterly installment requirements, is
      contingent upon its deductibility under Code Section 404 and shall be
      returned to the Employer within one year after a disallowance of the
      deduction for such contribution.

3.2   Waiver of Employer Contributions.

      Notwithstanding anything herein to the contrary, contributions by an
      Employer may be waived in whole or in part in any Plan Year during which a
      substantial business hardship has been sustained, as determined in writing
      by the Secretary of the Treasury pursuant to Code Section 412(d).

3.3   Annual Valuation.

      Within sixty (60) days after the end of each Plan Year and within sixty
      (60) days after the removal or resignation of the Trustee, the Trustee
      shall determine the fair market value of the Trust Fund as of the close of
      the Plan Year (or the close of the shorter period ending with such
      resignation or removal), using procedures in accordance with generally
      accepted accounting principles.

3.4   Normal Retirement Benefit.

      (a)   For Plan Years beginning September 15, 1992 and August 1, 1993, and
            subject to the provisions of Sections 3.5 and 3.6, each Participant
            upon attainment of his Normal Retirement Age shall be entitled to a
            monthly Normal Retirement Benefit equal to the sum of (1) and (2)
            below where:

            (1)   $66.98 per month multiplied by the number of years of Credited
                  Service up to a maximum of twenty (20) years of Credited
                  Service, plus

            (2)   $88.75 per month multiplied by the number of years of Credited
                  Service in excess of twenty (20) years of Credited Service.

      (b)   For Plan Years beginning after July 31, 1994, and subject to the
            provisions of Sections 3.5 and 3.6, each Participant upon attainment
            of his Normal

                                      -16-
<PAGE>

            Retirement Age, shall be entitled to receive a monthly Normal
            Retirement Benefit equal to the sum of (1) and (2) below, where

            (1)   $58.24 per month multiplied by the number of years of Credited
                  Service up to a maximum of twenty (20) years of Credited
                  Service, plus

            (2)   $77.17 per month multiplied by the number of years of Credited
                  Service in excess of twenty (20) years of Credited Service.

      The determination to use the formulas in (a)(2) or (b)(2) above shall be
      made based on the total number of years of service the Employee has been
      employed by an Employer or Affiliate, including service before September
      15, 1992.

      (c)   A Participant who was a Full Time Regular Employee and a member of
            the Western Conference of Teamsters Pension Plan as of September 1,
            1991, and who joined the Plan as of September 15, 1992 may elect to
            receive the benefit outlined in Appendix A.

      (d)   Notwithstanding any provisions of this Section 3.4 to the contrary,
            if a Participant is entitled. to a Minimum Annual Retirement Benefit
            pursuant to Section 3.5, the Participant's Normal Retirement Benefit
            shall be the greater of the benefit otherwise provided by this
            Section 3.4 or the benefit provided by Section 3.5.

3.5   Minimum Benefit Requirements.

      (a)   Notwithstanding any provision of this Plan to the contrary, in any
            Plan Year in which this Plan is a Top Heavy Plan, each Non-Key
            Employee who is a Participant shall accrue a minimum retirement
            benefit as described in Section 13.3(b).

      (b)   The provisions of Paragraph E.2 of the Plan, as in effect on July
            31, 2001, shall no longer apply effective August 1, 2000.

3.6   Maximum Benefit for any Participant.

      The amount of a Participant's Normal Retirement Benefit shall be subject
      to the limitations of Code Section 415 as described under Article IV.

3.7   Early Retirement Benefit.

      Each Participant, upon Early Retirement, shall be entitled to receive an
      Early Retirement Benefit that shall be equal to the Participant's Normal
      Retirement Benefit payable on his Normal Retirement Date, reduced for each
      year that his Annuity Starting Date precedes his Normal Retirement Date.
      Such reduction shall be determined as follows:

                                      -17-
<PAGE>

<TABLE>
<CAPTION>
AGE     FACTOR(1)    FACTOR(2)*
---     ---------    ----------
<S>     <C>          <C>
 55       .544          .650
 56       .592          .700
 57       .640          .750
 58       .712          .800
 59       .784          .850
 60       .856          .900
 61       .928          .950
 62      1.000         1.000
</TABLE>

      *Factor (2) applies if the sum of age and vesting service equals or
      exceeds 85.

      The Early Retirement Benefit shall commence as of the Participant's Early
      Retirement Date. The Early Retirement Benefit shall be actuarially
      adjusted, using the actuarial assumptions of Section 1.2, to reflect the
      elected form of payment.

3.8   Delayed Retirement Benefit

      At a Delayed Retirement Date, a Participant shall be entitled to receive a
      Delayed Retirement Benefit that shall equal the greater of:

      (a)   The Actuarial Equivalent of the Normal Retirement Benefit the
            Participant would have received at his Normal Retirement Date; or

      (b)   The Normal Retirement Benefit based on Years of Credited Service
            through the Participant's Delayed Retirement Date.

      Notwithstanding the foregoing, if a Participant continues to be employed
      (or is reemployed by an Employer or Affiliate) after attaining Normal
      Retirement Age, but not in ERISA Section 203(a)(3)(B) Service, the
      commencement of payments shall not be delayed (or in the case of
      reemployment, suspended) until the Participant's Delayed Retirement Date.
      Payments to such Participant will commence as if the Participant had
      terminated employment as of the Participant's Normal Retirement Date.
      Benefits will accrue while such Participant remains employed as described
      in Article III and the amount of the payments will be recalculated each
      year on the anniversary of the Participant's Normal Retirement Date to
      reflect those additional benefits. In the case of a Participant who
      continues employment after attaining Normal Retirement Age or who is
      reemployed after commencing benefit payments, the Committee shall
      reasonably attempt to give notice to such Participant as required under
      Department of Labor Regulation 29 CFR Section 2530.203-3(b)(4) no later
      than the end of the first calendar month or payroll period in which the
      Plan delays the commencement of payments due to reemployment.

3.9   Death Benefit

      (a)   Death Before Vesting, or Death of an Unmarried Participant. If a
            Participant dies before vesting in his Accrued Benefit in accordance
            with

                                      -18-
<PAGE>

            Article V or if a Participant has no Eligible Spouse on his date of
            death, no benefits shall be payable on his behalf under this Section
            3.9.

      (b)   Death of a Married Participant Before Earliest Early Retirement
            Date. In the event of the death of a Participant after he has become
            vested in his Accrued Benefit but prior to his earliest Early
            Retirement Date, the Participant's surviving Eligible Spouse shall
            be entitled to receive a monthly death benefit equal to the sum of
            (1) plus (2) or (3) if applicable:

            (1)   Fifty percent (50%) of the amount the Participant would have
                  received under the Automatic Form of Payment, described in
                  Section 3.11, (or such other percentage or form of payment as
                  may have been properly elected by the Participant) had such
                  Participant separated from service on his date of death,
                  survived until his earliest Early Retirement Date and died the
                  next day.

            (2)   If the Participant and surviving Eligible Spouse have any
                  children under the age of 18, the surviving Eligible Spouse
                  shall receive a Children's Benefit of $384 to be divided among
                  all children under the age of 18. This Children's Benefit
                  shall cease when the Eligible Spouse attains age 62, or

            (3)   If the surviving Eligible Spouse is under age 62 and has no
                  children under the age of 18, she or she shall be entitled to
                  an additional spouse's benefit of $192. This spouse's benefit
                  shall cease when the Eligible Spouse attains age 62.

      Subject to Sections 3.13 and 3.15(a), such benefit payment shall begin on
      the earliest Early Retirement Date; however, if the Eligible Spouse does
      not survive until such spouse's Annuity Starting Date, such spousal
      benefit shall be permanently forfeited.

      (c)   Death of a Married Participant After Earliest Early Retirement Date
            But Before His Annuity Starting Date. In the event of the death of a
            Participant after he has become vested in his Accrued Benefit and
            after his earliest Early Retirement Date but prior to his Annuity
            Starting Date, the Participant's surviving Eligible Spouse shall be
            entitled to receive a monthly death benefit equal to the sum of (1)
            plus (2) or (3) if applicable:

            (1)   Fifty percent (50%) of the amount the Participant would have
                  received under the Automatic Form of Payment, described in
                  Section 3.11, (or such other percentage or form of payment as
                  may have been properly elected by the Participant) had such
                  Participant separated from service on his date of death
                  (actuarially adjusted to reflect the commencement of payments
                  after the Participant's earliest Early Retirement Date).

                                      -19-
<PAGE>

            (2)   If the Participant and surviving Eligible Spouse have any
                  children under the age of 18, the surviving Eligible Spouse
                  shall receive a Children's Benefit of $384 to be divided among
                  all children under the age of 18. This Children's Benefit
                  shall cease when the Eligible Spouse attains age 62, or

            (3)   If the surviving Eligible Spouse is under age 62 and has no
                  children under the age of 18, she or she shall be entitled to
                  an additional spouse's benefit of $192. This spouse's benefit
                  shall cease when the Eligible Spouse attains age 62.

      Subject to Sections 3.13 and 3.15(a), such benefit payment shall begin on
      the first day of the month following the Participant's date of death;
      however, if the Eligible Spouse does not survive until the date payments
      are to begin, such benefits shall be permanently forfeited.

      (d)   Death After Annuity Starting Date. Death benefits, if any, after a
            Participant's Annuity Starting Date, will be payable according to
            the provisions of the form of payment which has been elected.

3.10  Disability Retirement Benefit

      (a)   If a Participant incurs a Disability before his termination of
            service with the Employer and he has attained age 55 and completed
            10 Years of Service for vesting purposes, he is entitled to a
            Disability Retirement Benefit. The Participant can elect to commence
            Disability benefits on an Early Retirement Date which is after his
            date of disablement, in which case there shall be no reduction for
            the early commencement of benefits. The Participant shall no longer
            be considered disabled and eligibility for a Disability Retirement
            shall cease if, prior to the Participant's Normal Retirement Age he:

            (1)   Becomes ineligible to receive or continue to receive Social
                  Security disability benefits;

            (2)   Returns to the employ of an Employer or Affiliate;

            (3)   Recovers sufficiently, in the opinion of the Committee, to be
                  able to engage in regular employment, and such Participant
                  refuses an offer of employment by an Employer or Affiliate.
                  The opinion of the Committee shall be based upon a medical
                  examination of the Participant performed by a physician or
                  clinic appointed by the Committee; or

            (4)   Refuses to undergo any medical examination requested by the
                  Committee, provided that a medical examination shall not be
                  required more frequently than twice in any calendar year.

                                      -20-
<PAGE>

      If the Participant's Disability Retirement Benefit ceases for reasons
      enumerated in this Section 3.10, such Participant shall not be prevented
      from qualifying for an entitlement under another provision of the Plan.
      However, any other benefit to which a Participant may subsequently become
      entitled shall be offset by the Actuarial Equivalent of the amount of any
      distribution previously received during such period of Disability.

3.11  Automatic Forms of Payment

      (a)   Married Participants. A Participant who has an Eligible Spouse on
            his Annuity Starting Date will automatically receive his benefit in
            the form of a Qualified Joint and Survivor Annuity, with his
            Eligible Spouse as Beneficiary unless the Participant elects an
            Optional Form of Payment in accordance with the procedures set forth
            in subsection (c) below.

      (b)   Unmarried Participants. A Participant who does not have an Eligible
            Spouse on his Annuity Starting Date will automatically receive his
            Accrued Benefit, payable as a single life annuity with a four year
            period certain unless the Participant elects an Optional Form of
            Payment in accordance with the procedures set forth in subsection
            (c) below.

      (c)   Waiver of Automatic Form of Payment. Notwithstanding the foregoing,
            a Participant may elect to waive the Automatic Form of Payment (with
            Spousal Consent, if applicable) and receive an Optional Form of
            Payment as set forth in Section 3.13. Such waiver must be made
            within the ninety-day period ending on the Participant's Annuity
            Starting Date with respect to such benefit. A Participant may
            subsequently revoke an election to waive an Automatic Form of
            Payment and elect again to waive the Automatic Force of Payment at
            any time and any number of times prior to such Annuity Starting
            Date. All such elections and revocations shall be in writing. Any
            election to waive an Automatic Form of Payment (1) must specify the
            Optional Form of Payment elected, (2) must be accompanied by the
            designation of a specific nonspouse Beneficiary (including any class
            of Beneficiaries or any contingent Beneficiaries) who will receive
            the benefit upon the Participant's death, if applicable, and (3)
            must be accompanied by a Spousal Consent, as provided under Section
            1.45.

3.12  Deferred Vested Benefit

      (a)   A Participant who ceases to be an Employee for reasons other than
            death, Disability or retirement shall be entitled to a Deferred
            Vested Benefit, commencing on his Normal Retirement Date, which
            shall be equal to his Accrued Benefit determined at the date of his
            termination of employment multiplied by his vested percentage
            determined pursuant to Article V.

      (b)   Alternatively, a Participant who at termination of employment had
            either attained age 55 or ten (10) Years of Service and who is
            eligible for a

                                      -21-
<PAGE>

            Deferred Vested Benefit may elect to commence benefits on or after
            reaching age 55. The monthly benefit payable to a participant who
            terminates on or after age 55 with less than ten (10) Years of
            Service will be actuarially reduced in accordance with the actuarial
            assumptions of Section 1.2, and not the reduction factors of Section
            3.7. The monthly benefit payable to a participant who terminates
            before age 55 but with ten (10) or more Years of Service will be
            reduced in accordance with the actuarial reduction factors of
            Section 3.7, and not the reduction factors of Section 1.2.

3.13  Optional Forms of Payment

      (a)   A Participant may elect to receive his retirement benefits in any
            form described in subsection (b) below.

      (b)   A Participant may elect in writing, within a reasonable period of
            time prior to his Annuity Starting Date, to be paid in accordance
            with any one of the following Optional Forms of Payment, which are
            the Actuarial Equivalent of the Participant's Normal Form of
            retirement benefit.

            (1)   Straight Life Annuity: A monthly benefit payable for the
                  lifetime of the Participant, without death benefits.

            (2)   Life Annuity with Period Certain of 120 or 180 Months: A
                  reduced monthly benefit payable for the lifetime of the
                  Participant with a period certain of ten (10) or fifteen (15)
                  years. If the Participant dies before the end of the period
                  certain, the balance of the remaining period certain payments
                  will be payable to his Beneficiary.

            (3)   100% Survivorship Life Annuity: A reduced monthly benefit
                  payable for the lifetime of the Participant and, upon his
                  death, 100% of such monthly benefit payable for the lifetime
                  of his surviving Eligible Spouse.

            (4)   Social Security Level Income Benefit. A reduced monthly
                  benefit adjusted upward to reflect expected Social Security
                  payments from the date the Participant terminates service with
                  the Employer and Affiliates to the Participant's retirement
                  date for unreduced Social Security benefits, with decreased
                  Plan annuity payments after such retirement date for unreduced
                  Social Security benefits.

      (c)   If the Participant's Eligible Spouse is not the designated
            Beneficiary, the method of distribution selected must comply with
            Treasury Regulation Section 1.401(a)(9)-2.

      (d)   Mandatory Cashouts. Effective August 1, 1998, notwithstanding
            anything to the contrary in this Article III, if a Participant
            ceases to be an Employee

                                      -22-
<PAGE>

            for any reason and the present value of his vested Accrued Benefit
            is equal to or less than $5,000 (or $3,500 before August 1, 1998) on
            the Annuity Starting Date (including a vested Accrued Benefit of
            $0), the Committee shall pay as soon as practicable to the
            Participant (or his Beneficiary, as the case may be) the present
            value of his vested Accrued Benefit in a single lump sum payment. No
            distribution may be made under the preceding sentence after the
            Participant's Annuity Starting Date unless the Participant and his
            Eligible Spouse consent thereto in a manner that is comparable to
            the Spousal Consent requirements in Section 1.45. For purposes of
            calculating lump sum payments in order to determine if the Accrued
            Benefit can be paid without the Participant's consent, the present
            value shall be determined using the Applicable Interest Rate and the
            Applicable Mortality Table.

3.14  Direct Rollover of Eligible Rollover Distributions

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

      (b)   Definitions.

            (1)   Eligible rollover distribution: An eligible rollover
                  distribution is any distribution of all or any portion of the
                  balance to the credit of the distributee, except that an
                  eligible rollover distribution does not include: any
                  distribution that is one of a series of substantially equal
                  periodic payments (not less frequently than annually) made for
                  the life (or life expectancy) of the distributee or the joint
                  lives (or joint life expectancies) of the distributee and the
                  distributee's designated Beneficiary, or for a specified
                  period of ten years or more; any distribution to the extent
                  such distribution is required under Code Section 401(a)(9);
                  effective January 1, 2000, any hardship distribution of
                  elective contributions, as described in Code Section
                  401(k)(2)(B)(i)(IV); and the portion of any distribution that
                  is not includible in gross income (determined without regard
                  to the exclusion for net unrealized appreciation with respect
                  to employer securities).

            (2)   Eligible retirement plan: An eligible retirement plan is an
                  individual retirement account described in Code Section
                  408(a), an individual retirement annuity described in Code
                  Section 408(b), an annuity plan described in Code Section
                  403(a), and a qualified trust described in Code Section 401(a)
                  that accepts the distributee's eligible rollover distribution.

                                      -23-
<PAGE>

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

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

      (c)   This paragraph (c) shall apply to distributions made on or after
            January 1, 2002.

            (1)   Modification of Definition of Eligible Retirement Plan. For
                  purposes of the direct rollover provisions in Section 3.14(c),
                  an Eligible Retirement Plan shall also mean an annuity
                  contract described in Code Section 403(b) and an eligible plan
                  under Code Section 457(b) which is maintained by a state,
                  political subdivision of a state, or any agency or
                  instrumentality of a state or political subdivision of a state
                  and which agrees to separately account for amounts transferred
                  into such plan from this Plan. The definition of Eligible
                  Retirement Plan shall also apply in the case of a distribution
                  to a surviving spouse, or to a spouse or former spouse who is
                  the alternate payee under a qualified domestic relations
                  order, as defined in Code Section 414(p).

            (2)   Modification of Definition of Eligible Rollover Distribution
                  to Exclude Hardship Distributions. For purposes of the direct
                  rollover provisions in Section 3.14(b) of the Plan, any amount
                  that is distributed on account of hardship shall not be an
                  eligible rollover distribution and the distributee may not
                  elect to have any portion of such a distribution paid directly
                  to an Eligible Retirement Plan.

            (3)   Repeal of Same Desk Rule. Effective January 1, 2002, a
                  Participant's Accrued Benefit shall be distributed on account
                  of the Participant's severance from employment. However, such
                  a distribution shall be subject to the other provisions of the
                  Plan regarding benefit commencement, other than provisions
                  that require a separation from service before such amounts may
                  be distributed.

3.15  Time of Distribution

      (a)   The Committee must provide the Participant with a "general notice of
            distribution" no less than thirty and no more than ninety days
            before the

                                      -24-
<PAGE>

                  Participant's Annuity Starting Date provided distribution of
                  the Participant's vested Accrued Benefit does not commence
                  until at least 30 days after such notice is provided. A
                  Participant may waive the 30 day requirement if (1) the
                  Participant has been notified in writing that he has at least
                  30 days to consider whether to waive the Qualified Joint and
                  Survivor Annuity (with Spousal Consent), (2) the Participant
                  is permitted to revoke any affirmative distribution election
                  at least until the Annuity Starting Date or if later at any
                  time prior to the expiration of the 7-day period that begins
                  after the notice is provided and (3) distribution of the
                  Participant's vested Accrued Benefit commences more than 7
                  days after the notice is provided. Such notice must be in
                  writing and must set forth the following information:

                  (1)   an explanation of the eligibility requirements for, the
                        material features of, and the relative values of the
                        Optional Forms of Payment available under Section 3.13,
                        and

                  (2)   the Participant's right to defer receipt of a Plan
                        distribution under subsections (c) and (d) below.

                  This general notice also shall include:

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

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

                        (iii) the rights of the Participant's Eligible Spouse;
                              and

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

                  Such notice shall be given to the Participant in person, by
                  mailing, by posting, or by placing it in an Employer
                  publication which is distributed in such a manner as to be
                  reasonably available to such Participant. If the notice is to
                  be posted, it shall be posted at the location within the
                  Participant's principal place of employment that is
                  customarily used for employer notices to employees with regard
                  to labor-management relation matters. Notice under this
                  Section 3.15 is not required if the present value of the
                  Participant's vested Accrued Benefit is less than or equal to
                  $5,000 (or $3,500 before August 1, 1998).

            (b)   Upon receipt of the general notice of distribution, a
                  Participant may consent in writing to receive a distribution
                  of his vested Accrued Benefit to be distributed at the time
                  and in the manner set forth in this Article III.

                                      -25-
<PAGE>

                  The Participant's consent to receive such distribution prior
                  to the later of age 62 or Normal Retirement Age must be
                  accompanied by the written consent of the Participant's
                  Eligible Spouse, if married, which is comparable to the
                  Spousal Consent requirements in Section 1.45, unless the
                  distribution is to be made in the form of a Qualified Joint
                  and Survivor Annuity.

            (c)   To the extent not inconsistent with subsection (d) below, in
                  the event that the Participant does not elect in writing to
                  defer receipt of his Accrued Benefit, payment of a
                  Participant's Accrued Benefit shall begin not later than the
                  60th day after the latest of the close of the Plan Year in
                  which:

                  (1)   The Participant attains Normal Retirement Age;

                  (2)   Occurs the tenth (10th) anniversary of the date in which
                        the Participant entered the Plan; or

                  (3)   The Participant terminates employment with an Employer.

            (d)   In the event that the Participant has terminated employment
                  and the Participant (and the Eligible Spouse, if applicable)
                  neither consents to receive a Plan distribution nor elects to
                  defer receipt of a Plan distribution, the Participant's vested
                  Accrued Benefit shall be distributed on the date the
                  Participant attains the later of age 62 or the Participant's
                  Normal Retirement Age in the Automatic Form of Payment, if the
                  present value of such vested Accrued Benefit exceeds $5,000
                  (or $3,500 before August 1, 1998). For purposes of this
                  subsection (d), the determination whether the present value of
                  the Participant's vested Accrued Benefit is equal to or less
                  than $5,000 shall be determined in a manner specified in
                  subsection (d). The Committee may distribute a benefit in the
                  Automatic Form without the Participant's prior consent if such
                  distribution is necessary to comply with Code Section 415 or
                  411(b).

            (e)   Notwithstanding anything to the contrary, effective January 1,
                  1997, distribution of a Participant's vested Accrued Benefit
                  shall commence by the April 1 following the year (1) during
                  which the Participant who is a 5% owner (as defined in Code
                  Section 416(i)(1)(B)(i)) attains age 70-1/2, or (2) in which
                  the Participant who is not a 5% owner terminates service or
                  reaches age 70-1/2, whichever is later. Distributions must be
                  made in accordance with the regulations under Code Section
                  401(a)(9), including Section 1.401(a)(9)-2. If a Participant
                  continues employment after age 70-1/2, his Accrued Benefit
                  determined as of the April 1 following the year the
                  Participant attains age 70-1/2 shall be actuarially increased
                  to reflect the delay in payment from the April 1 following the
                  year he attained age 70-1/2 until his termination of
                  employment. In no event shall the Participant's Delayed
                  Retirement Benefit be less than the amount determined by this
                  subsection (e).

                                      -26-
<PAGE>

            (f)   If the amount of the payment required by subsection (e) above
                  cannot be ascertained by the date payment is to commence, or
                  if it is not possible to make such payment because of the
                  Committee's inability to locate the Participant after making
                  reasonable efforts to do so, a payment retroactive to the
                  required commencement date shall be made no later than sixty
                  (60) days after the date the amount of such payment can be
                  ascertained or the Participant is located.

            (g)   If the Beneficiary is the Participant's surviving Eligible
                  Spouse, the Eligible Spouse shall not receive a Plan
                  distribution before the date the Participant would have
                  attained Normal Retirement Age if the present value of the
                  Participant's vested Accrued Benefit exceeds $5,000 (or $3,500
                  before August 1, 1998) at the time of distribution, unless the
                  surviving Eligible Spouse consents to an earlier distribution
                  date. For purposes of this subsection (g), the determination
                  whether the present value of the Participant's vested Accrued
                  Benefit is equal to or less than $5,000 (or $3,500 before
                  August 1, 1998) shall be determined in a manner specified in
                  subsection (d).

3.16  Qualified Domestic Relations Orders.

      The Committee shall adopt uniform and nondiscriminatory administrative
      procedures that comply with Code Section 414(p) and any accompanying
      regulations to determine the qualified status of domestic relations orders
      and to determine benefit payments under Qualified Domestic Relations
      Orders. The Committee will comply with provisions of an order it
      determines to be a Qualified Domestic Relations Order. Once the Plan
      Administrator has received a domestic relations order, no benefit payments
      or distributions may be processed until the payment terms under the
      Qualified Domestic Relations Order are resolved. Distribution shall not be
      made before the earliest retirement age on which the Participant could
      receive his or her Accrued Benefit. For purposes of this Section,
      "earliest retirement age" means the earlier of:

      (a)   the date on which the Participant is entitled to a benefit payment
            under the Plan, or

      (b)   the later of:

            (1)   the date the Participant attains age 50, or

            (2)   the earliest date on which the Participant could begin
                  receiving benefits under the Plan if the Participant
                  terminated employment.

      For purposes of this Section, a "Qualified Domestic Relations Order" means
      a domestic relations order that the Plan Administrator has determined
      satisfies the requirements of Code Section 414(p).

                                      -27-
<PAGE>

                                   ARTICLE IV

                             LIMITATIONS ON BENEFITS

4.1   Limitation on Benefits

      Notwithstanding any other provision of the Plan to the contrary, a
      Participant's Annual Benefit shall not exceed the applicable limitations
      set forth in Code Section 415 at any time during any Plan Year. If a
      Participant's Annual Benefit would exceed the foregoing limitation, the
      Participant's Annual Benefit shall be reduced by reducing the components
      thereof, as necessary, in the order in which they are listed in Section
      4.2. A Participant's Annual Benefit shall in no event be reduced below the
      amount allowed under the special grandfather and transition rules set
      forth in the Tax Equity and Fiscal Responsibility Act of 1982 and the Tax
      Reform Act of 1986. The amendments to the Code Section 415 limitations
      described in the Retirement Protection Act of 1994, as amended by the
      Small Business Job Protection Act of 1996 and the Taxpayer Relief Act of
      1997 (collectively, the "GUST Amendments"), shall be effective as of
      August 1, 1995, but shall not be applied to limit any Participant's Annual
      Benefit that is first payable prior to August 1, 2001. The combined limits
      of Code Section 415(e) (as in effect as of December 31, 1999) shall not
      longer apply after December 31, 1999. The Code Section 415 limitations as
      amended by the GUST Amendments shall be applied to the full amount of any
      Participant's Annual Benefit that is first payable on or after August 1,
      2001, subject to the Code Section 415 grandfather rule described in method
      2 of Q&A-14 in Internal Revenue Service Revenue Ruling 98-1.

4.2   Annual Benefit.

      For purposes of this Article IV only, a Participant's "Annual Benefit"
      shall be equal to the sum of the following:

      (a)   The aggregate annual retirement benefits (if any) to which the
            Participant is entitled under all other qualified defined benefit
            plans maintained by any Affiliate, as defined in Section 4.5; and

      (b)   The annual retirement benefit to which the Participant is entitled
            under this Plan.

      If an Annual Benefit (or any portion thereof) is payable in any form other
      than a single-life annuity or a Qualified Joint and Survivor Annuity (as
      defined in Code Section 417(b) and the regulations there under), then such
      Annual Benefit (or such portion) shall, for purposes of this Article IV,
      be converted into a single life annuity which is its Actuarial Equivalent.

4.3   Adjusted Dollar Limitation for Benefits Commencing At Social Security
      Retirement Age, After Social Security Retirement Age or Before Age 62.

                                      -28-
<PAGE>

            (a)   At Social Security Retirement Age. The dollar limitation
                  described in Code Section 415(b)(1)(A) that is applicable at a
                  Participant's "Social Security Retirement Age" shall be
                  adjusted annually for increases in the cost of living pursuant
                  to Code Section 415(d).

            (b)   After Social Security Retirement Age. If a Participant's
                  Annual Benefit commences after the Participant's Social
                  Security Retirement Age, the dollar limitation described in
                  Code Section 415(b)(l)(A) (as adjusted annually for increases
                  in the cost of living pursuant to Code Section 415(d)) for the
                  particular Plan Year shall be increased to an actuarially
                  equivalent annual amount using interest of 5% per year and the
                  Applicable Mortality Table for both pre-benefit and
                  post-benefit commencement mortality. Effective for limitation
                  years ending on or after August 1, 2001, "Age 65" shall be
                  substituted for "Social Security Age" wherever it appears in
                  this subsection (b).

            (c)   Before Age 62. If a Participant's Annual Benefit commences
                  prior to age 62, the dollar limitation at age 62 determined
                  pursuant to Code Section 415(b)(2)(C) shall be further reduced
                  to the lesser of the actuarially equivalent annual amount
                  determined as of such earlier commencement date using the
                  factors described in (1) or (2) below:

                  (1)   The factors used under the applicable plans for the
                        particular Participant to determine the amount of the
                        reduction for early commencement of the Participant's
                        Annual Benefit.

                  (2)   Interest of 5% per year, and the Applicable Mortality
                        Table for both pre-benefit and post-benefit commencement
                        mortality.

4.4   Compensation.

      Effective August 1, 1998, for purposes of applying the limitations of Code
      Section 415 to the Plan and the other qualified defined benefit plans
      maintained by any Affiliate, "compensation" means the total wages and
      other compensation paid to an Employee by the Employer during the Plan
      Year, as reported as taxable income on the Employee's Wage and Tax
      Statement (Form W-2), including the amount of any elective contributions
      made on his behalf for the Plan Year to a 401(k) plan sponsored by an
      Employer and any amounts excludable from his taxable income under a
      "cafeteria plan" pursuant to Code Section 125, or, effective August 1,
      2001, by reason of Code Section 132(f)(4).

4.5   Affiliate

      For purposes of this Article IV, the term "Affiliate" means the controlled
      group of corporations (within the meaning of Code Section 1563(a),
      determined without regard to Code Sections 1563(a)(4) and 1563(e)(3)(C))
      of which an Employer is a member, except that the phrase "more than 50
      percent" shall be substituted for the

                                      -29-
<PAGE>

      phrase "at least 80 percent" wherever the latter phrase occurs in Code
      Section 1563(a).

                                      -30-
<PAGE>

                                   ARTICLE V

                       VESTING OF EMPLOYER FUNDED BENEFITS

5.1   Vesting

      (a)   A Participant's Accrued Benefit shall be vested when he attains
            Normal Retirement Age, or dies while an Employee.

      (b)   Except as provided in subsection (a), (c), and Section 13.3(a) a
            Participant's Accrued Benefit derived from Employer contributions
            shall vest in accordance with the following schedule:

<TABLE>
<CAPTION>
                                            Vested
 Years of Service                         Percentage
 ----------------                         ----------
<S>                                       <C>
 Less than 5                                   0%
 5 or more                                   100%
</TABLE>

      (c)   If the Plan's vesting schedule is amended and if a Participant who
            has completed three Years of Service at any time and at least one
            Hour of Service on or after the first day of the first Plan Year
            beginning after December 31, 1988 elects, within a reasonable period
            of time, in accordance with Code Section 411(a)(10), to have his
            Accrued Benefit vest under the terms of the vesting schedule in
            effect before the amendment, then, notwithstanding the provisions of
            the vesting schedules above, his Accrued Benefit shall vest in
            accordance with the prior schedule.

      (d)   In determining the Years of Service under the Plan for purposes of
            determining a Participant's vested percentage under Sections 5.1(b)
            and Section 13.3(a), all of a Participant's Years of Service with an
            Employer or Affiliate shall be taken into account, except as
            provided below.

            (1)   Service before September 15, 1992 shall be disregarded.

            (2)   If, at the time of a One-Year Break in Service, a Participant
                  does not have any vested right under Sections 5.1(a), (b) and
                  (c), Years of Service before such One-Year Break in Service
                  shall not thereafter be taken into account if the number of
                  consecutive One-Year Breaks in Service equals or exceeds
                  either five or the aggregate number of Years of Service before
                  such Breaks in Service, whichever is greater;

            (3)   The aggregate number of Years of Service before such Breaks in
                  Service shall be deemed not to include any Years of Service
                  not required to be taken into account hereunder by reason of
                  any prior application of this subsection. Participants who
                  were also

                                      -31-
<PAGE>

                  participants of the Prior Plan shall be governed by the Break
                  in Service rules of this Plan or the Prior Plan, whichever is
                  more favorable.

      (e)   Amounts vested pursuant to this Section shall not be subject to
            divestment for cause.

5.2   Termination of Employment

      Upon termination of employment, a Participant shall be entitled to receive
      a benefit equal to the product of his Accrued Benefit multiplied by his
      vested percentage as determined hereunder. This amount shall be subject to
      distribution in accordance with the provisions of Article III.

5.3   Rehired Participants

      Notwithstanding anything to the contrary contained in this Article V, a
      Participant's Accrued Benefit shall take into account any distribution he
      has previously received.

5.4   Termination of Non-Vested Participants

      A terminated Participant who has a zero percent (0%) vested percentage
      shall not be entitled to any benefits under the Plan and shall be deemed
      to have received a distribution of $0 upon termination.

                                      -32-
<PAGE>

                                   ARTICLE VI

                              LOANS TO PARTICIPANTS

      No loans shall be made under this Plan to Participants from the assets of
the Trust.

                                      -33-
<PAGE>

                                   ARTICLE VII

                                  BENEFICIARIES

7.1   Designation

      Subject to the qualified pre-retirement survivor annuity and Qualified
      Joint and Survivor Annuity requirements set forth in Article III, a
      Participant shall have the right to designate, on forms provided by the
      Company, a Beneficiary or Beneficiaries to receive the benefits herein
      provided in the event of his death and to revoke such designation or to
      substitute another Beneficiary or Beneficiaries at any time.

7.2   Absence of Valid Designation of Beneficiaries

      If, upon the death of a Participant, former Participant or Beneficiary,
      there is no valid designation of Beneficiary on file with the Company, the
      following shall be designated by the Committee as the Beneficiary or
      Beneficiaries, in order of priority:

      (a)   The surviving spouse;

      (b)   Surviving children, including adopted children, in equal shares;

      (c)   Surviving parents, in equal shares;

      (d)   The Participant's estate;

      (e)   The Beneficiary's estate;

      (f)   The trustee(s) of the trust(s) named as beneficiary of the residue
            of the Participant's probate estate;

      (g)   The trustee(s) of the trust(s) named as beneficiary of the residue
            of the Beneficiary's probate estate.

      The determination of the Committee as to which persons, if any, qualify
      within the categories listed above shall be final and conclusive upon all
      persons.

                                      -34-
<PAGE>

                                  ARTICLE VIII

                                  BENEFICIARIES

Individual Participants may not make contributions to this Plan. All
contributions must be made by the Employer.

                                      -35-
<PAGE>

                                   ARTICLE IX

                             ESTABLISHMENT OF TRUST

9.1   Trust Agreement

      Contributions made by the Employer pursuant to Article III hereof, and all
      other assets of this Plan shall be held in trust under a Trust agreement.
      The Company shall enter into a Trust agreement with the Trustee for the
      administration of the Trust that shall contain the assets of the Plan. The
      Trustee shall not be responsible for the administration of this Plan but
      only for the Trust established pursuant to this Plan.

9.2   Trust Agreement Part of Plan

      The Trust agreement shall be deemed to be a part of this Plan, and any
      rights or benefits accruing to any person under this Plan shall be subject
      to all of the relevant terms and provisions of the Trust agreement,
      including any amendments. In addition to the powers of the Trustee set
      forth in the Trust agreement, the Trustee shall have any powers, express
      or implied, granted to it under the Plan. In the event of any conflict
      between the provisions of the Trust agreement and the provisions of the
      Plan, the provisions of the Plan shall control, except for the duties and
      responsibilities of the Trustee, in which case the Trust agreement shall
      control.

                                      -36-
<PAGE>

                                    ARTICLE X

                       PLAN FIDUCIARIES AND ADMINISTRATION

10.1  Named Fiduciaries

      The authority to control and manage the operation and administration of
      the Plan is vested in the named fiduciaries specified herein. Each named
      fiduciary shall be responsible solely for the tasks allocated to it. No
      fiduciary shall have any liability for a breach of fiduciary
      responsibility of another fiduciary with respect to the Plan and Trust,
      unless it participates knowingly in the breach, has actual knowledge of
      the breach and fails to take reasonable remedial action to remedy said
      breach, or, through its negligence in performing its own specific
      fiduciary responsibilities, which give rise to its status as a fiduciary,
      it has caused another fiduciary to commit a breach of fiduciary
      responsibility.

10.2  Fiduciary Standard

      Each named fiduciary and every other fiduciary under the Plan shall
      discharge its duties with respect to the Plan solely in the interests of
      the Participants and Beneficiaries and;

      (a)   For the exclusive purpose of providing benefits to Participants and
            their Beneficiaries and defraying reasonable expenses of
            administering the Plan;

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

      (c)   In accordance with the documents and instruments governing the Plan,
            insofar as these are consistent with the provisions of Title I of
            ERISA.

10.3  Multiple Duties and Advisors

      Any person or group of persons may serve in more than one fiduciary
      capacity with respect to the Plan. A named fiduciary, or a fiduciary
      designated by a named fiduciary in accordance with the terms of the Plan,
      may employ one or more persons to render advice with regard to any
      responsibilities such fiduciary has under the Plan.

10.4  Allocation and Delegation of Fiduciary Duties

      Each named fiduciary may allocate its fiduciary duties among its members
      or may delegate its responsibilities to persons who are not named
      fiduciaries with respect to the specific responsibility delegated. Any
      such allocation or delegation shall be in writing and shall be made a
      permanent part of the records of the named

                                      -37-
<PAGE>

      fiduciary. Such allocation or delegation shall be reviewed periodically by
      the named fiduciary and shall be terminable upon such notice as the named
      fiduciary, in its sole discretion, deems reasonable and prudent under the
      circumstances. An action by the Board of Directors or the Committee
      allocating or delegating its named fiduciary responsibilities shall be
      evidenced by a duly adopted resolution of the Committee or of the Board of
      Directors.

10.5  Indemnification

      Any Employer shall indemnify and hold harmless the named fiduciaries and
      any officers or Employees of the Employer to which fiduciary
      responsibilities have been delegated, from and against any and all
      liabilities, claims, demands, costs and expenses, including attorneys'
      fees, which may arise out of an alleged breach in the performance of their
      fiduciary duties under the Plan and under ERISA, other than such
      liabilities, claims, demands, costs and expenses as may result from the
      gross negligence or willful misconduct of such persons. An Employer shall
      have the right, but not the obligation, to conduct the defense of such
      persons in any proceeding to which this Section applies. An Employer may
      satisfy its obligation under this Section, in whole or in part, through
      the purchase of a policy or policies of insurances however, no insurer
      shall have any rights against the Employer arising out of this Section.

10.6  Costs and Expenses

      The costs and expenses of the named fiduciaries shall be paid from the
      Plan's assets to the extent not paid by an Employer.

10.7  Authority to Amend and Terminate

      Subject to Article XI, the Board of Directors is the named fiduciary
      responsible for the amendment and termination of the Plan and Trust. In
      addition, the Board of Directors shall appoint and replace the members of
      the Committee as required.

10.8  The Committee

      (a)   The Committee is the named fiduciary with the power and the duty to:
            (1) interpret the terms of the Plan; (2) formulate rules and
            regulations necessary to administer the Plan in accordance with its
            terms, including the delegation outside an Employer of any of the
            administrative duties described in Section 10.9 below; (3) finally
            review claims under the claims review procedure; (4) establish and
            execute the funding policy of the Plan; (5) establish and modify an
            investment policy (subject to approval by the Board of Directors of
            Company), invest Plan assets and/or name one or more investment
            managers to invest Plan assets; and (6) annually review the funding
            policy and method.

      (b)   The Committee shall consist of two (2) or more personas and shall
            have as its officers a chairman who shall be a member of the
            Committee, a

                                      -38-
<PAGE>

            secretary who may be, but need not be, a member, and such other
            officers as may be appointed by the Board of Directors. The members
            of the Committee and its officers shall be appointed by and hold
            office at the pleasure of the Board of Directors and shall serve as
            such without compensation.

      (c)   The Committee shall keep minutes of its meetings and proceedings.
            Every decision made or action taken by a majority of the members
            then in office shall constitute a decision or action of the
            Committee, and shall be final, conclusive and binding upon all
            persons affected. A Committee decision or action, under or in
            connection with the Plan, may be made or taken either at a meeting
            held pursuant to its rules, at which a majority of the members then
            in office are present and vote in favor thereof, or without a
            meeting if approved and evidenced by a writing signed by a majority
            of the members then in office. No Committee member shall vote on any
            question relating solely to himself.

10.9  Administration

      The Company shall be the Plan Administrator for purposes of ERISA Section
      3(16) and Code Section 414(g). In addition, the Administrator shall have
      the power and the duty to perform the following administrative functions
      according to the policies, interpretations, rules, practices and
      procedures established by the Board of Directors or the Committee in
      accordance with the respective areas of named fiduciary responsibilities:

      (a)   Apply Plan rules determining eligibility for participation or
            benefits;

      (b)   Calculate service and compensation credits for benefits;

      (c)   Prepare employee communications material;

      (d)   Maintain Participants' service and employment records;

      (e)   Prepare reports required by government agencies;

      (f)   Calculate benefits and, if necessary, purchase annuity contracts
            which satisfy the requirements of Code Sections 401(a)(11) and 417;

      (g)   Orient new Participants and advise Participants regarding their
            rights and options under the Plan;

      (h)   Collect contributions and apply contributions as provided in the
            Plan;

      (i)   Prepare reports concerning Participants' benefits;

      (j)   Process claims; and

                                      -39-
<PAGE>

      (k)   Make recommendations to the Board of Directors or the Committee on
            Plan administration.

      The Administrator (and those to whom it has delegated its authority) shall
      have vested in it under the terms of this Plan full discretionary and
      final authority when exercising its duties hereunder.

10.10 Claims Procedures

      (a)   Filing of Claim. A Participant or Beneficiary who believes he is
            entitled to a benefit that he has not received may file a claim in
            writing with his Employer. An Employer may require a claimant to
            submit writing additional information, if necessary to process the
            claim. The Company or its delegate shall review the claim and render
            its decision within ninety (90) days from the date the claim is
            filed (or the requested additional information is submitted, if
            later), unless special circumstances require an. extension of time
            for processing the claim. If such an extension is required, written
            notice of the extension shall be furnished the claimant within the
            initial ninety-day period. The notice shall indicate the special
            circumstances requiring the extension and the date by which the
            Company expects to reach a decision on the claim. In no event shall
            the extension exceed a period of ninety days from the end of the
            initial period.

      (b)   Notice of Claim Denied. If the Company denies a claim, in whole or
            in part, it shall provide the claimant with written notice of the
            denial within the period specified in Section 10.10(a). The notice
            shall be written in language calculated to be understood by the
            claimant, and shall include the following information:

            (1)   The specific reason for such denial;

            (2)   Specific reference to pertinent Plan provisions upon which the
                  denial is based;

            (3)   A description of any additional material or information which
                  may be needed to clarify or perfect the request, and an
                  explanation of why such information is required; and

            (4)   An explanation of the Plan's review procedure with respect to
                  the denial of benefits.

      (c)   Review Procedure. Any claimant whose claim has been denied, in whole
            or in part, shall follow those review procedures as set forth
            herein.

            (1)   A claimant whose claim has been denied, in whole or in part,
                  may request a full and fair review of the claim by the
                  Committee by making written request therefore within
                  sixty-days of receipt of the notification of denial. The
                  Committee, for good cause shown, may

                                      -40-
<PAGE>

            extend the period during which the request may be filed. The
            claimant shall be permitted to examine all documents pertinent to
            the claim and shall be permitted to submit issues and comments
            regarding the claim to the Committee in writing.

            (2)   The Committee shall render its decision within sixty (60) days
                  after receipt of the application for review, unless special
                  circumstances (such as the need to hold a hearing) require an
                  extension of time for processing, in which case the decision
                  shall be rendered as soon as possible but not later than one
                  hundred and twenty (120) days after receipt of a request for
                  review. If an extension of time is necessary, written notice
                  shall be furnished the claimant before the extension period
                  commences.

            (3)   The Committee shall decide whether a hearing shall be held on
                  the claim. If so, it shall notify the claimant in writing of
                  the time and place for the hearing. Unless the claimant agrees
                  to a shorter period, the hearing shall be scheduled at least
                  fourteen (14) days after the date of the notice of hearing.
                  The claimant and/or his authorized representative may appear
                  at any such hearing.

            (4)   The Committee shall send its decision on review to the
                  claimant in writing within the time specified in this section.
                  If the claim is denied, in whole or in part, the decision
                  shall specify the reasons for the denial in a manner
                  calculated to be understood by the claimant, referring to the
                  specific Plan provisions on which the decision is based. The
                  Committee shall not be restricted in its review to those
                  provisions of the Plan cited in the original denial of the
                  claim.

            (5)   If the Committee does not furnish its decision on review
                  within the time specified in this subsection (c), the claim
                  shall be deemed denied on review.

10.11 Agent for Legal Process

      The Plan Administrator shall be the Plan's agent for service of legal
      process.

                                      -41-
<PAGE>

                                   ARTICLE XI

                            AMENDMENT AND TERMINATION

11.1  Amendment

      To provide for contingencies which may require or make advisable the
      clarification, modification or amendment of this Plan, the Board of
      Directors delegates to the Committee the right to amend this Plan, at any
      time and from time to time, in whole or in part, by adopting such
      amendment in writing. Such power to amend includes the right, without
      limitation, to make retroactive amendments referred to in Code Section
      401(b). However, such right to amend the Plan shall be subject to Section
      113. Further, no amendment of the Plan shall (a) alter, change or modify
      the duties, powers or liabilities of the Trustee appointed pursuant to the
      Trust Agreement without its written consent; or (b) permit any assets of
      the Trust to be used to pay premiums or contributions of an Employer under
      any other plan maintained by the Employer for the benefit of its
      employees.

11.2  Termination or Complete Discontinuance of Contributions

      Although the Company has established the Plan with the bona fide intention
      and expectation that it will be able to make contributions indefinitely,
      nevertheless an Employer is not and shall not be under any obligation or
      liability whatsoever to continue its contributions or to maintain the Plan
      for any given length of time. An Employer may, in its sole and absolute
      discretion, discontinue such contributions or terminate the Plan with
      respect to its Employees, in accordance with the provisions of the Plan,
      at any time with no liability whatsoever for such discontinuance or
      termination. If the Plan is terminated or partially terminated, or if
      contributions of an Employer are completely discontinued, the rights of
      all affected Participants in their Accrued Benefits shall thereupon become
      nonforfeitable, notwithstanding any other provisions of the Plan. However,
      the Trust shall continue until all benefits have been distributed in
      accordance with the Plan.

11.3  Nonreversion

      (a)   Except as provided in this Section 11.3(a), the assets of the Plan
            shall never inure to the benefit of an Employer; such assets shall
            be held for the exclusive purpose of providing benefits to
            Participants and their Beneficiaries and for defraying the
            reasonable administrative expenses of the Plan.

            (1)   If an Employer contribution is made by virtue of a mistake of
                  fact, this Section 11.3 shall not prohibit the return of such
                  contribution to an Employer within one (1) year after the
                  payment of the contribution.

                                      -42-
<PAGE>

            (2)   If an Employer contribution is conditioned upon deductibility
                  of the contribution under Code Section 404, or any successor
                  provision thereto, then to the extent such contribution is
                  disallowed, this Section 11.3 shall not prohibit the return to
                  an Employer of such contribution (to the extent disallowed)
                  within one (1) year after such disallowance of the deduction.

            (3)   If the Plan does not constitute a qualified plan for any Plan
                  Year, this Section 11.3 shall not prohibit the return of any
                  Employer contribution made with respect to any year in which
                  qualified status is denied provided such amount is returned
                  within one (1) year after the date of denial of qualification
                  of the Plan.

            (4)   In the case of the termination of the Plan, any residual
                  assets of the Plan shall be distributed to an Employer at the
                  direction of the Administrator (or at the direction of a
                  trustee appointed upon the application of the Pension Benefit
                  Guaranty Corporation) if all liabilities of the Plan to
                  Participants and their Beneficiaries have been satisfied and
                  the distribution does not contravene any provision of law. The
                  certificate of an Enrolled Actuary engaged by the Committee
                  pursuant to ERISA stating that there are residual assets of
                  the Plan remaining in the Trust Fund after all liabilities of
                  the Plan to Participants and their Beneficiaries have been
                  satisfied shall be conclusive evidence of this fact; but in
                  its discretion, the Trustee may require other and additional
                  evidence of the existence and amount of residual assets.
                  Notwithstanding the foregoing, an Employer may elect to
                  reallocate the residual assets to those Employees who are
                  Participants as of the date of termination of the Plan, such
                  allocation to be made in a nondiscriminatory manner. Said
                  election shall be in writing and shall be made prior to
                  receipt of a determination by the Internal Revenue Service of
                  the Plan's qualified status resulting from the termination.

      (b)   An Employer shall have no right to modify or amend the Plan
            retroactively in such a manner so as to reduce the benefits of any
            Participant, former Participant or Beneficiary of either, accrued
            under the Plan by reason of contributions made by an Employer prior
            to the modification or amendment, except to the extent that such
            reduction is permitted by ERISA.

11.4  Limitation on Benefits

      (a)   Plan Termination. In the event of a termination of the Plan, the
            benefit of any highly compensated employee, as defined under Code
            Section 414(q) ("Highly Compensated Employee"), whether an active or
            former Highly Compensated Employee, is limited to a benefit that is
            nondiscriminatory under Code Section 401(a)(4).

                                      -43-
<PAGE>

      (b)   Limitation on Benefits. The benefits distributed to any of the
            twenty-five (25) Highly Compensated Employees who have the greatest
            Compensation from the Employer in the current or any prior Plan Year
            are restricted such that the annual payments are no greater than an
            amount equal to the payment that would be made on behalf of the
            Employee under a single life annuity that is the Actuarial
            Equivalent of the Employee's Accrued Benefit under the Plan (other
            than a Social Security supplement) and the amount of the payments
            that the Employee is entitled to receive under a Social Security
            supplement, if any.

      Subsection (b) above shall not apply if:

            (1)   after payment to or on behalf of an Employee of benefits
                  payable, as determined without the application of the
                  limitations described in the preceding subsection, the value
                  of Plan assets equals or exceeds one hundred and ten percent
                  (110%) of the value of current liabilities, as defined in Code
                  Section 412(e)(7), or

            (2)   the value of the benefits payable to or on behalf of the
                  Employee, as determined without the application of the
                  limitations described in the preceding paragraph, is less than
                  1 % of the value of current liabilities before distribution,
                  or

            (3)   the value of the benefits payable to or on behalf of the
                  Employee, as determined without the application of the
                  limitations described in the preceding subsection., does not
                  exceed the amount described in Code Section 411(a)(11)(A), or

            (4)   the Plan requires adequate security to guarantee any repayment
                  of benefits under the circumstances and upon the terms
                  described in Rev. Rul. 92-76, 1992-38 I.R.B. 5.

                                      -44-
<PAGE>

                                  ARTICLE XII

                                 MISCELLANEOUS

12.1  Limitation of Rights; Employment Relationship

      Neither the establishment of the Plan and the Trust, nor any modifications
      thereof, nor the creation of any fund or account, nor the payment of any
      benefits, shall be construed as giving to any Participant or other person
      any legal or equitable right against an Employer or the Trustee except as
      provided herein; and in no event shall the terms of employment of any
      Employee or Participant, express or implied, be modified or in any way be
      affected hereby.

12.2  Transfer of Assets of Employer; Transfer of Assets of Plan

      (a)   If an Employer merges or consolidates with or into a corporation, or
            if substantially all of the assets of an Employer are transferred to
            another business, the Plan hereby created shall terminate on the
            effective date of such merger, consolidation or transfer. However,
            if the surviving corporation resulting from such merger or
            consolidation, or the business to which an Employer's assets have
            been transferred, adopts this Plan, it shall continue and such
            corporation or business shall succeed to all rights, powers and
            duties of an Employer hereunder. The employment of any Employee who
            continues in the employ of such successor corporation or business
            shall not be deemed to have been terminated for any purpose
            hereunder.

      (b)   In no event shall this Plan be merged or consolidated with any other
            plan, nor shall there be any transfer of assets or liabilities from
            this Plan to any other plan, unless immediately after such merger,
            consolidation or transfer, each Participant's benefits, if such
            other plan were then to terminate, are at least equal to or greater
            than the benefits to which the Participant would have been entitled,
            had this Plan been terminated immediately before such merger,
            consolidation, or transfer.

12.3  Spendthrift Provision

      Neither the Company nor the Trustee shall recognize any transfer,
      mortgage, pledge, hypothecation, order, or assignment by any Participant
      or Beneficiary of all or part of his interest hereunder, except a transfer
      pursuant to a "qualified domestic relations order" within the meaning of
      Code Section 414(p). Such interest shall not otherwise be subject in any
      manner to transfer by operation of law. Such interest shall be exempt from
      the claims of creditors or other claimants from all orders, decrees,
      levies, garnishments and/or executions and other legal or equitable
      processes or proceedings against such Participant or Beneficiary to the
      fullest extent permitted by law. Effective August 5, 1997, notwithstanding
      the foregoing, the provisions of this Section 12.3 shall not apply to any
      offset of a

                                      -45-
<PAGE>

      Participant's benefits provided under the Plan against amount that the
      Participant is ordered or required to pay to the Plan for certain
      judgments and settlements as described in Code Section 401(a)(13)(C),
      subject to the spousal consent requirements described therein.

12.4  Applicable Law; Severability

      The Plan hereby created shall be construed, administered and governed in
      all respects in accordance with ERISA and the laws of the State of
      California; provided, however, that if any provision of this Plan is
      susceptible of more than one interpretation, such interpretation shall be
      given thereto as is consistent with the Plan being a qualified employees'
      pension plan under the provisions for qualification set forth in the Code.
      If any provision of this Plan shall be held by a court of competent
      jurisdiction to be invalid or unenforceable, the remaining provisions
      shall continue in full force and effect.

12.5  Incorporation of Trust Agreement Provisions

      The relevant provisions of the Trust Agreement regarding: (a) the
      exclusive benefit of Employees and their Beneficiaries, (b) amendment, (c)
      termination, (d) other employers, (e) California law, (f) headings, gender
      and number, and (g) nonalienation are hereby incorporated into this Plan
      and are equally applicable to the Plan and to the Trust, which Plan and
      Trust together shall constitute the entire Plan as defined in the Code.

12.6  Nonliability

      Any payment to any Participant, or to his legal representative or
      Beneficiary, in accordance with the provisions of the Plan, shall to the
      extent thereof be in full satisfaction of all claims hereunder against the
      Trustee, the Committee and the Company, any of whom may require such
      Participant, legal representative or Beneficiary, as a condition precedent
      to such payment, to execute a receipt therefor in such form as shall be
      determined by the Trustee, the Committee or the Company, as the case may
      be. The Company does not guarantee the Trust, the Participants, former
      Participants or their Beneficiaries against loss of or depreciation in
      value of any right or benefit that any of them may acquire under the terms
      of this agreement. All benefits payable hereunder shall be paid or
      provided for solely from the Trust, and the Company does not assume any
      liability or responsibility therefor.

12.7  Missing Persons

      In the case of any benefit payable to a person under this Plan, if the
      Committee is unable to locate the person within six (6) months from the
      date a certified letter was mailed to such person notifying him of the
      benefit, the Committee shall direct the Trustee to maintain the
      Participant as an inactive Participant. The Committee shall continue to
      maintain this Participant in inactive status until the person entitled to
      the benefit makes application therefor.

                                      -46-
<PAGE>

                                  ARTICLE XIII

                            TOP HEAVY PLAN PROVISIONS

This Article sets forth certain definitions and rules that automatically become
effective if the Plan becomes Top Heavy under Code Section 416.

      13.1  Definitions. The following defined terms apply only to this Article:

            (a)   "Aggregation Group" means the Required, or if applicable,
                  Permissive Aggregation Group.

            (b)   "Annual Compensation" means an Employee's Compensation. Annual
                  Compensation shall not include, however, Compensation in any
                  Plan year in excess of the dollar limit prescribed in Code
                  Section 410(a)(17) for the calendar year in which the Plan
                  Year begins (as adjusted pursuant to Code Sections 401(a)(17)
                  and 415(d)).

            (c)   "Determination Date" means the date for determining Key
                  Employee status and for performing Top Heavy tests. The
                  Determination Date is the last day of the preceding Plan Year
                  or in the case of the first year in which a Plan is in effect,
                  the last day of the first Plan Year. For an Aggregation Group,
                  the determination of Top Heavy status is made by aggregating
                  the results of Determination Dates that fall within the same
                  calendar year.

            (d)   "Employee" means any individual currently or formerly included
                  on the payroll of an Employer as a common-law employee and
                  whose compensation is (or was) subject to federal income tax
                  withholding.

            (e)   "Key Employee" means certain Participants (who are officers
                  and shareholders of an Employer) and Beneficiaries described
                  in Code Section 416(i)(1) or (5).

            (f)   "Non-Key Employee" means an Employee who is not a Key Employee
                  and includes the Beneficiary of a Non-Key Employee.

            (g)   "Permissive Aggregation Group" means all plans in the Required
                  Aggregation Group and any other qualified plans maintained by
                  an Employer or by any member of the Controlled Group of which
                  the Employer is a member, but only if such group of plans
                  would satisfy, in the aggregate, the requirements of Code
                  Sections 401(a)(4) and 410(b). The Plan administrator shall
                  determine which plans shall be taken into account in
                  determining the Permissive Aggregation Group.

            (h)   "Required Aggregation Group" means each qualified plan of the
                  Employer and any member of the Controlled Group (as defined by
                  Code Section 1563) of which an Employer is a member, in which
                  at least one Key Employee participates (in the Plan Year
                  containing the Determination

                                      -47-
<PAGE>

                  Date or in any of the four preceding Plan Years), and any
                  other qualified plan of an Employer or any member of such
                  Controlled Group which enables a Plan in which a Key Employee
                  participates to meet the requirements of Code Section
                  401(a)(4) or 410(b).

            (i)   "Valuation Date" is the date used to compute costs for minimum
                  funding. The Valuation Date will be used to value the
                  liabilities and assets of the Plan.

      13.2  Top Heavy Plan

            (a)   The Plan or Aggregation Group is "Top Heavy" with respect to
                  any Plan Year if, on the Determination Date applicable to such
                  Plan Year, the present value of Accrued Benefits of Key
                  Employees exceeds 60% of the present value of Accrued Benefits
                  for all Employees who have performed any service for an
                  Employer during the one-year period (or five-year period for
                  Plan Years beginning before August 1, 2001) ending on the
                  Determination Date. This test is subject to all the
                  requirements and exceptions found in Code Section 415(g) and
                  Treasury Regulations 1.416-1. Former Key Employees shall be
                  excluded from the calculation to determine whether a Plan or
                  Aggregation Group is Top Heavy. In determining Top Heavy
                  status, the following rules shall apply:

                  (1)   The same actuarial assumptions must be used for all
                        plans in the Aggregation Group. Actuarial equivalence
                        will be based on the actuarial assumptions of the
                        defined benefit plan that has the largest number of
                        participants.

                  (2)   The accrued benefit used for purposes of testing for Top
                        heavy status will reflect the Normal Form of benefit
                        payable at Normal Retirement Age unless there is a
                        non-proportional subsidy for early retirement or some
                        benefit options. Non-proportional subsidies will be
                        taken into account to the extent and in the manner
                        prescribed by Treasury Regulations Section 1.416-1, T-26
                        and T-27.

            (b)   The Plan shall not be Top Heavy if the Plan Administrator
                  elects to treat the Plan as part of a Permissive Aggregation
                  Group, and the Permissive Aggregation Group is determined not
                  to be Top Heavy using the criteria of the "60% Test" described
                  in subsection (a) above.

      13.3  Restrictions

            (a)   Vesting. For any Plan Year in which any plan in the
                  Aggregation Group is Top Heavy, each active Participant who is
                  a Non-Key Employee shall have a nonforfeitable interest in his
                  Accrued Benefit derived from Employer contributions not less
                  than that provided under the following schedule:

                                      -48-
<PAGE>

<TABLE>
<CAPTION>
   Completed                    Vested
Years of Service              Percentage
----------------              ----------
<S>                           <C>
Less than 3                       0%
3 or more                       100%
</TABLE>

            "Accrued Benefit," for purposes of this subsection (a), shall
            include that portion of Accrued Benefits which the Participant
            earned during all prior Plan Years, whether or not the Plan was a
            Top Heavy plan during such prior Plan Years. Except to the extent
            inconsistent with these provisions, the minimum vesting standards
            under Code Section 411, including Code Section 411(a)(l0) (regarding
            changes in the vesting schedule), are applicable.

            (b)   Minimum Benefits. With respect to any Plan Year during which
                  the Plan is a Top Heavy plan, the Accrued Benefit of a
                  Participant who is a lion-Key Employee shall be not less than
                  2% of such Participant's average Annual Compensation times
                  Years of Service (not to exceed ten such years). For purposes
                  of this subsection (b), the following rules apply:

                  (1)   Years of Service shall be the Participant's Years of
                        Credited Service, except that the following years shall
                        be disregarded:

                        (i)   any year which includes the last day of a Plan
                              Year during which the Plan was not a Top Heavy
                              plan, and

                        (ii)  any year ending within a Plan Year beginning
                              before 1984.

            (2)   Average Annual Compensation shall be the Participant's average
                  Annual Compensation from the Employer during the period of
                  five consecutive years (or actual years, if less than five)
                  that produces the highest average. Only Annual Compensation
                  for Plan Years beginning on or after December 31, 1983, for
                  which the Plan is determined to be Top Heavy, will be
                  considered.

            (3)   Accrued Benefit shall be an annual benefit payable in the form
                  of a single life annuity (with no ancillary benefits)
                  beginning at a Participant's Normal Retirement Date.

            (4)   A Non-Key Employee who is a Participant is eligible to receive
                  this minimum benefit if he completes 1,000 Hours of Service
                  during the Plan Year, regardless of the Participant's level of
                  compensation or whether he is employed on the Determination
                  Date.

            (5)   If an Employee is a Participant in both a defined benefit plan
                  and a defined contribution plan maintained by the Employer,
                  and the plans are Top Heavy, the minimum benefits and minimum
                  contribution requirements will be satisfied by having the
                  defined

                                      -49-
<PAGE>

                  benefit plan provide the minimum benefit set out above which
                  will be offset by the benefits provided under the defined
                  contribution plan.

                                      -50-
<PAGE>

                                   ARTICLE XIV

                                    EXECUTION

To record the amendment and restatement of the Diamond Walnut Pension Plan
effective as of August 1, 2001, to read as set forth herein the Company has
caused its authorized officer to execute this document this 29th day of March,
2002.

                                        DIAMOND WALNUT GROWERS, INC.

                                        By:   /s/ Michael P. Riley
                                            ___________________________________

                                        Title:    V.P. & C.F.O.
                                               ________________________________

                                      -51-
<PAGE>

                                   APPENDIX A

                    SPECIAL BENEFIT FORMULA FOR PARTICIPANTS
                                     IN THE
                  WESTERN CONFERENCE OF TEAMSTERS PENSION PLAN

The retirement income benefit for a Participant who was a Full Time Regular
Employee and member of the Western Conference of Teamsters Pension Plan as of
September 1, 1991, and who joined the Diamond Walnut Growers, Inc. Production
Employees Pension Plan as of September 15, 1992 shall be as follows:

The greater of (1) or (2) below:

(1)   The Participant's Accrued Benefit as calculated pursuant to Section 3.4,
      or

(2)   (a)   $58.24 multiplied by the total number of years of Benefit
            Service to a maximum of 20 years, plus

            $77.17 multiplied by the total number of years of Benefit Service in
            excess of 20 years, less

      b)    The benefit accrued under the Western Conference of Teamsters
            Pension Plan for service prior to September 15, 1992.

For purposes of Section (2) above, Years of Benefit Service shall include all
full Years of Service while an Employee of Diamond Walnut.

An Employee who was formerly a member of the Western Conference of Teamsters
Pension Plan and who wishes to take advantage of the Special Benefit outlined in
this Appendix A must notify the Diamond Walnut Human Resources Department of his
intention to have the special benefit formula applied to his Accrued Benefit.

                                      -52-

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