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                                                                    EXHIBIT 10.7

                             SYNAPTICS INCORPORATED

                        2001 EMPLOYEE STOCK PURCHASE PLAN
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                             SYNAPTICS INCORPORATED

<TABLE>
<CAPTION>
                        2001 EMPLOYEE STOCK PURCHASE PLAN
<S>   <C>                                                                                     <C>
1.    Purpose................................................................................   1
2.    Definitions............................................................................   1
3.    Eligibility............................................................................   3
4.    Offering Periods.......................................................................   3
5.    Election to Participate................................................................   4
6.    Participant Contributions..............................................................   4
7.    Grant of Option........................................................................   5
8.    Exercise Price.........................................................................   6
9.    Exercise of Options....................................................................   6
10.   Delivery...............................................................................   6
11.   Withdrawal; Termination of Employment..................................................   7
12.   Stock..................................................................................   7
13.   Administration.........................................................................   8
14.   Designation of Beneficiary.............................................................   8
15.   Transferability........................................................................   8
16.   Participant Accounts...................................................................   8
17.   Adjustments Upon Changes in Capitalization; Corporate Transactions.....................   9
18.   Amendment of the Plan..................................................................   9
19.   Termination of the Plan................................................................  10
20.   Notices................................................................................  10
21.   Effective Date.........................................................................  10
22.   Conditions Upon Issuance of Shares.....................................................  10
23.   Expenses of the Plan...................................................................  10
24.   No Employment Rights...................................................................  11
25.   Applicable Law.........................................................................  11
26.   Additional Restrictions of Rule 16b-3..................................................  11
</TABLE>
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                             SYNAPTICS INCORPORATED

                        2001 EMPLOYEE STOCK PURCHASE PLAN

      1.    Purpose. The purpose of the Plan is to provide incentive for present
and future employees of the Company and any Designated Subsidiary to acquire a
proprietary interest (or increase an existing proprietary interest) in the
Company through the purchase of Common Stock. It is the Company's intention that
the Plan qualify as an "employee stock purchase plan" under Section 423 of the
Code. Accordingly, the provisions of the Plan shall be administered, interpreted
and construed in a manner consistent with the requirements of that section of
the Code.

      2.    Definitions.

            (a) "Applicable Percentage" means the percentage specified in
Section 8, subject to adjustment by the Committee as provided in Section 8.

            (b) "Board" means the Board of Directors of the Company.

            (c) "Code" means the Internal Revenue Code of 1986, as amended, and
any successor thereto.

            (d) "Committee" means the committee appointed by the Board to
administer the Plan as described in Section 13 of the Plan or, if no such
Committee is appointed, the Board.

            (e) "Common Stock" means the Company's common stock, par value $.001
per share.

            (f) "Company" means Synaptics Incorporated, a California
corporation.

            (g) "Compensation" means, with respect to each Participant for each
pay period, the full base salary and overtime paid to such Participant by the
Company or a Designated Subsidiary. Except as otherwise determined by the
Committee, "Compensation" does not include: (i) bonuses or commissions; (ii) any
amounts contributed by the Company or a Designated Subsidiary to any pension
plan; (iii) any automobile or relocation allowances (or reimbursement for any
such expenses); (iv) any amounts paid as a starting bonus or finder's fee; (v)
any amounts realized from the exercise of any stock options or incentive awards;
(vi) any amounts paid by the Company or a Designated Subsidiary for other fringe
benefits, such as health and welfare, hospitalization and group life insurance
benefits, or perquisites, or paid in lieu of such benefits, or; (vii) other
similar forms of extraordinary compensation.

            (h) "Continuous Status as an Employee" means the absence of any
interruption or termination of service as an Employee. Continuous Status as an
Employee shall not be considered interrupted in the case of a leave of absence
agreed to in writing by the Company or the Designated Subsidiary that employs
the Employee, provided that such leave is for a period of not more than 90 days
or reemployment upon the expiration of such leave is guaranteed by contract or
statute.
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            (i) "Designated Subsidiaries" means the Subsidiaries that have been
designated by the Board from time to time in its sole discretion as eligible to
participate in the Plan.

            (j) "Employee" means any person, including an Officer, whose
customary employment with the Company or one of its Designated Subsidiaries is
at least twenty (20) hours per week and more than five (5) months in any
calendar year.

            (k) "Entry Date" means the first day of each Exercise Period.

            (l) "Exchange Act" means the Securities Exchange Act of 1934, as
amended.

            (m) "Exercise Date" means the last Trading Day ending on or before
December 31, 2001, and the last Trading Day ending on or before each June 30 and
December 31 thereafter, except that if the first Offering Period proceeds as
scheduled without adjustment pursuant to Section 4 hereof, there shall be an
additional Exercise Date on the last Trading Day of the first Offering Period,
and there shall be no Exercise Date on the last trading day of December, 2003.

            (n) "Exercise Period" means, for any Offering Period, each period
commencing on the Offering Date and on the day after each Exercise Date, and
terminating on the immediately following Exercise Date.

            (o) "Exercise Price" means the price per share of Common Stock
offered in a given Offering Period determined as provided in Section 8.

            (p) "Fair Market Value" means, with respect to a share of Common
Stock, the Fair Market Value as determined under Section 7(b).

            (q) "First Offering Date" means the commencement date of the initial
public offering contemplated by the Registration Statement on Form S-1 filed by
the Company with the Securities and Exchange Commission.

            (r) "Offering Date" means the first Trading Day of each Offering
Period; provided, that in the case of an individual who becomes eligible to
become a Participant under Section 3 after the first Trading Day of an Offering
Period, the term "Offering Date" shall mean the first Trading Day of the
Exercise Period coinciding with or next succeeding the day on which that
individual becomes eligible to become a Participant. Options granted after the
first day of an Offering Period will be subject to the same terms as the options
granted on the first Trading Day of such Offering Period except that they will
have a different grant date (thus, potentially, a different exercise price) and,
because they expire at the same time as the options granted on the first Trading
Day of such Offering Period, a shorter term.

            (s) "Offering Period" means, subject to adjustment as provided in
Section 4, (i) with respect to the first Offering Period, the period beginning
on the First Offering Date and ending on November 30, 2003, (ii) with respect to
the second Offering Period, the period beginning December 1, 2003 and ending
December 31, 2005, and (iii) with respect to each Offering Period thereafter,
the period beginning on the January 1 immediately following the end of the
previous Offering Period and ending on the December 31 which is 24 months
thereafter.

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            (t) "Officer" means a person who is an officer of the Company within
the meaning of Section 16 under the Exchange Act and the rules and regulations
promulgated thereunder.

            (u) "Participant" means an Employee who has elected to participate
in the Plan by filing an enrollment agreement with the Company as provided in
Section 5 of the Plan.

            (v) "Plan" shall mean this 2001 Employee Stock Purchase Plan.

            (w) "Plan Contributions" means, with respect to each Participant,
the after-tax payroll deductions withheld from the Compensation of the
Participant and contributed to the Plan for the Participant as provided in
Section 6 of the Plan and any other amounts contributed to the Plan for the
Participant in accordance with the terms of the Plan.

            (x) "Subsidiary" shall mean any corporation, domestic or foreign, of
which the Company owns, directly or indirectly, 50% or more of the total
combined voting power of all classes of stock, and that otherwise qualifies as a
"subsidiary corporation" within the meaning of Section 424(f) of the Code.

            (y) "Trading Day" shall mean a day on which the national stock
exchanges and the Nasdaq system are open for trading.

      3.    Eligibility.

            (a) Any Employee who has completed at least three (3) months of
employment with the Company or any Subsidiary and who is an Employee as of the
Offering Date of a given Offering Period shall be eligible to become a
Participant as of any Entry Date within that Offering Period under the Plan,
subject to the requirements of Section 5(a) and the limitations imposed by
Section 423(b) of the Code; provided, however, that any Employee who is an
Employee as of the First Offering Date shall be eligible to become a Participant
as of such First Offering Date.

            (b) Notwithstanding any provision of the Plan to the contrary, no
Participant shall be granted an option under the Plan (i) to the extent that if,
immediately after the grant, such Employee (or any other person whose stock
would be attributed to such Employee pursuant to Section 424(d) of the Code)
would own stock and/or hold outstanding options to purchase stock possessing 5%
or more of the total combined voting power or value of all classes of stock of
the Company or of any Subsidiary of the Company, or (ii) to the extent that his
or her rights to purchase stock under all employee stock purchase plans of the
Company and its Subsidiaries intended to qualify under Section 423 of the Code
to accrue at a rate which exceeds $25,000 of fair market value of stock
(determined at the time such option is granted) for each calendar year in which
such option is outstanding at any time.

      4.    Offering Periods. The Plan shall generally be implemented by a
series of Offering Periods. The first Offering Period shall commence on the
First Offering Date and end on November 30, 2003, the second Offering Period
shall commence on December 1, 2003 and end on December 31, 2005, and succeeding
Offering Periods shall commence on the January 1 immediately following the end
of the previous Offering Period and end on the December 31 which is 24 months
thereafter.

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If, however, the Fair Market Value of a share of Common Stock on any Exercise
Date (except the final scheduled Exercise Date of any Offering Period) is lower
than the Fair Market Value of a share of Common Stock on the Offering Date, then
the Offering Period in progress shall end immediately following the close of
trading on such Exercise Date, and a new Offering Period shall begin on the next
subsequent January 1 or July 1, as applicable, and shall extend for a 24 month
period ending on December 31 or June 30, as applicable. Subsequent Offering
Periods shall commence on the January 1 or July 1, as applicable, immediately
following the end of the previous Offering Period and shall extend for a 24
month period ending on December 31 or June 30, as applicable. The Committee
shall have the power to make other changes to the duration and/or the frequency
of Offering Periods with respect to future offerings if such change is announced
at least five (5) days prior to the scheduled beginning of the first Offering
Period to be affected.

      5.    Election to Participate.

            (a) An eligible Employee may elect to participate in the Plan
commencing on any Entry Date by completing an enrollment agreement on the form
provided by the Company and filing the enrollment agreement with the Company on
or prior to such Entry Date, unless a later time for filing the enrollment
agreement is set by the Committee for all eligible Employees with respect to a
given offering. The enrollment agreement shall set forth the percentage of the
Participant's Compensation that is to be withheld by payroll deduction pursuant
to the Plan.

            (b) Except as otherwise determined by the Committee under rules
applicable to all Participants, payroll deductions for a Participant shall
commence on the first payroll following the Entry Date on which the Participant
elects to participate in accordance with Section 5(a) and shall end on the last
payroll in the Offering Period, unless sooner terminated by the Participant as
provided in Section 11.

            (c) Unless a Participant elects otherwise prior to the last Exercise
Date of an Offering Period, including the last Exercise Date prior to
termination in the case of an Offering Period terminated by operation of the
rule contained in Section 4 hereof, such Participant shall be deemed (i) to have
elected to participate in the immediately succeeding Offering Period (and, for
purposes of such Offering Period such Participant's "Entry Date" shall be deemed
to be the first day of such Offering Period) and (ii) to have authorized the
same payroll deduction for such immediately succeeding Offering Period as was in
effect for such Participant immediately prior to the commencement of such
succeeding Offering Period.

      6.    Participant Contributions.

            (a) Except as otherwise authorized by the Committee pursuant to
Section 6(d) below, all Participant contributions to the Plan shall be made only
by payroll deductions. At the time a Participant files the enrollment agreement
with respect to an Offering Period, the Participant may authorize payroll
deductions to be made on each payroll date during the portion of the Offering
Period that he or she is a Participant in an amount not less than 1% and not
more than 15% of the Participant's Compensation on each payroll date during the
portion of the Offering Period that he or she is a Participant (or subsequent
Offering Periods as provided in Section 5(c)). The amount of

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payroll deductions shall be a whole percentage (i.e., 1%, 2%, 3%, etc.) of the
Participant's Compensation.

            (b) A Participant may discontinue his or her participation in the
Plan as provided in Section 11, or may decrease or increase the rate or amount
of his or her payroll deductions during such Offering Period (within the
limitations of Section 6(a) above) by completing and filing with the Company a
new enrollment agreement authorizing a change in the rate or amount of payroll
deductions; provided, that a Participant may not change the rate or amount of
his or her payroll deductions more than once in any Exercise Period. The change
in rate or amount shall be effective with the first full payroll period
following ten (10) business days after the Company's receipt of the new
enrollment agreement.

            (c) Notwithstanding the foregoing, to the extent necessary to comply
with Section 423(b)(8) of the Code and Section 3(b) hereof, a Participant's
payroll deductions may be decreased to 0% at such time during any Exercise
Period which is scheduled to end during the current calendar year that the
aggregate of all payroll deductions accumulated with respect to such Exercise
Period and any other Exercise Period ending within the same calendar year are
equal to the product of $25,000 multiplied by the Applicable Percentage for the
calendar year. Payroll deductions shall recommence at the rate provided in the
Participant's enrollment agreement at the beginning of the following Exercise
Period which is scheduled to end in the following calendar year, unless
terminated by the Participant as provided in Section 11.

            (d) Notwithstanding anything to the contrary in the foregoing, but
subject to the limitations set forth in Section 3(b), the Committee may permit
Participants to make after-tax contributions to the Plan at such times and
subject to such terms and conditions as the Committee may in its discretion
determine. All such additional contributions shall be made in a manner
consistent with the provisions of Section 423 of the Code or any successor
thereto, and shall be held in Participants' accounts and applied to the purchase
of shares of Common Stock pursuant to options granted under this Plan in the
same manner as payroll deductions contributed to the Plan as provided above.

            (e) All Plan Contributions made for a Participant shall be deposited
in the Company's general corporate account and shall be credited to the
Participant's account under the Plan. No interest shall accrue or be credited
with respect to a Participant's Plan Contributions. All Plan Contributions
received or held by the Company may be used by the Company for any corporate
purpose, and the Company shall not be obligated to segregate or otherwise set
apart such Plan Contributions from any other corporate funds.

      7.    Grant of Option.

            (a) On a Participant's Entry Date, subject to the limitations set
forth in Sections 3(b) and 12(a), the Participant shall be granted an option to
purchase on each subsequent Exercise Date during the Offering Period in which
such Entry Date occurs (at the Exercise Price determined as provided in Section
8 below) up to a number of shares of Common Stock determined by dividing such
Participant's Plan Contributions accumulated prior to such Exercise Date and
retained in the Participant's account as of such Exercise Date by the Exercise
Price; provided, that the maximum

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number of shares an Employee may purchase during any Exercise Period shall be
One Thousand Five Hundred (1,500) shares. The Fair Market Value of a share of
Common Stock shall be determined as provided in Section 7(b).

            (b) The Fair Market Value of a share of Common Stock on a given date
shall be determined by the Committee in its discretion; provided, that if there
is a public market for the Common Stock, the Fair Market Value per share shall
be either (i) the closing price of the Common Stock on such date (or, in the
event that the Common Stock is not traded on such date, on the immediately
preceding trading date), as reported by the National Association of Securities
Dealers Automated Quotation (Nasdaq) National Market System, (ii) if such price
is not reported, the average of the bid and asked prices for the Common Stock on
such date (or, in the event that the Common Stock is not traded on such date, on
the immediately preceding trading date), as reported by Nasdaq, (iii) in the
event the Common Stock is listed on a stock exchange, the closing price of the
Common Stock on such exchange on such date (or, in the event that the Common
Stock is not traded on such date, on the immediately preceding trading date), as
reported in The Wall Street Journal, or (iv) if no such quotations are available
for a date within a reasonable time prior to the valuation date, the value of
the Common Stock as determined by the Committee using any reasonable means. For
purposes of the First Offering Date, the Fair Market Value of a share of Common
Stock shall be the Price to Public as set forth in the final prospectus filed by
the Company with the Securities and Exchange Commission pursuant to Rule 424
under the Securities Act of 1933, as amended.

      8.    Exercise Price. The Exercise Price per share of Common Stock offered
to each Participant in a given Offering Period shall be the lower of: (i) the
Applicable Percentage of the greater of (A) the Fair Market Value of a share of
Common Stock on the Offering Date or (B) the Fair Market Value of a share of
Common Stock on the Entry Date on which the Employee elects to become a
Participant within the Offering Period or (ii) the Applicable Percentage of the
Fair Market Value of a share of Common Stock on the Exercise Date. The
Applicable Percentage with respect to each Offering Period shall be 85%, unless
and until such Applicable Percentage is increased by the Committee, in its sole
discretion, provided that any such increase in the Applicable Percentage with
respect to a given Offering Period must be established not less than fifteen
(15) days prior to the Offering Date thereof.

      9.    Exercise of Options. Unless the Participant withdraws from the Plan
as provided in Section 11, the Participant's option for the purchase of shares
will be exercised automatically on each Exercise Date, and the maximum number of
full shares subject to such option shall be purchased for the Participant at the
applicable Exercise Price with the accumulated Plan Contributions then credited
the Participant's account under the Plan. During a Participant's lifetime, a
Participant's option to purchase shares hereunder is exercisable only by the
Participant.

      10.   Delivery. As promptly as practicable after each Exercise Date, the
Company shall arrange for the delivery to each Participant (or the Participant's
beneficiary), as appropriate, or to a custodial account for the benefit of each
Participant (or the Participant's beneficiary) as appropriate, of a certificate
representing the shares purchased upon exercise of such Participant's option.
Any amount remaining to the credit of a Participant's account after the purchase
of shares by such Participant on an Exercise Date, or which is insufficient to
purchase a full share of Common Stock,

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shall be carried over to the next Exercise Period if the Participant continues
to participate in the Plan or, if the Participant does not continue to
participate, shall be returned to the Participant.

      11.   Withdrawal; Termination of Employment.

            (a) A Participant may withdraw from the Plan at any time by giving
written notice to the Company. All of the Plan Contributions credited to the
Participant's account and not yet invested in Common Stock will be paid to the
Participant as soon as administratively practicable after receipt of the
Participant's notice of withdrawal, the Participant's option to purchase shares
pursuant to the Plan automatically will be terminated, and no further payroll
deductions for the purchase of shares will be made for the Participant's
account. Payroll deductions will not resume on behalf of a Participant who has
withdrawn from the Plan (a "Former Participant") unless the Former Participant
enrolls in a subsequent Offering Period in accordance with Section 5(a).

            (b) Upon termination of the Participant's Continuous Status as an
Employee prior to any Exercise Date for any reason, including retirement or
death, the Plan Contributions credited to the Participant's account and not yet
invested in Common Stock will be returned to the Participant or, in the case of
death, to the Participant's beneficiary as determined pursuant to Section 14,
and the Participant's option to purchase shares under the Plan will
automatically terminate.

            (c) A Participant's withdrawal from an Offering Period will not have
any effect upon the Participant's eligibility to participate in succeeding
Offering Periods or in any similar plan which may hereafter be adopted by the
Company.

      12.   Stock.

            (a) Subject to adjustment as provided in Section 17, the maximum
number of shares of the Company's Common Stock that shall be made available for
sale under the Plan shall be One Million (1,0000,000) shares, plus an automatic
annual increase on the first day of each of the Company's fiscal years beginning
in 2002 and ending in 2011 equal to the lesser of (i) Five Hundred Thousand
(500,000) shares, (ii) 1% of all shares of Common Stock outstanding on the last
day of the immediately preceding fiscal year, or (iii) a lesser amount
determined by the Board. Shares of Common Stock subject to the Plan may be newly
issued shares or shares reacquired in private transactions or open market
purchases. If and to the extent that any right to purchase reserved shares shall
not be exercised by any Participant for any reason or if such right to purchase
shall terminate as provided herein, shares that have not been so purchased
hereunder shall again become available for the purpose of the Plan unless the
Plan shall have been terminated, but all shares sold under the Plan, regardless
of source, shall be counted against the limitation set forth above.

            (b) A Participant will have no interest or voting right in shares
covered by his option until such option has been exercised.

            (c) Shares to be delivered to a Participant under the Plan will be
registered in the name of the Participant or in the name of the Participant and
his or her spouse, as requested by the Participant.

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      13.   Administration.

            (a) The Plan shall be administered by the Committee. The Committee
shall have the authority to interpret the Plan, to prescribe, amend and rescind
rules and regulations relating to the Plan, and to make all other determinations
necessary or advisable for the administration of the Plan. The administration,
interpretation, or application of the Plan by the Committee shall be final,
conclusive and binding upon all persons.

            (b) Notwithstanding the provisions of Subsection (a) of this Section
13, in the event that Rule 16b-3 promulgated under the Exchange Act or any
successor provision thereto ("Rule 16b-3") provides specific requirements for
the administrators of plans of this type, the Plan shall only be administered by
such body and in such a manner as shall comply with the applicable requirements
of Rule 16b-3. Unless permitted by Rule 16b-3, no discretion concerning
decisions regarding the Plan shall be afforded to any person that is not
"disinterested" as that term is used in Rule 16b-3.

      14.   Designation of Beneficiary.

            (a) A Participant may file a written designation of a beneficiary
who is to receive any shares and cash, if any, from the Participant's account
under the Plan in the event of the Participant's death subsequent to an Exercise
Date on which the Participant's option hereunder is exercised but prior to
delivery to the Participant of such shares and cash. In addition, a Participant
may file a written designation of a beneficiary who is to receive any cash from
the Participant's account under the Plan in the event of the Participant's death
prior to the exercise of the option.

            (b) A Participant's beneficiary designation may be changed by the
Participant at any time by written notice. In the event of the death of a
Participant and in the absence of a beneficiary validly designated under the
Plan who is living at the time of such Participant's death, the Company shall
deliver such shares and/or cash to the executor or administrator of the estate
of the Participant, or if no such executor or administrator has been appointed
(to the knowledge of the Company), the Company, in its discretion, may deliver
such shares and/or cash to the spouse or to any one or more dependents or
relatives of the Participant, or if no spouse, dependent or relative is known to
the Company, then to such other person as the Company may designate.

      15.   Transferability. Neither Plan Contributions credited to a
Participant's account nor any rights to exercise any option or receive shares of
Common Stock under the Plan may be assigned, transferred, pledged or otherwise
disposed of in any way (other than by will or the laws of descent and
distribution, or as provided in Section 14). Any attempted assignment, transfer,
pledge or other distribution shall be without effect, except that the Company
may treat such act as an election to withdraw funds in accordance with Section
11.

      16.   Participant Accounts. Individual accounts will be maintained for
each Participant in the Plan to account for the balance of his Plan
Contributions and options issued and shares purchased under the Plan. Statements
of account will be given to Participants semi-annually in due course following
each Exercise Date, which statements will set forth the amounts of payroll
deductions, the per share purchase price, the number of shares purchased and the
remaining cash balance, if any.

      17.   Adjustments Upon Changes in Capitalization; Corporate Transactions.

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            (a) If the outstanding shares of Common Stock are increased or
decreased, or are changed into or are exchanged for a different number or kind
of shares, as a result of one or more reorganizations, restructurings,
recapitalizations, reclassifications, stock splits, reverse stock splits, stock
dividends or the like, upon authorization of the Committee, appropriate
adjustments shall be made in the number and/or kind of shares, and the per-share
option price thereof, which may be issued in the aggregate and to any
Participant upon exercise of options granted under the Plan.

            (b) In the event of the proposed dissolution or liquidation of the
Company, the Offering Period will terminate immediately prior to the
consummation of such proposed action, unless otherwise provided by the
Committee. In the event of a proposed sale of all or substantially all of the
Company's assets, or the merger of the Company with or into another corporation
(each, a "Sale Transaction"), each option under the Plan shall be assumed or an
equivalent option shall be substituted by such successor corporation or a parent
or subsidiary of such successor corporation, unless the Committee determines, in
the exercise of its sole discretion and in lieu of such assumption or
substitution, to shorten the Exercise Period then in progress by setting a new
Exercise Date (the "New Exercise Date"). If the Committee shortens the Exercise
Period then in progress in lieu of assumption or substitution in the event of a
Sale Transaction, the Committee shall notify each Participant in writing, at
least ten (10) days prior to the New Exercise Date, that the exercise date for
such Participant's option has been changed to the New Exercise Date and that
such Participant's option will be exercised automatically on the New Exercise
Date, unless prior to such date the Participant has withdrawn from the Plan as
provided in Section 11. For purposes of this Section 17(b), an option granted
under the Plan shall be deemed to have been assumed if, following the Sale
Transaction, the option confers the right to purchase, for each share of option
stock subject to the option immediately prior to the Sale Transaction, the
consideration (whether stock, cash or other securities or property) received in
the Sale Transaction by holders of Common Stock for each share of Common Stock
held on the effective date of the Sale Transaction (and if such holders were
offered a choice of consideration, the type of consideration chosen by the
holders of a majority of the outstanding shares of Common Stock); provided, that
if the consideration received in the Sale Transaction was not solely common
stock of the successor corporation or its parent (as defined in Section 424(e)
of the Code), the Committee may, with the consent of the successor corporation
and the Participant, provide for the consideration to be received upon exercise
of the option to be solely common stock of the successor corporation or its
parent equal in fair market value to the per share consideration received by the
holders of Common Stock in the Sale Transaction.

            (c) In all cases, the Committee shall have sole discretion to
exercise any of the powers and authority provided under this Section 17, and the
Committee's actions hereunder shall be final and binding on all Participants. No
fractional shares of stock shall be issued under the Plan pursuant to any
adjustment authorized under the provisions of this Section 17.

      18.   Amendment of the Plan. The Board or the Committee may at any time,
or from time to time, amend the Plan in any respect; provided, that (i) no such
amendment may make any change in any option theretofore granted which adversely
affects the rights of any Participant and (ii) the Plan may not be amended in
any way that will cause rights issued under the Plan to fail to meet the
requirements for employee stock purchase plans as defined in Section 423 of the
Code or any successor thereto. To the extent necessary to comply with Rule 16b-3
under the Exchange Act,

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Section 423 of the Code, or any other applicable law or regulation), the Company
shall obtain shareholder approval of any such amendment.

      19.   Termination of the Plan.

      The Plan and all rights of Employees hereunder shall terminate on the
earliest of:

            (a) the Exercise Date that Participants become entitled to purchase
a number of shares greater than the number of reserved shares remaining
available for purchase under the Plan;

            (b) such date as is determined by the Board in its discretion; or

            (c) the last Exercise Date immediately preceding the tenth (10th)
anniversary of the Plan's effective date.

      In the event that the Plan terminates under circumstances described in
Section 19(a) above, reserved shares remaining as of the termination date shall
be sold to Participants on a pro rata basis.

      20.   Notices. All notices or other communications by a Participant to the
Company under or in connection with the Plan shall be deemed to have been duly
given when received in the form specified by the Company at the location, or by
the person, designated by the Company for the receipt thereof.

      21.   Effective Date. Subject to adoption of the Plan by the Board, the
Plan shall become effective on the First Offering Date. The Board shall submit
the Plan to the shareholders of the Company for approval within twelve months
after the date the Plan is adopted by the Board.

      22.   Conditions Upon Issuance of Shares.

            (a) The Plan, the grant and exercise of options to purchase shares
under the Plan, and the Company's obligation to sell and deliver shares upon the
exercise of options to purchase shares shall be subject to compliance with all
applicable federal, state and foreign laws, rules and regulations and the
requirements of any stock exchange on which the shares may then be listed.

            (b) The Company may make such provisions as it deems appropriate for
withholding by the Company pursuant to federal or state tax laws of such amounts
as the Company determines it is required to withhold in connection with the
purchase or sale by a Participant of any Common Stock acquired pursuant to the
Plan. The Company may require a Participant to satisfy any relevant tax
requirements before authorizing any issuance of Common Stock to such
Participant.

      23.   Expenses of the Plan. All costs and expenses incurred in
administering the Plan shall be paid by the Company, except that any stamp
duties or transfer taxes applicable to participation in the Plan may be charged
to the account of such Participant by the Company.

      24.   No Employment Rights. The Plan does not, directly or indirectly,
create any right for the benefit of any employee or class of employees to
purchase any shares under the Plan, or create in any employee or class of
employees any right with respect to continuation of employment by the

                                       10
<PAGE>   13
Company, and it shall not be deemed to interfere in any way with the Company's
right to terminate, or otherwise modify, an employee's employment at any time.

      25.   Applicable Law. The laws of the State of California shall govern all
matter relating to this Plan except to the extent (if any) superseded by the
laws of the United States.

      26.   Additional Restrictions of Rule 16b-3. The terms and conditions of
options granted hereunder to, and the purchase of shares by, persons subject to
Section 16 of the Exchange Act shall comply with the applicable provisions of
Rule 16b-3. This Plan shall be deemed to contain, and such options shall
contain, and the shares issued upon exercise thereof shall be subject to, such
additional conditions and restrictions as may be required by Rule 16b-3 to
qualify for the maximum exemption from Section 16 of the Exchange Act with
respect to Plan transactions.

                                      11<PAGE>   1
                                                                    EXHIBIT 10.8

                                  SAVINGS PLAN

--------------------------------------------------------------------------------

                                  THE PRINCIPAL
                                 FINANCIAL GROUP
                                  PROTOTYPE FOR
                                  SAVINGS PLANS

                    THIS PLAN IS A 401(K) PROFIT SHARING PLAN

                            ADOPTION AGREEMENT - PLUS

                            IRS SERIAL NO.: D347609B

                        ADOPTION AGREEMENT PLAN NO.: 001
                       TO BE USED WITH BASIC PLAN NO.: 03

                           APPROVED: OCTOBER 26, 1992

                                       103
<PAGE>   2
                                TABLE OF CONTENTS

<TABLE>
<S>   <C>                                                                     <C>
A.    ADOPTION AGREEMENT...................................................    1

B.    EMPLOYER.............................................................    1

C.    PLAN NAME............................................................    1

D.    EFFECTIVE DATE.......................................................    1

E.    YEARLY DATE..........................................................    2

F.    FISCAL YEAR..........................................................    2

G.    NAMED FIDUCIARY......................................................    2

H.    PLAN ADMINISTRATOR...................................................    2

I.    PREDECESSOR..........................................................    3

J.    ELIGIBLE EMPLOYEE....................................................    4

K.    ENTRY REQUIREMENTS...................................................    5

L.    ENTRY DATE...........................................................    7

M.    PAY..................................................................    7

N.    ELECTIVE DEFERRAL CONTRIBUTIONS......................................    9

O.    MATCHING CONTRIBUTIONS...............................................   10

P.    OTHER EMPLOYER CONTRIBUTIONS AND FORFEITURES.........................   12

Q.    NET PROFITS AND CONTRIBUTION REQUIREMENTS............................   15

R.    CONTRIBUTION MODIFICATIONS...........................................   17

S.    VOLUNTARY CONTRIBUTIONS..............................................   18

T.    INVESTMENT...........................................................   18

U.    VESTING PERCENTAGE...................................................   21

V.    VESTING SERVICE......................................................   22

W.    WITHDRAWAL BENEFITS..................................................   24

X.    RETIREMENT AND THE START OF BENEFITS.................................   25

Y.    FORMS OF DISTRIBUTION................................................   27

Z.    ADOPTING EMPLOYERS...................................................   28
</TABLE>
<PAGE>   3
A.   Select (1) or (2).

1)   If selected, check (a) or (b). If this Plan is a restatement, check (b).

     b)  If selected, fill in the restatement date.

2)   If selected, fill in the amendment number and date.

B.   Fill in exact, legal name.

C.   For example: ABC, Inc. Savings Plan.

D.   Fill in the date your Prior Plan started if this Plan is a restatement. If
     this Plan Is new, use the first day of the first Plan Year.

--------------------------------------------------------------------------------

THE PRINCIPAL FINANCIAL GROUP PROTOTYPE FOR SAVINGS PLANS

ADOPTION AGREEMENT - PLUS

Use black ink to complete the Adoption Agreement.

     A.   This ADOPTION AGREEMENT is

          1)   [X] the Employer's first adoption of The Principal Financial
               Group Prototype for Savings Plans. Together with THE PRINCIPAL
               FINANCIAL GROUP PROTOTYPE BASIC SAVINGS PLAN, it constitutes

               a)   [ ] a new plan.

               b)   [X] a restatement of an existing plan (and trust). That plan
                    was qualifiable under 401(a) of the Internal Revenue Code.
                    The provisions of this restatement are effective on July 1,
                    2000. This is the RESTATEMENT DATE.

          2)   [ ]Amendment No. _______________ to the Plan. It replaces all
               prior amendments to the Plan and the first Adoption Agreement.
               The provisions of this amendment are effective on _______________
               _________________.

     B.   The terms we, us and our, as they are used in this Plan, refer to the
          EMPLOYER.

          We, Synaptics, Inc.___________________________________________________

          ______________________________________________________________________

          ______________________________________________________________________

          are the Employer.

     C.   The PLAN'S NAME is Synaptics, Inc. 401(k) Savings Plan _______________

          ______________________________________________________________________

          ______________________________________________________________________

     D.   Our retirement plan became effective on July 1, 1991. This is the
          EFFECTIVE DATE.

                                       1
<PAGE>   4
E.   Fill in Effective Date and check (1), (2) or (3).

2)   The first Plan Year is short.

3)   A later Plan Year is short.

(b)  First day of short year (use same month and day as in (a)).

(c)  First day of new Plan Year.

1)   Principal Life Insurance Company may not be named.

1)   Principal Life Insurance Company may not be named.

--------------------------------------------------------------------------------

     E.   The YEARLY DATE Is the first day of each Plan Year. The Yearly Date is
          July 1, 1991 and

          1)   [ ] the same day of each following year.

          2)   [X] each following January 1 (month and day).

          3)   [ ](a) each following ________________________________ (month and
               day) through (b) ________________________________________________
               and (c) each following _______________________________ (month and
               day).

          If the first date in Item E is after the Effective Date, Yearly Dates,
          before the first date in Item E above, shall be determined under the
          provisions of the Prior Plan (Plan) before that date.

     F.   The FISCAL YEAR is our taxable year and ends on June 30 (month and
          day).

     G.   We are the NAMED FIDUCIARY, unless otherwise specified in (1) below.

          1)   [ ]______________________________________________________________
               is the Named Fiduciary.

     H.   We are the PLAN ADMINISTRATOR, unless otherwise specified in (1)
          below.

          1)   [ ]______________________________________________________________
               is the Plan Administrator. The address, phone number and tax
               filing number of the Plan Administrator are the same as the
               Employer's unless otherwise specified below.

               Address:_________________________________________________________

               _________________________________________________________________

               _________________________________________________________________

               Phone No.:_______________________________________________________

               Tax Filing No.:__________________________________________________

                                       2
<PAGE>   5
I.   Select any items below which apply.

1)   If this Plan is a continuation of a plan of a Predecessor employer, service
     with that Predecessor must be treated as service with you.

b)   Exact, legal name(s).

--------------------------------------------------------------------------------

     I.   A PREDECESSOR employer is a firm of which we were once a part or a
          firm absorbed by us because of a change of name, merger, acquisition
          or a change of corporate status.

          1)   [ ] A Predecessor is deemed to be the Employer for purposes of
               determining:

               a)   [ ] Entry Service.

               b)   [ ] Vesting Service.

               c)   [ ] Hours of Service required to be eligible for an Employer
                    Contribution.

               d)   [ ] Pay.

          2)   [ ] Service with or pay from a Predecessor shall be counted only
               if service continued with us without interruption. This item
               shall not apply if this Plan is a continuation of a plan of that
               Predecessor.

          3)   [ ] Service with or pay from a Predecessor shall include service
               or pay while a proprietor or partner. (If this item is not
               checked, such service or pay shall not be counted.)

          4)   [ ] Service with or pay from a Predecessor shall be counted only
               as to a Predecessor which

               a)   [ ] maintained a qualified pension or profit sharing plan
                    (or)

               b)   [ ] is named below:

               _________________________________________________________________

               _________________________________________________________________

               _________________________________________________________________

                                       3
<PAGE>   6
J.   Select (1) or (2). Use Item Z to identify the Controlled Group and
     Affiliated Service Group members whose Employees may participate in the
     Plan.

2)   If selected, check the requirements in (a), (c), (d) and (e) below which
     apply.

a)   Select any employment classifications below which apply.

B.   Bargaining unit's name.

B.   Bargaining unit's name.

b)   If more than one employment classification is selected in (a), check (i) or
     (ii).

--------------------------------------------------------------------------------

     J.   An ELIGIBLE EMPLOYEE is

          1)   [ ] an Employee of ours or of an Adopting Employer listed in Item
               Z.

          2)   [X] an Employee of ours or of an Adopting Employer listed in item
               Z provided the Employee meets the requirement(s) selected below.

               a)   [X] Employed in the following employment classification:

                    i)   [ ] Paid on a salaried basis.

                    ii)  [ ] Paid on a commission basis.

                    iii) [ ] Paid on an hourly rate basis.

                    iv)  [ ] Represented for collective bargaining purposes by

                         A.   [ ] any bargaining unit.

                         B.   [ ] ______________________________________________

                         _______________________________________________________

                         _______________________________________________________

                         _______________________________________________________

                    v)   [X] Not represented for collective bargaining purposes
                         by

                         A.   [X] any bargaining unit for which retirement
                              benefits have been the subject of good faith
                              bargaining between Employee representatives and
                              us.

                         B.   [ ]_______________________________________________

                         _______________________________________________________

                         _______________________________________________________

               b)   If more than one employment classification is selected, the
                    Employee must meet

                    i)   [ ] each one of the employment classifications selected
                         above.

                    ii)  [ ] any one of the employment classifications selected
                         above.

                                       4
<PAGE>   7
c)   If selected, check (i), (ii) or both.

1)   Select (a) or (b).

b)   If selected, check (i) or (ii). Up to 1 year may be used (6 months if Entry
     Date is Yearly Date).

ii)  If selected, fill in numerator of fraction (e.g. 6/12 for half a year).

2)   Select (a) or (b). (Use only if service is required for entry.)

--------------------------------------------------------------------------------

               c)   [ ] Not covered under any other qualified

                    i)   [ ] profit sharing plan (or)

                    ii)  [ ] pension plan

                    to which we contribute.

               d)   [ ] Employed at the following location or divisions or in
                    the following positions:

               _____________________________________________________

               _____________________________________________________

               _____________________________________________________

               e)   [ ] Not employed at the following location or divisions or
                    in the following positions:

               _____________________________________________________

               _____________________________________________________

               _____________________________________________________

     K.   ENTRY REQUIREMENTS

          1)   SERVICE REQUIRED to become an Active Member:

               a)   [X] Service is not required.

               b)   [ ] The minimum Entry Service required is

                    i)   [ ] 1 (one) whole year.

                    ii)  [ ] /12 of a year.

                    Note: If a fractional part of a year is required, the Hours
                    Method may not be used to determine Entry Service.

          2)   ENTRY SERVICE, subject to the provisions of Plan Section 1.02,
               shall be determined as follows:

               a)   [ ] ELAPSED TIME METHOD. Entry Service is the total of an
                    Employee's countable Periods of Service without regard to
                    Hours of Service.

                                       5
<PAGE>   8
b)   Only available if one year is used in K(1)above.

i)   Optional reduced Hours of Service requirement.

ii)  Optional crediting of Entry Service before Entry Service Period ends.

A.   Optional Entry Service Period, continues on employment anniversaries.

A.   Optional Hours of Service requirement. Fill in up to 500 hours but less
     than hours required for year of Entry Service.

3)   Select (a) or (b).

b)   Not over age 21 (20 1/2 if Entry Date is Yearly Date).

4)   This waiver applies only on the date you fill in.

--------------------------------------------------------------------------------

               b)   [ ] HOURS METHOD. A year of Entry Service is an Entry
                    Service Period which has ended and in which an Employee has
                    1,000 Hours of Service, unless a lesser number is specified
                    in (i) below.

                    i)   [ ] ________ Hours of Service.

                    ii)  [ ] A year of Entry Service shall be credited before
                         the end of the Entry Service Period if the Employee has
                         the number of Hours of Service specified above.

                    iii) An ENTRY SERVICE PERIOD is the 12-consecutive month
                         period beginning on an Employee's Hire Date and each
                         following 12-consecutive month period ending on the
                         last day of the Plan Year, Including the 12-consecutive
                         month period ending on the last day of the first Plan
                         Year alter his Hire Date, unless otherwise specified in
                         A. below. (See Plan Section 1.02 for the crediting of
                         Entry Service during the first two periods.)

                         A.   [ ] An Entry Service Period is the 12-consecutive
                              month period beginning on an Employee's Hire Date
                              and each following 12-consecutive month period
                              beginning on an anniversary of that Hire Date.

                    iv)  An ENTRY BREAK in service, when the Hours Method is
                         used, is an Entry Service Period in which an Employee
                         is credited with not more than one-half of the Hours of
                         Service required for a year of Entry Service, unless
                         otherwise specified in A. below.

                         A.   [ ] ________ or fewer Hours of Service.

          3)   AGE REQUIRED to become an Active Member:

               a)   [ ] A minimum age is not required.

               b)   [X] The Employee must be 21 or older.

          4)   [ ] The requirement(s) for entry checked below shall be waived on
               _______________, ________. This date shall be an Entry Date if
               the Eligible Employee has met all the other entry requirements.

               a)   [ ] Service requirement.

               b)   [ ] Age requirement.

                                       6
<PAGE>   9
L.   Select one of the following dates.

4)   If selected, age and service required in Item K can't be over age 20 1/2 or
     more than 6 months, respectively.

a)   Optional 415 (c)(3) definition of Pay.

b)   Optional W-2 definition of Pay.

2)   Optional provision to continue old definition until 1993 Limitation Year.

4)   Optional provision to continue old definition until 1993 Plan Year.

--------------------------------------------------------------------------------

     L.   ENTRY DATE. An Eligible Employee may enter the Plan as an Active
          Member on the earliest

          1)   [X] Monthly Date,

          2)   [ ] Semi-yearly Date,

          3)   [ ] Quarterly Date,

          4)   [ ] Yearly Date,

          5)   [ ] date,

          on or after the date this Plan became effective, on which he meets all
          the entry requirements. This date is his ENTRY DATE.

     M.   PAY

          1)   COMPENSATION for purposes of Plan Section 3.06 is as defined
               therein, under Information required to be reported under Code
               Sections 6041 and 6051 (Wages, Tips and Other Compensation Box on
               Form W-2), which is actually paid or made available by us for the
               Limitation Year, unless otherwise specified in (a) or (b) below.

               a)   [ ] 415 safe-harbor compensation as defined in Plan Section
                    3.06.

               b)   [ ] Code Section 3401(a) wages (wages for purposes of income
                    tax withholding) as defined in Plan Section 3.06.

          2)   [ ] The definition of Compensation above shall apply on and after
               the 1993 Limitation Year. The definition of Compensation on any
               date before the 1993 Limitation Year shall be determined in
               accordance with the provisions of the Prior Plan.

          3)   PAY for purposes of Plan Section 1.02 is the same as compensation
               for purposes of Plan Section 3.06 as specified in (1) above.

          4)   [ ] The definition of Pay in this Item M shall apply on and after
               the first Yearly Date in 1993. The definition of Pay on any date
               before the first Yearly Date in 1993 shall be determined in
               accordance with the provisions of the Prior Plan.

                                       7
<PAGE>   10
5)   Safe harbor fringe benefit exclusion.

a)   Optional provision to exclude fringe benefits for all purposes.

a)   Optional Pay Year.

Select any modifications below which apply.

--------------------------------------------------------------------------------

          Pay shall include elective contributions. Elective contributions are
          amounts excludable from the gross income of the Employee under Code
          Sections 125,402(a)(8), 402(h) or 403(b), and contributed by us, at
          the Employee's election, to a code Section 401 (k) arrangement, a
          simplified employee pension, cafeteria plan or tax-sheltered annuity.
          Elective contributions also include Pay deferred under a Code Section
          457 plan maintained by us and Employee contributions "picked up" by a
          governmental entity and, pursuant to Code Section 414(h)(2), treated
          as our contributions.

          5)   For purposes of Elective Deferral Contributions only Pay shall
               not include reimbursements or other expense allowances, fringe
               benefits (cash or non-cash), moving expenses, deferred
               compensation, and welfare benefits, unless otherwise specified in
               (a) below.

               a)   [ ] Pay for all purposes under the Plan shall not include
                    reimbursements or other expense allowances, fringe benefits
                    (cash or non-cash), moving expenses, deferred compensation,
                    and welfare benefits.

          6)   ANNUAL PAY is, on any given date, an Employee's Pay for the
               latest Pay Year ending on or before that date.

          7)   The PAY YEAR is the one-year period ending on the last day of
               each Plan Year, unless a different Pay Year is specified in (a)
               below.

               a)   [ ] The one-year period ending on each _______________,
                    (month and day).

          Pay is modified as follows:

          8)   [ ] An Employee's Annual Pay over $________ shall be excluded.

          9)   [ ] If a Member's Entry Date occurs after _______________, Pay
               before such Entry Date shall be excluded.

                                       8
<PAGE>   11
10)  Optional exclusions.

h)   Specify type of special pay excluded

1)   Optional effective dates for elective deferral agreements. If selected,
     check (a), (b), (c) or (d).

--------------------------------------------------------------------------------

          Item (10) shall apply to the Pay used for purposes of determining the
          allocation or amount of specified Contributions. Item (10) shall not
          apply to the Pay used for purposes of determining the allocation of
          Contributions if an Integration Level is used to determine the
          allocation of Contributions.

          10)  [ ] Pay for purposes of determining the allocation or amount of

               a)   [ ] All Employer Contributions

               b)   [ ] Elective Deferral Contributions

               c)   [ ] Additional Contributions

               d)   [ ] Discretionary Contributions

               excludes

               e)   [ ] bonuses

               f)   [ ] commissions

               g)   [ ] overtime pay

               h)   [ ] other special pay ______________________________________

                    ____________________________________________________________

          Item (11) shall only apply to the Pay used for purposes of determining
          excess amounts under Plan Section 3.07.

          11)  [ ] Pay shall include only amounts received while an Active
               Member of the Plan for the period described in Plan Section 3.07.

     N.   ELECTIVE DEFERRAL CONTRIBUTIONS for a Member are equal to a portion of
          Pay as specified in the written elective deferral agreement. An
          Employee who is eligible to participate in the Plan may file an
          elective deferral agreement with us. The elective deferral agreement
          to start Elective Deferral Contributions may be effective on a
          Member's Entry Date (Reentry Date, if applicable) or any following
          Semi-yearly Date, unless otherwise specified in (1) below.

          1)   [X] Following a Member's Entry Date (Reentry Date, if
               applicable), a Member's elective deferral agreement may become
               effective on any

               a)   [X] Monthly Date.

               b)   [ ] Quarterly Date.

               c)   [ ] Yearly Date.

               d)   [ ] date.

                                       9
<PAGE>   12
2)   Optional minimum.

4)   Optional maximum. (Consider using 20% reduced by the amount of other
     Contributions made for the Member.)

1)   If Item O is selected, check (a) or (b).

a)   Not more than 100%.

i)   Optional minimum percentage.

ii)  Optional maximum percentage. Less than 100%.

2)   Optional limit on Elective Deferral Contributions matched. If selected,
     check (a) or (b). Limit can help meet nondiscrimination tests.

i)   Optional minimum percentage.

ii)  Optional maximum percentage.

--------------------------------------------------------------------------------

          The Member shall make any change or terminate the elective deferral
          agreement by filing a new elective deferral agreement. A Member's
          elective deferral agreement making a change may be effective on any
          date an elective deferral agreement to start Elective Deferral
          Contributions could be effective. A Member's elective deferral
          agreement to stop Elective Deferral Contributions may be effective on
          any date. The elective deferral agreement must be in writing and
          effective before the beginning of the pay period in which Elective
          Deferral Contributions are to start, change or stop. A Member may not
          defer more than 20% of Pay for the Plan Year. Elective Deferral
          Contributions shall be limited as needed to meet nondiscrimination
          tests.

          2)   [ ] ________% of Pay is the minimum Elective Deferral
               Contribution.

          3)   [X] Elective Deferral Contributions must be a whole percentage of
               Pay.

          4)   [X] 25% of Pay is the maximum Elective Deferral Contribution.

     O.   [X] We shall make MATCHING CONTRIBUTIONS.

          1)   The percentage of Elective Deferral Contributions matched is

               a)   [ ] ________%.

               b)   [X] determined by us, but won't be more than 100%.

                    i)   [ ] ________% is the minimum percentage,

                    ii)  [ ] ________% is the maximum percentage.

          2)   [X] Elective Deferral Contributions which are over the percentage
               of Pay below won't be matched.

               a)   [ ] ________%.

               b)   [X] A percentage determined by us.

                    i)   [ ] ________% is the minimum percentage.

                    ii)  [ ] ________% is the maximum percentage.

                                       10
<PAGE>   13
3)   If Item O is selected, check (a) or (b).

4)   If (3)(a) is selected, this option may be used to adjust the Matching
     Contributions at the end of the Plan Year.

a)   Optional. Match at end of year only for those meeting requirements in Item
     Q.

b)   If (4) is selected, check (i) or (ii).

i)   Not more than 100%.

A.   Optional minimum percentage.

B.   Optional maximum percentage. Less than 100%.

c)   Optional limit on Elective Deferral Contributions matched if (4) is
     selected. If selected, check (i) or (ii). Limit will help meet
     nondiscrimination tests.

A.   Optional minimum percentage.

B.   Optional maximum percentage.

--------------------------------------------------------------------------------

          3)   Matching Contributions are made

               a)   [ ] as Elective Deferral Contributions are made.

               b)   [X] at the end of the Plan Year for Members meeting the
                    requirements in Item Q.

          4)   [ ] At the end of the Plan Year we may make more Matching
               Contributions for Members who made Elective Deferral
               Contributions. Our total Matching Contributions for the Plan Year
               shall be made as specified below.

               a)   [ ] The Matching Contributions made at the end of the Plan
                    Year shall only be made for those meeting the requirements
                    in Item Q.

               b)   The percentage of Elective Deferral Contributions matched is

                    i)   [ ] ________%.

                    ii)  [ ] determined by us, but won't be more than 100%.

                         A.   [ ] ________% is the minimum percentage.

                         B.   [ ] ________% is the maximum percentage.

               c)   [ ] Elective Deferral Contributions which are over the
                    percentage of Pay below won't be matched.

                    i)   [ ] ________%.

                    ii)  [ ] A percentage determined by us.

                         A.   [ ] ________% is the minimum percentage.

                         B.   [ ] ________% is the maximum percentage.

                                       11
<PAGE>   14
5)   If selected, Matching Contributions may be tested for nondiscrimination
     with the Elective Deferral Contributions.

a)   Optional if (5) is selected. Nonhighly Compensated Employees only.

6)   Optional maximum on Matching Contributions.

a)   Optional treatment of forfeitures which relate to excess amounts.

1)   These contributions are used in the nondiscrimination tests. If selected,
     check (a) or (b).

a)   Qualified Nonelective Contributions are a set amount. If selected, check
     the contribution formula, (i) or (ii).

i)   If selected, check A or B.

--------------------------------------------------------------------------------

          5)   [ ] Matching Contributions are Qualified Matching Contributions.
               Qualified Matching Contributions are 100% vested and subject to
               the withdrawal restrictions of Code Section 401(k).

               a)   [ ] Qualified Matching Contributions shall be made only for
                    Nonhighly Compensated Employees.

          6)   [ ] Our Matching Contributions for a Member during any Plan Year
               shall not be more than $________.

          7)   Forfeitures of Matching Contributions which relate to excess
               amounts as provided in Plan Section 3.07 shall be used to offset
               our first Contribution after the Forfeiture occurs, unless
               otherwise specified in (a) below.

               a)   [ ] Forfeitures of Matching Contributions which relate to
                    excess amounts as provided in Plan Section 3.07 shall be
                    allocated to those meeting the requirements in Item Q who do
                    not have an excess amount using the allocation formula in
                    P(3)(a) and shall be deemed to be Matching Contributions.

     P.   OTHER EMPLOYER CONTRIBUTIONS AND FORFEITURES

          1)   [X] QUALIFIED NONELECTIVE CONTRIBUTIONS. Qualified Nonelective
               Contributions are 100% vested and subject to the withdrawal
               restrictions of Code Section 401(k).

               a)   [ ] We shall make Qualified Nonelective Contributions equal
                    to the following:

                    i)   [ ] PAY FORMULA. An amount equal to

                         A.   [ ] ________% of Pay for the pay period for each
                              Member who is an Active Member on the last day of
                              that period.

                         B.   [ ] ________% of Annual Pay at the end of the Plan
                              Year for Members who meet the requirements in Item
                              Q.

                                       12
<PAGE>   15
ii)  If selected, check A or B.

b)   Qualified Nonelective Contributions are determined by you each year.

c)   Optional. Nonhighly Compensated Employees only.

2)   These Contributions are a set amount. If selected, check the contribution
     formula, (a) or (b).

a)   If selected, check (i) or (ii).

b)   If selected, check (i), (ii), (iii) or (iv).

iii) No contribution for paid nonworking hours such as vacation.

iv)  Contribution is made for paid nonworking hours such as vacation.

--------------------------------------------------------------------------------

                    ii)  [ ] SERVICE FORMULA. An amount equal to

                         A.   [ ] $________ for the pay period for each Member
                              who is an Active Member on the last day of that
                              period.

                         B.   [ ] $________ at the end of the Plan Year for
                              Members who meet the requirements in Item Q.

               b)   [X] Qualified Nonelective Contributions may be made for each
                    Plan Year in an amount determined by us. Our Qualified
                    Nonelective Contributions shall be allocated to those
                    meeting the requirements in Item Q using the allocation
                    formula in P(3)(a).

               c)   [X] Qualified Nonelective Contributions shall be made only
                    for or allocated only to Nonhighly Compensated Employees.

          2)   [ ] We shall make ADDITIONAL CONTRIBUTIONS equal to the
               following:

               a)   [ ] PAY FORMULA. An amount equal to

                    i)   [ ] ________% of Pay for the pay period for each Member
                         who is an Active Member on the last day of that period.

                    ii)  [ ] ________% of Annual Pay at the end of the Plan Year
                         for Members who meet the requirements in Item Q.

               b)   [ ] SERVICE FORMULA. An amount equal to

                    i)   [ ] $________ for the pay period for each Member who is
                         an Active Member on the last day of that period.

                    ii)  [ ] $________ at the end of the Plan Year for Members
                         who meet the requirements in Item Q.

                    iii) [ ] $________ for each Hour of Service he has performed
                         during the pay period for each Member who is an Active
                         Member during the pay period.

                    iv)  [ ] $________ for each Hour of Service credited during
                         the pay period for each Member who is an Active Member
                         during the pay period.

                                       13
<PAGE>   16
3)   These contributions are determined by you each year. If selected, check the
     allocation formula, (a) or (b).

i)   Optional percentage. If selected, fill in a percentage up to the Maximum
     Integration Rate.

--------------------------------------------------------------------------------

          3)   [X] DISCRETIONARY CONTRIBUTIONS may be made for each Plan Year in
               an amount determined by us. The amount of our Discretionary
               Contributions and Forfeitures, if applicable, allocated to a
               person meeting the requirements in Item Q shall be equal to the
               following:

               a)   [X] PAY FORMULA. An amount equal to our Discretionary
                    Contributions and Forfeitures, if applicable, multiplied by
                    the ratio of such person's Annual Pay to the total Annual
                    Pay of all such persons.

               b)   [ ] INTEGRATED FORMULA. An amount equal to a percentage of
                    the person's Annual Pay up to the Integration Level plus a
                    percentage (equal to 2 times the first percentage) of his
                    Annual Pay over the Integration Level. The first percentage
                    shall be the Maximum Integration Rate, unless otherwise
                    specified in (i) below.

                    i)   [ ] ________% (If this percentage exceeds the Maximum
                         Integration Rate, the Maximum Integration Rate shall
                         apply.)

                    If our Discretionary Contributions and Forfeitures, if
                    applicable, are not great enough to provide this allocation,
                    the percentage above shall be proportionally reduced.

                    If our Discretionary Contributions and Forfeitures, if
                    applicable, are more than enough to provide the allocation
                    above, any amount remaining shall be allocated in the same
                    manner as provided in the Pay Formula, Item P(3)(a).

                    ii)  The MAXIMUM INTEGRATION RATE shall be determined
                         according to the following schedule:

<TABLE>
<CAPTION>
                                                                 INTEGRATION
                         INTEGRATION LEVEL                           RATE
<S>                                                              <C>
                         100% of TWB                                 5.7%

                         Less than 100%, but more than
                            80% of TWB                               5.4%

                         More than the greater of $10,000
                            or 20% of TWB, but not more than
                            80% of TWB                               4.3%

                         Not more than the greater of
                            $10,000 or 20% of TWB                    5.7%
</TABLE>

                                       14
<PAGE>   17
A.   Optional Dollar amount. Must be less than such taxable wage base

B.   Optional percentage of such taxable wage base. Must be less than 100%,

4)   Not applicable if Vesting Percentage is 100%.

a)   Optional treatment of Forfeitures if P(3) is selected.

b)   Optional treatment of Forfeitures if P(3) is not selected, but P(2) is
     selected.

--------------------------------------------------------------------------------

                         "TWB" means the taxable wage base as in effect on the
                         latest Yearly Date. "Taxable wage base" means the
                         maximum amount of earnings which may be considered for
                         wages for a year under Code Section 3121(a)(1).

                         On any date the portion of the rate of tax under Code
                         Section 3111 (a) (in effect on the latest Yearly Date)
                         which is attributable to old age insurance exceeds
                         5.7%, such rate shall be substituted for 5.7% and 5.4%
                         and 4.3% shall be increased proportionally.

                    iii) The INTEGRATION LEVEL is the taxable wage base (as
                         defined in (ii) above) as in effect on the latest
                         Yearly Date, unless otherwise specified in A. or B.
                         below,

                         A.   [ ] $________.

                         B.   [ ] ________% of such taxable wage base.

          4)   If P(3) is selected, FORFEITURES shall be reallocated to
               remaining Members and if P(3) is not selected, Forfeitures shall
               be used to offset our first Contribution made after the
               Forfeiture is determined, unless otherwise specified in (a) or
               (b) below. If P(3) is selected, Forfeitures shall be allocated
               with our Discretionary Contributions and deemed to be
               Discretionary Contributions. (See Plan Section 3.05.)

               a)   [ ] Forfeitures shall not be allocated with our
                    Discretionary Contributions, but shall be used to offset our
                    first Contribution made after the Forfeiture is determined.

               b)   [ ] Forfeitures shall not be used to offset our first
                    Contribution, but shall be allocated to those meeting the
                    requirements in Item Q using the allocation formula in
                    P(3)(a) and shall be deemed to be Additional Contributions.

     Q.   NET PROFITS AND CONTRIBUTION REQUIREMENTS

          1)   Our Contributions shall be made out of our current or accumulated
               NET PROFITS unless otherwise specified below.

               a)   [X] Our Contributions may be made without regard to our
                    current or accumulated Net Profits.

                                       15
<PAGE>   18
2)   If annual contributions are subject to these requirements or if Forfeitures
     are reallocated (see Items 0(7) and P(4)), select(a), (b), (c) or (d)
     below. If advanced funding is used, (a) must be checked.

i)   Optional reduced Hours of Service requirement.

i)   Optional reduced Hours of Service requirement.

e)   Optional allocation requirement. Do not use with (a) above.

a)   Optional Accrual Service Period if you use hours in (2) above.

--------------------------------------------------------------------------------

          2)   REQUIREMENTS FOR CONTRIBUTIONS. The allocation of our
               Contributions is subject to the provisions of Article III and
               Article X of the Plan. Our Contributions which are subject to the
               requirements of this Item Q and Forfeitures shall be allocated as
               of the last day of the Plan Year to each

               a)   [ ] person who was an Active Member at any time during the
                    Plan Year.

               b)   [X] Active Member on that date.

               c)   [ ] person who was an Active Member at any time during the
                    Plan Year and who has at least 1,000 Hours of Service during
                    the latest Accrual Service Period ending on or before that
                    date, unless a lesser number is specified in (i) below.

                    i)   [ ] ________ Hours of Service.

               d)   [ ] Active Member on that date who has at least 1,000 Hours
                    of Service during the latest Accrual Service Period ending
                    on or before that date, unless a lesser number is specified
                    in (i) below.

                    i)   [ ] ________ Hours of Service.

               The allocation requirements in (b), (c) or (d) are modified as
               follows:

               e)   [ ] Our contributions shall also be allocated to each person
                    who was an Active Member at any time during the Plan Year
                    and who has retired, become Totally Disabled, or died.

          3)   The ACCRUAL SERVICE PERIOD is the 12-consecutive month period
               ending on the last day of each Plan Year, unless a different
               period is specified in (a) below.

               a)   [ ] The 12-consecutive month period ending on each
                    ______________________________ (month and day).

                                       16
<PAGE>   19
2)   Fill in last day of the Limitation Year. Normally, the last day of the Plan
     Year is used. You must match the Limitation Years of all your other plans.

If you or an Employer, as defined in Plan Section 3.06, maintain or ever
maintained another qualified plan in which any Member in this Plan is (or was) a
member or could become a member, you must complete (3) and (4) of this Item R.

5)   Optional maximum allocation.

d)   Less than 25%.

--------------------------------------------------------------------------------

     R.   CONTRIBUTION MODIFICATIONS

          Contribution Limitations: The Annual Additions for a Member during a
          Limitation Year shall not be more than the Maximum Permissible Amount.
          (See Plan Sections 3.06 and 10.05.)

          1)   For Limitations Years beginning after December 31, 1991, for
               purposes of applying the limitations of Plan Section 3.06,
               Compensation for a Limitation Year is the Compensation actually
               paid or made available during such Limitation Year.

          2)   The LIMITATION YEAR is the 12-consecutive month period ending on
               each December 31 (month and day).

          3)   If the Member is covered under another qualified defined
               contribution plan maintained by the Employer, as defined in Plan
               Section 3.06, other than a Master or Prototype Plan:

               a)   [ ] The provisions of (f) through (k) of Plan Section 3.06
                    will apply as if the other plan were a Master or Prototype
                    Plan.

               b)   [ ] The method described on the attached page shall be used
                    to limit total Annual Additions to the Maximum Permissible
                    Amount, and will properly reduce the Excess Amounts, in a
                    manner which precludes Employer discretion.

          4)   If the Member is or has ever been a member in a defined benefit
               plan maintained by the Employer, as defined in Plan Section 3.06,
               the method described on the attached page shall be used to
               satisfy the 1.0 limitation of Code Section 415, in a manner which
               precludes Employer discretion.

          5)   [ ] The amount of our Contributions for any

               a)   [ ] Plan Year

               b)   [ ] Limitation Year

               allocated to a person meeting the requirements in Item Q shall
               not be more than (the lesser of)

               c)   [ ] $________ (or)

               d)   [ ] ________% of his Annual Pay (Compensation for the
                    Limitation Year if (b) above is selected).

                                       17
<PAGE>   20
In Years when this Plan is a Top-heavy Plan, special minimum and maximum
Contribution provisions apply. Use Items (6) through (9), as needed, to meet the
requirements for your plans which are top-heavy or to extend the minimums to
other employees or Years. The items you select here override any provisions of
Article X to the contrary.

1)   Select if Voluntary Contributions are permitted.

T.   Select (1) or (2) and complete (3).

1)   If selected, fill in the names of all trustees. (Consider naming two or
     more.) Complete (a) and (b).

--------------------------------------------------------------------------------

          Top-heavy Plan Requirements: The amount and allocation of
          Contributions shall be subject to the provisions of Article X of the
          Plan in Years when this is a Top-heavy Plan.

          6)   [ ] Key Employees who are Employees on the last day of the Year
               shall also receive the minimum allocation required in Years when
               this is a Top-heavy Plan.

          7)   [ ] A ________% (not less than 3%) minimum allocation shall apply
               in Years when this is a Top-heavy Plan.

          8)   [ ] The minimum allocation in (6) and (7) above and in Article X
               shall apply in all Years without regard to whether or not this is
               a Top-heavy Plan or to the requirements in Item Q.

          9)   [ ] The method described on the attached page shall be used to
               meet the minimum allocation and benefit requirements in Years
               when this is a Top-heavy Plan, in a manner which precludes
               Employer discretion.

          Present Value: For purposes of establishing Present Value to compute
          the Top-heavy Ratio, any benefit shall be discounted only for 7 1/2%
          interest and mortality according to the 1971 Group Annuity Table
          (Male) without the 7% margin but with projection by Scale E from 1971
          to the later of (a) 1974, or (b) the year determined by adding the age
          to 1920, and wherein for females the male age six years younger is
          used, unless otherwise specified in (10) and (11) below:

          10)  [ ] Interest rate ________%.

          11)  [ ] Mortality table: ____________________________________________

               _________________________________________________________________

     S.   VOLUNTARY CONTRIBUTIONS are not permitted, unless otherwise specified
          in (1) below.

          1)   [ ] Voluntary Contributions are permitted.

     T.   INVESTMENT

          1)   [X] The Plan is trusteed. Plan assets may be invested in an
               Annuity Contract and other funding vehicle(s).

               We have named the following person(s) to act as TRUSTEE under the
               Trust:

               Russ Knittel
               MaryJo Visneski
               Miriam Watson

                                       18
<PAGE>   21
a)   If the plan is trusteed, select (i) or (ii).

b)   If the plan is trusteed, select (i) or (ii).

iii) Fill in the person or position authorized to administer the Member loan
     program. Principal Life Insurance Company may not be used.

iv)  Optional minimum loan amount. Fill in up to $1,000. If none is selected,
     there is no minimum.

v)   Optional maximum loan amount. Fill in up to $49,999. If none is selected,
     the maximum is the lesser of 50% of Vested Account or $50,000, reduced by
     any loan balance.

vi)  Optional number of outstanding loans.

--------------------------------------------------------------------------------

               a)   LIFE INSURANCE

                    i)   [ ] With the Trustee's consent and subject to the
                         limits and provisions of Article IV of the Plan, an
                         Active Member may elect to have his Account applied to
                         purchase life insurance coverage on his life.

                    ii)  [X] Life insurance coverage is not provided under this
                         Plan.

               b)   LOANS

                    i)   [ ] The Trustee shall not make a loan to a Member.

                    ii)  [X] The Trustee may make a loan to a Member from the
                         Trust Fund, subject to the provisions of Plan Section
                         5.06.

                    iii) Mary Jo Visneski is the Loan Administrator.

                    iv)  [X] The minimum amount of any loan is $1,000.00

                    v)   [ ] The maximum amount of any loan is the lesser of 50%
                         of the Member's Vested Account or $________, reduced by
                         any outstanding loan balance.

                    vi)  The number of outstanding loans shall be limited to
                         one, unless otherwise specified in A. or B. below.

                         A.   [ ] The number shall be limited to ______________.

                         B.   [ ] The number shall not be limited.

                                       19
<PAGE>   22
vii) Optional number of loans approved in any 12-month period.

a)   Select (i), (ii) or (iii).

b)   Select (i), (ii) or (iii).

c)   Select (i), (ii) or (iii).

--------------------------------------------------------------------------------

                       vii) The number of loans approved in a 12-month period
                            shall be limited to one, unless otherwise specified
                            in A. or B. below.

                            A.   [ ] The number shall be limited to ___________.

                            B.   [ ] The number shall not be limited.

               2)   [ ] The Plan is not trusteed. Plan assets shall be invested
                    only in an Annuity Contract.

               3)   Subject to the provisions of Articles IV and VIIIA of the
                    Plan and the Annuity Contract, the investment of that part
                    of a Member's Account resulting from

                    a)   our Contributions other than Elective Deferral
                         Contributions shall be directed by

                         i)   [ ] the Member with the Trustee's consent (our
                              consent, if not trusteed).

                         ii)  [X] the Member.

                         iii) [ ] the Trustee (us, if not trusteed).

                    b)   Elective Deferral Contributions shall be directed by

                         i)   [ ] the Member with the Trustee's consent (our
                              consent, if not trusteed).

                         ii)  [X] the Member.

                         iii) [ ] the Trustee (us, if not trusteed).

                    c)   Member Contributions and Rollover Contributions shall
                         be directed by

                         i)   [ ] the Member with the Trustee's consent (our
                              consent, if not trusteed).

                         ii)  [X] the Member.

                         iii) [ ] the Trustee (us, if not trusteed).

                                       20
<PAGE>   23
1)   Check any other Employer Contributions which are also 100% vested.

2)   Select one of the schedules below if some Employer Contributions aren't
     100% vested when made.

e)   If selected, fill in the percentages. The schedule must provide full (100%)
     vesting after 5 years of Vesting Service or must at all times be as great
     as the Vesting Percentage which the schedule in (d) would provide.

--------------------------------------------------------------------------------

     U.   VESTING PERCENTAGE is used to determine the nonforfeitable percentage
          of a Member's Account resulting from our Contributions.

          The Vesting Percentage for a Member who is an Employee on the date he
          reaches Normal Retirement Age, meets the requirement(s) for Early
          Retirement Date, becomes Totally Disabled or dies, whichever occurs
          first, shall be 100% on such date.

          1)   Fully Vested Contributions. Elective Deferral Contributions are
               100% vested. Qualified Matching Contributions and Qualified
               Nonelective Contributions are 100% vested. The following Employer
               Contributions are also 100% vested at all times.

               a)   [ ] All other Employer Contributions.

               b)   [ ] Additional Contributions.

               c)   [ ] Matching Contributions

               d)   [ ] Discretionary Contributions.

          2)   A Member's Account resulting from our Contributions which are not
               100% vested is subject to the Vesting Percentage determined
               below.

<TABLE>
<CAPTION>
             Vesting
             Service                        Vesting Percentage

                            (a)        (b)          (c)          (d)        (e)
                            [ ]        [ ]          [ ]          [ ]        [X]
<S>                        <C>        <C>          <C>          <C>        <C>

              Less
             than 1          0          0            0            0         0.00
                                                                           ------

                1            0          0            0            0         25.00
                                                                           ------

                2            0         20            0            0         50.00
                                                                           ------

                3           100        40            0           20         75.00
                                                                           ------

                4                      60            0           40        100.00
                                                                           ------

                5                      80           100          60
                                                                           ------

                6                      100                       80
                                                                           ------

                7                                                100
                                                                           ------
</TABLE>

A Member's Vesting Percentage determined above shall never be reduced in later
years. If this Plan is or ever has been a Top-heavy Plan, the minimum vesting
provisions of Article X shall apply.

                                       21
<PAGE>   24
V.       Select (1) or (2). (Don't use this item if all Employer Contributions
         are fully vested and Early Retirement Date is not based on Vesting
         Service.)

Use (a), (b) or both only if the method of crediting service has changed. The
Plan must use either the Elapsed Time Method or the Hours Method after the date
the Plan became subject to ERISA.

a)       Optional reduced Hours of Service.

i)       Optional Vesting Service Period.

ii)      Optional Vesting Service Period with changes.

B.       Month and day used in A. and last year this period is used.

C.       Month and day on which new period ends.

--------------------------------------------------------------------------------

V.       VESTING SERVICE, subject to the provisions of Plan Section 1.02, shall
         be determined as follows:

         1)       [X] ELAPSED TIME METHOD. Vesting Service is the total of an
                  Employee's countable Periods of Service without regard to
                  Hours of Service.

                  a)       [ ] The Elapsed Time Method is used to determine
                           service on and after ____________________,
                           _______________.

                  b)       [ ] The Elapsed Time Method is used to determine
                           service before ____________________, _______________.

         2)       [ ] HOURS METHOD. A year of Vesting Service is a Vesting
                  Service Period in which an Employee has 1,000 Hours of
                  Service, unless a lesser number is specified in (a) below.

                  a)       [ ] ________ Hours of Service.

                  b)       A VESTING SERVICE PERIOD is the 12-consecutive month
                           period ending on the last day of each Plan Year,
                           unless otherwise specified in (i) or (ii) below.

                           i)       [ ] The 12-consecutive month period ending
                                    on each
                                    _______________________________________
                                    (month and day).

                           ii)      [ ] The 12-consecutive month period ending
                                    on

                                    A. each ________________________________
                                    (month and day) through

                                    B. _________________________________________
                                    and

                                    C. each following _______________________
                                    (month and day).

                                       22
<PAGE>   25
i)       Optional Hours of Service requirement. Fill in up to 500 hours, but
         less than hours required for year of Vesting Service.

d)       and e). See comment for V(1)(a) and (b).

Select any modifications below which apply. If the Hours Method is used, any
date you use should be the first day of a service period.

a)       Not available for service after the date the Plan became subject to
         ERISA.

4)       If selected, fill in a date on or before the Effective Date.

5)       Not over age 18.

--------------------------------------------------------------------------------

                  c)       A VESTING BREAK in service, when the Hours Method is
                           used, is a Vesting Service Period in which an
                           Employee is credited with not more than one-half of
                           the Hours of Service required for a year of Vesting
                           Service, unless otherwise specified in (i) below.

                           i) [ ] ________ or fewer Hours of Service.

                  d)       [ ] The Hours Method is used to determine service on
                           and after _________________________, _______________.

                  e)       [ ] The Hours Method is used to determine service
                           before _________________________, _______________.

         Vesting Service is modified as follows:

         3)       [ ] Service before ________________________, _______________.

                  a)       [ ] is the total of an Employee's countable service
                           with us, expressed in whole years and fractional
                           parts of a year (counting a partial month as a
                           complete month).

                  b)       [ ] shall be determined under the provisions of the
                           Plan in effect on the day before that date.

         4)       [ ] Service before ________________________, _______________
                  shall not be counted.

         5)       [ ] Service before an Employee attains age ________ shall not
                  be counted. (If the Hours Method is used, service during the
                  Vesting Service Period in which he attains this age shall not
                  be excluded because of this item.)

                                       23
<PAGE>   26
a)       Optional frequency for withdrawal of Voluntary Contributions. If
         selected, check (i) or (ii).

2)       Optional 401 (k) hardship withdrawal.

a)       Optional restriction on hardship withdrawal.

3)       Optional withdrawal after age 59 1/2.

a)       Optional frequency for withdrawal after age 59 1/2. If selected, check
         (i) or (ii).

4)       Optional withdrawal after 5 years as an Active Member. Must have
         Matching Contributions that are not qualified, Additional Contributions
         or Discretionary Contributions. If selected, check (a), (b), (c) or
         (d).

--------------------------------------------------------------------------------

W.    WITHDRAWAL BENEFITS

      1)    A Member may withdraw, in a single sum, any part of his Vested
            Account resulting from Voluntary Contributions. A Member may make
            only two such withdrawals in any twelve-month period, unless
            otherwise specified in (a) below.

            a)    [ ] A Member may make

                  i)    [ ] such a withdrawal at any time.

                  ii)   [ ] only _______________ such withdrawal(s) in any
                        twelve-month period.

      2)    [X] Unless otherwise specified in (a) below, a Member may withdraw
            any part of his Vested Account which does not result from Voluntary
            Contributions, Qualified Matching Contributions or Qualified
            Nonelective Contributions in the event of undue financial hardship.
            Withdrawals from the Member's Account resulting from Elective
            Deferral Contributions shall be limited to the amount of the
            Member's Elective Deferral Contributions (and earnings thereon
            accrued as of December 31, 1988). The withdrawal is subject to the
            provisions of Plan Section 5.05.

            a)    [ ] Such withdrawal shall be limited to the amount of the
                  Member's Elective Deferral Contributions (and earnings thereon
                  accrued as of December 31, 1988).

      3)    [X] A Member may withdraw any part of his Vested Account which does
            not result from Voluntary Contributions at any time after he attains
            age 59 1/2. A Member may make only two such withdrawals in any
            twelve-month period, unless otherwise specified in (a) below.

            a)    [ ] A Member may make

                  i)    [ ] such a withdrawal at any time.

                  ii)   [ ] only _______________ such withdrawal(s) in any
                        twelve-month period.

      4)    [ ] A percentage of a Member's Vested Account which does not result
            from Voluntary Contributions, Elective Deferral Contributions,
            Qualified Matching Contributions or Qualified Nonelective
            Contributions may be withdrawn after he has been an Active Member
            for at least five (5) years.

            The percentage which may be withdrawn is

            a)    [ ] 25%

            b)    [ ] 25% or 50%, as he requests.

                                       24
<PAGE>   27
1)    Normal Retirement Age may not exceed any mandatory retirement age imposed
      by you on your Employees. Must use (a) or (b) if mandatory age is younger
      than 65.

a)    Optional Normal Retirement Age. Fill in age younger than 65.

b)    Optional Normal Retirement Age. Select (i) or (ii) and fill in up to age
      65.

i)    Fill in up to 5 years.

ii)   Fill in up to 5 years.

iii)  Optional maximum Normal Retirement Age if (b) is selected. Fill in up to
      age 70.

--------------------------------------------------------------------------------

            c)    [ ] 25%, 50% or 75%, as he requests.

            d)    [ ] any percentage up to ________%, as he requests.

            A Member shall not make another withdrawal under this item until he
            has been an Active Member for at least five (5) years since his last
            withdrawal.

      Note: Withdrawals are subject to the qualified election procedures of
      Article VI.

X.    RETIREMENT AND THE START OF BENEFITS

      1)    NORMAL RETIREMENT AGE is the age at which the Member's Account shall
            become nonforfeitable if he is an Employee. A Member's Normal
            Retirement Age is age 65, unless otherwise specified in (a) or (b)
            below.

            a)    [ ] Age ________.

            b)    [X] The older of age 60 or his age on the

                  i)    [X] date 4 years after the first day of the Plan Year in
                        which his Entry Date occurred.

                  ii)   [ ] earlier of the date ________ years after his Hire
                        Date or the date 5 years after the first day of the Plan
                        Year in which his Entry Date occurred.

                  iii)  [ ] A Member's Normal Retirement Age shall not be older
                        than age ________.

            c)    [ ] A Member's Normal Retirement Age shall not be older than
                  normal retirement age under the Plan on the day before any
                  change in the Normal Retirement Age provisions, if he was a
                  Member on such date.

                                       25
<PAGE>   28
2)    Select (a) or (b).

a)    If selected, check and complete any requirements below which apply. An
      Employee's Account is 100% vested when the requirements are met.

3)    Optional modification of the start of benefits. Check (a) or (b).

i)    Optional. Restriction does not apply to Elective Deferral Contributions.

b)    If selected, check (i) or (ii).

--------------------------------------------------------------------------------

      2)    EARLY RETIREMENT DATE

            a)    [X] Early Retirement Date is the first day of the month before
                  a Member's Normal Retirement Date which he selects for the
                  start of retirement benefits. This day shall be on or after
                  the date the Member ceases to be an Employee and the date the
                  following requirement(s) are met:

                  i)    [X] He is age 55.

                  ii)   [ ] He has ________ years of Vesting Service.

                  iii)  [ ] He is within ________ years of Normal Retirement
                        Date.

                  iv)   [X] He has been an Active Member 4 years.

            b)    [ ] Early retirement is not permitted.

      3)    Section 5.03 permits an Employee to elect to start benefits after he
            ceases to be an Employee. The start of benefits is modified as
            follows:

            a)    [ ] Benefit payments from that part of a Member's Vested
                  Account resulting from our Contributions shall not begin
                  before the Member retires, becomes Totally Disabled or dies. A
                  small Vested Account may be paid earlier in a single sum. (See
                  Plan Section 9.10.)

                  i)    [ ] Such restriction shall not apply to that part of a
                        Member's Vested Account resulting from Elective Deferral
                        Contributions.

            b)    [ ] The Member may elect to receive his Member Contributions
                  in a single sum. Any other benefit payment under Plan Section
                  5.03 shall not begin before the Member has ceased to be an
                  Employee for a period of time. Payment of a small Vested
                  Account will also be delayed. (See Plan Section 9.10.) The
                  period of time is

                  i)    [ ] ________ month(s).

                  ii)   [ ] ________ year(s).

                                       26
<PAGE>   29
1)   If selected, check (a) or (b).

--------------------------------------------------------------------------------

Y.    FORMS OF DISTRIBUTION

      1)    [ ] A Member may not receive a single sum payment of that part of
            his Vested Account resulting from our Contributions

            a)    [ ] at any time.

            b)    [ ] before the Member retires or becomes Totally Disabled.

            A small Vested Account may be paid in a single sum. (See Plan
            Section 9.10.)

                                       27
<PAGE>   30
Z.       ADOPTING EMPLOYERS

         Note: The Code requires minimum coverage requirements for retirement
         plans of Controlled Groups and Affiliated Service Groups. If you are a
         member of such a group, you may use this item to identify the other
         employers in the group whose Employees may become Members. If an
         employer listed below does not evidence the establishment of the
         separate plan or the agreement to participate in writing, you and the
         other Adopting Employers must contribute on behalf of its Employees who
         are Active Members.

         Affiliated firms which are not a part of a Controlled Group or
         Affiliated Service Group may also become Adopting Employers.

         1)       Separate Plans or Single Plan.

                  a)       Separate Plans. Adopting Employers may establish a
                           separate plan for the exclusive benefit of their
                           Employees. The establishment of an Adopting
                           Employer's separate plan shall be evidenced in
                           writing according to the provisions of Plan Section
                           2.03.

                           i)       [ ] All of the Adopting Employers listed
                                    below establish a separate plan.

                           ii)      [ ] The Adopting Employers listed in
                                    ____________ below establish a separate
                                    plan.

                  b)       Single Plan. Adopting Employers may participate with
                           us in a single plan. An Adopting Employer's agreement
                           to participate in this Plan shall be evidenced in
                           writing according to the provisions of Plan Section
                           2.04.

                           i)       [ ] All of the Adopting Employers listed
                                    below participate with us in a single plan.

                           ii)      [ ] The Adopting Employers listed in
                                    _______________ below participate with us in
                                    a single plan.

         2)       The Adopting Employers are:

                  a)       Name:
                                ------------------------------------------------

                           Address:
                                     -------------------------------------------

                                     -------------------------------------------

                                     -------------------------------------------

                           Phone No.:
                                     ---------------------------

                           EIN No. (If Separate Plans):
                                                       -------------------

                           Plan No. (If Separate Plans):
                                                        ------------------

                           Date of Adoption or Participation:            ,
                                                             ------------  -----

                           Fiscal Year End:                Executed:     ,
                                           ---------------          -----  -----
                                           (month and day)

                                             By
                                               ---------------------------------
                                                          (signature)

                                             -----------------------------------
                                                            (title)

                                       28
<PAGE>   31
                  b)       Name:
                                ------------------------------------------------

                           Address:
                                     -------------------------------------------

                                     -------------------------------------------

                                     -------------------------------------------

                           Phone No.:
                                     ---------------------------

                           EIN No. (If Separate Plans):
                                                       -------------------

                           Plan No. (If Separate Plans):
                                                        ------------------

                           Date of Adoption or Participation:            ,
                                                             ------------  -----

                           Fiscal Year End:                Executed:     ,
                                           ---------------          -----  -----
                                           (month and day)

                                             By
                                               ---------------------------------
                                                          (signature)

                                             -----------------------------------
                                                            (title)

                  c)       Name:
                                ------------------------------------------------

                           Address:
                                     -------------------------------------------

                                     -------------------------------------------

                                     -------------------------------------------

                           Phone No.:
                                     ---------------------------

                           EIN No. (If Separate Plans):
                                                       -------------------

                           Plan No. (If Separate Plans):
                                                        ------------------

                           Date of Adoption or Participation:            ,
                                                             ------------  -----

                           Fiscal Year End:                Executed:     ,
                                           ---------------          -----  -----
                                           (month and day)

                                             By
                                               ---------------------------------
                                                          (signature)

                                             -----------------------------------
                                                            (title)

                                       29
<PAGE>   32
                  d)       Name:
                                ------------------------------------------------

                           Address:
                                     -------------------------------------------

                                     -------------------------------------------

                                     -------------------------------------------

                           Phone No.:
                                     ---------------------------

                           EIN No. (If Separate Plans):
                                                       -------------------

                           Plan No. (If Separate Plans):
                                                        ------------------

                           Date of Adoption or Participation:            ,
                                                             ------------  -----

                           Fiscal Year End:                Executed:     ,
                                           ---------------          -----  -----
                                           (month and day)

                                             By
                                               ---------------------------------
                                                          (signature)

                                             -----------------------------------
                                                            (title)

                  e)       Name:
                                ------------------------------------------------

                           Address:
                                     -------------------------------------------

                                     -------------------------------------------

                                     -------------------------------------------

                           Phone No.:
                                     ---------------------------

                           EIN No. (If Separate Plans):
                                                       -------------------

                           Plan No. (If Separate Plans):
                                                        ------------------

                           Date of Adoption or Participation:            ,
                                                             ------------  -----

                           Fiscal Year End:                Executed:     ,
                                           ---------------          -----  -----
                                           (month and day)

                                             By
                                               ---------------------------------
                                                          (signature)

                                             -----------------------------------
                                                            (title)

                                       30
<PAGE>   33
                  f)       Name:
                                ------------------------------------------------

                           Address:
                                     -------------------------------------------

                                     -------------------------------------------

                                     -------------------------------------------

                           Phone No.:
                                     ---------------------------

                           EIN No. (If Separate Plans):
                                                       -------------------

                           Plan No. (If Separate Plans):
                                                        ------------------

                           Date of Adoption or Participation:            ,
                                                             ------------  -----

                           Fiscal Year End:                Executed:     ,
                                           ---------------          -----  -----
                                           (month and day)

                                             By
                                               ---------------------------------
                                                          (signature)

                                             -----------------------------------
                                                            (title)

                  g)       Name:
                                ------------------------------------------------

                           Address:
                                     -------------------------------------------

                                     -------------------------------------------

                                     -------------------------------------------

                           Phone No.:
                                     ---------------------------

                           EIN No. (If Separate Plans):
                                                       -------------------

                           Plan No. (If Separate Plans):
                                                        ------------------

                           Date of Adoption or Participation:            ,
                                                             ------------  -----

                           Fiscal Year End:                Executed:     ,
                                           ---------------          -----  -----
                                           (month and day)

                                             By
                                               ---------------------------------
                                                          (signature)

                                             -----------------------------------
                                                            (title)

                                       31
<PAGE>   34
                  h)       Name:
                                ------------------------------------------------

                           Address:
                                     -------------------------------------------

                                     -------------------------------------------

                                     -------------------------------------------

                           Phone No.:
                                     ---------------------------

                           EIN No. (If Separate Plans):
                                                       -------------------

                           Plan No. (If Separate Plans):
                                                        ------------------

                           Date of Adoption or Participation:            ,
                                                             ------------  -----

                           Fiscal Year End:                Executed:     ,
                                           ---------------          -----  -----
                                           (month and day)

                                             By
                                               ---------------------------------
                                                          (signature)

                                             -----------------------------------
                                                            (title)

                                       32
<PAGE>   35
         3)       These Adopting Employers had Prior Plans:

<TABLE>
<CAPTION>
                                                                                        DATE PRIOR PLAN
                                        NAME                                            WAS ESTABLISHED
<S>                                                               <C>
                  a)
                      ----------------------------------------    ---------------------------------------------------------

                  b)
                      ----------------------------------------    ---------------------------------------------------------

                  c)
                      ----------------------------------------    ---------------------------------------------------------

                  d)
                      ----------------------------------------    ---------------------------------------------------------

                  e)
                      ----------------------------------------    ---------------------------------------------------------

                  f)
                      ----------------------------------------    ---------------------------------------------------------

                  g)
                      ----------------------------------------    ---------------------------------------------------------

                  h)
                      ----------------------------------------    ---------------------------------------------------------
</TABLE>

Note: If (1)(b)(i) or (ii) above is selected, the provisions of Plan Section
9.02 shall apply in the case of the merger of this Plan with any Prior Plan of
an Adopting Employer participating with us in a single plan.

                                       33
<PAGE>   36
         4)       These Adopting Employers have waived the following entry
                  requirements for their Employees who are Eligible Employees on
                  the date specified below. (Your selections in Item K(4) apply
                  only to the primary Employer in item B.)

<TABLE>
<CAPTION>
                                                                  AGE                 SERVICE
                                     NAME                     REQUIREMENT           REQUIREMENT               DATE
<S>                                                          <C>                   <C>             <C>
                  a)                                              [ ]                  [ ]         ---------------------------------
                      ---------------------------------

                  b)                                              [ ]                  [ ]         ---------------------------------
                      ---------------------------------

                  c)                                              [ ]                  [ ]         ---------------------------------
                      ---------------------------------

                  d)                                              [ ]                  [ ]         ---------------------------------
                      ---------------------------------

                  e)                                              [ ]                  [ ]         ---------------------------------
                      ---------------------------------

                  f)                                              [ ]                  [ ]         ---------------------------------
                      ---------------------------------

                  g)                                              [ ]                  [ ]         ---------------------------------
                      ---------------------------------

                  h)                                              [ ]                  [ ]         ---------------------------------
                      ---------------------------------
</TABLE>

By executing this Adoption Agreement, we, the Employer, adopt "The Principal
Financial Group Prototype for Savings Plans" for the exclusive benefit of our
employees. Our selections and specifications contained in this Adoption
Agreement and the terms, provisions and conditions provided in The Principal
Financial Group Prototype Basic Savings Plan constitute our PLAN. No other basic
plan may be used with this Adoption Agreement.

It is understood that Principal Life Insurance Company is not a party to our
Plan and shall not be responsible for any tax or legal aspects of our Plan. We
assume responsibility for these matters. We acknowledge that we have counseled,
to the extent necessary, with selected legal and tax advisors. The obligations
of Principal Life Insurance Company shall be governed solely by the provisions
of its contracts and policies. Principal Life Insurance Company shall not be
required to look into any action taken by the Plan Administrator, Named
Fiduciary, Trustee or us and shall be fully protected in taking, permitting or
omitting any action on the basis of our actions. Principal Life Insurance
Company shall incur no liability or responsibility for carrying out actions as
directed by the Plan Administrator, Named Fiduciary, Trustee or us.

                                       34
<PAGE>   37
         This Plan is an important legal document. It may not fit your
         situation. You will want to consult with your lawyer on whether it does
         or not and on its tax and legal implications, for which neither
         Principal Life Insurance Company nor its agents can assume
         responsibility.

         Failure to properly fill out this Adoption Agreement may result in
         disqualification of this Plan. Principal Life Insurance Company will
         inform you of any amendments made to the Plan or of the abandonment of
         the Plan. The address of Principal Life Insurance Company is 711 High
         Street, Des Moines, Iowa 50392-0001. When you first adopt the
         prototype, The Principal will assign a contact person and give you a
         toll-free number. If you have not been assigned a contact person, call
         1-800-543-4015, Extension 75397, for assistance.

         The opinion letter issued by the National Office of the Internal
         Revenue Service applies to the prototype form. You may not rely on it
         as evidence that your Plan is qualified under Code Section 401. In
         order to obtain reliance with respect to the qualification of your
         plan, you must apply to your Key District Office for a determination
         letter.

                            (Complete in black ink.)

                  This Adoption Agreement is executed    June 9     ,   2000  .
                                                     ---------------  --------
                                                     (month and day)

                                    FOR THE EMPLOYER

                                    By          /s/ R J Knittel
                                    --------------------------------------------
                                                  (signature)

                                      Vice President & Chief Financial Officer
                                    --------------------------------------------
                                                    (title)

                                    [ ] By my signature above, I hereby execute
                                    this Adoption Agreement on behalf of each
                                    Adopting Employer identified in Item Z.

                                       35
<PAGE>   38
<TABLE>
<S>                                                              <C>
FOR THE TRUSTEE                                                  FOR THE TRUSTEE

By   /s/ R J Knittel                                             By   /s/ Miriam Watson
     -----------------------------------------------------            --------------------------------------
                        (signature)                                                      (signature)
     Title:  Vice President & Chief Financial Officer                 Title:  Human Resources Manager
             ---------------------------------------------                    ------------------------------

     Address:  2381 Bering Drive                                      Address:  2381 Bering Drive
               -------------------------------------------                      ----------------------------

     San Jose, CA 95131-1125                                          San Jose, CA 95131-1125
     -----------------------------------------------------            --------------------------------------

     -----------------------------------------------------            --------------------------------------

FOR THE TRUSTEE                                                  FOR THE TRUSTEE
By   /s/ M J Visneski                                            By
     -----------------------------------------------------            --------------------------------------
                        (signature)                                                      (signature)
     Title:  Corporate Controller                                     Title:
             ---------------------------------------------                    ------------------------------

     Address:  2381 Bering Drive                                      Address:
               -------------------------------------------                      ----------------------------

     San Jose, CA 95131-1125
     -----------------------------------------------------            --------------------------------------

     -----------------------------------------------------            --------------------------------------

FOR THE TRUSTEE                                                  FOR THE TRUSTEE
By                                                               By
     -----------------------------------------------------            --------------------------------------
                        (signature)                                                      (signature)
     Title:                                                           Title:
             ---------------------------------------------                    ------------------------------

     Address:                                                         Address:
               -------------------------------------------                      ----------------------------

     -----------------------------------------------------            --------------------------------------

     -----------------------------------------------------            --------------------------------------
</TABLE>

Acknowledgement by the Named Fiduciary (if other than the Employer or Trustee).

                       By
                         ---------------------------------
                                   (signature)

                         Annuity Contract No.: GA
                                                 ------------------------------

                                       36
<PAGE>   39
Item R(3)(b) The method used to limit Annual Additions to the Maximum
Permissible Amount:

Item R(4) The method used to satisfy the 1.0 limitation of Code Section 415:

                                       37
<PAGE>   40
Item R(9) The method used to meet the minimum contribution and allocation
requirements in Years when this is a Top-heavy Plan:

                                       38
<PAGE>   41
                                                                  PRINCIPAL LIFE
                                                               INSURANCE COMPANY
                                                     DES MOINES, LOWA 50392-0001
<PAGE>   42
              UNILATERAL AMENDMENT - MODEL AMENDMENT TO COMPLY WITH
          SECTION 401(a)(17) OF THE INTERNAL REVENUE CODE AS AMENDED BY
                  THE OMNIBUS BUDGET RECONCILIATION ACT OF 1993

Principal Mutual Life Insurance Company hereby amends, effective as of the first
day of January 1, 1994, the following prototype plans and by such amendment,
amends each retirement plan set forth on any such prototype by an adopting
employer:

THE PRINCIPAL FINANCIAL GROUP PROTOTYPE FOR:

<TABLE>
<S>                                         <C>                              <C>               <C>
Profit Sharing Plans - Plus                 Letter Serial No.: D347613B      Plan No.: 003     Basic Plan No.: 01
Profit Sharing Plans - Standardized         Letter Serial No.: D247614B      Plan No.: 004     Basic Plan No.: 01
Savings Plans - Plus                        Letter Serial No.: D347609B      Plan No.: 001     Basic Plan No.: 03
Savings Plans - Standardized                Letter Serial No.: D247610B      Plan No.: 002     Basic Plan No.: 03
Money Purchase Plans - Plus                 Letter Serial No.: D347611B      Plan No.: 001     Basic Plan No.: 01
Money Purchase Plans - Standardized         Letter Serial No.: D247612B      Plan No.: 002     Basic Plan No.: 01
Target Plans - Plus                         Letter Serial No.: D360921A      Plan No.: 005     Basic Plan No.: 01
Target Plans - Standardized                 Letter Serial No.: D260922A      Plan No.: 006     Basic Plan No.: 01
</TABLE>

ARTICLE I: The following is added to the definition of PAY:

In addition to other applicable limitations set forth in the plan, and
notwithstanding any other provision of the plan to the contrary, for plan years
beginning on or after January 1, 1994, the annual pay of each employee taken
into account under the plan shall not exceed the OBRA `93 annual pay limit. The
OBRA '93 annual pay limit is $150,000, as adjusted by the Commissioner for
increases in the cost of living in accordance with section 401(a)(17)(B) of the
Internal Revenue Code. The cost-of-living adjustment in effect for a calendar
year applies to any period, not exceeding 12 months, over which pay is
determined (determination period) beginning in such calendar year. If a
determination period consists of fewer than 12 months, the OBRA `93 annual pay
limit will be multiplied by a fraction, the numerator of which is the number of
months in the determination period, and the denominator of which is 12.

For plan years beginning on or after January 1, 1994, any reference in this plan
to the limitation under section 401(a)(17) of the Code shall mean the OBRA `93
annual pay limit set forth in this provision.

If pay for any prior determination period is taken into account in determining
an employee's benefits accruing In the current plan year, the pay for that prior
determination period is subject to the OBRA `93 annual pay limit in effect for
that prior determination period. For this purpose, for determination periods
beginning before the first day of the first plan year beginning on or after
January 1, 1994, the OBRA `93 annual pay limit is $150,000.

Executed by PRINCIPAL MUTUAL LIFE INSURANCE COMPANY on

               April 8             , 1994 by
-----------------------------------

         /s/ Roger Jacobsen
-----------------------------------
<PAGE>   43
              UNILATERAL AMENDMENT - MODEL AMENDMENT TO COMPLY WITH
                 SECTION 401(A)(31) OF THE INTERNAL REVENUE CODE
          AS ADDED BY THE UNEMPLOYMENT COMPENSATION AMENDMENTS OF 1992

Principal Mutual Life Insurance Company hereby amends, effective as of January
1, 1993, the following prototype plans and by such amendment, amends each
retirement plan set forth on any such prototype by an adopting employer:

The Principal Financial Group Prototype for:
<TABLE>
<S>                                              <C>                              <C>              <C>
Profit Sharing Plans - Plus                      Letter Serial No.: D347613B      Plan No.: 003    Basic Plan No.: 01
Profit Sharing Plans - Standardized              Letter Serial No.: D247614B      Plan No.: 004    Basic Plan No.: 01
Savings Plans - Plus                             Letter Serial No.: D347609B      Plan No.: 001    Basic Plan No.: 03
Savings Plans - Standardized                     Letter Serial No.: D247610B      Plan No.: 002    Basic Plan No.: 03
Money Purchase Plans - Plus                      Letter Serial No.: D347611B      Plan No.: 001    Basic Plan No.: 01
Money Purchase Plans - Standardized              Letter Serial No.: D247612B      Plan No.: 002    Basic Plan No.: 01
Target Plans - Plus                              Letter Serial No.: D360921A      Plan No.: 005    Basic Plan No.: 01
Target Plans - Standardized                      Letter Serial No.: D260922A      Plan No.: 006    Basic Plan No.: 01
Defined Benefit Plans - Nonintegrated            Letter Serial No.: D359699A      Plan No.: 002    Basic Plan No.: 02
Defined Benefit Plans - Integrated               Letter Serial No.: D359698A      Plan No.: 001    Basic Plan No.: 02
</TABLE>

ARTICLE I: The following words and phrases are added to the DEFINITIONS section
of Article I:

Direct Rollover: A Direct Rollover is a payment by the Plan to the Eligible
Retirement Plan specified by the Distributee.

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

Eligible Retirement Plan: Eligible Retirement Plan is an individual retirement
account described in section 408(a) of the Code, an individual retirement
annuity described in section 408(b) of the Code, an annuity plan described in
section 403(a) of the Code, or a qualified trust described in section 401(a) of
the Code, that accepts the Distributee's Eligible Rollover Distribution.
However, in the case of an Eligible Rollover Distribution to the surviving
spouse, an Eligible Retirement Plan is an individual retirement account or
individual retirement annuity.

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 section 401(a)(9) of the Code; and the portion of any
distribution that is not includible in gross income (determined without regard
to the exclusion for net unrealized appreciation with respect to employer
securities).

ARTICLE IX: The following section is added as SECTION 9.01A - DIRECT ROLLOVERS:

This section applies to distributions made on or after January 1, 1993.
Notwithstanding any provision of the Plan to the contrary that would otherwise
limit a Distributee's election under this section, a Distributee may elect, at
the time and in the manner prescribed by the 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.

Executed by PRINCIPAL MUTUAL LIFE INSURANCE

COMPANY on      January 11    , 1993 by
           -------------------

                               /s/ Owen M. Westman
                  --------------------------------------------
                                     Officer
<PAGE>   44
ADDENDUM TO: SYNAPTICS, INC. 401(k) SAVINGS PLAN

GA 4-43003

The following benefits were included in your prior plan and are being removed as
of the amendment/restatement date. According to Section 411(d)(6) of the
Internal Revenue Code benefits listed below shall be available to all member
account balances accrued prior to this date. This addendum is for informational
purposes only and not a part of the plan document.

<TABLE>
<CAPTION>
        PROTECTED BENEFIT           PRIOR PLAN EFFECTIVE DATE             PRIOR PLAN                     AMENDMENT/RESTATEMENT
                                                                    ARTICLE; SECTION; PAGE                   EFFECTIVE DATE
        -----------------           -------------------------       ----------------------               ---------------------
<S>                                 <C>                             <C>                                  <C>
Normal Retirement is the DATE                7-1-91                   Adoption Agreement                         7-1-00
member attains normal retirement
age                                                                 Article V, Sec 5.01b,
                                                                             pg14

Payout in Installments                       7-1-91                          Plan                                7-1-00

                                                                     Article VI, sec 6.02

In Kind distributions- ability to            7-1-91                          Plan                                7-1-00
distribute retirement funds in a
manner other than cash                                               Article VI, sec 6.03

Immediate payout of QDROs                    7-1-91                          Plan                                7-1-00

                                                                     Article VI, sec 6.07
</TABLE>

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00029-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00029-of-00352.parquet"}]]